Končar Breaks Records, Most Revenue Comes from Sustainable Activities

In a recently published Lider supplement ‘Pillars of the Croatian Economy/We Cannot Do Without Them’ on the topic of sustainability in business, representatives of companies spoke. Vlatka Kamenić Jagodić, the Director of the Marketing and Corporate Communications Sector of Končar, a company operating in foreign markets whose experience can benefit other entrepreneurs, also answered our questions.

Kamenić Jagodić reminds us of the disruptions in the global market that are well known to everyone, and Končar ensures stability and resilience through a filled order book, as well as through the global green and digital transition without which business sustainability cannot be imagined.

She also highlighted a strong risk management system, diversified supply chains, and full compliance with European regulations, including CSRD, ESRS, and EU taxonomy. In this way, the company ensures predictable, transparent, responsible, and competitive business even in periods of pronounced market and geopolitical uncertainties.

– We achieve ESG goals systematically and integrated through the Sustainability Strategy 2024 – 2026, based on a double materiality assessment. More than 80 percent of the Group’s revenue in 2025 was generated from activities aligned with the EU taxonomy, confirming the strong connection of our business model with the green transition. We are focused on reducing emissions, energy efficiency, and developing solutions that enable customers to decarbonize energy and urban infrastructure, with a strong emphasis on employee safety, competency development, human rights, and responsibility in the supply chain – says Kamenić Jagodić.

Indirect Impact of War

Regarding cybersecurity, which we are witnessing these days with threats to the school system, in Končar, as in any company, it is part of digital solutions, especially in the area of supervisory and control systems for energy and urban infrastructure and dual-use technologies. She states that this segment is based on decades of domain knowledge and technological excellence, and today it brings the company exceptionally recognizable differentiation and added value, especially in a period of rising security risks and increasingly frequent cyber threats.

– In addition to continuously strengthening our competitive position through investments in development and strategic acquisitions that expand our competencies and open access to new markets, we also take care of the cybersecurity of our own system. Security is built into the design of our solutions and is further ensured by internal policies, technical measures, and employee education, thereby protecting both our own systems and our customers – says the interviewee.

The war in the Middle East currently has no significant direct impact on the operations of the Končar Group, she adds, primarily because projects in that region make up a smaller part of the overall portfolio, and materials are not sourced from there. However, the company is aware of potential indirect effects, primarily through risks in maritime routes, logistics, and price volatility.

– Despite these challenges, the Middle East, especially Saudi Arabia and the GCC region, remains a strategically important market with significant investment cycles in electricity infrastructure and renewable sources. In the long term, our stability is further ensured by a strong presence in the European Union market, a high backlog, and good visibility of revenue and capacity in the upcoming period – concludes Kamenić Jagodić.