The introduction and implementation of ESG principles of sustainable business was the topic of one of the business meetings organized by the Embassy of Switzerland in Bosnia and Herzegovina (BiH) between Swiss companies in BiH, domestic companies operating on the Swiss and European markets, and various business development actors. ESG principles relate to the way of doing business and the impact that companies have on the environment and social surroundings.
Economic development is the focus of the Swiss Cooperation Program in BiH through support to businesses, strengthening the business ecosystem, and improving the professional skills of the workforce. At the same time, more than 100 companies with Swiss capital operate in BiH, from various sectors – from the textile, food, pharmaceutical, metal, and wood industries.
“We are noticing an interesting development, especially when it comes to small and medium-sized enterprises that come to BiH, invest here, and contribute to strengthening trade exchange, not only with Switzerland but also with other Western European countries. These companies bring not only capital but also knowledge, and they invest in a way that respects the principles of environmental protection, social responsibility, and responsible management. In order for these processes to be fully realized, an active role of the public sector and policymakers is also needed, through improving the legislative framework,” said the Swiss ambassador to BiH, Gabriele Derighetti.
Although ESG is not yet a mandatory standard in BiH, its application yields positive results. An example is a company from Zepce, which places its products on the foreign market.
“We have been doing this for eight years already. We started with partners in BiH eight years ago, and we ran the business from Switzerland. Only after four years were we able to have enough income and profit from that business to return and start our own production, and young people who started returning. I am not the only one, a trend of young people returning has started, they are the most important to create a good environment,” emphasizes Bojan Mandura, owner of the company Kuvet shoes d.o.o.
The agricultural potential of Krajina is also confirmed by a company from Buzim, which has become recognizable on the foreign market for the export of chestnuts. Business plans are adapted to demand.
“The demand for chestnuts in Switzerland and the European Union (EU) is growing year by year and forces us to import chestnuts from Turkey, we recently imported from Chile, but we are working to encourage local production and to plant that plantation,” says Amar Ljubijankic, manager of the company Vrganj promet d.o.o. Buzim.
Companies with Swiss capital also invest in the modernization of production through the application of ecological standards. An example is a company for high-fashion textile production that reduces waste through resource rationalization.
“In addition to classic embroidery, we can also apply various other techniques to the textile surface, soutache, sequins, known to us as glitter, and even laser cutting itself, which can enrich the embroidery, and the combination of these techniques makes each piece more complex,” explains Elma Memic, director of the company Forster Rohner Ilidza d.o.o.
The cooperation of the private sector with the academic community in the field of research encourages innovations aimed at climate change and sustainable development. Special focus is placed on transitioning businesses to circular and climate-neutral models. More aware of the green transition, citizens are changing their consumer habits.
“Recycling would be where we would try to take that huge amount of textile waste and process it into something that has a second life. It is necessary to invest money in building recycling plants, as well as in raising people’s awareness,” notes Edis Arifagic, director of the Office for Scientific Research at the Sarajevo School of Science and Technology (SSST) University.
The green transition in BiH is a demanding and increasingly significant process for improving business, especially in small and medium-sized companies. However, challenges remain – financial investments by companies are still modest as they primarily rely on their own resources. Lack of knowledge, expert support, and access to financial instruments are the main obstacles. Most of them do not offer green products and services, although there is interest, especially in the areas of sustainable business, artificial intelligence, and carbon neutrality.
“There is room where small measures can influence the improvement of energy and resource efficiency, which ultimately contributes to their better position in that supply chain with European suppliers as number 1,” specifies Ognjenka Lalovic, director of the Economy Sector of the Foreign Trade Chamber of BiH.
Caring for the environment and socially responsible behavior are no longer a choice but a necessity for a successful business. By applying these models, companies become more competitive on the global market. However, for stronger economic progress, political stability, legal certainty, and regulations aligned with market requirements are primarily needed. All this, along with constructive dialogue between the authorities and the business community.
“In BiH, it is still relatively difficult to realize large investments because the situation is not completely clear, whether it is state property or political tensions at the state level. On the other hand, we are recording interesting developments at the local and regional levels,” adds Ambassador Derighetti.
For BiH and the countries of the Western Balkans, regional cooperation and joint appearance on the global market are a development opportunity and a motive to reduce the increasingly massive departure of the population. Around 65.000 people of BiH origin live in Switzerland, which is why the role of the diaspora in the partnership relations of the two countries and with the Swiss business community is becoming increasingly significant. The business meetings of the Embassy of Switzerland are a platform for connecting investors, domestic companies, the academic community, and institutions, and contribute to a sustainable, responsible, and competitive business environment in BiH, Federalna writes.
