sustainability accounting reporting in accordance with the new eu legislation in croatian hotel...

SUSTAINABILITY ACCOUNTING REPORTING IN ACCORDANCE WITH THE

NEW EU LEGISLATION IN CROATIAN HOTEL COMPANIES

MILENA PERŠIĆ, FMTU, OpatijaKATARINA BAKIJA, DOBA, Maribor DUBRAVKA VLAŠIĆ, FMTU, Opatija

ToSEE - Tourism in South East Europe 3rd International Scientific Conference Sustainable Tourism, Economic Development and Quality of LifeUniversity of Rijeka, Faculty of Tourism and Hospitality Management Opatija

Content of presentation

ACHIEVED LEVEL OF SEGMENT & SUSTAINABILITY REPORTING IN CROATIAN HOTEL COMPANIES

RECCOMONDATIONS FOR NEW APPROACH IN THE SYSTEM OF SUSTAINABILITY REPORTING

EU DIRECTIVE 2014/95/EU, AND OTHER STARTING POINTS

AS A FRAMEWORK FOR SUSTAINABILITY REPORTING


DIRECTIVE 2014/95/EUSUSTAINABILTY REPORTING DIRECTIVE (22 October 2014)

Amending Directive 2013/34/EU as regards disclosure of non-financial and diversity information by certain large

undertakings and groups - Text with EEA relevance of the European Parliament and of the Council

EU sustainable development strategy (EU SDS) launched by the European Council in Gothenburg in 2001 and renewed in June 2006.

Eurostat publish monitoring reports every two years (last in 2013)


Implementation of new Directive 2014/95/EU

This Directive is essentially an amendment to the existing Directive (2013/34/EU - http://eur-lex.europa.eu ) – financial reporting

Important novelty lays in the fact that relevant sustainability and social responsibility information should be prepared and disclosed in non-financial statement in accordance with the EU or international regulations or standards - GUIDELINES

New EU Directive obligates all EU members to include this kind of EU regulations in the framework of national legislation by the financial year 2017

Big companies are mandatory to disclose non-financial and diversity information within the framework of existing financial statements, no later than December 2018

This also means the obligation for big companies of applying specific tools and techniques of strategic accounting which offers information for long-term decision making.

http://eur-lex.europa.eu/


The Accounting Act in Croatia


GRI – Global Reporting Initiative• ECONOMIC CATEGORY:

economic performance, market presence, economic impacts and procurement practices

• ENVIRONMENTAL CATEGORY: materials, energy, water, biodiversity, emissions, effluents and waste, compliance, overall and supplier environmental assessment

• SOCIAL CATEGORY: labor practices, human rights, society and product responsibility.


EUROSTAT use in process of monitoring, more than 100 indicators, and below have been identified headline indicators which

give an overall picture of whether the EU has achieved progress towards sustainable development, in terms of the objectives and targets defined

in the EU Sustainable Development Strategy (EU SDS)


Research was conduct in the middle of 2013 on the sample of 64 listing Croatian companies, member of the

CSR- Corporate Social Responsibility group

In the sample was included 33% companies with core business in the hospitality industry and tourism


Sustainability reporting of Croatian companies• 39 (19%) Croatian listed companies are member of HR BCSD

• 23 (11%) members of Croatian Business Council for Sustainable Development (HR BSCD) disclose information about sustainability and / or environmental care, in special reports (HRBSCS website)

• 11 (5%) of them disclose their sustainability report on the web sites of HR BCSD (last three years)

• Reported information are not prepared according to the same criteria, it do not provide comparison between companies, because volume, manner and character of reported information is not of high quality level

Presented information are primarily oriented to satisfy formality, and not to be really involved in process of achieving the goals of sustainable

development

(do not follow the goals of National Sustainable Development Strategy)

INFORMATIONFOR LONG TERMDECISION MAKING


Responsibility segment reporting of Croatian listed companies

INFORMATIONFOR SHORT TERMDECISION MAKING


Environment care in Croatian hotel companies


Sustainability in the practice of Croatian hotel companies


Sustainable development & business success


SBSC - STRATEGY MAP, CONVERTING INTANGIBLE ASSETS INTO TANGIBLE OUTCOMES – for long term decision making


Question in process of long term decision makingThe general approach of sustainability should be adjusted to the specifics of the real circumstances of a particular hotel or hotel company to answer to the following questions

– Which natural resources and services are used to produce and offer target product and services?

– How should the costs and benefits of resource use be measured?– How integrated are energy, motivation, knowledge, capacity for

relationships, and other forms of human capital? – What types of and how much direct and indirect value does integration

create?– How do the tourism products and services create value for local

individuals, social groups and their relationships, and how can this be measured?

– Can existing manufactured stock and infrastructure be used in way that requires fewer resources and more human creativity?

– Can these efficiencies and their value be measured?– Can sustainable business practices be used to create or increase value for

a hotel’s or hotel company’s stakeholders?


INFORMATIONFOR LONG- AND SHORT TERMDECISION MAKING

Sustainable reporting - regulations and standards


"What can not be measured, it can not be improved"

Accounting tools provide information for long and short term decision making, whether are achieving the strategic goals, defined through sustainable strategies!


COMPANIES SHOULD NO LONGER ASK WHETHER, OR NOT PUBLISH A

CORPORATE RESPONSIBILITY REPORTS, THE EMPHASIS IS NOW ON THE

REPORTING QUALITY AND THE BEST MEANS TO REACH RELEVANT AUDIENCES

KPMG, 2013

Instead of conclusion:

Thank you for your attention!

Prof. Milena Peršić, Ph.D.Faculty of tourism and hospitality management (www.fthm.uniri.hr)University of Rijeka (www.uniri.hr) E-mail: [email protected] Tel.: 00385 51 294 698

http://www.fthm.uniri.hr/

http://www.uniri.hr/

mailto:[email protected]

sustainability accounting reporting in accordance with the new eu legislation in croatian hotel...

Documents

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tosee tourism

eu financial reporting

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