SEG recommends simplified ESRS standards for large voluntary reporting companies

The Association of Listed Issuers together with five other organizations — the Polish Institute of Human Rights and Business, the Chamber of Fund and Asset Managers, Sustainable Investment Forum Poland, the Responsible Business Forum and the Union of Polish Banks — adopted a joint recommendation on the use of simplified ESRS as sustainability reporting standards for large companies that opt for voluntary ESG reporting.

Where did this recommendation come from?

The changes to the EU CSRD Directive, agreed in 2025, have significantly narrowed the circle of companies subject to sustainability reporting obligations. This obligation now applies only to companies with more than 1000 employees and revenues of more than EUR 450 million. This means that many large companies, including those listed on the stock exchange, can make their own decisions about whether and how to report ESG issues. These companies face a practical question: if we want to report voluntarily, by what standard? There are two main options on the market: the simplified ESRS standards (for large entities) and the VSME standard (for micro, small and medium-sized enterprises). The signatories of the recommendation recognized the need for a clear expert position on this issue.

What do we recommend and why?

Signatory organizations recommend large companies and capital groups to choose Simplified ESRS standards. There are several reasons for this:

Simplified ESRS are designed specifically for large entities. They contain fewer data points than the original standards, are written more clearly and better organized. At the same time, they are consistent with the two most important global reporting systems (IFRS S1/S2 and GRI), which means that a single report can meet the needs of different stakeholder groups. Importantly, ESRS standards are rooted in EU law, which for companies operating in Poland and Europe means fewer interpretation problems and better alignment with regulatory requirements, including environmental taxonomy.

The VSME standard, while useful for small and medium-sized companies, does not meet the needs of large entities: it does not require a materiality analysis, offers a very limited view of sustainability management and does not meet the growing expectations of financial institutions for ESG data.

“The capital market needs comparable, reliable ESG data from issuers. Companies that choose to report voluntarily according to simplified ESRS build an information advantage over investors and analysts, and this translates directly into their perception in the market. That is why we support this recommendation and encourage all issuers to apply it.” stated Dr. Mirosław Kachniewski, President of the SEG Management Board

“Simplified ESRS is a standard that was created in response to the real needs of large companies and their stakeholders. By choosing it, companies not only build the credibility of their reports, but also invest in the future — when regulations tighten, they will be ready. It is a rational strategic choice, not just a technical one,” added Piotr Biernacki, Chairman of the SEG Sustainable Development Committee

The recommendation is addressed to large entities and capital groups within the meaning of the Accounting Act that are not subject to the CSRD obligation and plan to start voluntary sustainability reporting from fiscal year 2026.