LEGAL REQUIREMENTS
In accordance with current regulations or their drafts, POLON-ALFA S.A. will be required to publish a sustainability report in 2026, pertaining to information from the year 2025.
Basic information about the upcoming formal requirements:
1. Reporting based on unified European Sustainability Reporting Standards (ESRS).
2. Part of the company’s/group’s activity report prepared in electronic format.
3. The report must include disclosures required by Regulation (EU) 2020/852 on the establishment of a framework to facilitate sustainable investment: CAPEX, OPEX, and percentage of revenues.
4. Mandatory certification of the non-financial report by an independent external entity. Initially, this will require “limited assurance,” progressing to “reasonable assurance” in subsequent years.
ORGANIZATIONAL CHALLENGES
Building this new multidisciplinary function in our company involves the following challenges:
1. Implement processes, define responsibilities in the area of sustainability, and provide appropriate organizational and technical measures to support the entity’s sustainability activities.
2. Include in the business strategy the impacts, risks, and opportunities relating to sustainability issues.
3. Approval of targets for sustainability issues, including – reduction of greenhouse gas emissions for 2030 and 2050.
4. Set goals related to the management of significant impacts, risks, and opportunities and the process of monitoring progress in their implementation.
5. Prepare and implement a value chain due diligence system.
6. Raise the level of knowledge of administrative, management bodies in relation to sustainability issues and the skills needed to fulfill this role.
7. Prepare a sustainability report in accordance with the CSRD and ESRS.
ROAD TO TRANSFORMATION
In cooperation with a professional advisor, the Company has agreed on a comprehensive action plan to meet the challenge of embarking on a sustainable development path. Transformation activities can be divided into five main stages, starting with an analysis of the company’s current state and a comparison with competitors in both the domestic and global markets, followed by the development of an ESG strategy (i.e., defining the company’s ambitions, assessing materiality and identifying risks, selecting indicators and targets) and activities aimed at implementing initiatives that bring the company closer to achieving the defined goals. The final stage is the reporting and external communication of sustainability activities.
ACTIVITIES CARRIED OUT
In 2023, the Board of Directors decided to start systematic activities related to the issue of sustainability. It was decided to select a professional consulting firm to support the company on the road to transformation.
To date, the following activities have been carried out:
* Review offers to select a professional advisor,
* Selection of a consultant to implement the initial activities: PwC Advisory Sp. z o.o. Sp. k. (PwC has experienced ESG specialists and supports organizations in maturity analysis, ESG strategy development, as well as in the area of sustainability reporting).
As a result of the implementation of the signed contract, the work was carried out:
* high-level analysis of the Company’s current level of ESG maturity to obtain preliminary information on the Company’s ESG area:
– to learn about the prospects for POLON-ALFA S.A.’s development in the coming years,
– Learning about the company’s main motivations related to the ESG area (requirements of customers, investors, etc.),
– verify where sustainability currently stands in the organization and what mechanisms are in place to manage this area,
– Defining a timeframe for ESG activities,
* Preliminary identification of gaps in the ESG area,
* Workshop for key POLON-ALFA S.A. staff. (16 people) on sustainable development (ESG), aimed at:
– Increased awareness and systematization of knowledge in the area of sustainable development for management and key employees of POLON-ALFA S.A.,
– Discussing methodologies for strategy building, goal setting and KPIs in the context of current socio-environmental challenges,
– An overview of market best practices and solutions for ESG implementation.
In December 2023, another contract was signed with a professional consultant to conduct an analysis of the current state regarding the ESG area at POLON-ALFA S.A. A full summary of the Company’s current ESG status was performed, identifying gaps, risks and opportunities, and an ESG action plan and proposal for next steps was created.
NEXT STEPS
The year 2024 will be a period of forming new functions in the organization and beginning preparations for performing dedicated activities, related to sustainability and collecting data required for future reporting.
Establishment of the POLON-ALFA S.A. ESG Committee.
The committee will have a consultative and advisory function to the Board of Directors, and will also oversee our ESG activities and provide a platform for internal dialogue on sustainability.
Scope of ESG committee activities:
* Participate in the preparation and implementation of the ESG strategy or equivalent document,
* Exercise oversight over the implementation of strategic goals and key ESG activities,
* Controlling and monitoring the implementation of implemented ESG policies and commitments,
* Fostering discussion and exchange of ideas on ESG, strengthening the commitment of employees and associates,
* Shaping the company’s organizational culture in accordance with the adopted ESG principles and policies.
Development of POLON-ALFA S.A.’s sustainable development strategy (ESG). (or equivalent document)
* Assess the materiality and ESG risks associated with POLON-ALFA S.A.’s operations;
* Defining the organization’s ambitions and capabilities and setting strategic ESG goals;
* Selection of KPIs (from Key Performance Indicators) – key performance indicators that determine the effectiveness of individual activities;
– Begin systematic implementation of strategy objectives
– Establishing an ESG reporting team – preparing the organization to start reporting.
2026 – the Company’s first ESG report, in accordance with applicable regulations and guidelines (for 2025)