Sustainability in the Western Balkans: the Path to Transition

The Western Balkans ESG Foundation is a nonprofit organization established in April 2024 and based in Belgrade. As the first organization in the region focused on ESG (Environmental, Social, Governance) standards, its primary mission is to support the sustainable transition of the Western Balkan economies by integrating ESG principles into everyday business practices, public policies, and local communities. The Foundation also prioritizes improving transparency in reporting and education in sustainability, viewing these areas as key to the region’s long-term development.

The Foundation focuses on four key areas. Education is one of its main priorities. To raise awareness about ESG standards, the foundation develops various training platforms targeting the private and public sectors, media, universities, and civil society organizations. Its ESG e-learning platform ensures continuous education, while newsletters provide the latest information on these topics. Additionally, the Foundation supports the implementation of the European Green Deal and the development of expertise in specific ESG areas.

“Reporting is also a crucial part of the Foundation’s work. The organization provides expertise in non-financial and ESG reporting in line with national and EU regulations, helping businesses achieve transparency and compliance. We are also developing a certification system for professionals and companies, enabling them to measure ESG goals and demonstrate progress in implementing sustainable practices,” explains Milena Mićanović, co-founder and director of the Foundation.

Communication and networking are essential to the Foundation’s operations. Connecting ESG experts and communities through a unique ecosystem facilitates the exchange of experiences and best practices. To this end, the Foundation has organized webinars, workshops, and roundtables, with plans to host an annual ESG conference. It places a particular focus on supporting small and medium-sized enterprises (SMEs), young entrepreneurs, and women entrepreneurs. Networking and education are seen as key to accelerating the adoption of these standards in the region.

In the coming years, the Foundation plans to organize the first regional ESG conference, expand its ESG e-learning platform, and further develop the certification system. It also aims to broaden its network of partners and empower local communities through education and networking, thereby contributing to the sustainable transformation of the region. Through these activities, the Foundation seeks to become a key partner in the sustainable transformation of the Western Balkans, promoting standards that enable long-term economic, social, and environmental sustainability in the region.

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Challenges in Implementation

While the Foundation’s work focuses on promoting ESG principles, it faces significant challenges. The specific conditions in the region, where ESG standards are not yet deeply embedded, pose a considerable obstacle. The greatest challenge is the low level of awareness about the importance of these issues. In many cases, ESG principles and sustainability are not prioritized in business practices or policies, complicating their implementation.Many organizations, especially SMEs that form the backbone of the Western Balkan economies, lack the resources, knowledge, or technical support needed to align with ESG requirements.

“Regulatory challenges also play a major role. While countries in the region formally aspire to EU membership, the implementation of legislative frameworks related to ESG and sustainability often lags, slowing progress toward the European Green Deal goals. There are also barriers to legislative alignment, and a lack of collaboration between the private sector, public institutions, civil society, and academia makes collective work on ESG topics difficult. Resistance to change, whether due to a lack of information or fear of new costs, remains a challenge for the Foundation as it strives to accelerate the adoption of sustainable practices,” Mićanović emphasizes.

Prepared by Milica Radičević