ESG reporting is becoming an important element of the agri-food market. It was precisely around this topic that the debate at WorldFood Poland revolved, which took place on April 9, 2025, in Warsaw. Farmers, although formally not subject to reporting obligations, are already feeling the pressure from dairies, meat plants, and banks. It is they, among others through emissions from animal production, who will determine the competitiveness of the entire supply chain. The latest changes in eco-schemes (August 2025) show that Poland may not only adapt to ESG requirements but actually become a leader of transformation within the European Union.
Table of Contents
🟢 What is ESG and why is it changing the rules of the game in agriculture?
🟢 The biggest challenges for dairies and meat plants
🟢 The role of the farmer in ESG reporting
🟢 Eco-schemes and quality systems – Poland’s competitive advantage
🟢 Common Agricultural Policy and national strategies
🟢 How to strengthen the position of the farmer in the supply chain?
🟢 Summary – an opportunity for Polish leadership in the EU
ESG stands for Environmental, Social, Governance – environment, society, and corporate governance. It is a set of principles that show how a company or farm manages its impact on the climate, how it approaches people, and how it is governed. In agriculture, most attention today is given to the first pillar – the environment – and more specifically to greenhouse gas emissions and resource management.
ESG is increasingly entering agriculture and reshaping the balance of power throughout the supply chain. On the one hand, there are ambitious climate goals, as Europe has committed itself to climate neutrality by 2050 and to reducing emissions by 30% as early as 2030. These are not distant dates at all.
On the other hand, pressure comes directly from the market, since banks and retail chains are more and more often demanding proof from suppliers that they are applying low-emission practices. Without this, a farmer or processor may simply have no access to credit or shelf space. For Poland, this has yet another dimension, as our cattle production is among the most emission-intensive in the entire Union, placing us at the bottom of the Eurostat ranking. This means that if we do not start genuinely reducing our carbon footprint, Polish meat and dairy exports may lose value, and competitors from the West will take advantage of this edge.
The greatest challenge for dairies and meat plants is no longer their own production halls, but rather the farms supplying raw materials. Estimates show that as much as 90–95% of the total carbon footprint of these industries is generated on farms – in barns, in the fields, and in the transport of animals and milk. The plants themselves have already done a lot in terms of process improvements and energy efficiency, and today the room for further reductions is limited.
That is why the only way to achieve climate goals is close cooperation with suppliers. All the more so as “emission-free” products are already appearing in Western Europe – for example, milk from Belgium, Denmark, or the Netherlands already has its own market category and is being delivered to Germany. This is a clear signal to the market and the entire industry – whoever first learns to reduce emissions in the supply chain will gain an advantage in trade.
ESG reporting is becoming an important element of the agri-food market. It was precisely around this topic that the debate at WorldFood Poland revolved, which took place on April 9, 2025, in Warsaw.
Formally, farmers are not required to report on ESG, and “on paper” it might seem that the subject does not concern them. In practice, however, it looks very different. More and more dairies, meat plants, and retail chains are starting to demand proof from suppliers that they are applying low-emission practices. Without this, it will be difficult to get onto the shelves in modern distribution or to stay in export markets. It is the market, not official regulations, that will force farmers to change their production methods and adapt to ESG requirements.
The financial consequences in the context of ESG are very concrete and tangible. Banks are increasingly differentiating their offers. A farm that can document lower emissions can count on cheaper loans and better financing conditions. In practice, this means real savings and sometimes even the possibility of development, as capital becomes available faster and at a lower cost. On the other hand, production that does not implement any emission reduction measures becomes risky for the bank. As a result, such a farm may face higher interest rates or even a loan refusal.
Animal welfare is an example that Polish agriculture is able to effectively use new instruments and turn them into an advantage over other countries. Poland allocates as much as 30% of EU funds specifically to animal welfare, which puts us in first place across the entire European Union. Farmers’ interest is very high – around 10,000 applications have already been submitted, and nearly 150,000 animals have been included in the QMP system.
According to data from the Agency for Restructuring and Modernisation of Agriculture (ARiMR), by May 2025 alone farms had received over 250 million PLN in subsidies for animal welfare and as much as 1.47 billion PLN under environmental eco-schemes. This shows that when real money and simple rules are in place, farmers are ready to invest and adapt their production.
In August 2025, a regulation came into force that simplifies the use of the animal welfare eco-scheme. The most important change concerns pig producers. The subsidy will be granted even if the pigs pass through several intermediaries, provided that the entire movement from the farm to the slaughterhouse takes place within three days.
Another facilitation is the extension of the deadline for obtaining QMP and QAFP quality certificates. Farmers now have time until September 30, 2025. ARiMR has also introduced the possibility of supplementing the animal welfare improvement plan within 7 days of being requested, which is intended to protect farms from losing subsidies due to purely administrative reasons.
It is increasingly said that the next step in agricultural policy will be linking quality systems with the reduction of greenhouse gas emissions. Poland may become a pioneer in the European Union in this regard, just as it did earlier in the case of animal welfare.
Farmers who enter quality systems and at the same time reduce emissions will gain not only subsidies but also a stronger position in trade. Practical tools such as quality certificates and low-emission calculators play an important role here. They make it possible to prove that a farm is actually reducing its carbon footprint. And consumers, who are paying more and more attention to labels and quality marks, trust what is measurable and confirmed far more than producers’ declarations alone.
Poland allocates as much as 30% of EU funds specifically to animal welfare, which puts us in first place across the entire European Union.
The new Common Agricultural Policy is increasingly focused on competitiveness and reducing bureaucracy, since it is the excess of administrative tasks that most irritates and demotivates farmers. In the background, of course, remain the Green Deal and climate goals. Poland, together with Spain, is one of the few countries that has included the reduction of emissions from animal production in its strategic plans.
An important direction is also investment in renewable energy in rural areas. Biogas plants or RES installations can not only reduce emissions but also significantly lower production costs, which today vary greatly between countries and determine the competitiveness of goods on the European market. It is clear, then, that the strategy is not limited solely to ecology, but rather an attempt to reconcile the three pillars of sustainable development: environment, economy, and social issues.
The position of the farmer in the supply chain is still often the weakest, even though the entire production process begins with them. That is why there is more and more talk about shortening supply chains and supporting local sales, where the farmer has greater influence over price and terms of cooperation.
Systemic solutions can also help, such as mandatory contracts that clearly define the rules of cooperation with processors or retail chains, as well as guaranteed payment deadlines. But real change comes from linking the farmer’s position with ESG reporting. A farm that can demonstrate low emissions and production quality becomes a strategic partner for dairies, meat plants, or banks, rather than just one of many suppliers.
ESG reporting is a real change in the rules of the game in agriculture and processing. Poland faces a major challenge, as we have one of the highest emission levels in animal production in the entire Union, but at the same time we have the tools to reverse this. Animal welfare has shown that we can be a leader. Today we can take a step further and link quality systems with emission reductions. Farmers who decide to go in this direction will gain access to modern sales channels, cheaper financing, and greater influence over their position in the supply chain. This is an opportunity for Poland to become not only a major producer of meat and milk but also a pioneer in low-emission animal production across Europe.
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