At a time when regulatory requirements are tightening and markets are becoming increasingly sensitive to risks, the topic of sustainability is shifting from reputation management to the realm of financial strategy. This was the perspective offered by MK Group’s Group Finance Director, Violeta Kovačević, on the panel “Circular Economy and ESG: How to Align Profit, Regulation and Sustainability” at the XXXIII Kopaonik Business Forum, held at the Grand Hotel.
Kovačević emphasized that the circular economy today represents an element of strategic capital management and long-term risk management.
“ESG is integrated into company governance at MK Group, and establishing ESG boards and ESG teams within member companies is particularly important. With forty ESG ambassadors from various divisions, we also created an internal ESG portal because we had a lot of scattered information. Thanks to these activities, we now have a unified ESG data base that significantly simplifies our ESG reporting,” Violeta Kovačević stressed.
She pointed out that the company pays special attention to the impacts of all investment decisions on employees, people and the environment in which MK Group operates, noting that all investments are directed toward the future, sustainability and competitive advantage.
As an example of a systemic approach, she mentioned the practice within MK Group where by-products from agro-industry are used to produce biogas, while the energy and heat obtained are returned to production processes, thereby closing resource loops and reducing dependence on external energy sources.
“Our investments in renewable energy sources are well known to the public, but it is important to note that we have produced four times more energy from renewables than was consumed in our system. That is a concrete indicator of how circularity and the energy transition contribute to business resilience,” Kovačević emphasized.
She added that the advantage of MK Group as a diversified system lies precisely in the exchange of knowledge and experience between different sectors.
“Circularity implies interconnectedness. Different knowledge and its sharing through member companies represent a major advantage for us, and they also contribute to efficiency and cost savings. For us, circularity and care for the environment are not separate activities, but a way of working that makes the business more stable and sustainable in the long term,” she said.
Kovačević also recalled the social dimension of MK Group’s ESG approach, including the internal “Family Support” program, regional donations for seven maternity wards, twenty kindergartens and four student dormitories, as well as the work of the Miodrag Kostić Endowment – Palace of Science, which contributes to the development of science and education.
She concluded that a company’s long-term value today is not measured solely by profit, but by the ability to adapt, innovate and manage resources responsibly.