The Role of Intellectual Capital in the ESG Strategies of Modern Companies

Abstract

Non-financial reporting, conducted by companies for many years, has now been aligned with the ESG principles (Environmental, Social, Governance). The question of whether ESG reporting considers the intellectual capital of enterprises, which includes knowledge resources, competencies, relationships, and information about patents and innovation, is raised. Although it may seem intuitive that it should, the reality might be more complex. The author of this study attempted to explore this connection by formulating two main research questions: whether there is a relationship between the information contained in ESG reports and intellectual capital, and whether strategies for managing intellectual capital can provide stakeholders with relevant information about the long-term condition of the company. In the past, stock market indices promoting good practices and sustainable development played a role in assessing such issues; however, currently, the obligation to report on ESG aspects may serve as a foundation for better protection and management of most intangible assets held by organizations.