ESG criteria are becoming increasingly important not only for companies bound by relevant EU regulations but also for all entities seeking to meet the expectations of customers, investors, and business partners. What do they cover? How can they be met? We explain in the following article.
ESG – what are these criteria?
ESG is an acronym of three English words: Environmental (environmental), Socials (social) and Governance (management/corporate governance). Each expression contains distinct requirements, the fulfillment of which helps build the image of a responsible, sustainable company.
Environmental criteria – essential ecology
A very broad category in which we can include all issues related to the impact of enterprises on the environment. In this respect, proper waste management, as well as the protection of water resources and biodiversity, are key.
Emissions of pollutants and greenhouse gases, as well as electricity and heat consumption, must also be taken into account. The need for continuous analysis of environmental issues is necessitated by current regulations (especially EU ones), although consumer attitudes also have a significant impact. Increasing awareness of this issue is driving significant changes in the functioning of many companies and entire sectors of the economy.
Social criteria – relationships within and outside the company
Environmental concerns often go hand in hand with social ones, and this is no exception. This "set" of criteria encompasses, among other things, a company's relationships with its employees, as well as its customers and the entities or individuals with whom it collaborates—suppliers, business partners, and contractors.
But that's not all. ESG also concerns relationships with local communities and the impact of the company on their daily lives.This also includes how a company's operations may impact air quality, noise, and pollution.
Corporate governance and management
The way a company is managed also plays a significant role, especially when considering decision-making processes, the structure of individual departments, and risk management. A responsible company should take these types of challenges seriously.
Who do ESG criteria apply to?
Current regulations require compliance with ESG criteria by large enterprises and corporations.
This doesn't mean, however, that smaller entities ignore ESG criteria. On the contrary, a growing number of companies are taking them into account, striving to implement changes that would allow them to meet at least some of the requirements.
What is the reason for their stubbornness?
Primarily, it's a desire to build an image of responsible companies that respond to changing conditions. This applies particularly to environmental issues. Customers, investors, and employees are increasingly raising the issue of the threats posed by irresponsible environmental policies. Awareness of these changes is growing, influencing purchasing and investment decisions.
Moreover, there are already legal provisions that other large enterprises and small and medium-sized enterprises will also be forced to comply with ESG criteria and implement reporting.
The package, commonly known as Omnibus, introduced changes to the deadlines for ESG reporting for LARGE, SMALL and MEDIUM-SIZED enterprises.
On April 14, 2025, the EU Council approved the proposal to implement the so-called "stop-the-clock" directive. is an element of the initial set of simplifications in the scope of individual requirements related to sustainable development regulations for entrepreneurs (Omnibus package).
In view of this, Polish companies will gain some time to carry out preparatory work to meet the new obligations related to the introduced reporting related to sustainable development (ESG).
The introduction of the extension of deadlines by the EU results in a postponement of ESG reporting obligations and is the result of concerns within the EU administration that companies, especially those from the SME sector, would not meet the previously sanctioned deadlines.
According to changes in the law from July 2025 (Act amending the Accounting Act, Act on Statutory Auditors, Audit Firms and Public Supervision and certain other acts) enterprises and institutions that, according to previous provisions, were (originally) supposed to prepare and submit an ESG report:
- a) in 2026 (for the 2025 financial year) => they will only do it in 2028 (for the 2027 financial year) – large enterprises,
- b) in 2027 (for the 2026 financial year) => they will only do it w 2029 (for the financial year 2028) – small and medium-sized enterprises.
Want to meet ESG criteria? Get help from specialists
While ESG criteria seem quite precise, meeting them isn't always easy. It requires adapting or significantly changing a company's operating strategy, and often even making key investment decisions.
Provided by us environmental consulting can help you better understand these rules, as well as plan important initiatives that will help change the way your company is perceived in the market. We will explain important regulations and propose solutions tailored to the specifics of your industry.
If you want to know more – https://www.ekomeritum.pl/esg/.
