SUSTAINABILITY ACCOUNTING REPORTING IN ACCORDANCE WITH THE NEW EU LEGISLATION IN CROATIAN HOTEL COMPANIES MILENA PERŠIĆ, FMTU, Opatija KATARINA BAKIJA, DOBA, Maribor DUBRAVKA VLAŠIĆ, FMTU, Opatija

ToSEE - Tourism in South East Europe 3rd International Scientific Conference Sustainable Tourism, Economic Development and Quality of Life University 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

ToSEE - Tourism in South East Europe 3rd International Scientific Conference Sustainable Tourism, Economic Development and Quality of Life University of Rijeka, Faculty of Tourism and Hospitality Management Opatija DIRECTIVE 2014/95/EU SUSTAINABILTY 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) l EU sustainable development strategy (EU SDS) launched by the European Council in Gothenburg in 2001 and renewed in June Eurostat publish monitoring reports every two years (last in 2013)

ToSEE - Tourism in South East Europe 3rd International Scientific Conference Sustainable Tourism, Economic Development and Quality of Life University of Rijeka, Faculty of Tourism and Hospitality Management Opatija Implementation of new Directive 2014/95/EU financial reporting  This Directive is essentially an amendment to the existing Directive (2013/34/EU - ) – financial reportinghttp://eur-lex.europa.eu  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.

ToSEE - Tourism in South East Europe 3rd International Scientific Conference Sustainable Tourism, Economic Development and Quality of Life University of Rijeka, Faculty of Tourism and Hospitality Management Opatija The Accounting Act in Croatia

ToSEE - Tourism in South East Europe 3rd International Scientific Conference Sustainable Tourism, Economic Development and Quality of Life University of Rijeka, Faculty of Tourism and Hospitality Management Opatija GRI – Global Reporting Initiative ECONOMIC CATEGORYECONOMIC CATEGORY: economic performance, market presence, economic impacts and procurement practices ENVIRONMENTAL CATEGORYENVIRONMENTAL CATEGORY: materials, energy, water, biodiversity, emissions, effluents and waste, compliance, overall and supplier environmental assessment SOCIAL CATEGORYSOCIAL CATEGORY: labor practices, human rights, society and product responsibility.

ToSEE - Tourism in South East Europe 3rd International Scientific Conference Sustainable Tourism, Economic Development and Quality of Life University of Rijeka, Faculty of Tourism and Hospitality Management Opatija EUROSTAT use in process of monitoring, more than 100 indicators 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)

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

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

ToSEE - Tourism in South East Europe 3rd International Scientific Conference Sustainable Tourism, Economic Development and Quality of Life University of Rijeka, Faculty of Tourism and Hospitality Management Opatija Sustainability reporting of Croatian companies 39 (19%) member of HR BCSD39 (19%) Croatian listed companies are member of HR BCSD 23 (11%) disclose information about sustainability and / or environmental care23 (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%) disclose their sustainability report web sites of HR BCSD11 (5%) of them disclose their sustainability report on the web sites of HR BCSD (last three years) not prepared criteria, it not provide comparison reported information not quality levelReported 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) INFORMATION FOR LONG TERM DECISION MAKING

ToSEE - Tourism in South East Europe 3rd International Scientific Conference Sustainable Tourism, Economic Development and Quality of Life University of Rijeka, Faculty of Tourism and Hospitality Management Opatija Responsibility segment reporting of Croatian listed companies INFORMATION FOR SHORT TERM DECISION MAKING

ToSEE - Tourism in South East Europe 3rd International Scientific Conference Sustainable Tourism, Economic Development and Quality of Life University of Rijeka, Faculty of Tourism and Hospitality Management Opatija Environment care in Croatian hotel companies

ToSEE - Tourism in South East Europe 3rd International Scientific Conference Sustainable Tourism, Economic Development and Quality of Life University of Rijeka, Faculty of Tourism and Hospitality Management Opatija Sustainability in the practice of Croatian hotel companies

ToSEE - Tourism in South East Europe 3rd International Scientific Conference Sustainable Tourism, Economic Development and Quality of Life University of Rijeka, Faculty of Tourism and Hospitality Management Opatija Sustainable development & business success

ToSEE - Tourism in South East Europe 3rd International Scientific Conference Sustainable Tourism, Economic Development and Quality of Life University of Rijeka, Faculty of Tourism and Hospitality Management Opatija SBSC - STRATEGY MAP, CONVERTING INTANGIBLE ASSETS INTO TANGIBLE OUTCOMES – for long term decision making

ToSEE - Tourism in South East Europe 3rd International Scientific Conference Sustainable Tourism, Economic Development and Quality of Life University of Rijeka, Faculty of Tourism and Hospitality Management Opatija Question in process of long term decision making specificsparticular hotel answer to the following questions The 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? costs and benefits measured –How should the costs and benefits of resource use be measured? motivation human capital –How integrated are energy, motivation, knowledge, capacity for relationships, and other forms of human capital? integration –What types of and how much direct and indirect value does integration create? tourism products and services be measured –How do the tourism products and services create value for local individuals, social groups and their relationships, and how can this be measured? fewer resources and more human creativity –Can existing manufactured stock and infrastructure be used in way that requires fewer resources and more human creativity? measured –Can these efficiencies and their value be measured? sustainable business value for a hotel’s –Can sustainable business practices be used to create or increase value for a hotel’s or hotel company’s stakeholders?

ToSEE - Tourism in South East Europe 3rd International Scientific Conference Sustainable Tourism, Economic Development and Quality of Life University of Rijeka, Faculty of Tourism and Hospitality Management Opatija INFORMATION FOR LONG- AND SHORT TERM DECISION MAKING Sustainable reporting - regulations and standards

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

ToSEE - Tourism in South East Europe 3rd International Scientific Conference Sustainable Tourism, Economic Development and Quality of Life University of Rijeka, Faculty of Tourism and Hospitality Management Opatija WHETHER, OR NOT CORPORATE RESPONSIBILITY REPORTS REPORTING QUALITY 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 ( University of Rijeka ( Tel.: