In today's rapidly evolving business landscape, companies are increasingly recognizing the importance of Environmental, Social, and Governance (ESG) principles in their mission to drive sustainable growth and generate positive impact on communities they operate in. One such company comes from Bosnia and Herzegovina. Hifa-Oil Tešanj d.o.o., is a leading player in the petroleum industry in the region, with a strong commitment to ESG values through different aspects of its operations.
Environmental Responsibility
Since its inception, HIFA-OIL has prioritised environmental protection as a cornerstone of its business. Kenan Ahmetlić, Executive Director and Board Member of Hifa Oil Group, emphasises: "We firmly believe that protecting the environment is not just a responsibility but a moral imperative. That’s why our company has embarked on a journey to minimise our environmental footprint through different activities like support to local communities, but also through investments into renewable energy sources and infrastructure."
One of Hifa-Oil's notable achievements is its early adoption of ISO 14000 standards for environmental protection. This proactive approach represents the company's dedication to maximising its ecological contributions. Furthermore, Hifa-Oil has started a transformative journey towards embracing renewable energy solutions. By investing in solar power infrastructure and gradually transitioning away from fossil fuels, the company is pushing forward the energy transition both from within the company and throughout the region.
In 2021, sector Euro Solar was founded as a response to the growing market need for a partner in the segment of renewable energy sources. Euro Solar provides full turnkey solutions for the development and construction of solar power plants. Among the projects completed by Euro Solar are some of the largest photovoltaic power plants in Bosnia and Herzegovina, such as the Swisslion solar power station in Trebinje, which occupies more than 20,000 square metres of roof space.
Photo 1: T-solar plant, Bileća. Capacity 2,5 MW, constructed by Euro Solar.
Photo 2: ASA ENERGY Power plant, Bosanski Petrovac. Capacity 10 MW, constructed by Euro Solar.
In terms of buying electricity from RES, Hifa-Oil is the market leader in Bosnia and Herzegovina. It is also the first private company with domestic capital to enter the wholesale electricity market in the region and in BiH, as well as the first to access the SEEPEX stock exchange in Serbia. Currently Hifa-Oil purchases electricity from over 500 power plants, including solar power plants, small hydropower plants and biomass power plants. With its support for this segment of the energy market, Hifa-Oil offers safe placement of electricity for all subjects interested in the production of electricity from renewable energy sources.
Social Impact
Beyond its commercial success, Hifa-Oil places a strong focus on creating a positive environment for the people in the local communities. Mr. Ahmetlić confirms: "Our success is not solely measured in what profits we have at the end of the year, but in the meaningful difference we create in people's lives, both in regional communities, but also for our employees."
Hifa-Oil's commitment to social responsibility is evident in its support for socially responsible projects. From humanitarian aid to cultural events, the company strives to be a catalyst for positive change. For instance, Hifa-Oil has allocated funds on multiple occasions for initiatives such as children's playgrounds and healthcare facilities, like the one for the local hospital in its headquarters in Tešanj.
Governance Excellence
For most part, the Hifa-Oil's success lies in the company’s commitment to governance excellence. Transparency, integrity, and ethical conduct are the cornerstones of their governance framework. The company's governance practices are guided by principles of accountability and transparency.
Hifa-Oil maintains stringent internal controls and compliance standards, making sure in the process that ethical behaviour is honoured across its operations. As a result, the company generates trust and confidence among all of its stakeholders.
Driving Innovation
Hifa-Oil’s approach to sustainability relies to the highest extent on innovative practices. They view innovation as a catalyst for progress and by adopting practices that lead to it, they are adapting easier to the changing market dynamics.
From green innovations to digital transformation initiatives, the company is continuously exploring technologies and solutions that can enhance its environmental protection and foster operational efficiency.
Its commitment to ESG principles remains an imperative force that will drive their strategy and business in the future as well. In fact, in the years ahead, Hifa -Oil aims to further amplify its efforts and leverage its market leader position to drive a larger impact. Through collaboration, innovation, and a relentless focus on ESG excellence, the company has set ambitious objectives to shape a more sustainable future for generations to come.
“It’s of the utmost importance to us that regional companies like Hifa-Oil recognize our mission and support ESG Adria Summit 2024. Their innovative and environmentally responsible practices show that even within traditionally carbon-based sectors, a huge shift toward green energy is unfolding, fostering more economic growth and offering hope for a more resilient, sustainable future of Adria”, said Biljana Braithwaite, CEO of Sustineri Partners, organiser of ESG Adria Summit.
Hifa-Oil's success story serves as a testament to the transformative power of purpose-driven leadership and responsible business practices. As the company continues to pave the way forward, it should remain an inspiration for the broader business community.
