What is an ESG report?
An ESG report (i.e. a sustainability report or non-financial report) presents a company’s impact on the environment (E), society (S), and governance (G).The environmental section includes, among others, CO₂ emissions, resource consumption, technological innovation, waste management, and impact on biodiversity. The social area covers issues such as HR policies, occupational health and safety, employee development, cooperation with local communities and industry, as well as the ability to respond flexibly to changing customer needs and deliver high-quality products. Corporate governance, in turn, relates to areas such as management structure and systems, business ethics, human rights, payment and operational practices, as well as stakeholder dialogue.
An opportunity for sustainable growth
Increasing European Union regulatory requirements and market expectations mean that ESG reporting is becoming a tool supporting business development. The experience of Fabryka Mebli Balma SA shows that implementing reporting helps streamline processes, build stakeholder trust, and prepare for regulatory requirements (CSRD Directive) as well as stakeholder expectations. Even if reporting is not mandatory, it is worth considering it voluntarily as part of a long-term strategy and a source of competitive advantage.
Key benefits – facts and figures
Preparing ESG reports and implementing tools supporting this process improves data collection within an organization. It also enables ongoing monitoring of ESG indicators, which leads to more informed decision-making and more effective management. As a result, organizations can better leverage development opportunities and mitigate risks relevant to their long-term operations.
The most important benefits of ESG reporting include presenting a coherent approach to sustainability, strengthening relationships with stakeholders, and reducing business risks. The process also allows a better understanding of an organization’s impact on its environment – both social and environmental – while reducing the risk of sanctions related to non-compliance with regulatory obligations. Additionally, reporting supports building a credible image, improves rating scores, and enables benchmarking over time and against other entities.
Balma’s experience
In 2023, the Management Board of Fabryka Mebli Balma SA decided to adopt a strategic approach to sustainable development. The first step was diagnosing existing initiatives and structuring them according to ISO 26000 guidelines. These actions resulted in the preparation of the company’s first sustainability report for 2023, as well as the development of an ESG strategy for 2024–2026 and related documentation, including policies and codes of conduct.
In 2025, we published our second ESG Report, applying classification in line with the CSRD regulation and selected ESRS indicators, as well as ISO 26000 standards.
We structured our activities into seven ISO 26000 core subjects: organizational governance, human rights, labor practices, the environment, fair operating practices, consumer issues, and community involvement and development. This approach allowed us to re-analyze processes, procedures, and activities across all areas of the business. It also confirmed the validity of previous initiatives and supported planning further actions focused on key stakeholders. We assume that both existing ESG initiatives and planned strategic activities will support the organization’s continued sustainable development. They also align with the objectives of the UN 2030 Agenda.
CSRD Directive – current legal status
On February 26, 2026, an amendment to the CSRD Directive was published and entered into force on March 18, 2026. It introduces changes to sustainability reporting and updates the timeline for implementation obligations.
Reporting will be introduced in phases – first covering the largest public-interest entities, then the largest companies, and ultimately selected non-EU entities conducting significant activity within the EU.
The new regulations clarify the scope of the directive and align reporting obligations with the scale of business operations.
Poland – legal status
Poland has until March 19, 2027, to transpose the directive (Articles 1–3). The Ministry of Finance has divided this process into two stages. The first act, adopted on March 13, 2026, exempts certain entities from reporting for the years 2025–2026, particularly those not meeting the criteria of the first wave. The entry into force of the second act, which will fully implement the directive, is planned for the turn of 2026 and 2027.
For the year 2025 (reported in 2026), covered entities will apply ESRS standards from 2023, taking into account the 2024 update and the so-called Quick Fix. At the same time, work is ongoing on simplifying the standards – the draft was presented by EFRAG in November 2025, with adoption planned for 2026.
Publication of delegated acts by the European Commission is expected at the end of 2026.
ESG reporting is not only about meeting regulatory requirements, but also an opportunity for companies to better understand and manage their impact on the environment. This enables effective planning and development of sustainability strategies while minimizing risks and maximizing opportunities for growth and development.
Poland – legal status
Poland has until March 19, 2027, to transpose the directive (Articles 1–3). The Ministry of Finance has divided this process into two stages. The first act, adopted on March 13, 2026, exempts certain entities from reporting for the years 2025–2026, particularly those not meeting the criteria of the first wave.The entry into force of the second act, which will fully implement the directive, is planned for the turn of 2026 and 2027.
For the year 2025 (reported in 2026), covered entities will apply ESRS standards from 2023, taking into account the 2024 update and the so-called Quick Fix. At the same time, work is ongoing on simplifying the standards – the draft was presented by EFRAG in November 2025, with adoption planned for 2026.
Publication of delegated acts by the European Commission is expected at the end of 2026.
ESG reporting is not only about meeting regulatory requirements, but also an opportunity for companies to better understand and manage their impact on the environment. This enables effective planning and development of sustainability strategies while minimizing risks and maximizing opportunities for growth and development.
