Draft Act Implementing ESG Submitted to the Sejm
At the end of August 2024, a draft amendment to the Accounting Act appeared on the website of the Government Legislation Centre. It introduces into the Polish legal system the EU rules on sustainability reporting by enterprises arising from the so-called CSRD Directive.
The draft act (in Polish) was submitted to the Sejm on 9 October 2024, the Public Finance Committee presented its report on 12 November 2024, and the act is currently at the stage of committee work after the first reading. The next legislative stages are: the second reading in the Sejm, during which members of parliament consider the committee's report; the third reading in the Sejm, during which amendments will be voted on; the draft will then go to the Senate, which may also propose amendments; if the Senate proposes amendments, the draft act will return to the Sejm; the last legislative stage is the signing of the act by the President of the Republic of Poland.
The CSRD Directive requires environmental, social and governance factors to be taken into account in financial reporting. The draft act introduces changes into the Polish legal system that describe in detail who is to report on ESG matters (in Polish) and how. The draft amendment provides, among other things, for:
- extending the list of entities required to report (Article 63q),
- detailed requirements on the content of reports and on consultations (Article 63r),
- references to reporting standards (Article 63p),
- an obligation to present data from different time perspectives (Article 63r(3)).
You can read more about the draft act in the article "Who Must File an ESG Report (Sustainability Report) and When?".
What next? The Public Finance Committee is scheduled to present its report on 18 November 2024, which may include changes and amendments to the draft. This will be followed by the second and third readings in the Sejm, a vote on amendments and then consideration of the draft by the Senate. The final step will be the signing of the act by the President of the Republic of Poland. The long-awaited act may enter into force before the end of 2024.
