Second Regional Policy Dialogue

This second Regional Policy Dialogue meeting explored "Monitoring and Reducing SMEs' Environmental Footprint in the Western Balkans". The event was organised in the context of the Digital and Green SMEs project, financed by Croatia.

The event provided a platform for representatives of the six Western Balkan economies to discuss the growing importance for SMEs to monitor their environmental footprint, adopt circular business practices, and to understand the supporting digital tools available, therefore advancing both the digital and green transitions. Through two panel sessions, the OECD shared preliminary survey findings, key policy considerations and good practices to support the monitoring of SMEs' environmental footprint, including measures to raise awareness and enhance access to green finance. It was combined with field visits to local organisations and related initiatives in Mostar, BiH, that are effectively adopting environmental tracking and sustainability reporting and supporting SMEs in their twin transitions. Discussions with local authorities also allowed participants to better understand the support schemes in place, and the role that policymakers can play in accelerating the twin transitions.

• Agenda
• Presentations
• Briefing Note: Monitoring and Reducing SMEs’ Environmental Footprint in the Western Balkans
• Event summary
• Photos

• Ministry of Foreign Affairs of the Republic of Croatia
• Ministry of Foreign Trade and Economic Relations of Bosnia and Herzegovina
• Foreign Trade Chamber of Bosnia and Herzegovina

Sustainability reporting has become a prerequisite for businesses. Combined with the growing consumer demand for sustainable products, there is a need for SMEs in the Western Balkans to strengthen their capacity to track their environmental footprint. Despite the benefits of environmental monitoring and the greater requirements in the context of the Green Agenda for the Western Balkans, there is limited awareness and engagement from SMEs in the region about the tools and approaches available. Recent OECD survey results find that while there is a growing level of monitoring among SMEs in the Western Balkans, this is largely centred around basic areas: only 40% of respondent SMEs track energy consumption while only 6% are tracking their carbon footprint (OECD Survey, forthcoming). 

SMEs in particular face significant barriers in reporting their sustainability performance and monitoring changes in their environmental footprint. Challenges include limited resources, lack of expertise and difficulties in data collection. Digital tools should therefore act as the supporting mechanism that allow SMEs to gain the benefits of monitoring in an accessible manner, thus accelerating both the green and digital transitions.

The objectives of the event were to:

1. shed light on the benefits of environmental monitoring and relevance for SMEs’ twin transitions;
2. improve the understanding of accessing and efficiently using digital tools to support SME adoption of environmental tracking and footprint reduction in the Western Balkans; and
3. facilitate peer exchanges between SMEs in Mostar and the Western Balkan economies on the approached to use and deploy digital technologies to track the environmental footprint and report on sustainability performance.

Umur Gökçe, Economic Advisor, OECD South East Europe Division, umur.gokce@oecd.org

Cameron Gethings, Consultant, OECD South East Europe Division, cameron.gethings@oecd.org