Online Registration

ISO 9001:2015

INSPIRA-JOURNAL OF COMMERCE,ECONOMICS & COMPUTER SCIENCE(JCECS) [ Vol. 12 | No. 3 | July - September, 2026 ]

Industry-wise Analysis of Sustainability Disclosure and Financial Performance: Evidence from Selected Indian Companies

Ms. Navodita Gahlot & Dr. Mukesh Kumar Verma

The rising focus on environmental, social and governance (ESG) practices has heightened the significance of sustainability disclosure in corporate reporting. This research examines sustainability disclosure levels and their correlation with financial performance in selected Indian industries from 2020-21 to 2024-25. Focusing on Automobile, Cement, Information Technology and Oil and Gas sectors, the study uses a Sustainability Disclosure Index (SDI) and financial metrics like Return on Assets (ROA) and Return on Equity (ROE). Employing descriptive statistics, correlation analysis and One-Way ANOVA, the findings show increased sustainability disclosure across industries, driven by ESG awareness and regulations. The IT sector leads in disclosure and financial performance. ANOVA results indicate disclosure doesn't significantly vary across industries but improves over time while financial performance shows inter-industry differences. Correlation analysis reveals a moderate positive link between sustainability disclosure and profitability suggesting better disclosure often aligns with better financials. The study concludes sustainability disclosure is integral to Indian corporate reporting contributing to long-term sustainability with varying immediate financial impacts.

Gahlot, N. & Verma, M. (2026). Industry-wise Analysis of Sustainability Disclosure and Financial Performance: Evidence from Selected Indian Companies. Journal of Commerce, Economics & Computer Science, 12(03), 145–151. https://doi.org/10.62823/jcecs/12.03.9397
  1. Apriyani, A., et al. (2024). The impact of sustainability reporting on company financial performance: A systematic literature review. Journal of Sustainability and Corporate Responsibility, 8(2), 45–62.
  2. Ghosh, S., & Paul, S. (2022). The impact of sustainability reporting on financial performance of selected Indian companies. Asian Journal of Accounting and Governance, 15, 23–38.
  3. Kalyan, B. P., et al. (2021). Evolving sustainability disclosure practices in Indian companies. International Journal of Business Ethics and Sustainability, 6(1), 1–15.
  4. Kumari, A., Nagina, & Sheoran, R. (2024). Impact of sustainability reporting practices on financial performance of Indian banks. International Journal of Accounting, Finance and Sustainability, 9(3), 112–125.
  5. Rubushi, A., & Bugaje, A. (2025). Impact of sustainability reporting on financial performance of listed oil and gas firms in Nigeria. Journal of Sustainable Finance and Investment, 15(1), 144–159.
  6. Laskar, N., & Maji, S. G. (2016). Corporate sustainability reporting practices in India: Myth or reality? Social Responsibility Journal, 12(4), 625–641.
  7. Sharma, R., Gaur, A., & Manisha. (2025). Impact of sustainability practices on financial performance of Indian private sector banks. International Journal of Banking and Finance Studies, 12(2), 78–95.
  8. Dalvadi, Y., & Gandhi, T. (2013). Social performance reporting practices and measurement of selected index-based companies of India. Indian Journal of Accounting, 45(1), 71–83.
  9. Kumar, R. (2014). A study on sustainability reporting practices in Indian and global companies with special reference to the petroleum companies. Abhinav National Monthly Refereed Journal of Research in Commerce and Management, 3(4).
  10. Motwani, S. S., & Pandya, H. B. (2016). Evaluating the impact of sustainability reporting on financial performance of selected Indian companies. International Journal of Research in IT & Management, 6(2).
  11. Adams, C. A., & Abhayawansa, S. (2022). Connecting the COVID-19 pandemic, environmental, social and governance (ESG) investing and calls for harmonisation of sustainability reporting. Critical Perspectives on Accounting, 82, 102309. https://doi.org/10.1016/j.cpa.2021.102309
  12. Andrian, T., & Pangestu, S. (2022). Social responsibility disclosure: Do green accounting, CEO power, board gender and nationality diversity matter? Jurnal Reviu Akuntansi dan Keuangan, 12(3), 639–654.
  13. Patara, S., & Dhalla, R. (2022). Sustainability reporting tools: Examining the merits of sustainability rankings. Journal of Cleaner Production, 366, 132960.

https://doi.org/10.1016/j.jclepro.2022.132960

  1. Beerbaum, D., & Puaschunder, J. M. (2019). A behavioral economics approach to sustainability reporting. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3381607.

DOI:

Article DOI: 10.62823/jcecs/12.03.9397

DOI URL: https://doi.org/10.62823/jcecs/12.03.9397

Download Full Paper:

Download