Navigating Sustainability Reporting in Polish Municipally Owned Companies: Awareness, Intentions, and Potential Transitional Risk Exposure

As cities accelerate climate adaptation and decarbonisation, municipally owned companies (MOCs) play an important role in delivering sustainable urban infrastructure, accessing transition finance, and supporting Positive Energy Districts (PEDs). However, the expansion of sustainability reporting requirements under the European Union’s Corporate Sustainability Reporting Directive (CSRD) raises questions about the preparedness of public infrastructure providers to meet evolving sustainability-information demands. This study examines ESG reporting readiness among Polish MOCs, focusing on current reporting activity, reporting intentions, regulatory awareness, indirect ESG information pressures, sustainable-finance and investment plans, and potential transition-risk exposure. The analysis is based on a Computer-Assisted Web Interviewing survey of 226 municipal enterprises conducted in August 2025. The results indicate substantial reporting gaps. Only 8% of surveyed MOCs had already prepared or planned to prepare a non-financial report. When companies planning EU Taxonomy reporting only were also included, 14% of the sample had some form of current or planned reporting, while the remaining 86% had neither current nor planned non-financial or EU Taxonomy reporting. Reporting readiness was lower among smaller companies, while indirect ESG information pressures arising from business relationships, stakeholder requests, and financing plans were also evident across the surveyed sample. The findings suggest that limited reporting preparedness, when combined with external sustainability-information demands, may contribute to potential transition-risk exposure relevant to municipal investment and financing processes. More broadly, ESG reporting readiness represents an organisational capability relevant to sustainable finance, municipal climate investment, and the development of PEDs and smart cities.