Esg Reporting in Crisis Circumstances

Readiness and obstacles of accountants in Bosnia and Herzegovina.

Abstract

Global crises like pandemics and geopolitical turbulence have underscored the importance of responsible business practices and corporate transparency. In light of these circumstances, ESG reporting, which measures and expresses a company's concern for the environment, society, and transparent management, has become increasingly crucial. However, in challenging environments with limited resources, such as Bosnia and Herzegovina (BiH), adopting ESG reporting can present significant barriers to the accounting profession.

Therefore, this paper aims to examine accountants' readiness in BiH to adopt ESG reporting under such circumstances. To achieve this goal, we surveyed a representative sample of 290 accountants from across BiH. The survey used a Likert scale to assess accountants' knowledge of ESG standards, their willingness to adopt different reporting methods, and their expectations regarding the impact of ESG reporting on their work, responsibilities, long-term career prospects, and professional development. Data analysis included descriptive statistics, ANOVA tests and t-tests in Excel and SPSS programs.

Our study provides valuable insights into the readiness of accountants for ESG reporting, the measures necessary to support its implementation, and the impact of ESG on the development of the accounting profession in BiH. The study also discusses the role accountants can play in encouraging ESG reporting and answers questions about ESG standards' challenges and how accountants can prepare for their adoption.

Our results demonstrate that the majority of accountants in BiH support ESG reporting, but they lack the necessary knowledge, tools, and resources to properly implement the new requirements. Hence, we strongly recommend taking measures to improve the preparation of accountants for ESG reporting.