The most important ESG regulations – a guide for business
ESG regulation map - a practical guide for entrepreneurs
Due to dynamic changes in regulations regarding sustainable development and ESG reporting, the Warsaw School of Economics, the 17 Goals Campaign and the Working Group for Social Responsibility operating within the Ministry of Funds and Regional Policy have developed a guide to ESG (Environmental, Social, and Governance). The publication comprehensively presents current legal requirements and trends in the area of sustainable development. The legal analyzes in the publication were prepared by experts from the Decarbonization and Labor Law Practice of the Osborne Clarke - Poland law firm, under the supervision of Dr. Katarzyna Barańska.
The guide includes a detailed ESG regulation map and information on the most important legal acts that have a direct impact on business activities.
Download the guide by clicking the link below:
Key ESG legislation – summary of the latest EU regulations
Below we have prepared an overview of the most important regulations presented in this guide that will affect the operations of companies in Europe in the near future.
Selected regulations in the area of sustainable development:
1. Regulation on eco-design of products
The new EU regulation (2024/1781) introduces eco-design rules that aim to reduce the impact of products on the environment and reduce waste. Key requirements include:
- Digital Product Passports: Each product will be required to have a digital passport with information about its sustainable aspects.
- Ban on the destruction of unsold products: A ban on the destruction of unsold products is being introduced from 2026, starting with the textile sector.
The regulation covers a wide range of products, such as electronics, textiles and chemicals. It came into force on 18 July 2024 and provides for sanctions for non-compliance.
2. Deforestation and forest degradation regulation
The EU adopted rules on May 31, 2023, to curb forest degradation and deforestation by controlling trade in products related to these processes. The regulations cover the entire supply chain and apply to products such as timber, cocoa, coffee, soy, rubber, palm oil and cattle meat.
- Companies will be required to conduct due diligence, declare and ensure that products meet sustainability requirements.
- The regulations will be introduced gradually, and the first obligations will come into force on 30 December 2024.
3. Directive on gender balance in directorships
The new EU directive aims to improve the gender balance in directorships of listed companies. The goals, to be achieved by 30 June 2026, include:
- 40% of non-executive positions go to women, or 33% of all director positions.
- Mandatory annual reporting of gender representation on the board. Companies that fail to meet the requirements will have to provide justification and remedies.
The directive was adopted on 23 November 2022 and must be implemented into national law by 28 December 2024.
4. Whistleblower Protection Directive
The EU directive establishes rules for the protection of whistleblowers, i.e. people reporting violations of the law in companies and institutions. Under the act, which came into force on September 25, 2024, the obligations cover companies employing more than 50 people and some public sector entities. It provides for, among other things:
- Designating a person or unit responsible for receiving reports and ensuring the confidentiality of those reports.
- Developing and implementing procedures for managing reports, maintaining a register of them, and informing employees and business partners about the possibility of reporting irregularities.
Find out more: Whistleblower protection: how to implement the procedure in a capital group and in a group of independent companies?
ESG implementation – an investment in the future of your company
Legislative changes in the ESG area are revolutionizing the business world. New regulations, such as the regulation on eco-design of products or the directive on the protection of whistleblowers, introduce a number of challenges, but also create new opportunities. The complexity of all these issues requires a comprehensive approach and extensive knowledge. The ESG Legislation Guide is an excellent starting point. However, implementing an ESG strategy often requires an individual approach.
That is why we offer comprehensive ESG advisory services. Our experts will help you conduct a double-materiality analysis, develop a strategy, implement appropriate tools and prepare a non-financial report.
Find out how we can accelerate your company's sustainable transformation process.
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