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The Importance of ESG in the Supply Chain

Sustainability reporting involves collecting, analyzing, and publishing information about a company's performance in environmental, social, and governance (ESG) areas. These reports detail the actions taken by the company in these areas and their impact on stakeholders such as investors, employees, local communities, and the natural environment.

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ESG criteria are used to assess sustainable business operations and social responsibility.

  • Integrating investment principles with ESG ensures that a company’s development decisions align with environmental, social, and governance standards.

ESG – Impact on Environment, Society, and Governance

Environmental: Encompasses business practices that affect the natural environment, including carbon emissions, water usage, and waste management.

Social: Relates to the company’s relationships and impact on society, covering issues such as employee relations, local community engagement, business ethics, and human rights.

Governance: Involves the company’s management structure, ethical principles, transparency, board effectiveness, and sustainable decision-making.

Starting in 2025, up to 50,000 entities in the European Union will be required to submit sustainability reports.

In Poland, the European Commission’s Corporate Sustainability Reporting Directive (CSRD) will apply to approximately 3,600 enterprises, potentially including yours.

Adopting ESG practices is inevitable, so it’s wise to start now to stay ahead of the competition and comply with legal reporting obligations and requirements within value chains.

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