Environmental communication and the green transition: how Croatia’s financial sector is addressing climate change

Along with the overexploitation of natural resources, climate change is one of the most pressing threats to the planet. Croatia contributes just 0.1% of global greenhouse gas emissions. Yet it remains one of the European Union’s (EU) most climate-vulnerable nations. Extreme weather events and rising temperatures are proof that the Balkan country is already experiencing severe consequences. The Croatian Climate Change Adaptation Strategy forecasts a temperature rise of up to 2.5°C by 2070, which could significantly impact various sectors. Given this new reality, banks and other financial institutions have a crucial role in supporting the country’s green transition.Banks are often perceived as separate from environmental concerns. However, their financing decisions significantly impact sustainability efforts. While banks themselves do not pollute, they fund several industries that do precisely that. According to different researchers, banks make a hugely important contribution to sustainable development by promoting investments in renewable energy, climate resilience and social responsibility. Indeed, recent work argues that banking can even influence various Sustainable Development Goals (SDGs) proposed by the United Nations (UN). Poverty reduction, climate action and sustainable urban development are chief among them.Green banking refers to financing activities that support environmentally sustainable projects. It also includes the integration of sustainability practices within financial institutions. Without proper funding, a proper transition to a greener economy is impossible. In recognition of this, the European Bank for Reconstruction and Development (EBRD) has committed to increasing green financing to more than 50% of its business volume by 2025. This is integral to its target of achieving a minimum reduction of 25 million tons of greenhouse gas emissions.As a member of the EU, Croatia is transitioning from a linear to a circular economic model to align with the European Green Deal (EGD). The EGD aims to reduce emissions by at least 55% by 2030 through policies across multiple sectors. This represents a significant step on the way to making Europe climate-neutral by 2050. Banks are key players in financial markets and must adapt to these changes.The Croatian National Bank (CNB) has been increasingly vocal about its role in promoting sustainability. It signaled its intentions in 2021 by joining the Network for Greening the Financial System (NGFS). This global coalition of central banks remains committed to working towards climate-conscious policies. But that’s not all. The CNB is also involved in initiatives such as the Climate Change Working Group under the Vienna Initiative, aimed at harmonizing green finance strategies across Europe.Environmental communication (EC) and sustainability communication (SC) play a crucial role in shaping public perception and driving action. SC broadly covers economic, social and environmental issues. On the other hand, EC focuses specifically on climate change, pollution reduction and resource conservation.Despite the growing interest in green banking, studies on how banks communicate their environmental strategies remain scarce. Banking firms that adopt effective EC strategies become more ideally positioned to:Banks that clearly communicate their green initiatives are able to influence corporate policies, encourage responsible investments and enhance public awareness of sustainable finance.To understand how central banks communicate environmental issues, Holy and Geiger Zeman (2025) conducted a case study of the CNB’s climate-related communication. The study analyzed the CNB’s Climate Strategy, 20 published articles and an in-depth interview with Deputy Governor Sandra Švaljek, who oversees the bank’s green finance initiatives.Findings revealed that the CNB frames climate change primarily as a financial and economic risk rather than inherently as an environmental issue. The strategy focuses on practical measures such as integrating climate risks into financial supervision and promoting sustainable investments. Strong emphasis is placed on global and European climate policies by the CNB. In contrast, reference to local challenges is limited.The CNB’s communication strategy is largely pragmatic and techno-centric. It means that such as regulatory measures, financial instruments and low-carbon technologies are referenced most. Articles released by the bank use formal, technical language. This is not surprising as the target audience includes financial professionals, policymakers and government institutions. Communication is not aimed at the general public.Infographics and other visual elements are included to help simplify complex data. One example is the climate strategy cover that features a symbolic image of a hand holding the Earth. It is divided into a dark, polluted future on one side and a bright, sustainable future on the other. Use of this imagery reinforces the idea that human action determines environmental outcomes.While the CNB has made substantial strides in promoting green finance, several challenges remain. They include limited awareness to date, the need for regulatory adjustments and too great a focus on short-term priorities. These challenges, respectively, mean that Croatia’s financial institutions:For sure, such issues have scope to prove formidable barriers. However, banks should be cognizant of the opportunities that can still prevail. In this regard, the authors identify:Croatia’s banking sector is at a turning point. The country has made notable progress in meeting EU climate targets. Nonetheless, a robust financial mechanism is essential for sustaining momentum. Without a doubt, the CNB’s efforts in EC and green finance are commendable. However, there is room for improvement in outreach and engagement.To achieve meaningful change, banks must move beyond compliance and actively champion sustainability as a core business strategy. Those that do can be at the forefront of building a greener, more resilient future for Croatia and beyond.This review is based on “Exploring environmental communication in the national banking green transition” by Mirela Holy and Marija Geiger Zeman, published in Corporate Communications: An International Journal.