Reporting on compliance with environmental, social, and governance (ESG) sustainability principles was high on agenda at this year's meeting of Slovenian accountants in Bled, with the speakers noting that the new reporting standards bring challenges but also opportunities to boost competitiveness and trust with clients.

The reports will help companies to be more competitive by boosting the trust of customers, investors and other stakeholders. With transparent ESG reporting, companies will demonstrate their commitment to the sustainability goals and social responsibility.

The panel debate on 7 November also called on companies to take immediate steps in this area, as the compiling of data would take a lot of effort and time. The government will have to do its part too, in particular in implementing the Corporate Sustainability Reporting Directive.

The directive requires of companies to include ESG sustainability reports in their reporting. In those reports companies communicate their impact on the environment, society and governance.

"Slovenia will implement the directive's provisions and set down the obligations in amendments to the Companies Act by the end of the year at the latest," Tomaž Klemenc, director of the Slovenian Agency for Public Records and Services (AJPES), said.

The amendments will also specify how auditors will audit these reports, with Klemenc saying that the role of AJPES will be the same as before. They will also determine which companies need to comply.

AJPES will oversee the publication of all annual reports, including those that will be extended with sustainability reports. The first entities to be subject to the reports will be those of public interest such as insurance companies and banks, which should initially number around 60 in total, he explained.

Nina Orehek Ručigaj, a representative of Unija, said the scope of companies subject to the new reporting standards will be expanding. Certain companies may never be legally obliged to produce sustainability reports, but they may be "forced" to do so by their partners and other stakeholders who want them, she stressed. All the parties obliged to comply such reports will be identified by 2028.

The Slovenian incumbent telecommunication company, Telekom Slovenija, has been compiling sustainability reports since 2009, said Teodor Prosen, head of sustainability and business excellence at the company.

The new legislation will make data uniform, but still leaves room open for too many different approaches, he said. Nevertheless, the new obligation poses a number of challenges for companies that have not collected such data so far. "Getting the know-how, the database and getting used to reporting will certainly be a problem for some," he said.

This was echoed by Matej Marka, environmental consultant at Interzero. He expects "a lot of panic" in this area in the coming year, so it is essential that companies start the process as soon as possible.

"The subject is quite complex, so it is imperative that companies start collecting data in time. Those that have no experience in this area should look for appropriate partners in this field," he said.

Matej Zajec from Gorenjska Banka, who is responsible for ESG at the bank, said that banks were also at the beginning of the process. "At the moment, we are asking our clients in this area for questionnaires, and those who are already preparing sustainability reports are also asked for these documents," he said.

He stressed that everyone needs to transform in a sustainable way if they want to achieve the EU's goal of becoming climate neutral by 2050.

The panel was held as part of the third annual meeting of Slovenian accountants, a two-day event organised by the Accounting Institute ahead of International Accounting Day, observed on 10 November.

The event also saw lectures and discussions on preparation of various accounting data, and new developments in legislation, inspection and working time recording.