Commitment to ESG strategies is key to attracting investment
Acknowledging the major efforts invested by companies in environmental, social, and governance (ESG) activities, AmCham partnered with management consulting firm Kearney to investigate the extent to which its member firms applied ESG principles and standards in the local context. The goal of this initiative was to recognize the top performers in this area, highlight best ESG practices in the Serbian market, and launch a discussion about the most common mistakes made by firms when implementing ESG strategies and ways to overcome them.
‘The findings of this survey point to the growing importance of sustainability amongst companies operating in Serbia. There has been a visible increase in the awareness of the importance of consistently implementing ESG strategies for attracting investment and growth, risk management, engagement with employees and clients, and making a positive impact on society. As many as 94 percent of the AmCham member companies surveyed recognize implementing an ESG strategy is very important to attracting investment. The survey has shown that, the larger the company, the greater the effort it invests in preparing and implementing its ESG strategy. Through their supply chains and local partnerships, these companies have a special responsibility to continue empowering small and medium-sized firms to implement ESG principles, which will help them become more competitive in the global market, attract sustainable investment, and use additional finance to their advantage’, said Ronald Seeliger, AmCham Second Vice President.
AmCham and Kearney awarded the 2023 ESG Champion title to IKEA Serbia, the company that has shown the most maturity in implementing ESG in the local market, after Kearney experts surveyed and interviewed interested AmCham member firms in a months-long study. IKEA stood out for the high organizational priority accorded to its ESG agenda and the clarity of its ESG strategy, put into effect through a concrete action plan that is well balanced across all three dimensions of ESG. Speaking at the award ceremony, Ekaterina Egorova, CEO of IKEA South East Europe, said: ‘It is an exceptional honour for us to have our commitment to environmental, social, and governance standards recognized in this way. At IKEA, sustainability is at the heart of all we do, and we are committed to initiating positive change throughout the world. This award reflects the effort we have invested and the passion of our employees and partners who have contributed to our ambition of creating a more sustainable future for many people.’
‘This is both a very important event and a key project for Kearney as it allows us to raise awareness of ESG issues and foster stakeholder dialogue. It is also especially important for us to use this initiative to provide feedback to many companies that would otherwise have had no opportunity to gain an insight into their ESG maturity. This is the first in a long line of events for us, and this initiative is a project we will continue to invest in, both in Serbia and elsewhere in the region. ESG is becoming a key issue for companies in Serbia, which is encouraging and may lead to significant progress. For instance, 69 percent of all companies surveyed believe an ESG strategy is a strategic priority, so that our ambition could be to reach levels seen in leading European markets, since there the figure reaches up to 90 percent. There could be some room for improvement, for instance, in the environmental dimension, where one-quarter of all companies surveyed monitor emissions throughout their supply chain, as do 40 percent of companies that report through CDP. The findings have shown that, across all three dimensions of ESG, large companies have been leading the change, with small and medium-sized enterprises slower in ESG transformation and implementation’, said Marko Derča, Partner and CEO at Kearney.
The award ceremony was followed by three panel discussions that brought together businesses to discuss the importance of developing green portfolios to promote global competitiveness, generational and cultural differences as opportunities for peak business performance, and best practices in sustainable governance.
