ESG: Why do investors ask for 'green' data? Facts and myths

What is ESG and why is it so talked about?

The acronym ESG stands for three areas: Environmental, Social, and Governance. Once, these were topics only for large, international companies, mainly for PR purposes. Today, they are hard criteria that influence decisions about loans or investments. Financial institutions, such as Bank Gospodarstwa Krajowego or PKO BP, are increasingly looking at whether a company is 'green' and responsible. For example, PKO BP, in its strategy for 2021-2024, clearly indicated ESG-related goals, which translates into real expectations for clients.

It's no longer about looking good in the media. It's about concrete numbers and evidence that the business operates wisely, thinking about the future. Investors want to know if the company is resilient to climate change, if it treats employees well, and if it has transparent management principles. Frankly, it's less risk for them. A company that cares about ESG is more stable, and that matters most. These are simply the new rules of the game, especially in Northeast Poland, where many companies seek funds for development and modernization. These changes happened very quickly over the past 3-4 years.

Until 2019, questions about carbon footprint or board diversity were rare in conversations with banks. Today, it's standard. In 2023, approximately 72% of the largest investment funds in Poland considered ESG factors in their pre-decision analyses. This is an increase of 28 percentage points compared to data from four years ago. Specifics matter, not generalities, which we at Podlaska Symbioza Biznesu have emphasized since the very beginning of our operations in Białystok. Without this data, a company simply carries less weight in the eyes of a potential financier.

ESG is no longer PR; it's concrete criteria that influence decisions about loans and investments. Less risk, greater chance of financing.

The numbers speak for themselves: Who asks about ESG?

The main 'questioners' about ESG are banks and investment funds. But the list is longer. Increasingly, suppliers and large contractors also demand such information, especially if they want to cooperate with you long-term. For example, a large retail chain may require its suppliers to have ISO 14001 certification or present a water consumption reduction plan. There are countless such examples; we have seen them with our clients from Podlasie and Masuria, who had to quickly adapt to new requirements from Western European partners.

Between 2022 and 2024, we observed that the number of inquiries about non-financial reporting in the SME sector increased by approximately 63%. Companies that neglected this aspect found it, on average, 15.3% harder to obtain financing. We are talking about real loan rejections or worse loan conditions. Venture capital funds, especially those with foreign capital, very often have ESG requirements written into their statutes, which means that if your company does not meet the basics, you have no chance of getting their money. We check the numbers and know that this is not fear-mongering; it is the actual market situation.

According to data from the National Bank of Poland, in Q3 2024, approximately 41% of banks in Poland considered ESG-related risks when assessing the creditworthiness of large enterprises, and 23% for small and medium-sized enterprises. These percentages are growing rapidly. If you want to stay up to date, you need to have your 'green' data in order. At Podlaska Symbioza Biznesu, we help prepare such information to be reliable and convincing. Concrete actions are key to attracting capital, regardless of company size. It's an investment that pays off.

Myths vs. facts: Is ESG just 'greenwashing'?

The most common myth: ESG is only for large corporations; for SMEs, it's too expensive and unnecessary. This is not true. Every company, regardless of size, can benefit from being more responsible. You can start with small things, for example, reducing office energy consumption by 18% by changing to LED lighting. It's simple, electricity bills drop, and savings are real. Remember, you don't have to build a wind farm right away. Step by step, and the end result will surprise even the biggest skeptics.

Second myth: It's just bureaucracy, an addition to already complicated paperwork. Yes, something needs to be documented, but the goal is clear – to show real changes. Eco-logically to profit is our motto because we believe that environmental responsibility also brings financial benefits. A company that uses less water, generates less waste, simply pays less. Moreover, young employees are increasingly choosing employers who have concrete ESG policies. Research from June 2024 shows that for 67% of Gen Z candidates, sustainability issues are important when choosing a workplace.

Last myth: ESG is just 'greenwashing', i.e., pretending to be ecological. Authenticity matters here. Investors and banks have tools to check if the data is true. It's not about pretty pictures in a report, but about measurable results. Remember, Podlaska Symbioza Biznesu focuses on action, not empty declarations. We help implement changes that actually translate into better results and a truly green image. No beating around the bush – it must be based on facts, otherwise, it makes no sense.

