The changes to EU sustainability reporting legislation introduced in 2025 have significantly reshaped companies’ responsibilities in this area. This is because, following the update to the Corporate Sustainability Reporting Directive (CSRD), only the largest entities are now subject to a mandatory obligation to report on ESG issues.
At the same time, a large proportion of companies that do not exceed the new thresholds for employment and turnover now fall into the group of those that may report on a voluntary basis. Many organisations must therefore decide whether to prepare ESG reports and, if so, based on what rules and standards.
Simplified ESRS
In March 2026, organisations representing the interests of the financial sector, the capital markets and stakeholders involved in responsible development agreed that simplified European reporting standards would be the best solution for large organisations.
This is because these standards are tailored to the specific nature of such undertakings, striking a balance between the obligation to provide high-quality data and the need to keep administrative burdens at a reasonable level. They have been designed to facilitate practical application – the number of required disclosures has been reduced and the language simplified, whilst the structure of the material makes it easier to prepare coherent and transparent reports.
These standards are based on rules that are widely accepted within the European reporting framework, such as the double materiality assessment and the requirement to provide a faithful representation of the undertaking’s situation in the context of sustainable development. This means that reports prepared on this basis remain reliable and reflect both the company’s impact on the environment and society, and the significance of ESG issues for its operations and strategy.
An additional advantage of the simplified ESRS is their compatibility with global reporting frameworks, such as the IFRS international sustainability standards or the GRI guidelines. This enables large organisations operating within value chains across different markets to produce reports that meet the expectations of a wide range of users, including foreign investors.
Recommendations for large companies
It is also important that the simplified standards are aligned with the European legal framework. In accordance with the act transposing the CSRD into Polish law, ESG reports must be prepared based on uniform European standards, and are subject to mandatory assurance by statutory auditors.
The act also stipulates that sustainability reports must be a separate component of companies’ annual reports, prepared electronically in accordance with a standard template and submitted to the European Single Access Point.
It is worth noting that the implementation of the CSRD in Poland has also raised the thresholds used to classify undertakings as micro, small, medium-sized or large. This change allows a greater number of entities to benefit from simplified accounting rules, without abolishing ESG reporting obligations for those companies that exceed the new thresholds.
This means that the reporting system has been tailored to the real needs of the economy, and voluntary reporting by large companies should be based on standards that reflect their structure and complexity.
The aspect of ESG data verification is also significant.
The act transposing the CSRD requires reports to be subject to assurance by statutory auditors, which enhances the reliability of the information and, in practice, ensures that the reports are of adequate quality and complete.
The simplified ESRS have been designed to facilitate assessment – they are in line with the verification standards applied in Poland and intended for further development at the EU level.
The common position of business organisations and the direction set by the Polish legislation implementing the CSRD lead to a clear conclusion.
If a large company decides to undertake voluntary ESG reporting, the simplified ESRS represent the most appropriate and forward-looking solution. These standards enable companies to meet market expectations, ensure compliance with EU law, and ensure that the reported information will be reliable, comparable and relevant in the eyes of investors and stakeholders.
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