ZAGREB, 26 Nov (Hina) - Sustainable economic growth depends on smart investment in the green transition, which is driving Croatia's development and creating scope for profitable and socially and environmentally responsible business, speakers said at a conference organised by Hina on Tuesday.
The inaugural ESG conference "Green Croatia Hina - Sustainability and Corporate Governance" aims to share knowledge, experience and best practice in implementing environmental, social and governance (ESG) principles.
"We live in a time when financial systems can no longer be guided solely by profit; they must also deliver broader social and environmental benefits. Sustainable finance is becoming a key tool for building a future in which the economy replenishes rather than depletes resources, and business is not only profitable but responsible," said Anja Bagarić, state secretary at the Ministry of Environmental Protection and Green Transition.
She said investments were aimed not only at environmental protection but also at innovation and the long-term resilience of the economy, including energy-efficiency measures and support for the most vulnerable during the green transition.
Bagarić highlighted green public procurement as an important environmental instrument, enabling authorities to source goods, services and works with lower ecological impact, strengthen security of supply by reducing transport distances and support local producers.
Croatia's Social Climate Plan for 2026-32 allocates €1.68 billion for vulnerable households and micro-businesses.
Luka Balen, director of the Environmental Protection and Energy Efficiency Fund, said the government had identified the green transition as a top priority and was delivering it through projects, cross-sector cooperation, decarbonisation, emissions reduction, the rollout of renewables and more efficient circular waste management.
He said the ministry and the fund had this year published and implemented calls worth more than €600 million for citizens and businesses, in addition to some €500 million allocated in recent years for waste-management measures.
The conference also featured an interview with Ante Žigman, chairman of the board of the Croatian Financial Services Supervisory Agency (HANFA), on whether ESG disclosure guidelines had helped companies produce more reliable and robust reporting.
He said around 50 companies were covered by the 2024 reporting cycle and all had filed their statements. Of the 40 firms regulated by HANFA, 35 submitted reports without auditors' remarks. Companies benefit significantly, he added, particularly in dealings with suppliers and customers, especially European partners committed to sustainability standards.
Žigman said HANFA would introduce an award next year for the best sustainability report to encourage companies to make ESG disclosure part of their "way of life".
He also warned of cases of greenwashing, citing an example of a company claiming to sell "sustainable oil products" simply because it had purchased and preserved several hectares of forest. While regulatory oversight is vital, public awareness is also key to exposing such practices, he said.
Judita Župa Cuculić, senior adviser at the European Commission Representation in Croatia, delivered a lecture on the Omnibus package and the two-year postponement of sustainability reporting requirements for some large as well as medium-sized and small companies. She said the Commission was simplifying EU rules but "firmly keeping its green direction". The goal, she said, was to meet climate targets in a smart and balanced way and ensure the biggest polluters are required to report.
Hina director highlights media's importance in sustainability reporting
"Today, as the world faces deep climate, social and economic challenges, ESG principles are no longer a trend but a standard. Sustainability is the foundation of good governance, and transparency is the key measure of any organisation's credibility, public or private," said Hina director Siniša Kovačić.
In a context of rapid information flows, rising disinformation and growing pressure on the media, he underlined Hina's duty to provide citizens with credible content on issues shaping their lives, including sustainability and responsible management.
Kovačić noted that Hina launched its specialist portal Green Croatia in 2021. "Green Croatia does not seek to frighten its readers. It aims to warn, inform and educate them, to encourage rather than criticise with numerous examples of good practice."
Majda Tafra, chair of Hina's Steering Board, said the media not only observe social developments but also shape them, adding that this influence is not always used effectively to drive positive change in sustainability.
The sponsors of Hina's conference are the Croatian power utility HEP, the Croatian Chamber of Commerce, the Croatian Audit Chamber, Jadrolinija, JANAF, dm, Lidl, Petrol, OTP Bank and A1. The Environmental Protection and Energy Efficiency Fund is the conference partner.
