Quality of Knowledge in Sustainability Reports: A Comparative Analysis Using ESG Disclosure Scores

Abstract

The growing importance of sustainability reporting has led organisations to disclose increasing amounts of environmental, social, and governance (ESG) information. However, limited attention has been paid to the quality of knowledge embedded in such disclosures. This study examines whether ESG Disclosure Scores can serve as a proxy for the quality of organisational knowledge presented in sustainability reports. The analysis is based on companies included in the WIG20 index and combines ESG scores with a newly developed Quality of Knowledge Index (QKI), capturing dimensions such as relevance, completeness, comparability, and clarity. The results reveal a positive but weak correlation between ESG scores and knowledge quality, indicating that ESG metrics primarily reflect the extent of disclosure rather than its clarity and usability. The findings contribute to the literature by introducing a novel approach to measuring knowledge quality in sustainability reporting and highlighting the distinction between the quantity of disclosed information and the effectiveness of knowledge communication. From a knowledge management perspective, the study demonstrates that high levels of ESG disclosure do not necessarily translate into high-quality, decision-useful knowledge.