INTEGRATED REPORTING – INFORMATION BASE OF GREEN BUSINESS IN SERBIA

Abstract

Green businesses operate according to green management principles, policies, and practices that improve the quality of life of their customers, employees, the communities in which they operate, and the environment. The path to green business is part of a long-term sustainability strategy. The sustainability of economic activity is identified with respect for the principle of moral justice, which implies the equal right of every person to an appropriate degree of freedom, which does not contradict the freedom of others. Accordingly, it could be stated that the right of the current generation to use resources and the environment must not jeopardize the rights of the next generations. The primary goal of business in today's dynamic environment is to create value for owners. However, the achievement of this goal depends on the achievement of the company's secondary goals, which include creating superior value for customers and ensuring full engagement and motivation of employees, suppliers, and distributors. The connection between the company and other stakeholders is made possible by the wider public, which also has an interest in the company's operations. Therefore, modern companies are focused on creating value for all stakeholders. The interdependence of the company and all stakeholders requires the integration of reports on the financial, environmental, and social performance of the company. In this way, integrated reporting, in addition to financial reporting, also includes a specific form of reporting on sustainable development. Accordingly, the essence of integrated reporting consists in the creation and presentation of financial and non-financial performances, to see the degree of involvement of the concept of sustainable development in the company's operations. International professional organizations and institutions significantly support the process of standardization of integrated reporting, with their framework proposals, guidelines, directives, regulations, protocols, and indicators. Integrated reporting aims to bring together financial reporting on the economic performance of companies with qualitative reports on environmental performance. The basic idea of integrated reporting is to provide an information base on the effects of social and environmental performance and their economic impact on the company. This involves identifying environmental and social costs, benefits, and risks, as well as incorporating their impact on the company's economic performance. According to the above, the paper aims to analyze the disclosure of environmental information within the framework of integrated reporting in the Republic of Serbia. The analysis refers to groups of companies in Serbia, that are included in the National Register of Pollution Sources, with special reference to companies from the sectors of agriculture, forestry, and fishing. The paper will also present the future legal framework in the field of agriculture in the Republic of Serbia, with the goals and activities of The European Green Deal. The bottom line is that it is necessary to support investments in sectors where the Republic of Serbia has comparative advantages (fruit, vegetable, livestock production sectors), improve business management, and provide adequate logistical support. Keywords: integrated reporting, environmental performance, green business. JEL codes: Q01, Q50, Q56