Challenges of harmonising domestic legislation with European Union law in the field of ESG criteria implementation

Dukić Mijatović Marijana (Fakultet tehničkih nauka, Univerzitet u Novom Sadu), marijana.mijatovic@uns.ac.rs
Ivanišević Andrea (Fakultet tehničkih nauka, Univerzitet u Novom Sadu), andreai@uns.ac.rs

ESG criteria (Environmental, Social, and Governance) are important instruments of sustainable, transparent, and responsible business practices in modern legal and economic systems. In European Union (EU) law, ESG standards have developed within a comprehensive normative framework that includes non‐financial reporting, climate policy, and sustainable financing. Of particular importance are the regulations governing obligations to disclose information on environmental, social, and corporate governance impacts, as well as mechanisms for encouraging green investments. The paper analyses the ESG criteria in EU law and the challenges of harmonising the Republic of Serbia’s legislation with the EU acquis. The paper points to the need for further harmonisation of the domestic legal framework, especially in transparency and accountability of economic entities, as well as the practical challenges associated with implementing the regulations, including limited institutional capacities and the need to strengthen supervision. ESG regulations are important factors in the European integration process and in improving the competitiveness of the Republic of Serbia’s economy.

Keywords: ESG criteria;EU;non‐financial reporting;sustainable finance;climate policy;harmonisation of legislation;Republic of Serbia