Review article
https://doi.org/10.51650/ezrvs.19.1-2.13
Assessing the Readiness of Fund Management Companies to Apply ESG Criteria in Investment Strategies in the Republic of Croatia
Josip Visković
orcid.org/0000-0002-8797-1496
; Faculty of Economics, Business and Tourism, University of Split, Split, Hrvatska
*
Dora Kezić
; Ledo Plus d.o.o., Zagreb, Croatia
* Corresponding author.
Abstract
Awareness of the impact of business activities on the environment and society is becoming increasingly important in the modern business environment, while management strategies that incorporate environmental, social, and governance (ESG) criteria are gaining importance as key factors for long-term success. The purpose of this paper is to theoretically and empirically explore the views of key managers of fund management companies in the Republic of Croatia on the integration of ESG criteria into investment strategies, with the aim of defining their commitment to ESG investing, the data they use in their decision-making, and their expectations regarding the performance of such investments. Based on a survey of fund managers, this paper contributes to a better understanding of the current state of readiness and the challenges companies face in integrating ESG criteria into their strategies. Key findings indicate that fund management companies in Croatia are willing, but only moderately committed to integrating ESG criteria, primarily due to regulatory requirements. They do not take a holistic approach to decision-making, but rather emphasize the environmental aspects of the strategy. Time inefficiency was identified as the greatest challenge in using primary data, while issues related to data availability, standardization, and comparability were also highlighted. As a result, most companies base their ESG investment decisions on sectoral or individual company analysis, with some relying on models from ESG rating agencies, which are sometimes questioned due to their lack of transparency. Finally, ESG funds are still relatively new on the Croatian market and currently do not generate significant financial returns, with some skepticism remaining about their long-term financial performance compared to traditional funds.
Keywords
ESG criteria; asset management companies; investment strategy; the Republic of Croatia.
Hrčak ID:
333197
URI
Publication date:
5.7.2025.
Visits: 1.122 *