Project “IOTOJSRH” is implemented within the framework of the National Recovery and Resilience Plan 2021–2026 and is financed by European Union funds through the NextGenerationEU instrument.
The seminar was hosted by the Athens University of Economics and Business, and the lecture was led by Professor Sandra Cohen. Ana Škorić, a project associate, attended the seminar online.
The seminar began by emphasizing the importance of state and public institutions in promoting sustainable development through regulatory changes. Their role is manifested across three key areas: managing financial resources aimed at supporting sustainable development initiatives, shaping policies that contribute to sustainable development, and providing public services that encourage solutions to environmental and social challenges while simultaneously stimulating economic growth.
Various forms of sustainability-related reporting were also presented. It was explained that sustainability reporting represents a broader framework encompassing several specific types of reporting, such as SDG reporting and environmental reporting. The concepts of gender and green budgeting, which play an important role in public sector operations, were particularly highlighted.
Furthermore, the importance of accounting in the field of sustainability was emphasized. It was noted that the current focus is heavily placed on reporting itself, while less attention is paid to linking sustainability with accounting data. Yet, it is precisely this data that can provide the high-quality, comparable information needed to monitor sustainable development goals and connect financial and non-financial indicators.
The seminar also discussed the first public sector sustainability standard published by the International Public Sector Accounting Standards Board (IPSASB SRS 1). This standard focuses on disclosing information regarding climate-related risks and opportunities associated with the activities and operations of public sector entities, and it is largely aligned with the IFRS sustainability standards.
It was explained that reporting under IPSASB SRS 1 is based on four key pillars: governance, strategy, risk management, and metrics and targets. The concept of double materiality was also explained, which includes financial materiality (the outside-in approach) and impact materiality (the inside-out approach).
Special attention was directed toward the connection between financial statements and sustainability-related disclosures. It was pointed out that linking financial and non-financial information contributes to higher quality and more credible reporting, as well as a better understanding of how sustainability factors impact financial results. Additionally, it was emphasized that, in practice, numerous challenges exist in achieving this connectivity, primarily due to the limitations of accounting standards and the sheer complexity of sustainability data.
Associate Professor Martina Dragija Kostić, PhD, participated in the 55th EBES (Eurasia Business and Economics Society) Conference held in Budapest from April 16 to 18, 2026. On this occasion, she presented a scientific paper providing a comprehensive insight into the evolution of non-financial and sustainability reporting in the public sector:
"Hybrid Analysis of Sustainability Reporting Trends in the Public Sector: A Systematic Review with Focus on State-Owned Enterprises"
The paper, co-authored with Full Professor Ivana Dražić Lutilsky, PhD, employs a hybrid quantitative and qualitative analysis of literature related to non-financial and sustainability reporting in the public sector. The qualitative research specifically focuses on State-Owned Enterprises (SOEs), which, due to their "hybrid" nature, must simultaneously pursue profitability and fulfill social objectives.
Hybrid Methodology: The study combines quantitative bibliometric analysis with a qualitative Systematic Literature Review (SLR) of relevant articles from the Web of Science and Scopus databases for the period 2014–2026.
Regulatory Impact: The paper analyzes the effects of the 2022 Corporate Sustainability Reporting Directive (CSRD) and, for the first time, includes the implications of the 2025 EU Omnibus package.
Scientific "Boom": Bibliometric analysis of a dataset containing 169 articles shows an exponential growth in research interest, reaching a record peak of 41 published papers in 2025.
Drivers and Barriers: While legal obligations (such as the CSRD) act as a powerful external coercive driver, report quality often depends on the internal board structure, including independence and skills. The greatest obstacle remains the lack of standardized metrics to measure the specific "public value" created by state-owned enterprises.
The presented research serves as a key resource for understanding the "metamorphosis" of the public sector in the context of new reporting forms alongside traditional financial reporting. As future research frontiers, the authors highlight the impact of digitalization and Artificial Intelligence (AI) on improving the quality and comparability of non-financial information in the public sector.
