The philosophy of sustainable development has become more than just a general assumption for the countries of the European Union. Environmental issues and the social and managerial aspects of business are setting the course for modern, rapidly growing companies. Reo.pl is a responsible partner that supports companies' sustainability efforts. If you are planning to take action in the area of ESG, we can help you!
What is ESG and who does it apply to?
The acronym ESG stands for Environmental, Social and Corporate Governance, which together make up sustainability. Taking care of business strategy is not just about maximising revenue. Sustainability consists of a complex legal ecosystem:
- European Union taxonomy
- CSRD Directive
- CS3D Directive
The ESG regulatory framework affects many areas of companies. Sustainability activities not only allow compliance to be realised, but build the image of the company as a conscious market participant that cares about the world around it and develops in a sustainable way, not driven solely by the desire for profit.
Remember, by taking action on sustainability, you gain doubly!
Corporate sustainability reporting does not only apply to the largest corporations. The EU legislator is gradually imposing reporting obligations on more businesses.
- From 2025, NFRD reporting entities (public interest entities) will be required to report ESG for 2024.
- From 2026, large entrepreneurs meeting at least 2 of the 3 criteria (employment volume of more than 250 employees, total assets of more than €25 million, net revenues of more than €50 million) will file their first reports for 2025;
- From 2027, small and medium-sized listed companies will be subject to non-financial reporting obligations.
And have you already started using the new reporting?
Our specialists can help you with this. We support the implementation of "green assumptions" by offering 100% green energy for your business.
Principles of EU taxonomy
One element of the ESG is the so-called taxonomy. In this way, the European Commission has precisely defined the criteria that a company must meet in order for its activities to be considered environmentally sustainable. Company:
- must make a significant contribution to at least one of the six environmental objectives;
- must not cause harm to any environmental objective;
- operates in accordance with minimum guarantees;
- meets the technical eligibility criteria.
Corporate Sustainability Reporting Directive
When taking ESG measures, a business should be concerned about the environment and society as well as internal corporate governance in its operations. These three pillars underpin the philosophy of Corporate Social Responsibility (CSR). Its general framework is set out in the CSRD (Corporate Sustainability Reporting Directive).
The process of implementing an ESG strategy, which is, as it were, the successor to CSR, should take into account a whole range of criteria that your company should apply. Pay attention to the following areas:
Environment
such as natural resource management, water resource use, energy efficiency energy efficiency, greenhouse gas emissions, negative impacts of economic activities on the environment;
Social
e.g. decent working conditions, equal treatment, respect for human and labour rights, supply chains;
Corporate Governance
e.g. governance and financing structure, risk management, relationship to shareholders, accounting standards, independence of bodies within the company, succession.
What is the purpose of ESG?
ESG allows for the creation of mechanisms to measure the individual elements that make up an entrepreneur's social responsibility. It can be likened to a corporate development philosophy. By creating an ESG framework, the aim is to reduce the negative impact of companies in the European Union on the environment. This creates healthy conditions in which business can prosper without limiting these opportunities for future generations.
What is included in the ESG strategy?
The company's growth strategy, based on the three pillars mentioned above, is a tailor-made selection of measures to mitigate business risks, but in very broad terms:
Environmental
Social Affairs
Related to management
The introduction of environmental compliance helps to reduce unforeseen events that may affect the areas indicated above. At Reo.pl, we are dedicated to building the environmental pillar. With our green energy offering, we will help you meet the ESG requirements for the environmental aspect, which, in a business context, enhances your company's financial capabilities.
Company activities
in terms of sustainability
Effective ESG implementation in companies
Many companies may face difficulties in implementing ESG. Where do they start? How much do the various investments cost and will they pay off in the foreseeable future? Building social responsibility is a long-term process that should be done in small steps. Organisational changes in terms of ESG should involve managers, employees as well as the electricity used in the company.
First steps in ESG/CSR
Start by conducting an ESG/CSR audit of your company. This will help you determine the way forward. Set measurable targets to track your progress and keep stakeholders informed about the changes you are making. Remember to change your organisational culture and align your processes for producing and selling products and services with the new standards.
Flexibility as a key to success
Remember that acting in areas of sustainability requires a great deal of flexibility as you, your contractors, your business environment and the environment in which we all exist evolve.
Comprehensive support
By using Reo.pl, you will receive comprehensive support at every stage of your green energy purchase. We will help you reduce the negative environmental impact of your business and facilitate the demonstration of compliance with formal requirements.
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