A quantitative analysis of level of sustainability disclosure in corporate annual reports of Indian companies

Abstract

The importance of corporate sustainability disclosure is growing because of social and environmental concerns. Rapid urbanization and industrialization in India have caused serious problems with the quality of air and water. This study examines the level of sustainability disclosure in the annual reports of Indian companies, focusing on environmental, social, and economic commitments in line with frameworks like GRI and BRSR-SEBI. The objective of the study was to examine the degree to which businesses in India publish information about their sustainability policies and efforts in their annual reports. A multistage sampling technique was used to sample the top 50 Indian companies covering the 2021–2022 fiscal year from 11 sectors. Descriptive and content data analysis techniques were employed using mean, median, and standard deviation. Findings revealed that the Global Reporting Initiative (GRI) is the most widely adopted framework, followed by the International Integrated Reporting Council (IIRC). Furthermore, almost all the companies practiced environmental disclosure, particularly greenhouse gas emissions and climate impact and energy usage. The study concluded that sustainability disclosure varies across different sectors and Indian corporations. The study recommended strengthening the adoption of standardized reporting frameworks like GRI, IIRC, and BRSR-SEBI through regulatory incentives or rules that emphasize their benefits. Furthermore, it was recommended that Indian companies should include external certifications and recognitions in their annual reports to demonstrate their commitment to sustainability and enhance the credibility and transparency of their sustainability reporting.