Amendment to the Accounting Act and ESG Reporting: New Challenges for Businesses

This article outlines key aspects of the proposed amendment to the Polish Accounting Act, which introduces new requirements for reporting sustainability-related information. Learn what changes are coming for businesses and how they can prepare for these new challenges.

Expansion of Reporting Scope

One of the main objectives of the proposed amendment is to broaden the group of entities required to report non-financial information. Under the new rules, the obligation will apply to all large entities, parent companies of large capital groups, and small and medium-sized enterprises (SMEs) listed on regulated markets. Additionally, subsidiaries and branches based in EU member states with net sales revenue exceeding €150 million generated within the EU will also be required to report.

Reporting Standards

The amendment eliminates the previous flexibility in choosing reporting standards, replacing it with mandatory use of the European Sustainability Reporting Standards (ESRS). These new standards will be more detailed and harmonized, making reports easier to compare and more useful for investors and other stakeholders.

Assurance by Statutory Auditors

The draft legislation also introduces mandatory assurance of reported sustainability information by statutory auditors. Auditors will be required to obtain additional qualifications to verify ESG-related disclosures. This change is intended to enhance the credibility and reliability of sustainability reports.

Objectives of the Amendment – EU Context

The proposed amendment aligns with broader European Union efforts to transform the economy into a modern, competitive system that supports sustainable development while protecting the environment and public health. The changes aim to redirect capital flows toward companies that operate in accordance with sustainability principles.

Summary

The new sustainability reporting requirements introduced by the amendment to the Accounting Act represent a significant challenge for businesses. Proper preparation and collaboration with professionals—such as qualified auditors—will be essential to ensure compliance with the new regulations. By doing so, companies will be better equipped to meet growing societal and investor expectations regarding responsible and sustainable business practices.

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