The NSE Centre for Excellence in Corporate Governance (CECG) has issued its most recent quarterly briefing titled “Environmental and Social Reporting by Indian Companies”, which I have authored. The executive summary is as follows:
- Recent years have witnessed a strong focus on long-term sustainable value in companies rather than short-term profitability.
- The need for greater transparency on sustainability issues has compelled companies to engage in environmental and social reporting, including in India.
- The regulatory framework enabling such reporting has rapidly evolved in India and companies have demonstrated an upward trend in the incidence and quality of reporting.
- However, a number of challenges remain: the lack of standardisation in reporting requirements, overreliance on regulatory mandates rather than innate business culture and the lack of clarity regarding the audience who benefits from such reporting.
- Corporate boards and other stakeholders can take adequate steps to promote more meaningful environmental and social reporting.
