Challenges in the EU Banking Sector as Exemplified by Poland in View of Legislative Changes Related to Climate Crisis Prevention.

The activity and initiatives undertaken by financial institutions to protect the environment are now the goal of the evolution of the entire financial market. However, it is important not to ignore the legal issues and their implications, which to a large extent now permeate many financial decisions and affect the practices and behaviours of banks. The main objective of this paper was to identify the current condition of and ongoing developments in European Union legal regulations concerning Environmental, Social, Governance (ESG) and sustainable finance. An important aspect of this study was also to analyse the tools, legal instruments, standards and guidelines of the European Commission and the European Banking Authority (EBA) and those proposed by the international business environment in the area of non-financial reporting ESG disclosures in the EU banking sector as exemplified by Poland. In addition, this paper analyses the status of implementation of ESG-related requirements set by the EU legal framework by banks, banking associations and associations of cooperative banks operating in Poland. To achieve the objectives of this study, and to answer the research questions posed, an analysis of primary and secondary sources was carried out in conjunction with a review of the (national and foreign) literature on the subject. Two non-reactive research methodologies were used in the design of this study: the doctrinal legal method and desk research. The results of the analysis indicate that EU regulations are at the drafting stage and those adopted so far require a number of amendments. Banker associations have voiced extensive criticism of the regulations, which are viewed by banks as inadequate, unclear and inconsistent. Both EU and Polish banker associations primarily point to a high degree of generality in the solutions and legal frameworks adopted. The legal acts enacted to date do not correspond to the needs of the market. The analysis of the positions of the banking associations also revealed that the EU legislation still has gaps preventing a harmonised approach to the comprehensive and consistent integration of ESG factors by banks in their strategy and operations. [ABSTRACT FROM AUTHOR]