‍Press Release

What Challenges Are Czech Companies Facing?

The primary motivation for firms implementing ESRS is legal compliance. Expected business benefits from mandatory reporting have, so far, only rarely been confirmed.

The research reveals that ESRS implementation is significantly more demanding for Czech enterprises than anticipated. As new challenges gradually emerge, the implementation process often expands, hitting the limits of both time and internal capacity.

"For effective implementation, ownership by top management is absolutely critical. This accelerates decision-making and simplifies responses to strategic changes," shares Hubert Topinka, Sustainability & ESG Manager at Plaček Group s.r.o.

The main barrier remains the uncertainty and instability of public regulation. A lack of central interpretation and practical methodologies leads to inconsistent interpretations and unnecessary "overcompliance".

Small and Medium-sized Enterprises (SMEs) bear a disproportionate burden, as requirements from major clients and banks are passed down to them without the necessary support infrastructure.

Enterprises are also struggling with a lack of quality data. Collecting information across departments is time-consuming, consolidation is complex, and many indicators lack clear definitions. The most significant difficulties arise when obtaining data from suppliers, particularly regarding Scope 3 GHG emissions. The role of supply chains is, however, irreplaceable.

"It is interesting to observe how partner behaviour changes when the reporting obligation impacts them directly. One of our key customers did not respond last year, but as soon as the obligation fell upon them, they contacted us proactively, seeking to collaborate on the materiality analysis," stated Gabriela Dylová, ESG and Project Management Manager at VÍTKOVICE STEEL, a.s.

The Path to a Solution

The Research Report recommends specific steps for firms to manage the adoption of corporate sustainability in practice:

● Timely Preparation: Firms should commence preparation early, proceed in phases, and adhere to a realistic plan.

● Capacity Building: It is crucial to build internal know-how, utilise external experts in a targeted manner, and share knowledge within the organisation.

● Business Integration: Sustainability must be integrated into real business operations, linked with finance and cost management, rather than treated as a separate formal agenda.

● Systemisation: Introducing an internal reporting manual, a catalogue of methodologies, and a unified system for data collection and verification can significantly reduce error risk and save time.

● Collaboration: The research also calls for sharing common costs and strengthening cooperation through industry associations. These bodies can play a key role in unifying the interpretation of standards, creating sector-specific guidelines, and sharing best practices.

The research results confirm the fundamental, yet limited, role of public regulation in introducing corporate sustainability and the need for its phased implementation.

"Our goal was to uncover where firms truly need support during sustainability implementation—and how they can be effectively helped. This allows sustainability to become a natural value-add for their business, rather than merely a formal obligation," says Jakub Adamec, Head of Research at mutualus.

About the Research and mutualus

The research was conducted by a multidisciplinary team of legal and business advisory experts from mutualus. The firm focuses on bridging the gap between regulation and business, and on corporate sustainability management. The aim of the research is to help firms navigate the new ESRS requirements and utilise them to strengthen transparency, efficiency, and competitiveness.

The findings were publicly unveiled during an online presentation on 4 November 2025, where participants were introduced to key insights and practical recommendations.

Both the presentation and the full Research report have been available since 4 November at mutualus.eu/research.

Contact

Jakub Adamec | adamec@mutualus.eu | +420 736 443 566

mutualus s.r.o., advokátní kancelář | Pernerova 697/35, Karlín | 186 00 Praha 8