More Polish companies will be affected by the ideology of sustainable development. Members forge fresh rules

pch24.pl 8 months ago

The dangerous ideology of alleged sustainable improvement is armed against expanding numbers of Polish entrepreneurs. The Parliamentary Committee on Public Finances adopted on Tuesday, along with the amendments of the Government's draft amendment of the Act, which includes extending the scope of entities that will have a "obligation" to study on "sustainable development".

The Parliamentary Committee on Public Finances adopted on Tuesday at first reading a draft amendment to the Accounting Act, statutory auditors, audit firms and public oversight and any another laws. The draft amendment was adopted with several, mainly legislative and editorial amendments.

The intent of the amendment of the law is to implement EU rules towards an even greater regulation of freedom of establishment in Poland. According to the company's project, they will be required to study more on the alleged sustainable development. The task besides increases the income thresholds above which the accounts should be kept. At the beginning of the year, the Ministry of Finance, which prepared the project, reported that EU government "is the next step towards the improvement of corporate reporting on non-financial information, now called sustainability reporting".

As indicated in the explanatory memorandum to the draft, which appeared on the pages of the Government Legislative Centre in February, the fresh rules extend the scope of entities that will be required to study on sustainable development. The work will include large companies, large-scale parent companies, tiny and medium-sized firms admitted to trading on a regulated marketplace (excluding listed micro-enterprises), as well as gathering certain conditions and criteria for the size of subsidiaries and subsidiaries established in an EU associate State, whose ‘high-level parent undertaking or independent entity respectively is subject to third-country law’.

The proposed rules require reporting on sustainable improvement according to uniform EU standards. The scope of the reports will be extended and will include "information on sustainable improvement issues in the environmental, social (including human rights) and corporate governance". These reports will be reviewed by auditors and will besides request to be digitised, with the electronic format of the study being "readable to man".

The explanatory memorandum added that the aim of these actions is besides to protect, preserve and improve EU natural resources and to defend the wellness and well-being of EU citizens against alleged "hazards" and "negative environmental impacts".

The provisions of the Act are to enter into force 14 days after its publication, with the exception of certain provisions. Within 1 of the amendments adopted by the committee on Tuesday, any of these provisions were withdrawn at the time of entry into force.

Source: PAP