A Quality of ESG (Environment, Social, Governance) Reporting by Financial Groups in the Insurance Sector: Evidence from Poland

Purpose: In light of the ongoing regulatory changes in sustainability reporting (ESG: Environment, Social, Governance), such as the implementation of the CSRD Directive (Corporate Sustainability Reporting Directive) and the European ESRS standards (European Sustainability Reporting Standards), the quality of ESG reporting is becoming increasingly important, particularly in the financial sector where public trust is crucial. This study focuses on assessing the quality of ESG reporting in financial groups that conduct insurance activities in Poland. Particular attention is paid to the impact of the parent company's organizational form and ownership structure on the presentation of ESG information. Design/Methodology/Approach: The analysis was conducted using ESG reports prepared for the period 2019–2024. Deductive reasoning methods and analysis of the content of annual non-financial reports of the surveyed insurance companies were used. The paper presents an original set of key features that demonstrate the report's quality in accordance with the flagship accounting principles evaluated. Findings: The survey results indicate that the organisational structure of a financial group and the proportion of foreign capital influence the quality of ESG reporting. Observed differences in the approach to ESG reporting between financial groups conducting insurance activity in Poland. They result from organizational and regulatory solutions in the audited financial institutions. Different solutions for organising the ESG reporting process affect the quality and manner in which ESG information is presented. Practical implications: The results of the research may contribute to a better understanding of the challenges facing the insurance sector and suggest ways to improve the quality of ESG reporting. Originality/Value: The scope of the study, which covers financial groups from the insurance sector - a rarely researched area - should be considered innovative. Additionally, the proprietary methodology for examining the quality of ESG reports expands the knowledge base in the field of ESG reporting and fills a research gap in this area.