Ericsson Nikola Tesla Receives Award for Best Example of Sustainable Business Model

As part of the traditional conference of the Croatian Chamber of Economy (HGK) ‘Support Sustainability’, the ESG rating awards were presented for the first time in six categories: best small, medium, large, public company, financial institution, and the award for the best example of a sustainable business model.

In the category of ESG rating HGK for the best example of a sustainable business model, the award was given to the company Ericsson Nikola Tesla. The company promotes sustainable development and builds quality relationships with employees, customers, partners, suppliers, shareholders, and the broader community through its operations. It requires its business partners to have well-developed environmental management programs.

The ESG rating is an assessment awarded to an organization based on its approach to the environment (Environment), society (Social), and adopted management practices (Governance). Along with the national assessment model developed by HGK, this also refers to a new HGK award that the chamber will present annually to companies with the best results, as stated in the announcement.

– Today, it is not uncommon for revenue growth to be equated with development; we behave as if we will never run out of resources. However, ESG is not an alternative view of business or investments. When we consider geopolitical, energy, and resource crises, the need for ESG transformation becomes increasingly pronounced. Our current award winners are well aware of this – said Tomislav Radoš, Vice President of HGK for Industry and Sustainable Development.

In the category of ESG rating HGK for the best sustainable small company, the winner is Schiedel chimney production. The company is focused on socially and environmentally responsible business, producing high-efficiency solutions with reduced energy consumption and low emissions.

AquafilCRO is the winner in the category of the best sustainable medium company. The company continuously works on protecting workers and human rights, investing in the community, and is committed to building a resilient, sustainable, and ethical supply chain.

The ESG rating HGK for the best large sustainable company went to Muraplast. They recycle 96 percent of waste, fully reuse used water, and utilize 86 percent of energy from renewable sources.

In the category of the best sustainable public company, the winner is the Financial Agency. Its long-term sustainable development goals are based on principles such as improving energy efficiency, transitioning to renewable energy sources, and automating and digitizing business processes.

Erste&Steiermärkische Bank is the winner of the ESG rating HGK award in the category of the best sustainable financial institution. What makes Erste Bank different are its employees, their approach to work, care for clients, technological innovation, and socially responsible business. It contributes to achieving sustainable development through sustainable financing/investments.

The winners were presented with awards in two forms. The first is a physical award created by academic artist Silvio Vujičić, and the second is an award in the form of digital assets – NFTs (non-fungible tokens), created by the company Lumen Spei from Osijek. The physical awards were made from recycled aluminum waste from the CIOS Zagreb Recycling Center. The second part of the award’s creative concept consists of unique digital certificates in the form of NFTs, stored on the blockchain network, containing personalized service packages from the Croatian Chamber of Economy, specially tailored for each winner.

– Our goal is to further highlight the importance and recognition of the digital transformation of the Croatian Chamber of Economy’s business and the availability of an increasing number of e-services through the Digital Chamber platform – said Radoš.

With the key benefit of attracting capital and investors, companies will be able to use the HGK ESG rating as a tool to assess their ESG performance and gain insight into their exposure to risks. They can track their progress and adjust their business strategy, as well as compare their operations with other companies in the sector and increase competitiveness.

There is, of course, also the reputational factor with key stakeholders, from shareholders and employees to all external partners. The criteria are aligned with regulations, the requirements of financial institutions and capital markets, and the specifics of individual industries. Some information is collected through a completed ESG questionnaire, while the rest is based on public data, from financial to, for example, assessments of greenhouse gas emissions for specific activities. The collected indicators are interpreted concerning the industry. Each company receives an individual report after analysis, along with suggestions for improving results.