ESG, as a framework encompassing environmental, social and governance aspects of business operations, is increasingly emerging as a practical market requirement rather than merely a concept associated with large corporations. In business relations with partners from the European Union, as well as in cooperation with larger domestic companies, micro, small and medium-sized enterprises (MSMEs) in Bosnia and Herzegovina are increasingly encountering inquiries and criteria related to energy and resource consumption, waste management, working conditions, occupational safety, transparency, ethics and risk management practices. For MSMEs, this means that a higher level of organization of data and procedures is expected, as ESG is becoming part of supplier assessment and long-term business reliability.
In practice, ESG requirements most often arise through supply chains. Larger buyers and international partners request basic information and evidence that suppliers manage key risks and have at least minimal internal policies and records in place. This does not necessarily imply formal reporting in complex formats, but it does require companies to clearly demonstrate how they monitor energy consumption, manage occupational health and safety, regulate labour relations, and make and implement decisions in a transparent and responsible manner. Companies that can respond effectively to such requests find it easier to enter long-term contracts and strengthen their reputation as reliable partners, while those without established systems often lose time gathering information ad hoc or encounter obstacles in negotiations.
For MSMEs, the most practical approach is to view ESG as a series of incremental steps introduced gradually. The starting point is usually identifying what is most relevant for the sector and market in which the company operates, followed by assigning responsibilities within the organization and establishing a minimal set of policies and records. After that, simple indicators can be introduced and monitored year after year so that results can be presented consistently to buyers, partners, or financial institutions. Such an approach reduces administrative burden and helps ESG become part of everyday management rather than a one-off activity.
MSMEs often face the practical challenge of translating ESG requirements into clear internal steps, particularly when time, staff, or experience for systematic data collection and procedural organization are limited. For this reason, initiatives that provide companies with access to structured resources and targeted support for digital and green transition are particularly relevant. Through such activities, companies gain a clearer understanding of what is expected in practice, which topics are most relevant for their sector, and how to organize the core elements of ESG implementation in a way that is applicable in day-to-day operations.
One example of such support is the ESG Academy launched by the Chamber of Commerce of the Republic of Srpska within the DiGreenSMEs project, with financial support from the European Union and the Federal Republic of Germany. The programme focuses on the practical understanding of the ESG framework and its application in business operations, with expert support from KPMG BiH, with the aim of helping MSMEs establish the basic policies, procedures and indicators that are increasingly required within supply chains. More information about the ESG Academy and related activities is available on the website of the Chamber of Commerce of the Republic of Srpska: komorars.ba.
In addition, further advisory support for companies is available through the Responsible Business Hub Bosnia and Herzegovina (RBH BiH), managed by the Foreign Trade Chamber of Bosnia and Herzegovina. This includes a network of ESG consultants that allows companies to select expert support according to clearly defined areas of expertise and specific company needs. More information about the RBH BiH consultant network is available at: www.zelenaekonomija-rbhbih.komorabih.ba.
