Sustainability has no alternative, but change is not easy.

Of the three ESG (Environmental, Social, and Governance) criteria, environmental protection criteria pose the biggest challenge for many companies because there are numerous factors that need attention on the path to more sustainable business practices. Among CO2 emissions, energy efficiency, water and air pollution, and waste management, perhaps the most crucial is a change in mindset.

Is sustainability the responsibility of companies?

According to the Eurobarometer survey, more than two-thirds of Europeans believe that climate change is a serious problem (77%), with Croatians expressing even greater concern (81%). When asked who is responsible for addressing climate-related issues, respondents almost equally attributed responsibility to national governments (56%), the European Union (56%), and companies (53%).

The situation is quite clear – companies will have to adopt a “greener” approach. The obligation to report on sustainability, which will come into effect for large corporations on January 1, 2024 (known as the CSRD obligation), will undoubtedly accelerate these changes.

Many companies do not view this obligation favorably, leading to the extension of initial reporting deadlines for certain groups of companies. However, in the long run, sustainable business practices will bring numerous benefits, such as favorable financing, increased productivity, better positioning to attract talent and quality suppliers, and cost savings.

Greenwashing is a punishable practice.

Last but not least, sustainability has been proven to contribute to better market positioning, which means a better opportunity for business growth by attracting new customers and achieving better pricing.

Communication in this context is a key factor for success, but companies often stumble upon greenwashing – a form of manipulation that uses “green PR” to create a false perception of their environmental responsibility.

For such practices, the European Union imposes severe penalties not only on companies but also on members of management bodies. Therefore, it is necessary to pay special attention to shaping communication and rely on expert and reliable partners in the process. The experiences of Dialog komunikacije agency and The Green Hub platform can be helpful in this regard.