"Show us what your carbon footprint is" – every micro, small or medium-sized entrepreneur will sooner or later be asked such a question by a current or potential contractor. Why? Because this contractor will need such data for its reporting related to ESG requirements. If he does not receive them, he will look for another supplier, one who knows what the green transformation is about and has made the effort to calculate this unfortunate carbon footprint.
What is ESG anyway?
ESG is a term referring to modern company management, taking into account environmental (E – Environmental), social (S – Social) and management (G – Governance) issues and describes all activities in the field of sustainable development. Reporting on areas related to sustainable development results from regulations introduced by EU institutions. The previously applicable provisions on the obligation to report non-financial, resulting from the Accounting Act and implementing the provisions of the European Directive NFRD (Non-Financial Regulation Directive), which from January 1, 2024 were replaced by the Directive on corporate reporting in the field of sustainable development (Corportate Sustainbility Reporting Directive) .
According to the reading of the first Decarbonization Index of the Polish Economy, on average 45% of companies in Poland do not measure their carbon footprint, and in the SME segment it is as much as 81%.
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Who must report on sustainability?
Regulations related to reporting on sustainable development will, of course, first apply to the largest enterprises, but in the following years they will also cover thousands of medium and small companies in Poland.
According to Bank Ochrony Środowiska, up to 3.5 thousand companies will be obliged to report ESG due to regulations. companies in Poland.
– Many small and medium-sized enterprises believe that this does not apply to them. This is quite a risky thesis. Most of the largest entities, reporting their carbon footprint and preparing their reports, will ask SMEs what their carbon footprint is and how they face this challenge – noted Krzysztof Łabowski, vice-president of the management board of BOŚ SA, during the July press conference
Krzysztof Łabowski, President of BOŚ, photo: A.Kozłowska / farmer.pl
– What is ESG anyway? How to prepare for ESG? Will we have to report? These are seemingly simple questions, but difficult for micro and small entrepreneurs. And everyone will participate in this transformation, because the vast majority of SMEs are part of a larger supply chain – echoed Michał Dobrzety, vice-president of the management board of BOŚ SA, mentioning a conversation with one of the clients who, due to the need to meet the above-mentioned requirements, Due to the requirements, it was necessary to replace the tractor fleet. The company has 5 tractors, the diesel one costs 600-800 thousand. PLN, and the electric tractor is over PLN 1 million.
A guide for SMEs
BOŚ has just issued "Principles of sustainable financing. “Guide for SMEs” and explains what the green transformation in small and medium-sized companies is all about. Such enterprises constitute 98% of the Bank's clients, and through the above-mentioned publication, the bank obviously also wants to reach future clients.
– We don't paint the grass green (…). We are aware that at the beginning the green transformation involves costs. There is a lack of knowledge, which should often be interdisciplinary. In the publication, we show the risks associated with the lack of green transformation. The guide is a compendium of knowledge and support for all entrepreneurs. It answers most of the difficult questions related to the energy transformation and more. It also contains an overview and conclusions for SMEs resulting from the most important legal acts – including EU ones – and presents practical examples from the everyday life of companies that have decided to act in this direction today – said Anna Burza, Acting Director of the Department of Policy, during a July meeting with journalists Ecological, ESG and Taxonomy.
A historical outline of legal and market changes, a road map of requirements for SMEs, non-financial reporting rules, EU taxonomies, due diligence, carbon footprint and sources of financing for sustainable development – all this can be found in the Guide. The guide also discusses the topic of greenwashing and suggests how not to expose the company to activities that generate business, legal and reputational risks, e.g. by unintentionally misleading the public opinion.
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The bank also takes a closer look at the most important sectors whose transformation particularly concerns: energy, construction and real estate, transport, chemicals, food and municipal services. Numerous examples were presented in which the bank's clients present their experiences in transforming their business activities into sustainable and innovative ones.
– The market guide is a real compendium of information needed for the sustainable development of companies. BOŚ publishes a publication addressed to all participants of the green transformation market. We realize that this may not be the easiest time, especially for entrepreneurs. We particularly mean companies from the SME sector. Our publication can help them understand many regulations related to the introduction of pro-ecological solutions. It presents the most important legal acts so that entrepreneurs can prepare for the upcoming changes and successfully modernize their businesses – added Krzysztof Łabowski, vice-president of the management board of BOŚ.
Dr. Eng., who was present at the meeting with journalists at the BOŚ headquarters, also said that the hunger for knowledge regarding transformation is present in Polish companies. Patryk Chaja from the distributed energy plant of the Institute of Fluid-Flow Machinery. Robert Szewalski Polish Academy of Sciences. As he pointed out, many Polish companies contact the institute in the context of technical consulting. He described an example where components imported from China by Polish producers turned out to be swimming pool pumps and not heat pumps adapted to Polish conditions. Prudent entrepreneurs checked their product. Similar risks may be generated by a lack of knowledge in the energy transformation (Chaja gave an example of exclusions in the area of photovoltaics).
What do SMEs want to invest in?
When asked what is currently trending, taking into account the search for funds for investments in the field of environmental protection, bank representatives pointed to improving the energy efficiency of buildings and structures in enterprises, producing renewable energy for the needs of the enterprise, but there are also more and more inquiries about financing, among others .among others biogas plants and energy storage facilities. Soon, according to the bank's management, the development of wind energy will also become an important factor, especially after regulatory changes.
photo: A.Kozłowska / farmer.pl
