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.
From June 22 to 24, 2026, Prof. Vesna Vašiček, PhD and Assoc. Prof. Sanja Broz Tominac, PhD participated in the prestigious 18th CIGAR Workshop (Comparative International Governmental Accounting Research) held in Valletta, Malta. This year's workshop focused on the timely theme: ''Financialisation and measurement in public sector financial reporting and management accounting''.
The event provided an exceptional platform for presenting cutting-edge research, networking with global public sector accounting experts, and officially launching a major new international publication.
During the workshop, Assoc. Prof. Sanja Broz Tominac presented a co-authored research paper titled:
''To report or not to report? Regulatory dynamics and sustainability disclosure in Croatian state-owned enterprises''
Co-authors: Assoc. Prof. Martina Dragija Kostić, PhD, and Prof. Vesna Vašiček, PhD.
The paper investigates sustainability reporting practices within Croatian state-owned enterprises (SOEs) amidst the regulatory shifts brought by the Corporate Sustainability Reporting Directive (CSRD) and the Omnibus package. The research combines a rigorous content analysis of existing sustainability reports with data gathered from focus groups consisting of report preparers to examine how these regulatory dynamics impact the quality, scope, and future of ESG (Environmental, Social, and Governance) reporting.
Transition to ESRS: Croatian SOEs are progressively shifting from voluntary, narrative-driven disclosures toward standardized reporting aligned with the European Sustainability Reporting Standards (ESRS).
GRI Adaptability: Enterprises that had previously adopted Global Reporting Initiative (GRI) standards demonstrated significantly higher readiness and smoother transitions toward CSRD compliance.
Core Challenges: The primary obstacles identified include difficulties in ESG data collection, the sheer complexity of ESRS requirements, digital readiness, and the critical need for strong executive board support alongside cross-sectoral internal cooperation.
The Impact of the Omnibus Package: Although the Omnibus package reduces the total number of mandatory reportees, the majority of surveyed Croatian SOEs plan to continue disclosing ESG data voluntarily due to firm demands from investors, banks, business partners, owners, and the general public.
Ultimately, the study proves that sustainability reporting in SOEs is evolving from a mere bureaucratic box-ticking exercise into a vital tool for strategic management, transparency, and public accountability.
On the second day of the conference, Prof. Vesna Vašiček officially presented a major new book from the Palgrave Macmillan Public Sector Financial Management (PSFM) series, published in May 2026:
"Public Sector Financial Management in Central, Southern and Eastern Europe: Accounting, Reporting, Auditing and Control"
Editors: Gorana Roje, MSc, and Prof. Vesna Vašiček, PhD.
Broad Regional Scope: The book brings together 25 leading international researchers and practitioners to deliver a comprehensive comparative analysis of current practices, developmental trajectories, and financial management challenges across 12 countries: Albania, Bosnia and Herzegovina, Croatia, Kosovo, Montenegro, North Macedonia, Poland, Romania, Serbia, Slovakia, Slovenia, and Türkiye.
Focus Areas: Each country-specific chapter assesses national traits and international influences, with an added emphasis on non-financial and sustainability reporting. The final chapter, written by the editors, provides a comparative synthesis of the discussed regional systems.
Croatian Contributors: The dedicated chapter for Croatia was authored by Prof. Davor Vašiček, PhD, Assoc. Prof. Martina Dragija Kostić, PhD, and Ivana Barbieri, PhD.
This publication serves as an invaluable resource for academics, students, public auditors, public sector practitioners, policymakers, and standard-setters at both national and international levels.
For more information on the book and access options, view the publisher's page via Palgrave Macmillan / Springer Link.
The full 18th CIGAR Workshop schedule and presentation program can be reviewed on the official University of Malta Event Programme.
On June 10, 2026, Prof. Vesna Vašiček, PhD and Assoc. Prof. Martina Dragija Kostić, PhD participated as featured presenters in the international webinar titled "Public Sector Accounting and Auditing Reforms: What Works, What Doesn’t, What’s Next?".
The webinar was organized by the Center of Excellence in Finance (CEF), an international organization based in Ljubljana, Slovenia, which strongly supports the capacity development of public officials and their institutions across South East and East Europe.
The event provided an excellent platform for discussing the latest trends, regional challenges, and future pathways in public sector financial management, connecting researchers with practitioners and public officials across the region.
The complete schedule, list of speakers, and detailed event description are available via the official web page: Public Sector Accounting and Auditing Reforms: What Works, What Doesn’t, What’s Next? - Center of Excellence in Finance.
Here is the translation and elaboration of this section in English, seamlessly integrated into your web report:
The primary motivation and backbone of this professional gathering was the successful completion of a new book to be published by the prominent global publisher Palgrave Macmillan.
