Green mission – research and analysis objectives
We present our first analysis of sustainability reports published by companies operating on the domestic market, aimed at identifying current reporting practices and potential areas for improvement.
Sustainability reporting represents a significant strategic tool for companies, enabling them to present their environmental, social, and governance (ESG) performance and efforts to their stakeholders. A sustainability report is often the first step that leads domestic companies toward identifying their own impact and, consequently, establishing a sustainability strategy.
According to the Accounting Law in Serbia, only about 220 companies are currently required to report on non-financial indicators. However, this law does not define a specific structure or methodology that must be followed.
On the other hand, starting from 2024, with the implementation of the EU Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS), more than 50,000 companies will be required to report on sustainability, including those outside the EU that have subsidiaries operating within the EU or are listed on EU-regulated markets.
The aim of the CSRD is to increase transparency and accountability in business operations through the standardization of sustainability reporting, enabling stakeholders to access relevant data for making informed decisions. In this context, this analysis represents a key step in understanding the current sustainability reporting practices of companies in Serbia.
The focus of this research is on existing reporting practices, identifying key challenges, and uncovering opportunities for improvement. This is the first such overview conducted by KPMG Serbia and includes an analysis of various aspects of sustainability reports, including materiality assessments, stakeholder identification and engagement processes, compliance with reporting standards, analysis of goals related to environmental, social, and governance topics, alignment with the Sustainable Development Goals (SDGs), and greenhouse gas (GHG) emissions reporting practices.
