January 2023

Top Ten in Compliance in 2023

Penteris Head of Compliance Jeremiasz Kuśmierz details the ten areas that we should watch in the world of compliance in the coming year, in Poland, in the EU, and around the world.

1. Economic Sanctions

We can expect a larger group of businesses will carry out audits and resort to dedicated procedures to minimise the risk of breaching sanctions (targeted at Russia). It is worth looking at the financial sector in this respect, as the procedures put in place there work well.

2. Remote Working

Employers who were hoping to be able to say goodbye to remote working once and for all are in for a disappointment. New EU legislation stipulates that all employees will be entitled to remote working for up to 24 days per year.

3. Protection of Whistleblowers

Many businesses in Poland, especially those operating also across the EU, have already decided to implement the relevant internal procedures without waiting for Polish solutions, but they will also be forced to update their regulations once new domestic legislation comes into force.

4. Liability of Collective Entities

Penalties are to be differentiated according to the size of the entity subject to liability. Proof of due diligence against infringements will remain the primary means of protection against liability. There could hardly be a more tangible benefit of implementing compliance procedures.

5. Non-financial Reporting

2023 will be the time for legislative consultation and the implementation of the EU Corporate Sustainability Directive (CSRD) into Polish law. It is worth keeping your hand on the pulse, as some entities will implement the new obligations as early as 1 January 2024.

6. EU Taxonomy for Sustainable Activities

The EU’s Taxonomy aims to introduce a uniform framework for the environmental impact of investments and to counteract sham activities (‘greenwashing’). In view of the preparation time for new investments, it is worth thinking about the Taxonomy as early as 2023.

7. Ethical Supply Chains

We can soon expect the approval of the final version of the Corporate Sustainability Due Diligence Directive (CSDD), which, alongside the CSRD, is one of the main pillars of European ESG policy. The directive will make it mandatory to take action to respect human rights and protect the environment in supply chains.

8. Extended Employee Protection

All indications are that employees will soon enjoy an extended scope of protection, including the right to be more fully informed about working conditions and access to training, the right to concurrent employment with another employer and the prohibition of discrimination against employees on the basis of their exercise of newly granted rights.

9. Digital Services Act (DSA)

Entrepreneurs operating in the area of new technologies face the obligation to adapt their business to the requirements of the EU Regulation 2022/2065 on Digital Services Act (DSA). The DSA not only applies to the largest service providers and mass social networks, but also to the broad category of intermediary and hosting providers.

10. Artificial Intelligence

It may seem that AI regulation is a distant topic, but nothing could be further from the truth. The planned regulations will directly affect solutions used for customer profiling, risk assessment (e.g. insurance or credit), analysis of job candidates, etc. It is therefore already worth looking at AI service providers and their compliance with the planned direction of regulation.

Originally published 17.01.2023 in a shorter format in Poland’s Rzeczpospolita.

Get in touch with Jeremiasz Kuśmierz for more information.