**Warsaw**: A recent debate at the Rzeczpospolita office discussed the implementation of ESG principles in business, highlighting the need for management to view regulations as growth opportunities and the importance of collaborative supplier relationships as 2025 reporting requirements loom.
A recent debate titled “TRENDS 2025. ESG in Business” convened at the “Rzeczpospolita” editorial office, focusing on the critical implementation of ESG (Environmental, Social, Governance) principles within businesses and the evolving procurement landscape from cost management to value creation. The discussion highlighted the growing emphasis on establishing stronger supplier relationships and fostering collaboration as companies navigate the complexities of ESG regulations and strategies.
Dr. Barbara Ocicka, a professor at SGH, noted a significant increase in awareness among management regarding ESG issues. She highlighted that this awareness correlates with the expanding number of companies subject to new regulations. “The main problem is that managers perceive ESG regulations primarily through the lens of reporting,” Ocicka explained. She stressed the necessity for a shift in mindset toward viewing these regulations as opportunities for sustainable growth rather than mere compliance obligations. This shift is intended to encourage businesses to design comprehensive strategies that align with sustainable development goals.
From a practical perspective, industry representatives provided insights into implementing ESG initiatives. Aleksandra Małozięć, Director of ESG and Corporate Communications at Śnieżka, shared her experience, indicating that while businesses are likely to manage ESG implementation, challenges such as time and resource requirements persist. “The complexity of regulations means that significant resources in the form of people, time, and budget are needed,” Małozięć stated. She emphasized that an interdisciplinary team approach involving the entire company is essential to truly embrace ESG principles.
The discussion also pointed to new challenges on the horizon, particularly as the year 2025 approaches, marking the first substantial reporting requirements for large corporations. Weronika Czaplewska, co-founder and vice president of Envirly, discussed the impending obligation for approximately 4,000 companies to engage in ESG reporting for the first time. This development has raised concerns regarding the availability of qualified professionals to coordinate such initiatives. Czaplewska remarked, “This is a very significant challenge,” emphasising the necessity for companies to comprehend the scope of ESG responsibilities while managing existing workloads.
Experts underscored the necessity for firms to engage in double materiality analyses, which help identify significant risks and opportunities within their operations. This process requires careful coordination and evaluation across various departments to avoid potential pitfalls like greenwashing. “Reporting is the first step. Then, goals related to reducing emissions or changing other parameters will emerge from the analyses,” Czaplewska articulated.
In line with these developments, Dariusz Lewandowski, founder and CEO of System3E, discussed technological innovations aimed at reducing environmental impact. His company has created a unique construction system designed for ecological efficiency. However, he pointed out that the conversation often returns to the matter of cost-effectiveness—a significant concern for businesses considering long-term sustainable investments.
The role of banks in facilitating this ESG transformation was highlighted by Anna Link, Managing Director of the Strategy and Development Division of SME and Corporate Banking at BNP Paribas Bank. Link described the bank’s commitment to supporting businesses through various initiatives. “We aim to provide a complete ecosystem of critical issues when taking the first steps on this path,” she said, referring to the comprehensive support and resources available to companies trying to navigate their ESG journey. She also noted a rising interest from smaller firms in understanding ESG requirements, particularly due to their involvement in larger supply chains.
Link discussed the systemic challenges faced by companies, particularly smaller entities that may not yet be obligated to report under ESG regulations but are increasingly seeing the importance of doing so to maintain competitiveness. According to Link, “We try to support businesses in these endeavors,” indicating a collaborative effort to raise awareness and improve understanding across the sector.
As companies face these transitions, the discussions at “Rzeczpospolita” revealed an overarching consensus that short-term thinking, prevalent in many incentive systems, must evolve into a focus on long-term value creation through ESG management. Dr. Ocicka summarised, “ESG is also a lever for innovation in various dimensions, e.g., product, process, or organizational, and is a source for building competitive advantage in modern business.” This perspective underscores the potential for companies to establish strengthened supplier relationships and foster resilience through effective supplier relationship management (SRM) while embracing the ongoing transition towards sustainable business practices.
Source: Noah Wire Services
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