Major companies across the Czech Republic are now asking their employees detailed questions about their commuting habits, from their choice of transportation to the distance they travel. This new development stems from an EU directive requiring larger firms to report environmental and social indicators.
Starting this year, companies with more than 250 employees and annual revenue exceeding one billion Czech crowns must comply with mandatory non-financial reporting requirements. Known as ESG (Environmental, Social, and Governance) reporting, this initiative aims to track various ecological and social aspects of business operations.
Insurance giant Kooperativa and mobile operator Vodafone are among the companies conducting these surveys, though participation remains voluntary. “We regularly survey employees about sustainability-related topics, including commuting patterns for carbon footprint measurements,” explains Milan Káňa, Kooperativa’s spokesperson.
However, the implementation of these reporting requirements presents challenges. Ladislav Minčič from the Czech Chamber of Commerce points out the complexity of analyzing environmental impact: “A single combustion engine bus serving a metro station might be more environmentally friendly than forty employees driving electric vehicles.”
Companies face significant administrative burdens in collecting and reporting this data, with potential penalties for inadequate or false reporting including fines and restricted access to bank loans. Western European companies are reportedly ahead in this practice, with major retailers like IKEA and Tesco already considering ESG reports in their supplier selection process.