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ESG Reporting as a Corporate Governance Mechanism. The Case of Publicly Listed Energy Companies
Abstract
Theoretical background: The research conducted is part of a global debate on ESG reporting and its value for companies and their stakeholders. The considerations are embedded in the concept of CG mechanisms. These open up a new area of research concerning – whether and to what extent ESG reports of individual companies should be comparable among themselves?
Purpose of the article: Large companies have been obliged by law to prepare ESG reports. ESG reporting can be considered an effective corporate governance (CG) mechanism, assuming comparability of reports prepared by different companies. In this regard, two questions have been raised: 1) To what extent are ESG reports of energy companies fulfilling the role of a CG mechanism?, and 2) To what extent are ESG reports of energy companies comparable among themselves? The goal of the research is thus to show common features and distinctions in the non-financial data disclosed in the ESG reports.
Research methods: The research focuses on non-financial reports of energy companies quoted by the Warsaw Stock Exchange (Poland). The study examines the scope of non-financial data disclosed in ESG reports. The research method used in the study is content analysis. NVivo qualitative analysis software was used in the content analysis.
Main findings: Based on the research conducted, it was found that ESG reports are not an effective CG mechanism. They do, however, overcome the information asymmetry in the scope to which they relate. A comparison of ESG reports of listed public joint stock companies in the energy sector shows that they differ in structure and different emphasis. However, the range of issues addressed in the reports is very similar. All ESG reports of the surveyed companies apply the GRI standards.
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DOI: http://dx.doi.org/10.17951/h.2024.58.1.169-183
Date of publication: 2024-04-06 14:54:11
Date of submission: 2023-08-20 15:02:10
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