ESG reporting
In recent years, ESG reporting has become an extremely important part of business strategies in Poland. ESG means environment, social responsibility and corporate governance. ESG reporting is a specific type of non-financial reporting that allows companies to summarize their activities from a sustainability perspective in these areas. More often than ever, companies now need to consider the environmental, social and internal governance impacts of their operations in order to gain the trust of customers, investors and society as a whole.
Highlights – in brief
An ESG report is a non-financial report that covers
- Environmental impact (E – Environmental)
- Social responsibility (S – Social)
- Corporate Governance (G – Governance)
Currently in the EU, non-financial reporting requirements apply to large public interest entities, this will change with the beginning of the CSRD Directive, which will extend this obligation to
|
Implementation date |
First year of reporting |
|
|
Large public interest companies already covered by the NFRD and with more than 500 employees |
as of January 1, 2024. |
2025 |
|
Large companies that are not subject to the NFRD and have more than 250 employees and/or have €40 million in turnover and/or €20 million in total assets |
as of January 1, 2025 |
2026 |
|
SMEs, as well as other listed companies |
as of January 1, 2026 |
2027 |
What are the benefits of non-financial reporting?
ESG is a complex concept that encompasses three areas: environment, society and governance. Each of these areas has its own specific requirements, but they come together for one purpose – to create sustainable and balanced businesses. Companies that report on their activities in ESG areas give investors and customers a clear picture of their approach to these issues, and also enable comparison with other companies. In Poland, more and more companies are seeing the benefits of ESG reporting. This reporting helps to increase investor engagement, and also allows the company to build a positive image. A positive image related to environmental or social activities is a very important element for many customers, who are increasingly aware of their impact on the environment and society.
What does ESG reporting look like in Polish companies?
Poland is one of the countries where companies are increasingly trying to make changes related to environmental protection. Over the past few years, many companies have introduced innovative solutions in the area of environmental protection and sustainability. One example is the introduction of programs to reduce greenhouse gas emissions or increase energy efficiency in industrial companies.
According to the legislation:
Non-financial reporting currently functions in the European Union as mandatory only for selected companies such as banks, insurance companies and investment funds. However, according to the CSRD Directive on Corporate Sustainability Reporting, adopted in December 2022, the scope of who and what companies are obligated to report will be significantly changed.
Starting January 1, 2024 – reporting in 2025 – will mainly apply to listed companies with more than 250 employees and meeting one of two financial conditions: a balance sheet total of €20 million or net sales revenues of €40 million.
In 2026, the reporting obligation will also fall on the remaining large companies, and starting in 2027, it will apply to the broadest range of entities along with small and medium-sized listed companies.
How to prepare for ESG reporting?
The responsibilities of preparing a company and preparing a non-financial ESG report are many, so in order to avoid unnecessary mistakes it is essential to take action in the company in advance. Preparation for ESG reporting should include, first of all:
- training of staff and management on ESG and sustainability topics to grasp the essence of this type of reporting,
- examining materiality in accordance with ESRS standards guidelines, which will enable you to tailor your reporting strategy,
- to develop an ESG strategy tailored to your company, based on the identification of specific objectives,
- collecting non-financial data necessary for the ESG report,
- implementing the developed ESG strategy and preparing the report.
Also, not to be overlooked is the issue of updating the strategy and continuously monitoring the factors that affect the results of non-financial ESG reporting, adapting as a company to changing trends and recommendations in sustainability.
Our services
We offer comprehensive preparation of companies for ESG reporting, support in creating reports, conducting environmental analysis including carbon footprint calculations. Feel free to contact us directly by e-mail or use the contact form below.