ESG Reporting Comes into Focus – Serbia Announces Legislative Amendments

The concept of non-financial, or ESG (Environmental, Social, Governance) reporting has gained increasing importance in the regulatory and business environment of the European Union in recent years. This trend began with the adoption of the Non-Financial Reporting Directive (NFRD), which required large companies to disclose information on the impact of their operations on the environment, society, human rights, and anti-corruption efforts. A further step in this process is represented by the Corporate Sustainability Reporting Directive (CSRD), which significantly expands companies’ obligations and introduces more detailed sustainability reporting standards.

A similar regulatory development is expected in Serbia. The Ministry of Finance has announced the preparation of new Accounting Law and Audit Law, aimed at aligning domestic legislation with European rules in the field of non-financial and sustainability reporting. According to statements from representatives of the Ministry of Finance, draft laws could be presented as early as during 2026, while consultations with the business community and professional public are addressing questions concerning the scope of companies that will be subject to reporting obligations, the standards to be applied, and the role of auditors in verifying sustainability reports.

In the meantime, the Serbian Chamber of Commerce has launched an ESG Library, a publicly accessible platform that gathers examples of sustainability reports and best practices from companies. The platform is intended for companies, investors, and financial institutions, with the aim of facilitating knowledge exchange and helping businesses better understand ESG standards and reporting models.

Although ESG reporting obligations in Serbia are not yet fully defined, it is clear that the regulatory framework is gradually evolving in the direction of European standards. For companies operating in international markets, cooperating with financial institutions, or forming part of international supply chains, issues of sustainability, transparency, and risk management are already becoming an important part of business strategy.

In this context, timely preparation for future ESG reporting obligations may represent a significant competitive advantage while also reducing regulatory and reputational risks in business operations.

Majstorović and Partners law firm provides legal support to companies in understanding and implementing ESG standards, as well as in preparing for upcoming regulatory requirements in the field of sustainability and non-financial reporting. For further information or legal advice regarding ESG regulation and the alignment of business operations with new rules, you may contact our team.