ESG Non-Financial Reporting in the Context of the Information Needs of Small Businesses

Abstract

Aim: The purpose of this article is to assess the potential for small entities to use non-financial (ESG) reporting in management decision-making in accordance with the Accounting Act. The analysis covers environmental, social, and corporate governance aspects. The growing importance of ESG is highlighted in light of the planned reporting requirement set to take effect in 2026.

Methodology: The study was based on an analysis of the literature, reports, and legal regulations, as well as the use of descriptive, comparative, and logical methods. It covered 29 small enterprises from the Lower Silesia Province, selected through purposive sampling. Data were collected between October 1, 2024, and March 31, 2025, using anonymous surveys and interviews.

Results: A low level of ESG reporting was observed–only 13.79% of companies prepare reports voluntarily, and the majority do not engage in such reporting. The main barriers are costs, a lack of knowledge and experience, limited human resources, and low pressure from stakeholders. This indicates that ESG implementation is still in its early stages in the SME sector.

Implications and recommendations: It is recommended to implement ESG gradually, starting with identifying key areas and creating simplified reports. It is important to develop staff competencies and prepare for new regulations. ESG should be an integral part of the strategy and a source of competitive advantage.

Originality/value: The article is based on empirical research conducted among small businesses, taking into account the current legal framework. Its value lies in the data obtained directly from the companies and its interpretation. The findings identify real-world problems, offering both theoretical and practical insights.