Title: Environmental disclosure and financial performance: an analysis of carbonex indexed companies in India

Authors: Jeevesh Sharma; Suvendu Kumar Pratihari; Suhasini Verma

Addresses: Department of Commerce, Manipal University Jaipur, India ' Birla Global University, Bhubaneswar, India ' Department of Business Administration, Manipal University Jaipur, India

Abstract: With the increasing rate of global warming and climate change, firms' approach toward a better environment is a recent topic of research. The present study analyses firm's environmental disclosure by preparing an index of five dimensions followed by examining their causal relationship with firms' financial performance. The study adopts content analysis to measure the environmental performance reporting of firms listed in the Indian Bombay Stock Exchange (BSE) carbonex index. The study contributes to the existing environmental performance and financial performance literature in multi-fold. The results provide the extent to which the specified dimensions are disclosed in the reports and demonstrate that firms' environmental disclosure among identified dimensions is not balanced. The results also indicate a significant association between environmental and financial performance. The findings provide new insights to managers, policymakers, and regulators as a rationale for firms' comprehensive environmental disclosure reporting standards and go beyond the limits of sustainability reporting.

Keywords: environment performance index; carbon disclosure; greenhouse gas emission; GHG; environment disclosure; carbonex index; corporate social responsibility; CSR; India.

DOI: 10.1504/IJBGE.2025.146334

International Journal of Business Governance and Ethics, 2025 Vol.19 No.3/4, pp.457 - 494

Received: 17 Jun 2022
Accepted: 04 Aug 2023
Published online: 22 May 2025 *

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