Ante Žigman at the conference on sustainable finance: Regulation must support the transition, not make it more difficult
President of Hanfa Board Ante Žigman participated in the conference "Support to Sustainable Finance", held on 4 April in Zagreb, organised by the Ministry of Finance. The conference brought together representatives of the financial sector, regulators and entrepreneurs to discuss the challenges and opportunities posed by the green transition.
As part of the panel "Contribution of the financial sector to business transformation in line with sustainability standards", Žigman highlighted the key role of regulators in encouraging sustainable financing. "Regulation should not be an obstacle; it should be a tool that enables market development on a sustainable basis. We need a balance between supervision and encouraging innovation,” he stressed.
Referring to the European Commission’s Omnibus package, which provides for simplification of sustainability reporting rules, Žigman suggested that the proposed measures would significantly reduce the administrative burden for entrepreneurs, especially for small and medium-sized enterprises. “The Croatian market requires tailored regulatory frameworks, which enable financial stability but also provide incentives for further development of green financial instruments,” he said.
The SFDR further emphasises the need for transparency through more clearly defined participation policies. “The proposed regulatory changes are expected to further strengthen this component, thereby increasing the responsibility of financial institutions in sustainable financing,” Žigman pointed out, adding that one of the key challenges for market intermediaries will be to strengthen cooperation with companies and issuers in which they invest. “This not only ensures greater oversight of ESG practices, but also opens up space for voluntary reporting by smaller entrepreneurs that are not subject to formal sustainability reporting. In this context, the European Commission proposes the use of the Voluntary Standard for SMEs (VSME), which would enable greater transparency and adaptation to sustainable financial standards without creating additional administrative burden,” Žigman concluded.
The panel brought together leading experts from the sector, including representatives of the Croatian National Bank, commercial banks and non-banking financial institutions, who discussed the challenges of aligning national regulations with European frameworks and the role of the financial sector in stimulating demand for green financial products.
The conference confirmed that the synergy among regulators, financial institutions and the entrepreneurial sector is crucial for the successful implementation of the green transition and strengthening the competitiveness of the Croatian economy.
