Assessment of Polish companies’ preparedness for ESG reporting in the context of its determinants as evaluated by report preparers

Abstract

Purpose: The purpose of this article is to assess the degree and scope of preparedness of Polish companies for Environmental, Social, and Governance (ESG) reporting from the perspective of respondents engaged in environmental reporting, taking into account the European Union (EU) taxonomy, and also identifying the challenges associated with it. Methodology/approach: A survey method was employed, conducted among enterprises that prepare ESG reports and those preparing for this obligation. Non-parametric tests were applied, including the Mann-Whitney U Test and the Kruskal-Wallis Test. Additionally, Kendallʼs Tau was used to assess rank correlation between two ordinal variables, and cluster analysis was also conducted. Findings: The majority of respondents rated their level of preparedness for reporting as average. A statistically significant relationship was identified between the assessment of the company’s preparedness for taxonomic reporting and company size. However, the analysis did not indicate significant differences in ESG reporting preparedness across industries. Notably, approximately 70% of respondents believe ESG reporting is complex, citing various factors, including complex and imprecise regulations. The survey also revealed a clear need for increased investment in human resources and novel technologies to facilitate ESG reporting. Research limitations/implications: As this research represents the first stage of a broader project, further expansion and in-depth analysis are planned, including in relation to the quality of ESG reporting. Originality/value: The originality and value of this article lie in its contribution to the understanding of companies’ readiness for ESG reporting under the new regulations. The studyʼs findings also highlight the challenges companies face in preparing these reports and the correlation between these challenges and the phase of regulatory implementation.