Are you aware of the changing operating conditions of your organization? Do you feel growing regulatory and market pressure in the field of sustainable development in your company? Do you see the need to implement the principles of sustainable development in your company, but do not know how to recognize the opportunities and risks related to ESG, i.e. environment, society and corporate governance? Do you want to be sure that implementing the principles of sustainable development will also translate into optimized results, better management, greater customer loyalty and even lower operating costs?
With us, you will go from intention to implementation and impact of changes on the operations and results of your organization. We will translate the principles of sustainable development into practical guidelines applicable to your industry and company. Our specialist knowledge focuses on implementing the best strategies adapted to your business. We operate in various industries and use dedicated solutions that allow you to achieve the expected results.
We will help you implement ESG principles in your company too!
The European Union is the leading international organization in the implementation of climate policy aimed at climate neutrality in all areas of life. The key to this policy is to improve our relations with the natural environment by implementing economic models that do not prioritize excessive exploitation and pollution of the natural environment. Hence, the key assumption of sustainable development for the European Union countries is to maintain a balance between caring for the natural environment, the social factor and corporate governance.
Most investments carried out in EU countries and co-financed from EU funds take into account the policy of sustainable development, which has an impact on the natural environment, society and corporate governance. The impact of such a policy on the economy is already visible. An example is the restrictions on the financing of investments related to coal projects by banks. This shows that investments that take into account the principles of sustainable development have a greater chance of both co-financing from public funds and a return on investment on the market. The impact a company or organization has on the environment, employees and society will be increasingly important for its success in economic terms.
Sustainable development is becoming increasingly important in the operations of every company or organization. Even if the ESG reporting obligation does not apply to your company, the lack of implementation of policies related to caring for the natural environment, community or corporate governance reduces the chances of obtaining funding from EU programs. Each application must have an impact on improving indicators in the scope of 6R, i.e. Reduce (limitation), Reuse (reuse), Recycle (recycling), Refuse (refusal), Repair (repair), Rot (composting). The impact of the implementation of the project on at least 2 of the listed 6R gives a higher probability of obtaining funds.
The European Union, in order to enforce the implementation of sustainable development principles by economic entities, is introducing an obligation to submit annual ESG reports from 2024. The purpose of ESG reports is for companies and organizations to present their activities and policies in a non-financial area. ESG reporting will also be an excellent tool to counteract greenwashing.
It is worth emphasizing that entities that do not comply with the principles of sustainable development may have problems in the future with obtaining financing, ensuring the provision of services or the delivery of goods from entities that pay attention to environmental or social issues. As a result, they may have serious problems in functioning in the future. Therefore, it is worth including the principles of sustainable development in management processes now and preparing for the implementation of ESG reporting.
The ESG reporting obligations introduced by the European Commission provide a number of benefits. The need to present environmental, social or management model-related factors allows for wider access to funding offered by the European Union under grant programs. At the same time, it allows the company to be presented as an organization focused on sustainable development, which generates greater interest from external entities. This in turn leads to higher business efficiency and access to new markets and recipients.
Entrepreneurs are increasingly paying attention to the fact that sustainability issues will significantly affect financial results. There is a growing awareness that the investment product market favors investments in the field of sustainable development. What is more, investing in ESG in the long term will bring companies higher financial returns. In principle, such entities will achieve better financial results. They will also be perceived as less risky and more competitive than organizations that do not invest in sustainable development. In this way, ESG reports will help to find socially responsible companies and avoid entities that are not interested in sustainable development.
So far, the obligation to submit ESG reports has been imposed only on a narrow group of entities. It is worth emphasizing, however, that over time the scope of organizations required to submit ESG reports will be expanded.
It is estimated that the new regulations will cover around 50 companies in the entire European Union. In Poland, this will be almost 4 private and public entities.
ESG reporting is being introduced as part of a 4-stage expansion of the subjective scope, which will cover the years 2024-2028.
The ESG reporting obligation applies to companies and capital groups that have so far been required to prepare data in accordance with the NFRD directive. These entities include the largest public organizations, companies employing more than 500 employees and generating annual revenues of more than EUR 40 million or a balance sheet total of more than EUR 20 million. The deadline for submitting the report for such entities is 2025.
The obligation to submit reports from 2025 also applies to large companies that meet 2 of the 3 criteria, i.e.: employing more than 250 people, achieving a balance sheet total of more than EUR 25 million, achieving revenues of more than EUR 50 million. These entities will submit their first report in 2026.
The ESG reporting obligation in 2026 is extended to small and medium-sized enterprises that meet at least 2 of the 3 criteria, i.e.: employing more than 10 people, achieving a balance sheet total of more than EUR 350, achieving annual revenues of more than EUR 700. These entities will submit the report in 2027.
The obligation to submit reports will also apply to selected non-EU entities that have a subsidiary or branch in Poland and generate annual revenues in the EU exceeding EUR 150 million. Such entities will submit the relevant reports in 2028.
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