SSH adopts recommendations for sustainable business of SOEs
Slovenian Sovereign Holding (SSH) has adopted amended Recommendations and Expectations of SSH for SOEs which now include recommendations for their sustainable business. SSH aims to encourage SOEs for pursuing economic, social and environmental transformation of their business strategies and models which should lead to better competitiveness, lower risk levels and sustainable performance in the long term.
SSH will consider it a success when SOEs will attain financial performance expected by their owner while simultaneously implementing all three aspects and goals of sustainable business. The ultimate objective of state-owned companies being managed by SSH is effective, profitable, economical operation, creation of value, and in many cases, efficient management of individual assignments in public interest. This must be achieved in a sustainable manner, by taking into account economic, social and environmental aspects.
Recommendations and Expectations of SSH are addressed to all companies with capital assets of the State regardless of the equity interest and of the share of voting rights held by the State or SSH in an individual enterprise and regardless of its legal organisational form. They are also addressed to subsidiaries in a Group in which the controlling company is an enterprise with equity interest held by the State.
Through their business models companies should contribute to the generation of value so that they enable and encourage sustainable development and take advantage of opportunities for creating value that is sustainable, developing new and innovative business models which will contribute to strengthening their competitiveness. When formulating and implementing a business strategy, the company shall consider environmental risks which significantly affect their business environment in a short-term, medium term and long term, and introduce consideration of them into their risk management system. In this context, account should be taken of the fact that methodologies and tools for their consideration are in progress in the international arena.
As regards sustainable business, companies with state’s capital assets should be a leading example to other companies. In addition to successful and efficient performance in the long term, a particular focus should be placed on reducing negative environmental impact, cooperation with stakeholders and their inclusion, provision of corporate integrity (values, ethical conduct, mechanisms for preventing and zero tolerance towards corruption, a stimulating organisational culture). The amended Recommendations and Expectations also include recommendations on human rights which introduce higher standards as regards respect of human rights in business and represent an important and significant part of sustainable business operations. Their inclusion thus underpins and further promotes efforts pursued by the Government of the Republic of Slovenia and the Ministry of Foreign Affairs when implementing the National Action Plan of the Republic of Slovenia on Business and Human Rights. SSH considers that higher standards for respecting human rights enable enterprises to enjoy better corporate reputation by their stakeholders, these companies are more capable of attracting and maintaining high quality staff, who are more dedicated and committed, and they may exercise other positive impacts which lead to their competitive advantage over other undertakings which do not operate in such a socially responsible manner.
Appendix (Full document - SSH Recommendations and Expectations) - available soon