ESG in consumer goods and retail: still only declarations, not yet reality

The greatest obstacle to implement the sustainability strategy is posed by the absence of clear regulations. 

Businesses can see the ambiguities in legislation, which may act as a barrier to continued growth in the importance of ESG in Poland’s economy. Legal provisions often remain at the stage of drafts, and implementing regulations have not been prepared (this applies, for example, to the implementation of the Single-Use Plastics Directive). Simultaneously, this lack of legislative stability is coupled with a restrictive approach to the implementation of EU directives in the proposed draft laws.

Polish businesses are faced with the challenge of implementing ESG strategies and integrating sustainability into their business strategies. Only 20% of them have implemented sustainability strategies or are in an advanced stage of implementing them, and as many as 34% have yet to take action in this field. 

For 73% of multinational companies, sustainability is already
an integral part of their business. Unless Polish companies change their approach, they will risk lagging far behind the global players.

Sustainability reporting has yet to reach the same level of regulation as financial reporting. Just as with financial data, however, there are many different measurement methods that can be modified to influence the results. For data to remain consistent and comparable, ESG reports should be compiled in keeping with standards. These will enable companies to stay compliant with the Corporate Social Responsibility Directive (CSRD), which will soon come into effect.

Actions oriented towards concern for the social aspect, both inside and outside the company, are an increasingly important element of the organizational culture and have a growing impact on the development of the company’s strategy. These actions also have a non-trivial impact on important business processes.

The ability to meet legal requirements and strategic objectives in the area of ESG depends on the proper internal organization of a specific business. Sustainable corporate governance should serve as the foundation of a sustainable organization and its driving force.

Every kilometer that is traveled means burning fuel and therefore generating a certain level of emissions. For this reason, business organizations sensitive to ESG issues are imposing ever-stricter controls on emissions within their supply chain, not only to measure their level, but also to actively reduce them through better distribution management. Minimizing “unnecessary kilometers” translates into a reduced environmental impact and lower costs.

As many as 60% of companies declare that they have implemented a code of conduct for suppliers (this is true for 77% of foreign companies and 42% of Polish companies). However, only 4% require suppliers to report their carbon footprint. This shows that the market is not yet prepared to face the EU goals, which place growing emphasis on carbon footprint calculation requirements. 

At the national level, the EU has set a target for Poland to reduce emissions by 7% in non-ETS* sectors by 2030 relative to 2005.