It's not paperwork. It's concrete actions that bring real savings and attract the best employees. Authenticity matters.

What 'green' data is most important for investors?

For investors, the most important data are those that show real risks and opportunities. In the 'E' (Environmental) area, these are mainly energy consumption (how many kWh, from where), water (m3 annually), and CO2 emissions. It is also important how the company manages waste and whether it has plans to reduce its quantity. For example, showing that in the last 11 months we reduced the amount of production waste by 14.7% is impressive. Investors want to know if the company is resilient to rising energy prices and if it has an idea to reduce its 'footprint'.

In the 'S' (Social) area, banks and funds ask about working conditions. This concerns safety (how many accidents annually?), diversity in the team (gender, age proportions), training (how many hours per employee annually?), and local engagement. Does the company support local initiatives? Does it have a clear policy against mobbing? Many companies in our region, from Podlaska Symbioza Biznesu, start by analyzing employee satisfaction, which is a good starting point. This shows that the company cares about its most valuable asset – people. Such details, for example, that since January 2023 we have introduced 3.2 hours of OHS training per month for each new production employee, build trust.

And 'G' (Governance) means transparency and honesty. How does the management board operate? Are there anti-corruption policies? What are the relationships with stakeholders? Investors value clear rules that minimize the risk of irregularities. For example, independent supervisory board members are a signal that decisions are made objectively. Showing that the company has an ethical code of conduct that has been signed by all 37 employees is concrete proof that you take this aspect seriously. You don't need complicated structures for this; common sense and clear rules are enough.

First steps: Where to start in a small and medium-sized company?

If you are an SME owner from Podlasie or the surrounding area, you may feel overwhelmed. But relax. You don't have to implement all 17 UN Sustainable Development Goals at once. Start with an audit. See where you generate the most waste, how much energy you consume, how you treat your employees. These are often things you already do, you just don't call them 'ESG'. We at Podlaska Symbioza Biznesu offer such preliminary analyses. We will help you identify the 2-3 areas that will bring the quickest and most visible results. No beating around the bush, we will show what makes sense and what is just an additional cost.

To begin with, we often focus on 'E', i.e., the environment. Do you have old machines that consume a lot of electricity? Maybe it's worth thinking about replacing them? Or installing photovoltaic panels on the roof? Such investments have a quick return. For example, one of our clients, a local bakery, thanks to replacing an oven with a more energy-efficient one and partially installing photovoltaics, reduced electricity bills by 31.8% in 18 months. These are real savings that can be shown to an investor. We focus on action and concrete solutions that make economic and ecological sense.

Then you can deal with 'S' and 'G'. Introduce a training program for employees, e.g., on diversity. Establish clear recruitment rules. Change the management board to be more diverse, if possible. We introduce changes in stages, minimizing disruptions to daily work. At Podlaska Symbioza Biznesu, we have ready-made templates and proven methods that have already helped 97 local companies. Since the very beginning of our company, i.e., March 2018, our mission has been to support local entrepreneurs. This is a long-term...

Summary: ESG is not a choice, it's a necessity

There's no point in deluding ourselves – times are changing. Investors and banks don't ask about ESG out of curiosity, but for a specific reason: it's an indicator of a company's stability and future. Ignoring these trends means closing doors to financing and losing competitiveness. In 2024, almost 3/4 of the largest investment funds in Poland clearly declare that they take ESG factors into account. This is not a distant perspective; it's happening here and now, in Białystok, throughout Northeast Poland. We want you to be ready for these changes, and even to profit from them.

At Podlaska Symbioza Biznesu, we know how to translate these complex requirements into simple, concrete actions for your company. Specifics matter, and we deliver just that. We will help you understand what is important, how to measure it, and how to present it in a way that will convince investors. Our senior consultant, Piotr Krawczyk, and the entire team are practitioners who have seen it all. We don't sell empty promises, but real support based on over 6 years of experience in this segment. No beating around the bush, your company can gain from this, and quite a lot.