How are preparations for the first mandatory reports compliant with ESRS standards progressing? „Not great, not terrible” quoting Anatoly Dyatlov from Craig Mazin's film adaptation of the events in Chernobyl. A small number of listed companies (those reporting for 2024) are already prepared. Is this because they have already voluntarily prepared their first ESRS-compliant report for 2023 (such as Polenergia, or awarded in the FOB Sustainability Reports competition LUG Group i CCC), or because they prepared thoroughly during 2024. Unfortunately, during the congress, I also spoke with representatives of as many as three companies that are only now planning to begin preparations. The end of the year is far too late to begin preparations for a company that publishes its report in March or April.
The situation is worse for private companies, which will only be subject to the obligation a year later. Although they have an extra year to prepare, there are many more of them. Very few private companies have begun preparations for reporting—I personally know of only a dozen or so. Representatives of this group of companies, with whom I spoke during the congress, also pointed out that proper preparations are still ahead of them. At the same time, I have concerns about the majority of the approximately 3,500 companies required to report, whether they are all aware of their new obligations.
Preparing for reporting is one thing, but initiating transformation is another, much more serious task. It is not about collecting data and describing it more or less skillfully. Transformation is first and foremost about understanding what and how we should change in our business model to adapt to new market conditions, and then planning and implementing those changes. It is a process that takes a lot of time and cannot be done by ordering „some consulting project from an ESG consultant.”.
Some companies learn about the need for transformation the hard way, when they are excluded from a tender for the first time due to a lack of Ecovadis rating, or when they lose a tender competition due to a high gender pay gap or growing product emissions. In such situations, the decision to start the transformation is made extremely quickly. Many companies have the opportunity to learn about the upcoming need for transformation in the process of preparing their first report or from a reasonable advisor. If they take advantage of this knowledge, they can prepare for the new market situation with greater peace of mind.
One of my friends asked me during the conference „Why are we still talking about whether sustainability is necessary? It would seem that the wave of discussion on this topic swept through 2-3 years ago and we've already dealt with it, so we can move on.” I believe that we still have many years of talking about the basics ahead of us. If only because many companies reporting for 2025 are not yet aware that they have this obligation. If only because we need to bring hundreds of thousands of small and medium-sized enterprises on board, none of which have had ESG explained to them. If only because sustainability is about constantly seeking competitive advantages and niches in which a given company can operate comfortably.
Increasingly, different companies will be at different points on the sustainability continuum. Some companies are advanced and are looking for ways to become fully regenerative. Others are faced with the task of preparing their first ESRS-compliant report. Still others will only learn in time why it is worth eliminating differences in pay for work of equal value, or how they can improve their energy efficiency. Today, we do not have and will not have a single discourse on sustainable development; it is broken down into many threads, and it is worth participating in all of them, or at least in many of them. There is room for everyone here 😊
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