Let’s decipher: ESG = environment, social, governance.

Behind this is a set of criteria for evaluating the company’s impact on: the environment, society and business management practices.

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ESG reporting concerns the mandatory disclosure to authorized entities of specific information on sustainable development, the use of solutions aimed at protecting the environment, social issues (e.g. work life balance) or appropriate and transparent company structures.

Currently, the reporting applies only to the largest companies, which are the so-called public interest entities (PIE) that employ over 500 employees and meet one of two financial conditions in the financial year: PLN 85 million of total assets in the balance sheet or PLN 170 million of net sales revenue. In practice, this means large listed companies, banks, insurance companies, other PIE.

However, it is expected that after the entry into force of the EU CSRD directive, the number of entities subject to mandatory ESG reporting will increase tenfold.

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It is worth taking care of an ERP system that will meet the new requirements today. Read the material prepared by Microsoft on supporting ESG reporting by Dynamics 365.

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Estimated calendar for new entities to be subject to the CSR reporting obligation:

2025 (reporting for 2024) – public interest entities, reporting so far on the basis of the NFRD

2026 (reporting for 2025) – all large enterprises, defined as companies meeting 2 out of 3 criteria (employment > 250, EUR 20 million in total assets, EUR 40 million in net income)

2027 (reporting for 2026) – small and medium enterprises listed on the stock exchange