THE SYNERGY OF SUSTAINABILITY AND MANAGEMENT IN THE DIGITAL AGE: AN INTEGRATED ANALYSIS OF THE IMPACT ON THE FINANCIAL AND NON-FINANCIAL PERFORMANCE OF BUSINESS ENTITIES - SIGMA

Project “SIGMA” is implemented within the framework of the National Recovery and Resilience Plan 2021–2026 and is financed by European Union funds through the NextGenerationEU instrument.

News and events

SIGMA Project at the TAKE Conference in Lisbon

At the international scientific TAKE Conference 2026, held in Lisbon (Portugal) from July 6 to 8, 2026, members of the SIGMA project research team – Assoc. Prof. Mirjana Hladika, PhD, Assist. Prof. Marina Ercegović, PhD, and Ivana Bernat, PhD – presented a paper titled "Deconstructing the ESG Paradigm: A Comparative Bibliometric Mapping of Environmental, Social, and Governance Research in Accounting".

The aim of this comprehensive study was to deconstruct the perception of ESG as a unified block and to map its evolution over the period from 2005 to 2025. Through a bibliometric analysis comprising 12,699 documents, the authors analyzed five distinct literature corpora: environmental (E), social (S), governance (G), integrated ESG, and the emerging field of digital ESG.

The key findings of the research show the following:

Dual structure of the ESG paradigm: ESG research in accounting does not constitute a single, unified field. While the individual pillars (E, S, G) are strongly rooted in the tradition of accounting and reporting, the integrated ESG and digital ESG discourses are primarily oriented towards finance and capital markets.
Strong growth of digital ESG: Although the digital ESG corpus is quantitatively the smallest (606 documents), it represents the fastest-growing front with an annual growth rate of over 53%, heavily relying on concepts such as artificial intelligence, machine learning, and digital transformation.
Fragmentation of the social pillar: Unlike the environmental (E) pillar, which has a coherent structure, the social (S) pillar remains scattered across specific topics such as modern slavery and the gender pay gap, without consolidating into a single strong theme.
Evolution of themes and the importance of accounting: Across the three observed periods (2005–2015, 2016–2021, 2022–2025), topics related to sustainability reporting maintain their presence and importance. This underscores the central role of accounting in the sustainable transition process and the transparency of sustainability reporting.

With its findings, this paper makes a strong scientific contribution by empirically proving that ESG is not a monolithic concept, thereby enabling scholars and practitioners to gain a deeper understanding of the different intellectual foundations underlying sustainability reporting and ESG finance, and setting clear guidelines for future research.

Participation in the 17th Odyssey conference in Dubrovnik

At the international From May 20 to 23, 2026, the SIGMA project was presented at the traditional international scientific conference organized by the Faculty of Economics & Business of the University of Zagreb - the 17th International Odyssey Conference on Economics and Business which took place in Dubrovnik. The paper titled "The Nexus between Financial Performance and Sustainability Commitment in Family Firms", authored by Prof. Sanja Sever Mališ, PhD, Prof. Nikolina Dečman, PhD, and Petra Halar, PhD, was successfully presented at the conference by project collaborators Prof. Nikolina Dečman, PhD, and Petra Halar, PhD.

About the Research

The paper investigates the relationship between financial performance and sustainability commitment in family firms. Using a mixed-method approach, the study analyzes a sample of 50 large family businesses in the Republic of Croatia from the agriculture, manufacturing, and trade sectors for the year 2024. The objective was to examine whether the profitability (measured by ROA) of family firms that disclose sustainability information differs from those that do not yet do so.