The full conference program is available at the following link:
https://ebesweb.org/wp-content/uploads/2026/04/55th-EBES-Conference-Program_v5.pdf
On April 8, 2026, an interactive workshop was held at the Faculty of Economics and Business, University of Zagreb (hall 54), as part of the project IOTOJSRH.
The workshop featured experts from both academia and professional practice. The project presentation was attended by Assoc. Prof. Jakša Krišto, PhD, Vice Dean for Students, Teaching, and Cooperation with the Business Sector. On behalf of the Faculty Management, he welcomed the attendees and emphasized the importance of scientific research projects for the development and strengthening of the Faculty's scientific output.
Project Introduction: Assoc. Prof. Martina Dragija Kostić, PhD, the project leader, delivered the opening remarks and promoted the IOTOJSRH project.
Regulatory Updates: Ana Zorić and Ines Špirić from the Ministry of Finance gave a presentation on simplifying sustainability reporting in accordance with the Omnibus Package.
Expert Panel: A semi-structured focus group discussion on the practical experiences of sustainability report preparers followed, moderated by Prof. Vesna Vašiček, PhD and Assoc. Prof. Sanja Broz Tominac, PhD.
The discussion included representatives from key institutions and state-owned enterprises, such as: Ministry of Finance, Ministry of the Sea, Transport and Infrastructure, Croatian Post (Hrvatska pošta d.d.), Croatian Motorways (Hrvatske autoceste d.o.o.), Croatian Roads (Hrvatske ceste d.o.o.), Croatian Postal Bank (HPB d.d.), HŽ Passenger Transport (HŽ Putnički prijevoz d.o.o.), HŽ Cargo d.o.o., Jadrolinija.
The workshop provided a platform for experts to discuss current pressing issues:
Practical challenges in applying Environmental, Social, and Governance (ESG) reporting aspects.
The impact of deregulation on the motivation to continue voluntary sustainability reporting.
The real value of sustainability reports for transparency and corporate strategic management.
The findings from this workshop represent a significant contribution to the project’s research. They provide a deeper understanding of current practices and will help shape recommendations for improving the regulatory framework and the quality of sustainability reporting within the public sector of the Republic of Croatia.
Public Launch and Presentation of the IOTOJSRH Research Project Held: Focus on Sustainability Reporting in the Public Sector
On Thursday, January 22, 2026, the public opening and presentation of the new institutional research project entitled "Sustainability reporting in the function of a transparent and accountable public sector of the Republic of Croatia" was successfully held at the Library and Documentation Centre (LDC) of the Faculty of Economics & Business, University of Zagreb.
The event gathered members of the academic community and experts, and was opened with an introductory address by the Dean of the Faculty of Economics & Business, Prof. Sanja Sever Mališ, Ph.D.
Following the introductory remarks, the Project Leader, Assoc. Prof. Martina Dragija Kostić, Ph.D., presented the project's objectives, activities, methodology, and expected results in detail. Presentation is available below:
predstavljanje projekta 22012025.pdf
The invitation to the public opening is available on the Faculty of Economics and Business website at the following link: https://www.efzg.unizg.hr/dogadjanja-29757/poziv-na-javno-otvaranje-i-predstavljanje-projekta-iotojsrh/49987"
The formal signing of grant agreements for the implementation of institutional research projects under the call IIP-581-2025 was held on Wednesday, 17 December 2025, at the Library of the Faculty of Economics & Business – Zagreb.
The event brought together Project Leaders of approved projects, marking the official start of the implementation phase of institutional research projects funded under this call.
On this occasion, the University of Zagreb, Faculty of Economics & Business, represented by the Dean, Prof. Sanja Sever Mališ, PhD, and Assoc. Prof. Martina Dragija Kostić, PhD, in her capacity as the Project Leader of the IOTOJSRH project, signed the Grant Agreement for the implementation of the institutional research project.