Warsaw Stock Exchange-listed companies’ preparedness for sustainability reporting in accordance with Directive (EU) 2022/2464. An examination of management reports

<ns3:p>Purpose: The aim of the study is to evaluate the preparedness of companies listed on the Warsaw Stock Exchange (WSE) for sustainability reporting (SR) issues resulting from the transposition of Directive (EU) 2022/2464 and to determine the factors that influence this. Methodology/approach: The analysis covers disclosures in the management reports of 60 listed companies from the WIG30 and mWIG40 indices for 2023. SR preparedness was assessed using three disclosure indices that quantify the extent and detail of re-ported information: one that focuses on required narrative information, another on key performance indicators (KPIs), and a combined index. The preparedness was classified into three levels – low (≤50%), medium (51–75%), and high (&gt;75%) – depending on the disclosure index value. To examine the relationship between SR preparedness and se-lected corporate characteristics, regression models were estimated using the ordinary least squares method. Findings: The overall preparedness of SR provided by the companies in accordance with the requirements of Directive (EU) 2022/2464 can be considered low. Most compa-nies exhibit significant shortcomings in both narrative disclosures and key performance indicators. Larger companies, companies with prior experience in integrated reporting, and those operating in environmentally sensitive industries are better prepared to meet the Di-rective’s requirements. However, no significant relationship was identified between profitability and SR preparedness. Research limitations/implications: The results indicate the need for policymakers to provide targeted SR support for smaller enterprises, for example, in the form of training programs. Originality/value: The study provides the first empirical evidence regarding the level of preparedness of WSE-listed companies for reporting in accordance with the new regulations. Unlike previous studies that focused on Directive 2014/95/EU and Sustainable Development Goals, the article takes into account the significant changes resulting from the new directive. The article makes a significant contribution to understanding companies’ readiness for SR, which is especially important in the context of changing EU regulations and increasing stakeholder expectations.</ns3:p>