Executive Summary

Environmental, Social and Governance (ESG) considerations are no longer a future obligation for the Western Balkans, they are already influencing how companies access markets, how governments attract investment and how closely the region aligns with the European Union. While awareness of ESG has increased significantly, implementation remains uneven, fragmented and largely driven by external pressure rather than domestic strategy. 

Larger companies are beginning to integrate ESG into their operations, while small and medium-sized enterprises often struggle with limited capacity and unclear expectations. Without targeted policy action, ESG risks becoming a framework that benefits only a narrow group of firms rather than a driver of broad-based economic transformation. At the same time, ESG presents a real opportunity to modernise economies, strengthen resilience and support EU convergence if approached in a practical and coordinated way.