Introduction to the assessment of the quality of non-financial reports of banks in the context of WIG-ESG index membership

Aim/purpose – This article aims to conduct a preliminary assessment of the quality of non-financial reports of banks considering their membership in the WIG-ESG index on the Warsaw Stock Exchange (WSE). The research problem addresses whether the quality of reports from WIG-ESG banks is higher than that of those outside the index. Design/methodology/approach – The study covered annual non-financial reports of banks operating in Poland as joint-stock companies. The research considered the inclusion in the WIG-ESG index as an essential factor in evaluating the quality of non-financial reporting. The non-financial reports of 16 banks for 2022 were analyzed (eight banks included in the WIG-ESG and eight banks outside the index). A literature review on the quality of non-financial reporting was conducted, followed by manual content analysis of non-financial reports, automated content analysis using the Escáner2030 tool, and comparative analysis of the reports. Quality was measured through external manifestations of reporting. Findings – WIG-ESG banks use GRI (Global Reporting Initiative) standards more frequently, publish more comprehensive reports, and commission external verification. Their reports are also richer regarding Sustainable Development Goals (SDGs). The findings suggest that WIG-ESG banks’ reports are of higher quality, though this may not be directly attributable to index membership. Research implications/limitations – The study is limited by the methodology of the WIG-ESG index, which includes the largest companies from the WIG-20 and mWIG-40. This means the analyzed banks might already be leaders in non-financial reporting, influencing the results. Additionally, the focus on external reporting aspects limits the ability to assess report substance fully. Originality/value/contribution – The article offers new insights into the impact of WIG-ESG membership on non-financial reporting quality in banks, laying the groundwork for future research on sustainable reporting. This study lays the groundwork for future work that may determine whether inclusion in the index truly improves report quality and whether the existence of the WIG-ESG index is justified.