Bill on ESG reporting up for the Sejm’s debate

The Accounting Act is one of the statutes in which sustainability reporting has been codified to date even if only fragmentarily. 

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The proposed provisions to be included in the Accounting Act will extend the current sustainability reporting obligations that will be gradually imposed on new categories of entities. The new regulation will introduce detailed requirements concerning the content and form of a sustainability report that will have to comply with the European Sustainability Reporting Standards (ESRS). 

The amendment to the Accounting Act will also introduce definitions key to applying the new provisions in practice, for example, the definition of “net turnover”. The net turnover figure is necessary for establishing the size of the enterprise, and this, in turn, for determining whether the enterprise is subject to sustainability reporting obligations. 

The idea behind implementing the CSRD Directive is to make sustainability reporting as important as financial reporting. Key here will be the statutory obligation to have sustainability reports attested by statutory auditors. 

The draft amendment is also intended to implement the Commission Delegated Directive (EU) 2023/2775 of 17 October 2023. The Delegated Directive has generally raised by 25 per cent the financial thresholds that define the size categories of companies (micro, small, medium-sized and large undertakings). The size category directly affects, for example, the (in)eligibility for simplifications envisaged in the Accounting Directive, or the obligation (or its lack) to audit financial statements.

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