Sustainability reports obligatory for 50 firms in Croatia

From this year, businesses in Croatia are required to submit sustainability reports. The first round covers 50 companies.

The Ministry of Finance, which is responsible for sustainability reporting in Croatia, has published a list of companies obligated to send documentation for the business year starting on or after January 1, 2024.

The rule was introduced by the Accounting Act, within which the country transposed the European Union’s Corporate Sustainability Reporting Directive (CSRD) into the national legislation, the Croatian Chamber of Economy (HGK) said.

Reporting is mandatory for all large public interest companies including parent companies of large groups designated as public interest entities, together with credit institutions and insurance or reinsurance companies with over 500 employees.

Utilities are exempted from the obligation to report in the first round

The ministry published an indicative list of firms for the second round of sustainability reporting. They will report in 2026 for the business year starting from January 1, 2025. They were included based on the data for the last day of the business year 2023 while the final list will be based on the last day of 2024.

Public utilities are exempted from the obligation to report in the first round, but they are joining the group next year.

HGK has introduced the Croatian ESG rating as a model for sustainable practices evaluation

Of note, the European Commission adopted the European Sustainability Reporting Standards (ESRS) in August 2023. But the rules were criticized for “watering down” the sustainability reporting requirements and paving the way for greenwashing.

HGK organizes ESG Academy workshops to prepare companies for sustainability reporting. It has also prepared an ESG guide where the firms can find all the key information on ESG factors, key regulation and strategic guidelines, sustainable financing, and ESG rating.

In July last year, the chamber introduced the Croatian ESG rating as a model for evaluating sustainable activities in the corporate sector.

HGK has called on companies to use the tool as part of preparations for the sustainability reporting.