Key Highlights and Contributions of the Research:

High level of voluntary reporting: The study showed that 58 % of the analyzed family firms (29 of them) disclose sustainability information in some form. In 2024, only three family businesses had a legal obligation to report, meaning that the remaining 26 firms do so voluntarily.
Dominance of integrated reporting: Among the firms that report on sustainability, the majority (75.86 %) integrate this information within the management report in the annual report, while only 24.14 % (seven firms) publish separate, standalone sustainability reports.
Neutral impact on short-term profitability: The results of the t-test and regression analysis confirmed that sustainability disclosure currently has no statistically significant impact on the profitability (ROA) of large Croatian family firms, confirming a neutral relationship in the short term. The financial effects of sustainability typically manifest only after several years.
Low level of reporting maturity: Most of the analyzed firms in the Republic of Croatia have only recently (one to two years ago) started preparing and disclosing sustainability information, while only two firms have a continuous reporting track record since 2013.
Impact of financial risk and sector: While firm size has no impact on profitability, the study shows that higher financial risk (indebtedness) negatively affects profitability, while firms from the trade sector achieve, on average, higher profitability compared to the manufacturing and agriculture sectors.

This paper represents the first systematic study on the impact of sustainability reporting on the financial performance of family firms in the Republic of Croatia, thereby successfully filling a significant scientific gap in domestic and regional literature. Beyond its theoretical contribution through the application of the socioemotional wealth concept, the paper offers practical value by providing guidelines for the management structures of family firms on the importance of integrating sustainability into long-term strategies to strengthen competitiveness and resilience, despite the lack of short-term financial benefits. Furthermore, the study sets a solid methodological foundation for future research, such as the development of more complex sustainability disclosure indices and conducting long-term (longitudinal) analyses.

The complete conference program is available at the following link: https://drive.google.com/file/d/1W1fK-yxErh1Gf8rC4pwNLpGEWd5cFOTE/view

Participation in the 5th Lider ESG Conference "Sustainable Future"

As part of the SIGMA project activities, the project leader, Assoc. Prof. Mirjana Hladika, PhD, participated in the fifth conference “ESG - Sustainable Future”, held on May 12, 2026, in Zagreb. The conference was organized by the business weekly Lider, in cooperation with the Croatian Audit Chamber as an expert partner.

The gathering brought together leading domestic and European experts, regulators, representatives of financial institutions, and the academic community. The goal was to analyze the new regulatory wave and practical challenges in implementing sustainable business practices. Given the research focus of the SIGMA project, special emphasis was placed on the inevitable integration of ESG data into management processes and the increasingly important role of accountants and auditors as key actors in the sustainable transition.

During the expert lectures and panels, the following current challenges were discussed in detail:

Regulatory framework and the Omnibus package: Discussions focused on simplifying regulations within the Corporate Sustainability Reporting Directive (CSRD), the EU Taxonomy, and the Corporate Sustainability Due Diligence Directive (CSDDD), with the aim of reducing administrative burdens while maintaining a high level of transparency.
Voluntary standards for SMEs (VSME): It was analyzed how smaller companies, which are not directly subject to the application of the CSRD, can simply and proportionally keep pace with the ESG requirements of their larger partners and banks.
Implementation of audit procedures: The legal obligations of conducting verification of non-financial reports with a level of “limited assurance” were clarified.
CBAM mechanism and GHG protocol: Methods for monitoring greenhouse gas emissions at borders and the impact of new climate policies on the competitiveness of the domestic economy were considered.

The general conclusion of the conference is that ESG reporting is no longer just a matter of a “green image”, but is becoming a “common language” among companies, banks, and investors, upon which survival in international supply chains directly depends.

More information about the program, speakers, and presentations from the conference is available on the official event website: https://lider.events/esg/

Participation in the 55th EBES Conference in Budapest

From April 16 to 18, 2026, the SIGMA project was presented at the prestigious international 55th EBES Conference in Budapest. The paper titled “Beyond Reporting: A Systematic Literature Review of the Managerial Use of Sustainability Information in Decision-Making Processes”, authored by Assoc. Prof. Mirjana Hladika, PhD, and Ivana Bernat, PhD, was successfully presented at the conference by the project leader, Assoc. Prof. Mirjana Hladika, PhD.

