In recent years, there has been increasing discussion about sustainable business practices and integrating ESG principles into the business models of entrepreneurs and companies. While awareness of the importance of sustainability is growing, the implementation of ESG principles in Serbia is still in its developmental phase, with many entrepreneurs facing challenges in adapting to new market demands. As the global economy demands responsible business practices, the pressure on entrepreneurs to adopt sustainable practices is increasing, raising the question of accelerating the integration of ESG factors into business operations.
Although entrepreneurs in Serbia recognize the importance of sustainable business practices, implementing ESG principles remains challenging, particularly for small and medium-sized enterprises (SMEs) and traditional industries. Large companies, especially those involved in exports, are quicker to adopt these standards, while smaller entrepreneurs face obstacles such as a lack of expertise and high initial costs. The Chamber of Commerce and Industry of Serbia (PKS) plays a crucial role in advising entrepreneurs on ESG standards, organizing training sessions, and providing legal guidance. Despite recognizing the importance of ESG factors, further investment in specialization and capacity building is needed for more efficient implementation among entrepreneurs.
“One of the key steps has been the establishment of the Responsible Business Hub, a customer service initiative that helps entrepreneurs better understand EU market demands and align with ESG-related legislation. Through creating an ESG glossary, translation of key regulations, and training sessions for entrepreneurs, PKS provides essential support in understanding market demands and new legislative obligations,” explains Tanja Lindell from the Chamber of Commerce and Industry of Serbia.
IN FOCUS:
- Where Is The Global Climate Fight Leading Us?
- Choose the Right Path to the Electric Future
- Supporting the Development of Sustainable Solutions
Legislative changes in Serbia will undoubtedly move toward alignment with global and EU regulations regarding ESG standards. Although the current legislative framework is not sufficiently developed, there is a clear need to introduce new legal frameworks to ensure better environmental protection, enhance social responsibility, and improve governance practices. This includes aligning domestic legislation with human rights protection, working conditions, occupational safety, and better governance, particularly regarding transparency and ethical business practices.
Moreover, it is essential to educate entrepreneurs and provide adequate support for implementing ESG principles. Financial incentives and tax reliefs should also facilitate the transition to green business models. To accelerate the green transformation, appropriate subsidies, training, and advisory services must be provided to entrepreneurs, who should also be encouraged to find innovative solutions that will enable them to become more competitive in global markets.
“Entrepreneurs, especially those engaged in exports, recognize the need for sustainable business practices, although many still hesitate due to challenges such as high initial costs and lack of awareness. Sectors like energy, agriculture, manufacturing, and transportation show the greatest potential for green transformation, as the prerequisites for introducing green technologies are already in place“, adds Tanja Lindell.
Prepared by Milica Radičević
The story was published in the Energy portal Magazine RESPONSIBLE BUSINESS
