Transparency and Climate Change:A Study of Companies on the Sustainability Disclosure Forefront

Abstract

Sustainability disclosure is an important technique for enhancing overall sustainability measures of companies. This is an important aspect as it shoves the companies on to a sustainable pathway. India is on a rapid economic development pathway and this brings it face to face with service, products and process options of development, which are cheaper and easier to access but which could prove to be disastrous, from the point of view of sustainability and imminent climate change.

India in its intended nationally determined contribution (INDC) released on October 2, 2014 commits cutting emission intensity by 33‒ 35% by 2030 from 2005 levels along with increasing share of non-fossil fuels energy in its total mix to 40%. This ambitious target can be possible only with the cooperation and active participation of companies. Sustainability disclosure is a stepping stone towards environmentally feasible measures. According to the Prakash Jadavekar, Minister of State for Environment, Forests and Climate Change, the Indian companies have learnt the green mantra for sustainable development, that going green makes good business sense too.

The companies making disclosures are now making long term investment in low carbon purchase, renewable installations and greener infrastructure among others. Moreover, the numbers of companies making disclosure on the sustainability front are also increasing over the last few years. The past 3 years have seen Indian companies increasing transparency through disclosures as a commitment towards climate change responsibilities. The number of companies, with score above 90 for disclosure, has increased from 11% in 2013 to 65% in 2015.