ESG and Non-Financial Reporting - Significance and Trends
The importance of ESG and non-financial reporting is growing rapidly due to new regulatory frameworks,
changing societal expectations, and increasing pressure from investors. The term ESG is becoming an
integral part of daily business operations, building on corporate social responsibility and contributing to
the development and implementation of companies’ sustainability strategies.
The abbreviation ESG (Environmental, Social, Governance) encompasses practices aimed at
contributing to and ensuring the sustainable development of businesses:
E (Environmental): Environmental Impact
Includes:
Climate Risks, Carbon Emissions, Energy Efficiency, Natural Resources, Pollution, Biodiversity
S (Social): Societal Impact
Includes:
Human Capital, Labor Regulations, Diversity, Equality, and Inclusion, Safety, Human Rights
G (Governance): Corporate Governance
Includes:
Transparent Company Management, Corruption and Bribery, Business Ethics, Compensation Policies, Overall Risk Tolerance, Risk Management.
Unlike financial reporting, ESG requires the establishment of strategies, the implementation of practices,
and the subsequent reporting of non-financial indicators relevant to society and the environment. In
addition to financial metrics, companies provide additional transparency regarding their activities. Non-
financial reporting is already mandatory in some countries and is gradually being introduced for
companies within the European Union.
European Framework
ESG Reporting - Regulations Regarding Non-Financial Reporting in the EU and Its Applicability
Since 2014, there has been a directive focused on non-financial reporting – the Non-Financial Reporting
Directive (NFRD). According to this directive, since January 1, 2017, reporting is mandatory for public-
interest entities in the EU – those with over 500 employees, covering around 11,000 companies.
In late 2022, the Corporate Sustainability Reporting Directive (CSRD) came into effect, expanding upon
the NFRD. It applies to all large enterprises, as well as those on regulated markets. The new directive
requires them to publish information related to their company’s sustainability, which must be publicly
available. The CSRD introduces more detailed requirements for reporting companies’ environmental,
human rights, and social standards based on common criteria aligned with the EU’s climate goals,
ensuring businesses track and manage their environmental impact.
Applicability Timeline
The rules will be implemented between 2024 and 2028:
From January 1, 2024: For large public-interest companies (with over 500 employees) already
subject to the NFRD, with reports due in 2025.
From January 1, 2025: For large companies not currently subject to non-financial reporting but
meeting at least 2 out of 3 criteria:
Over 250 employees
Over €40 million turnover
Over €20 million in total assets
With reports due in 2026.
From January 1, 2026: For registered SMEs and other enterprises, with reports due in 2027.
SMEs can opt-out until 2028.
In July 2023, the European Commission adopted the first set of reporting standards aiming to introduce a
unified ESG standard for all companies.
How Our Activities Help the Corporate Sector Improve Its ESG Performance
RE
offers innovative solutions for textile waste management and sustainable production, directly supporting
businesses in meeting and improving their ESG (Environmental, Social, Governance) performance.
Here’s how our activities can contribute:
Environmental Responsibility:
Waste Reduction and Resource Conservation
By recycling textile waste and creating new
products, we help companies reduce the amount of waste generated by their operations. This
directly improves their environmental performance and aligns with circular economy
commitments.
Sustainable Products and Solutions
Through our furniture, corporate gifts, and personalized
projects, companies can demonstrate their commitment to sustainable development. Using
products made from recycled materials not only reduces the carbon footprint but also enhances
the company’s image as an environmentally responsible partner.
Enhanced Carbon Emission Management
Our activities assist companies in integrating
sustainable solutions into their ESG strategies, thus reducing their carbon emissions and
improving their environmental goals.
Social Responsibility:
Support for Local Communities and Ethical Practices
We work closely with local partners
and organizations, enabling companies to engage in socially responsible initiatives. This can be
part of their corporate social responsibilities (CSR) and boost their social ESG indicators.
Unique Corporate Gifts with a Cause
By using our products for corporate gifts, companies can
showcase their commitment to sustainability while supporting causes related to environmental
protection and social justice.
Promoting Sustainable Practices in Society
Through our products and services, companies
can inspire their clients, partners, and employees to adopt sustainable practices and contribute to
a more sustainable future.
Governance and Ethics
Support for ESG Strategy Implementation
We offer consulting and personalized projects that
help businesses integrate sustainable practices into their operations. This includes waste
management solutions, resource optimization, and support for implementing corporate ESG
strategies.
Transparency and Accountability
Our services and products fully comply with high standards
of environmental and social responsibility, making it easier for companies to demonstrate
transparency and accountability to stakeholders.
Integrating Sustainability into Corporate Culture
By working with us, companies not only
improve their ESG performance but also build a sustainable corporate culture aligned with global
trends for responsible management.