In recent years, growing sustainability requirements have transformed the way companies in Poland and across the European Union conduct their business. The new CSRD introduces a much broader scope of non-financial reporting requirements than before, covering a growing number of companies regarding their environmental, social, and governance impacts. Thanks to the CSRD, ESG reporting standards are becoming uniform across the EU, facilitating future data comparability and increasing market transparency. Companies must now not only meet legal requirements but also demonstrate ESG initiatives to maintain competitiveness and credibility with investors, customers, and other stakeholders.
ESG and Sustainability Reporting – Who is affected and when should you report?
According to the new draft amendments to the CSRD, adopted following the Stop-the-Clock initiative , the ESG sustainability reporting obligation has been phased in. Large public interest companies, which were already subject to the NFRD, will submit their first ESG reports for 2024 in 2025. The next group – large enterprises with at least 500 employees and meeting certain financial thresholds – will not report until 2027 (publication in 2028). Subsequently, starting with the 2028 reports, the obligation will apply to listed small and medium-sized companies, excluding microenterprises, and a year later to selected non-EU entities with significant operations in the EU. All reports are to be prepared in accordance with European ESRD standards and the double materiality principle.
Stop the Clock – an initiative that stopped time (for a while)
The Stop the Clock initiative is a draft amendment to the CSRD directive that temporarily postpones the obligation to report ESG in the field of sustainable development for some companies.
Under the CSRD, successive waves of companies were expected to report ESG data within strict deadlines, but the new regulation extends these deadlines, giving companies additional time to prepare for the requirements. The Stop the Clock project was developed by the European Commission in response to business concerns about difficulties in quickly implementing ESG reporting standards. This change applies to entities in the EU and some companies headquartered outside the EU that are subject to ESG reporting under the CSRD.
The initiative aims to enable companies to better implement the ESRB standards and align their ESG strategies with the directive's requirements. While Stop the Clock delays sustainability reporting, it does not change the dual materiality rules or the obligation to disclose companies' environmental and social impacts.
Thanks to this solution, companies gain time to prepare quality ESG reports and implement effective actions related to sustainable development issues.
First ESG reports from Polish companies – what does the new reporting look like in practice?
The first ESG reports of Polish companies covered by the CSRD, submitted in 2025 for the year 2024, demonstrated that implementing the new sustainability requirements poses a significant organizational and substantive challenge. Many companies in Poland were required to collect non-financial data for the first time in accordance with the ESRD standards, taking into account both environmental and social aspects, as well as governance issues. Companies indicate that the greatest challenge is identifying and reporting in accordance with the double-materiality principle – this requires an analysis of the environmental and social impact of operations, but also an assessment of business risks related to ESG issues.
The new reporting also requires the implementation of continuous data monitoring and auditing processes, which requires additional resources and the collaboration of multiple departments. For some companies, ESG reporting has become a component of their business strategy and a tool for building transparency in relations with investors and other stakeholders. At the same time, some argue that preparing reports compliant with the CSRD directive requires not only new IT tools but also a shift in organizational culture regarding sustainable development.
ESG report as a business tool – risk, strategy and value for the company
Under the Corporate Sustainability Reporting Directive , ESG reporting is becoming not only a legal obligation but also a strategic tool supporting company development. New regulations on ESG reporting are changing the approach companies in Poland take to risk assessment, action planning, and stakeholder communication.
Organizations that effectively implement the directive's requirements gain improved access to financing and a competitive advantage in the market. The CSRD changes the way companies address environmental, human rights, and business ethics issues, making them a key part of their strategy. Implementing an ESG report also means analyzing the impact of operations on local communities and incorporating social aspects into sustainable development. In practice, CSRD in Poland requires that reports reflect a full picture of ESG-related risks and opportunities, which increases transparency and investor confidence. This makes the ESG report not only a reporting tool but also one that supports long-term business strategy and value creation for the company.
Summary
The changes resulting from the CSRD mean that sustainability reporting is no longer merely a formal obligation, but rather a component of companies' strategies for long-term growth and risk resilience. The unified CSRD ESG reporting standards allow companies to better assess the impact of their actions and make data-driven decisions. Implementing the new non-financial reporting rules, however, requires not only technical preparation but also a shift in the approach to ESG management . As a result, these regulations can become a catalyst for innovation, increased efficiency, and building a competitive advantage in an increasingly aware market.
