It is important to recognize the new opportunities that ESG regulations present for businesses

– We are no longer debating whether ESG is relevant or important; instead, we are now focusing on the legislation, emphasised Piotr Glen, head of the Sustainability and ESG Team at the Warsaw School of Economics, during the Rzeczpospolita debate titled ‘ESG: Towards a Sustainable Business’ in Karpacz.

He, along with other participants in the discussion, highlighted the surge in new regulations in this area. In particular, they noted the Corporate Sustainability Reporting Directive (CSRD), which will significantly expand the number of companies in Poland required to comply with reporting obligations – from 150 to as many as 3,600 or even 4,000.

Piotr Glen observed that much of the Polish business sector is largely unaware of the extensive sustainability legislation it faces. He emphasised that beyond the CSRD, businesses must also take into account the Green Deal, the EU Taxonomy, the Fit for 55 Pact, the Plastics Pact, and the recently adopted Corporate Sustainability Due Diligence Directive (CSDD), which is crucial for responsible business practices.

Customers will ask you about ESG

Some companies have already begun preparing for the upcoming changes, making it easier for them to adapt to the new requirements. In contrast, those facing non-financial reporting for the first time will find it more challenging. However, as Piotr Glen noted, the greatest surprise will come for companies not directly subject to the directive. These businesses will still face demands for non-financial data from other companies within their value and supply chains.

Agnieszka Orłowska, Vice-President of the Association of Business Service Leaders (ABSL) for ESG issues, highlighted that the sheer volume and complexity of sustainability regulations pose a significant challenge even for large, international companies. In response, ABSL – which now represents 260 companies of all sizes – has made education a top priority. The association has already produced a comprehensive report assessing the industry's readiness for new regulations, including the CSRD, while also tracking the efforts of member companies in this area.

Agnieszka Orłowska noted a very positive finding from the survey: the majority of ABSL members have already implemented global ESG strategies in Poland. The industry is also excelling in the social (S) aspect, particularly in promoting employee diversity.

However, there are still areas, such as carbon footprint measurement, that are relatively new to many companies. To address this, ABSL has established the ESG Club, bringing together professionals from member companies working on these issues. The Club aims not only to foster the exchange of knowledge and experience but also to offer comprehensive educational programs focused on ESG.

Assistance for businesses

SGH places a strong emphasis on education, demonstrated by its launch of the ‘ESG Initiative’ educational project in partnership with the Economic Forum two years ago. This year, as part of the Ministry of Funds and Regional Policy's Working Group on Social Responsibility of Universities, SGH is contributing to the development of an ESG legislative guide.

– This initiative aims to spread knowledge and support Polish businesses who are uncertain about what lies ahead, noted Piotr Glen. The guide, which will help businesses navigate essential ESG legislation and obligations, will be available free of charge starting 25 September.

Paweł Walicki, President of Centrum Medyczne CMP Capital Group, highlighted that while Polish enterprises are already making significant strides in sustainable development, many do not recognize these efforts as part of ESG. He also raised concerns about the complexity of legislation and whether ESG reports will effectively and comprehensively regulate corporate activities.

Paweł Walicki emphasised the need for certain standards, not merely due to regulatory pressure, but also out of growing awareness – particularly regarding issues like climate change and the broader role of business in society.

– A company must have a purpose, leaving a lasting and valuable impact—one that isn't a carbon footprint, emphasised the president of the Centrum Medyczne CMP group. He noted that while regulations can feel burdensome, they should ultimately support and motivate companies to take action, much like GDPR legislation, which has proven its value over time.

– While ESG regulations remain somewhat unclear, the direction is absolutely right, and we all need to move forward, stressed Paweł Walicki. He emphasised the need to broaden our perspective – beyond just our own business – to include suppliers, partners, and the growing expectations of customers.

Road to innovation

Centrum Medyczne CMP is actively preparing for these changes. Though the company, with over 1,300 employees, is not yet subject to reporting obligations, it is already assembling teams to address them. It is also seeing new business opportunities arising from ESG initiatives.

Paweł Walicki highlighted that regulations in this area are pushing companies to seek out more innovative solutions. He noted that many projects not only align well with ESG principles but also make sound business sense. Examples include the shift to paperless operations and the adoption of electronic documentation, such as e-prescriptions—initiatives that proved invaluable during the pandemic.

Agnieszka Orłowska noted that ABSL views ESG as a significant opportunity for expanding the services offered by its member companies. This is especially relevant given that 37% of these companies already have dedicated personnel managing various aspects of ESG.

– For now, ESG presents a challenge for everyone, but we see it as a significant growth opportunity for the future, emphasised the ABSL Vice-President. She added that ESG reporting can help companies strengthen their operations by increasing resilience to identified risks, while also uncovering new business opportunities, attracting new customers, and potentially expanding into new markets for their products and services.