The Impact of Formal and Legal Conditions on Environmental Disclosures in the ESG Framework by Capital Groups in the Hard Coal Mining Sector: Evidence from Poland

natural environment, which mining entities disclose in their nonfinancial reports in compliance with increasingly stringent legal
regulations. Regular stakeholder communication, encompassing
comprehensive information on a company's economic, social, and
environmental activities, enhances corporate transparency, facilitates
the assessment of strategic implementation, and supports the
identification of future risks. The objective of this article is to assess
the impact of formal and legal conditions on ESG reporting within
the environmental disclosure domain by the largest capital groups in
Poland's hard coal mining sector over the period 2017–2024, with a
particular focus on the role of taxonomy reports. The study employs
an in-depth qualitative comparative analysis of data contained in the
Management Board's activity reports and the consolidated financial
statements of the three largest capital groups in the hard coal mining
sector: the Jastrzębska Spółka Węglowa (JSW) Group, the Lubelski
Węgiel Bogdanka S.A. (LWB) Group, and the Polska Grupa
Górnicza S.A. (PGG). The comparative findings of these three capital
groups – two of which are publicly listed on the Warsaw Stock
Exchange (GPW) and one that remains privately held and subject to
the Polish Accounting Act – revealed significant differences in the
scope of environmental disclosures within the ESG framework. The
primary reason for these differences lies in the varying ESG reporting
regulations applicable to publicly traded groups. The study's results
indicate that due to the classification of their operations as nonsustainable under the EU Taxonomy, the ESG indicators reported by
the publicly listed companies are notably low, as coal extraction and
sales are not considered sustainable activities. However, a detailed
analysis of the companies' activity reports highlights substantial
engagement in pro-environmental initiatives, reflected in
expenditures, costs, and investments related to environmental
protection. The study's findings contribute to a deeper understanding
of the specific characteristics of the hard coal mining sector in the
context of ESG reporting, offering insights into the implications of
regulatory frameworks on corporate disclosure practices.