International Expansion: Gaining Edge Through ESG & Innovation

More and more Polish companies are choosing to expand internationally — driven by the need for growth and the desire to build a stable position in global markets. But in today’s world, a good product and a competitive price are no longer enough for international success. ESG (Environmental, Social, Governance) and innovation are becoming not just important extras but the very foundation of a winning expansion strategy.

1. Rising Costs in Poland = The End of Low-Cost Labor Advantage

Energy prices and wages continue to rise — a natural part of a maturing economy. As a result, it’s becoming harder for Polish manufacturers to compete on price alone while maintaining margins and quality.

The solution? Competing through innovation, added value, and responsible business models.

2. Increased Competitive Pressure from Western European Companies

Due to export tariffs to the US (e.g., for Germany and France), many Western firms are now focusing even more heavily on EU markets, including Northern and Central Eastern Europe.

Polish companies need to stand out with more than just a good product. What matters now is:

Credibility in ESG,
Willingness to engage in R&D partnerships,
Operational agility and a collaborative mindset.

3. The Role of ESG in Export: A New Standard, Not a Trend

Nordic and Western countries expect full alignment with sustainable development principles from suppliers, partners, and investors.

Today, ESG in export means:

A requirement in tenders,
A factor in procurement risk assessment,
A key influence on consumer decisions.

Lack of an ESG strategy means closed doors — especially in industries like energy, manufacturing, retail, and transportation.

As Katarzyna Udd from Explore Markets points out, ESG is no longer a trendy add-on — it’s the new standard. For Nordic countries, leaders in the green transition, compliance with sustainable principles is not optional; it’s a baseline for doing business. These are also the markets that are increasingly reaching out to Polish firms — and their expectations are higher than ever.

What matters in international expansion today:

Environmental certifications
Carbon footprint reduction declarations
Transparent ESG reporting
Effective waste management

According to a 2024 study by the Scandinavian-Polish Chamber of Commerce:

58% of Scandinavian companies require climate declarations from partners
33% expect a calculated carbon footprint

4. To Grow Globally, You Must Think Like a Leader

The most successful exporters aren’t just implementing innovations — they’re creating them. They show:

A partner-oriented approach,
A readiness to co-develop,
The ability to speak as equals with Western clients.

Innovation = Breaking out of the subcontractor role

Polish companies need to move beyond simply fulfilling orders.

Effective exporters today:

Create innovation (not just implement it),
Have partnership ambitions (not just subcontractor roles),
Speak the language of value (not just price).

There’s no going back to the days when “Polish quality at a low price” was enough. Foreign markets now demand innovation and responsibility. Those who understand this are building long-term competitive advantage — and playing a bigger game.

5. Scandinavia – A Model and a Market of Opportunity

Scandinavian countries — Sweden, Finland, Norway, and Denmark — are currently among the most promising yet demanding markets for Polish companies. They are characterized by:

High purchasing power (27.5 million consumers),
The highest GDP per capita in Europe,
Ambitious climate goals and major innovation investments,
Transparency and strong social trust.

How to prepare?

Explore Markets provides end-to-end support for companies expanding internationally — from export readiness assessments and market/partner selection to assistance in mergers and acquisitions. By working closely with trade chambers and institutions in both Poland and abroad, we help companies navigate the full process successfully.

With deep experience in the Scandinavian and Central European regions, we know how to prepare your business for the expectations of foreign clients. Contact us if you’d like to discuss your case.