Budgets that slow down the transformation. How to implement ESG despite financial constraints?
According to the second edition of the ESG survey in companies in Poland, conducted by LeasingTeam Group and TalentPoint in mid-2025, as many as 55% of companies indicate the lack of budget as the main obstacle to implementing sustainable initiatives. Importantly, these limitations do not result from a lack of awareness of the benefits! The report shows that as many as 87% of organizations see a reduction in their negative impact on the environment, 80% notice an improvement in relationships with partners, and 76% – an increase in employee engagement. So there is a clear discrepancy: companies understand the value of ESG, but they lack the means and resources to move from the declaration phase to real projects.
Similar conclusions can be drawn from other analyses. In the “ESG in the SME sector” report, as many as 29% of companies believe that sustainable activities are associated with costs that are inadequate to the benefits. In practice, this means that the sector, which is responsible for the majority of employment in Poland, has a particularly difficult starting point.
Frozen budgets and ESG activities
Frozen costs are a situation in which a company has to maintain the current level of expenditure while increasing not only responsibilities, but also expectations. This applies in particular to HR, HR and payroll departments, which are naturally responsible for most of the elements that make up the “S” (social) and “G” (corporate governance) areas. In the aforementioned LeasingTeam Group survey, 51% of respondents considered ESG to be an important area, but only 27% indicated sustainable activities and initiatives as a strategic priority. This difference in perception translates directly into the way financial resources are distributed.
Where ESG costs really come into play
In the common sense, the costs associated with sustainable development are most often associated with environmental investments, to recall, for example, thermal modernization or modernization of entire buildings. In practice, however, the biggest budgetary burden lies elsewhere: in processes, training, data analysis and, for example, change management.
40-50% of companies in the LeasingTeam Group survey indicated barriers related to lack of engagement, low awareness or lack of time for additional activities. These are elements that require HR activities, consultations, training and changes in internal policies, and these, although they do not require large financial investments, nevertheless consume those equally valuable, i.e. time and human resources.
On the other hand, the results of the survey presented in the report “Eco-building is trendy? Edition 2025”, quoted by ESGtrends, show that in many industries, costs are mainly due to process complexity, and not to the technology itself. For example, in green construction, it is the certification process, analyses and procedural requirements that increase the cost of implementation by up to 10-15%. This is an analogy that can be translated into HR, because introducing policies, anti-discrimination activities, or conducting audits requires time and deepening knowledge, so it involves resources, even if the project itself is not associated with a high financial cost.
How to develop ESG despite limited financial possibilities?
The experience of companies shows that ESG development with a frozen budget is possible, provided that the activities are properly organized.
- The first step is prioritization. The “S” and “G” areas are the most accessible to organizations because they require less investment and at the same time bring quick results. Threads related to organizational culture, ethics, dialogue, equality or inclusion are visible to employees and stakeholders almost immediately. Data from the FOB report for 2024 confirm that it is employee and social activities that constitute the largest group of good ESG practices in Poland.
- The second step is to integrate ESG into the processes that the company already has. Changes in recruitment, the introduction of ESG elements into onboarding, policy updates or adjustment of rating systems do not require additional financial outlays, but only appropriate preparation. In many organizations, it is thanks to this approach that the first “prototypes” of ESG activities are created, which are later developed on a larger scale.
- The third step is to use the data. In the LTG survey, as many as 35% of companies indicated that the difficulty in monitoring ESG effects is a challenge for them. The lack of data makes ESG perceived as a cost rather than an investment. Even simple indicators, such as the level of engagement, turnover, absenteeism, number of ethical reports, build business arguments for further actions.
- The fourth element is optimization activities. As indicated by the ESGtrends website , it shows that investments in the area of energy efficiency in real estate bring real operational savings. In HR, activities related to employee well-being, flexibility and organizational culture play an analogous role. These are elements that reduce turnover and recruitment costs, which is of particular importance from the point of view of HR budgets.
Why is the role of the board of directors essential?
ESG transformation is not possible without the involvement of management. This is confirmed by the data: 69% of employees in the LeasingTeam Group and TalentPoint survey believe that it is leaders who shape the attitudes and attitudes of others towards sustainable development. At the same time, however, data from the Deloitte report “No Compass for Business Resilience” show that despite strategic declarations, only 8% of companies in Poland have prepared a realistic climate transition plan, one that includes measurable goals, schedules and responsibilities. In practice, this means that many companies have a strategy “on paper”, but they lack implementation. One of the reasons is the limited budget and the lack of separate resources.
That’s why small, well-planned actions can be crucial at the beginning of the journey. They allow the organization to gain experience, build competencies and show the first results, and this significantly increases the chance of obtaining an additional budget in the future.
How to start implementing ESG in small steps? Examples
- Organizing and unifying ethical policies and procedures. Many companies have documents that have been created for years, were created by many people, and have not been updated. Without an additional budget, they can be reviewed, inconsistencies can be addressed, and provisions on equal treatment, anti-fraud and whistleblowing can be updated. Clear rules reduce the number of disputes and give employees a sense of security. The implementation consists mainly of HR project work and short consultations with managers.
- Introduction of ESG elements into recruitment processes. This action also does not require additional financial outlays, but only modifications of existing materials. Ethical principles, code of conduct, equality practices, job availability and work flexibility can be clearly communicated in job advertisements and career websites. During interviews, recruiters, on the other hand, can introduce questions about values and shared responsibility and use structured assessments that limit the impact of bias.
- Regular communication sessions for managers. Instead of expensive training, short, cyclical online or stationary meetings can be implemented, led by HR or more experienced leaders. They focus on one practical topic: having difficult conversations, responding to unacceptable behavior, strengthening cooperation or reducing inequalities (even small ones) in teams. Meetings are supposed to bring quick results, and the participation of managers affects real changes in organizational culture.
- Audit of daily operational practices. An audit does not have to be a large project, although it is associated with one. Often, a one-day analysis or workshop is enough, in which HR together with managers looks at practices already functioning in the company. It assesses where equality, communication or organizational barriers arise. Examples: the way meetings are conducted, the availability of information materials, the division of tasks in teams, the decision-making process. The conclusions can be immediately translated into simple corrections in everyday work.
- Transparent rules of cooperation and exchange of information. In many companies, the biggest source of tension is not a lack of budget, but a lack of clarity. You can implement the principle of transparent decisions at no cost: publish short summaries of projects, plans and organizational changes, clearly define responsibilities, standardize messages to teams and company-wide. The same goes for team calendars, priorities, and deadlines. Such transparency immediately strengthens the “G” area and lowers the level of operational chaos.
A word of summary
Implementing ESG in the face of tight budgets requires careful planning and a rational approach to priorities. It is crucial to focus on activities that bring a quick and visible effect, and at the same time do not generate large costs. ESG doesn’t have to mean costly investments. It can be a natural part of improving processes, improving communication and improving the quality of the work environment. Under cost pressure, these activities turn out to be the most realistic and achievable starting point, which over time may turn into more advanced projects. This makes ESG an investment in stability, not a burden on the budget.
