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The second edition of the Climate and Environmental Benchmark developed by the consulting company KPMG analyzes the state of disclosure of the largest companies operating in Poland. The publication checked whether the level of these disclosures had improved compared to the previous year. The level of implementation of new regulations should be stimulated by the entry into force of the EU CSRD directive and the development of accompanying ESRS indicators, which are intended to improve the quality of reporting on sustainable development.
Taking care of ESG issues should not be limited to reporting them. It is also important to understand that this requires practical actions and integrating them with the organization's main strategies to have a real impact on global environmental and social challenges. The KPMG report not only presents analyses, but also identifies key issues for companies regarding climate and environment in the context of reporting and building a business model that is friendly to people and the planet – says Dr. Grzegorz W. Cimochowski, Partner and Head of the Consulting Department, ESG Leader at KPMG in Poland.
A surprising decline in the quality of disclosures by companies operating in Poland
Over the last 12 months, discussions around sustainability reporting have moved from preparation to developing a full set of ESRS indicators and defining the mandatory scope of disclosures. As a result, developing a coherent set of ESG strategies, practices and reporting is becoming an increasingly urgent challenge. Meanwhile, a KPMG study showed that only 56 out of 100 largest companies operating in Poland present climate and environmental disclosures. This is just one more company than in the 2023 study. The overall score of companies reporting these issues dropped from 5.27 to 5.08, which is a surprising decrease in the quality of disclosures compared to the results of the first edition of the study.
This is almost the same level of disclosures (and lack thereof) as last year. This clearly shows how much work remains to be done. All the more so because with the emergence of legal regulations and related standards, the argument for not disclosing data and risking imminent incurring costs related to changing the reporting format disappears. An argument – let us add – that could lead to postponing the processes of data collection and analysis, and thus to learning and acquiring experience that is useful and desired on the market – says Justyna Wysocka-Golec, Associate Partner, Leader of the ESG, Decarbonization and Biodiversity Team at KPMG in Poland.
The scope of disclosures in the chemical and construction sectors is expanding
KPMG experts in Poland analyzed the non-financial disclosures of the 100 largest entities operating on the Polish market. The sample included companies diversified in terms of size, industry, origin of equity capital and presence on the stock exchange.
The Polish TOP100 includes primarily trading companies (including those from the FMCG sector), manufacturing companies (especially automotive and food producing companies), financial and industrial companies (especially energy, mining and chemical companies).
In 2024, the most active reporting companies include companies from the chemical and construction industries, which outperformed last year's winners, i.e. representatives of the mining and energy industries. Chemical and construction companies scored 6.33 out of 10, which is slightly worse than last year's winners. Companies from the financial and insurance sector (especially banks) came second, scoring an average of 5.94 points. Third place was taken by companies operating in the oil, mining and energy industries, with a score of 5.89 points – the leaders from last year.
The relatively low result of the automotive industry, which is significant in Poland, is noticeable (and a clear decline compared to last year). Companies in this group received an average of 1.25 points out of 10, although road transport has a significant impact on the environment. This is probably mainly a statistical effect, because a significant part of the companies included in last year's ranking were outside the TOP100 in 2024 – this year's edition assessed a lower number of reports in this subgroup.
Companies listed on the WSE are top performers
Companies listed on the Stock Exchange achieve better benchmark results and a higher transparency index. The KPMG survey results indicate that only 13% of them had missing data, and their benchmark disclosure score averaged 5.8 points, outperforming non-GPW companies by almost two points. In 2023, a similar, although slightly smaller, difference was observed.
Better results of listed companies result from greater dependence on stakeholders and thorough market analysis. Additionally, green assets, which are already clearly gaining in financial value, will play an increasingly important role in investments. This trend will also be strengthened by the attitude of the banking sector, which in its activities intends to promote companies undergoing transformation towards more sustainable models. Entrepreneurs active on the stock exchange are aware of these processes, which is why they are more motivated to ensure the appropriate level of ESG disclosures – comments Justyna Wysocka-Golec, Associate Partner, Leader of the ESG, Decarbonization and Biodiversity Team at KPMG in Poland.