During the two-hour webinar, the book's editors, Prof. Vesna Vašiček, PhD and Gorana Roje, MSc, delivered the keynote presentation lasting 25 minutes. They introduced the structure, key messages, and overall contribution of the forthcoming publication. The book is specifically aimed at fostering discussion, exchanging solutions, and analyzing practices within the fields of:
Public sector accounting,
Financial and non-financial reporting,
Auditing, and
Control systems across Central, South-East, and Eastern Europe.
The webinar saw highly active engagement from the book's contributing authors. Representing their respective chapters through short, focused presentations, they outlined the country-specific traits, challenges, and achievements of public sector reforms in their home nations.
Assoc. Prof. Martina Dragija Kostić, PhD presented the insights for Croatia, placing a special emphasis on the upcoming challenges of sustainability and ESG reporting in the future period.
The event was also attended by representatives from the Palgrave Macmillan publishing house, as well as numerous members of the regional Network of regional accountants and auditors. Ultimately, this webinar served as an excellent platform for expert networking, celebrating the finalization of the book, and disseminating research findings to a wider public audience—particularly to public sector practitioners, accountants, and auditors throughout the region.
As part of the active project "Sustainability Reporting in the Function of a Transparent and Accountable Public Sector of the Republic of Croatia" (IOTOJSRH), research team members Assoc. Prof. Sanja Broz Tominac, PhD, Prof. Vesna Vašiček, PhD, and Assoc. Prof. Martina Dragija Kostić, PhD completed a highly productive research stay at the prestigious University of Naples Federico II (Università degli Studi di Napoli Federico II) in Italy.
During their stay, the team held a series of intensive working meetings with the distinguished international Professor Francesca Manes Rossi, who holds extensive expertise and a vast body of published research in top-tier global journals focusing on non-financial and public sector sustainability reporting.
The international academic visit focused heavily on elevating the project's empirical frameworks and methodology through high-level peer collaboration. The main outcomes included:
Presentation of Preliminary Results: The Croatian research team successfully presented the findings of their theoretical and secondary research conducted so far under the scope of the IOTOJSRH project.
Primary Research Strategy: Special emphasis was placed on strategically planning and structuring the upcoming primary empirical research, which will target a comprehensive sample of state-owned enterprises (SOEs) in the Republic of Croatia.
Expert Consultation: As a leading global authority in this field, Professor Manes Rossi provided exceptionally valuable recommendations, structural guidelines, and constructive feedback regarding the design of the forthcoming survey research and its data processing methodology.
This research stay and the resulting international collaboration mark an important milestone in enhancing the scientific rigor and quality of the project’s research tools. Furthermore, it significantly contributes to strengthening the global visibility, reputation, and academic networking of the Faculty of Economics and Business, University of Zagreb with top-tier international institutions.
As part of continuous professional development and keeping abreast of the latest regulatory trends in sustainable finance, Prof. Vesna Vašiček, PhD participated on Thursday, May 21, 2026, in the specialized training program "ESG Academy: EU Taxonomy – with Practical Examples". The academy was jointly organized by the Croatian Chamber of Economy (HGK) and the ESG Center. The core focus of this academy was the practical application of the EU Taxonomy—the European Union’s unified classification system designed to determine which economic activities qualify as environmentally sustainable.
The comprehensive training brought together leading authorities from academia, finance, auditing, and the corporate sector to dissect the taxonomy's framework across six core areas:
Perspectives on Sustainable Finance Development: Assoc. Prof. Ana Ivanišević Hernaus, PhD (Faculty of Economics and Business, University of Zagreb) introduced the fundamentals of sustainable finance, tracing regulatory developments and their direct impact on directing capital flows toward green projects.
EU Taxonomy within the Sustainable Finance Context: Riki Pahlić (Spring+shift) clarified the taxonomy’s specific role inside the broader ESG ecosystem and analyzed its complex interplay with the Corporate Sustainability Reporting Directive (CSRD) and Sustainable Finance Disclosure Regulation (SFDR).
Practical Implementation Case Study (Cromaris): Tamara Tarnik (Cromaris) shared firsthand corporate experiences in identifying eligible activities, conducting thorough compliance assessments—including "Do No Significant Harm" (DNSH) and Minimum Social Safeguards (MSS) criteria—and resolving methodological hurdles when calculating key taxonomy KPIs (Turnover, CapEx, and OpEx).
The Future of EU Taxonomy and Digitalization: Vedran Kordić (Platform on Sustainable Finance / WWF European Policy Office) addressed upcoming legislative changes including the Omnibus package, initiatives aimed at reducing administrative burdens, and the ongoing development of the digital Taxonomy Compass.
EU Supervisory Requirements and the Banking Sector: Damir Odak (European Central Bank - ECB) outlined how strict financial sector mandates and ECB regulations trickled down to companies through corporate credit underwriting processes and climate risk exposure assessments.