About the Research

Increasing pressure from stakeholders and regulators has compelled companies to disclose environmental, social, and governance (ESG) information. However, this paper explores the critical transformation of this sustainability information from a tool intended exclusively for external reporting into a key element for internal managerial decision-making.

Key Highlights and Contributions of the Research:

Comprehensive analysis: The research is based on a dual methodology that combines a systematic literature review (SLR) and a bibliometric analysis of scientific papers from the Scopus database in the period from 2005 to 2025.
The gap between reporting and application: The results show that, despite the standardization of external reporting, the internal use of this information by managers remains fragmented. A significant gap was discovered between data availability and its actual application in decision-making.
Symbolic vs. substantive integration: The paper warns of the “decoupling” of external reporting from internal processes, where ESG data is often used merely symbolically. To achieve authentic corporate sustainability, a substantive integration of this data into management processes is required.
Digital transformation: The analysis maps the evolution of this field and highlights a strong shift toward the use of digital tools to support sustainability.

The paper contributes to management accounting theory and provides concrete practical guidelines for managers on how to bridge the gap between ESG data collection and taking strategic action.

The full conference program is available at the following link: https://ebesweb.org/wp-content/uploads/2026/04/55th-EBES-Conference-Program.pdf

Second working meeting of the SIGMA project team held

On Tuesday, March 10, 2026, the second working meeting of the project team of the institutional research project entitled “The synergy of sustainability and management in the digital age: an integrated analysis of the impact on the financial and non-financial performance of business entities – SIGMA” was held online.

The Project Leader, Assoc. Prof. Mirjana Hladika, PhD, presented the team members with a detailed schedule of research and dissemination activities for the first year of the project. The meeting focused on the precise definition of topics for upcoming scientific papers to be presented at international conferences.

A clear division of tasks and a focus on measurable results remain our priority in all phases of the project.

SIGMA project kick-off meeting held

On Wednesday, February 11, 2026, the first working (kick-off) meeting of the project team of the institutional research project entitled “The synergy of sustainability and management in the digital age: an integrated analysis of the impact on the financial and non-financial performance of business entities – SIGMA” was held online.

The Project Leader, Assoc. Prof. Mirjana Hladika, PhD, presented the project summary, objectives, research methodology, project implementation plan, and expected results for the four-year project period to the project team. A detailed work plan and activity flow chart for the first year of project implementation were presented, along with work plans for individual members of the project team.

This meeting officially began the operational implementation of the planned activities.

Public opening and presentation of SIGMA

On Thursday, January 22, 2026, the public opening and presentation of the institutional research project entitled “The synergy of sustainability and management in the digital age: an integrated analysis of the impact on the financial and non-financial performance of business entities – SIGMA” was held at the Library and Documentation Center (LDC) at the Faculty of Economics and Business.

The event was attended by members of the academic community and experts, underscoring the importance of sustainability and digitalization for modern business. The event was opened by the Dean of the Faculty of Economics and Business, Prof. Sanja Sever Mališ, PhD, who emphasized the importance of institutional support for research that connects digital transformation and sustainable business.

The Project Leader, Assoc. Prof. Mirjana Hladika, PhD, presented the scientific basis of the project, with special emphasis on the key project goals, activities, methodology, and expected results.

The formal signing of the grant agreement SIGMA

The formal signing of the grant agreements for the implementation of institutional research projects under the call IIP-581-2025 was held on Wednesday, 17 December 2025, at the Library of the Faculty of Economics and Business – Zagreb.

The event brought together leaders of the approved projects, officially marking the start of the implementation phase of the institutional research projects funded under this call.

On this occasion, the University of Zagreb Faculty of Economics and Business, represented by the Dean, Prof. Sanja Sever Mališ, PhD, and Assoc. Prof. Mirjana Hladika, PhD, in her capacity as the Project Leader of the SIGMA, signed the Grant Agreement for the implementation of the institutional research project.

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