According to the EY Sustainable Value Study, 61% of companies believe that government grants support the implementation of sustainable development. The study reveals that Polish companies take a pragmatic approach to climate actions: 58% of respondents aim to reduce energy consumption, while 42% are transitioning to renewable energy sources. The research also indicates that investors have the most significant influence on Polish companies’ climate actions, with 68% of organizations accelerating their efforts under investor pressure. Customers influenced 48% of firms, and employees affected 46%.
The introduction of the Corporate Sustainability Reporting Directive (CSRD) by the European Union is one of the most significant changes in corporate reporting. This directive covers approximately 49,000 enterprises in Europe, and by 2026, it will apply to about 3,500 companies in Poland.
Companies must disclose essential information about their business models, strategies, and value chains in their sustainability reports, which they often did not previously publish. These new reporting standards enhance transparency, consistency, and comparability of data but also pose challenges for organizations. This is because implementing ESG reporting requires integrating various organizational elements, including business planning, data, and corporate governance.
The EY Sustainable Value Study shows that the new reporting rules build trust among a range of stakeholders, especially investors, though there is still room for improvement. Practically all investors (99%) use ESG information in their decision-making process, yet 76% feel that companies do not provide enough accurate data.
“Effective management of sustainability issues, including collecting, analyzing, and disclosing ESG data, offers companies a competitive edge in challenging and highly volatile economic conditions. It also helps manage business opportunities and risks related to sustainable development,” says Aleksandra Stanek-Kowalczyk, Partner at EY Poland, Consulting Sustainability Leader.
Supporting Transformation with ESG Reporting
Implementing ESG reporting enables a profound transformation of companies. To support and facilitate these efforts, the European Union and government bodies have prepared a system of incentives.
Entrepreneurs see great value in these incentives. According to 61% of surveyed firms, government grants accelerate sustainable development initiatives. Only 11% disagreed with this statement.
Leading organizations use sustainability regulations to gain a competitive advantage. Only 28% of Polish companies consider regulations and reporting requirements as obstacles to sustainability initiatives. Similarly, just under one-third (32%) believe these regulations limit their ability to focus on the future and strategy.
“Sustainable development is not just a passing trend; it offers real opportunities for companies to achieve long-term profits. The new regulations provide access to data that companies previously did not collect. Analyzing this data can help adjust business strategies. ESG principles should be integrated into the corporate strategy to maximize business benefits,” says Jarosław Wajer, Partner at EY Poland, EY Industrials & Energy CESA Leader, Sustainability CESA Leader.
Climate Actions by Polish Companies
Polish companies adopt a pragmatic approach to climate actions. Primarily, they aim to reduce energy consumption, with 58% of respondents doing so, compared to 55% in the Central and Eastern Europe and Central Asia (CESA) region. Additionally, 42% of Polish firms are transitioning to renewable energy sources, compared to 46% in the CESA region. Managers recognize that achieving climate goals requires new skills, and they are investing in talent, though this trend is weaker in Poland (48%) compared to the region (53%).
As part of climate actions, 38% of companies are modifying their products and services, while 34% are creating new, lower-emission offerings. Nearly one-third of firms are developing new business lines to capitalize on market opportunities related to climate change, and 30% are implementing circular economy principles. An equal percentage provide their customers with tools to modify behaviors to reduce emissions.
Next Steps for Sustainable Integration
For Polish companies, developing a growth strategy and new business model that incorporates ESG factors is a significant challenge and a critical first step in better integrating sustainability with their overall business strategy. This was cited by 41% of respondents in Poland and 37% in the CESA region. Following this, 37% of respondents in both Poland and CESA believe supply chain optimization is necessary. Additionally, 36% in Poland and 39% in CESA highlight the need for creating a roadmap for implementing new technologies, while 29% and 39% respectively mention product and service innovations. Managing risk was identified by 35% of Polish respondents, while a quarter pointed to capital and resource allocation.
Internal and External Challenges
The biggest challenge for Polish companies is obtaining support from all stakeholder groups necessary to achieve climate ambitions, including investors, management, employees, suppliers, partners, customers, and regulators. This was mentioned by 42% of respondents. Additionally, 36% struggle to balance financial and non-financial outcomes when assessing climate-related initiatives.
The EY study revealed that investors play a key role in driving Polish companies’ climate actions, with 68% of organizations accelerating their efforts due to investor pressure. Customers influenced 48% of firms, while employees impacted 46%. On the other hand, factors hindering ESG initiatives included NGOs (8%) and, to a lesser extent, investors (4%).
Companies need to enhance their efforts in developing sustainability strategies to contribute to the goals of the Paris Agreement. The risk of temporarily exceeding the 1.5°C global warming threshold this year underscores the importance of climate action. Leading organizations from the EY study effectively use changing regulatory and political requirements as an advantage, minimizing emissions and maximizing value from their sustainability efforts. Companies that can adapt flexibly to climate challenges not only mitigate risks but also gain a competitive edge and create lasting value for their stakeholders.
About the Study
The Polish section of the global EY Sustainable Value Study included 75 companies. The largest group (24%) came from the advanced manufacturing and mobility (AM&M) and energy sectors. Other respondents represented financial services, telecommunications and media, consumer products, healthcare and well-being, real estate, construction, and hospitality sectors. More than half of the respondents were board members, including 25% CFOs and 13% CEOs and CSOs. 79% of the surveyed companies had revenues exceeding USD 1 billion, while the remaining 21% had revenues between USD 500 million and USD 1 billion. The study in the CESA region covered 250 companies.
Source: Manager Plus