The Auditing Approach: Ivana Čobanov (KPMG) detailed the crucial auditing procedures, required documentation baselines, and actionable recommendations to prepare enterprises for the formal verification of their taxonomy disclosures.
The insights gained by Prof. Vesna Vašiček during this intensive academy are of outstanding importance for the ongoing integration of highly relevant ESG and sustainable finance themes into the higher education curriculum. Furthermore, this knowledge directly advances the empirical work being conducted under the faculty's current sustainability reporting research initiatives.
On May 13, 2026, Prof. Vesna Vašiček, PhD, an active research team member of the IOTOJSRH project, participated in the Inter-Departmental Meeting hosted by the Juraj Dobrila University of Pula. The event was organized by the Department of Accounting at the Faculty of Economics and Tourism "Dr. Mijo Mirković" and featured a specialized workshop titled “The Future of (Integrated) Financial and Non-Financial Reporting”.
Through a dynamic, guided panel discussion, academics and experts from various sister faculties exchanged professional insights and mapped out the critical challenges and developmental opportunities surrounding financial, non-financial, and sustainability reporting. The workshop dialogue was strategically structured around three main pillars:
Regulatory Frameworks & Standards: Analyzing the rapid evolution of European mandates and standards regulating non-financial and sustainability disclosures.
Connectivity of Information: Examining the core relationship between financial and non-financial data in corporate disclosure processes, with a progressive look toward the future perspectives of fully integrated reporting.
The Role of Academia: Discussing how the academic community can drive impactful scientific research and modernize higher education curricula to better encompass sustainable and integrated reporting practices.
An additional, highly engaging session was dedicated to the future of higher education itself. Faculty members debated the unique challenges, modern pedagogical models, and institutional best practices for delivering accounting and finance courses in an era shaped by rapid digitalization and the integration of Artificial Intelligence (AI) tools in the classroom.
The meeting offered an exceptional environment for cross-institutional knowledge sharing, bridging the gap between reporting practices in both the corporate and public sectors.
Crucially, the gathering served as a valuable platform for researchers to pitch their ongoing scientific initiatives. Prof. Vašiček utilized this opportunity to present the core research objectives, empirical methodologies, and anticipated outcomes of the project "Sustainability Reporting in the Function of a Transparent and Accountable Public Sector of the Republic of Croatia" (IOTOJSRH), further strengthening academic synergy and networking among related regional research groups.
On May 12, 2026, the business weekly Lider, in professional partnership with the Croatian Audit Chamber, organized the 5th annual conference “ESG – Sustainable Future” (ESG – Održiva budućnost). Held at the Sheraton Hotel in Zagreb, the prominent event gathered leading national and European experts, regulators, financial institution executives, and members of the academic community to analyze the new wave of regulatory shifts and practical hurdles in implementing sustainable business operations.
Prof. Vesna Vašiček, PhD and Assoc. Prof. Martina Dragija Kostić, PhD participated in the conference, actively engaging in dialogues regarding the strategic evolution of sustainability frameworks.
The conference opened by tackling critical questions on the transition of the European sustainability framework into a new, more mature phase. A centerpiece of the regulatory discussion was the European Commission's "Omnibus Package", which aims to simplify and streamline requirements within the Corporate Sustainability Reporting Directive (CSRD), the EU Taxonomy, and the Corporate Sustainability Due Diligence Directive (CSDDD). The package is designed to reduce heavy administrative burdens for enterprises while strictly maintaining high standards of transparency.
Throughout the panel discussions and expert reviews, significant emphasis was placed on the inevitable integration of ESG data directly into traditional financial reports. Speakers highlighted how accountants and auditors are quickly becoming the primary architects of this sustainable transition. ESG reporting has definitively moved beyond being a declarative tool for a "green corporate image"; it has evolved into a vital "common language" between companies, banks, and investors, directly dictating the cost of capital and an enterprise's survival within global supply chains.
Through a sequence of specialized lectures and expert panels, the conference dissected several high-priority operational challenges:
Voluntary Standards for SMEs (VSME): Exploring how small and medium-sized enterprises (which are not direct mandatory reportees under the CSRD) can simply and proportionally track ESG parameters to fulfill the supply-chain requirements of their larger corporate partners and lending banks.
Execution of Audit Procedures: Discussing what the new statutory mandate for verifying non-financial reports under "limited assurance" parameters means for corporate internal audit systems and readiness documentation.
The CBAM Mechanism and GHG Protocol: Providing a detailed analysis of tracking greenhouse gas emissions at the borders (Carbon Border Adjustment Mechanism) and outlining how new climate-centric public policies affect the long-term competitiveness of the domestic economy.
The insights and expert viewpoints analyzed during the conference are highly valuable for the continuous development of academic output at the faculty. Staying ahead of these fast-moving regulatory and audit requirements directly informs ongoing research initiatives and ensures that sustainable finance and advanced reporting tracks remain cutting-edge for students and practitioners alike.
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.