ESG and sustainability

Until recently, financial results or profits were the only measure of success for a company. After decades of activities that were hurting the communities and the environment, activist groups and public , for the most part, have prompted the evaluation of negative impacts of business on the environment leading to companies realizing that business success is multi-dimensional, that it demands getting insights into more than financial aspects and that it assumes giving equal attention to social and environmental aspects of business operations. Companies became aware of their corporate and social responsibility and the significance of socially conscious investments. It is often said that ESG investing is investing in your grandchildren.

At the end of 2022, standards for ESG reporting were established in order to facilitate comparability. They will come into effect across the EU and will be applied to reports published first in 2024, for the financial year 2023. Large companies ( with more than 250 employees, over EUR 40 million in profit and with a balance sheet total of over EUR 20 million – two out of three criteria need to be met) as well as publicly traded companies will be first to submit ESG reports that include information on business activities and aspects relating to environmental protection, social issues and corporate governance along with their financial reports. Starting in 2026, this obligation will extend to small and medium-sized enterprises whose shares are traded in the stock market, that have at least ten employees, generate EUR 700,000 in profits and have a balance sheet total of EUR 350,000 minimum. Here too, the companies will have to meet at least two out of these three conditions specified.

ESG reporting can be viewed as the upgrade to the existing sustainability reports that companies have already been publishing. The principal differences between ESG reporting and sustainability reports is the fact that each ESG aspect can be evaluated with specific metrics that relates to environment, or how the company fights the climate change; social issues that describe how a company approaches the human rights issues, work standards, health and workplace safety, and how it interacts with the local community; and the principles of corporate governance. Official criteria such as ranking the sustainability of a country are also important.

Nothing is different at TROX either. Environmental and social responsibility and profit growth are inseparable to the company. We will publish an ESG report together with the 2023 financial report. TROX company has a department for social responsibility that sets strategies and goals (defined every year), tracks and evaluates impact (a monthly progress report), implements instruments and mechanisms (continuous digitalization) and takes concrete actions (exchanging knowledge twice a year, defining operational goals on a monthly level, submitting reports once a year, facilitating exchange between sectors when needed).

In addition, TROX develops and publishes publicly available reports on the regular. TROX considers environmental and social responsibility and profit growth equally important because constant improvements prepare us better for the future.

Company stated that it`s goal is to become carbon neutral by 2040, therefore it is oriented towards sustainability and uses all options available.

TROX Austria GmbH-Predstavništvo Srbija

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