Environmental, Social and Governance (ESG) Reporting Practices in India: Evidence from Listed Power Sector Companies

Abstract

Globally, G20 has been recognised as a catalyst in building environmentally sustainable growth and promoting energy transitions towards more flexible, transparent and cleaner energy systems through sustainability reporting practices. Sustainability reporting practices, an umbrella of Environment, Social and Governance (ESG) reporting practices review a specific set of criteria that evaluate a business on how effectively implements ESG projects and the impacts its factors have had on the business towards sustainable growth. By burning fossil fuels and emitting greenhouse gases, the power sector companies are more directly contributing to the global energy transition. For the net-zero transition, it is crucial to concentrate on sustainability and incorporate ESG reporting practices. The purpose of this study is to analyse the reporting practices of ESG indicators by 10 listed power sector companies; that have high market capitalisation operated in India. Sustainability, ESG and annual reports of selected companies are taken for five years spreading from the year 2017–2018 to 2021–2022. The presence of ESG indicators in power sectors is measured by Business Responsibility and Sustainability Report framework issued by SEBI guidelines. Descriptive cum exploratory research methods are used to analyse the ESG indicators in reporting practices of power sector companies. The finding of the analysis shows that all the sample power sector companies are disclosing ESG indicators and National Voluntary Guidelines in their sustainability reporting. The paper found that all the sample companies are disclosing the social indicators, more than the environmental and governance indicators in the sustainability report by top 10 power sector companies listed in NSE. Irrespective of ownership of companies, discloser of sustainable reports remains persistent over the years.

DOI: https://doi.org/10.21863/jcar/2024.13.3.005

Keywords: ESG Disclosure, Power Sector Companies Sustainability Reporting, BRSR Indicators

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