Sustainability Integration: corporate peporting practices in India

Abstract

Sustainability reporting practices have evolved considerably over the last decade, in line with changing stakeholder expectations and regulatory requirements. The level of disclosure by Indian companies has also increased significantly, reflecting a greater understanding of the links between sustainability practices, corporate performance, and competitive advantage. This study—a collaboration between GRI Regional Hub South Asia, IIM-B and TCS—explores the level of disclosure among Indian reporting organizations. The study specifically focuses on understanding the qualitative aspects of disclosure in the area of sustainability strategy, and its potential connection to senior decision-makers’ commitment, materiality, risks, and opportunities. The study further assesses what goes on behind the disclosure, specifically with respect to actions leading to the integration of sustainability in the core business strategy. It reveals the practical ways in which reporting and the reporting process have contributed to provide critical support in the integration approach. The study is based on sustainability reports from 46 Indian reporting organizations listed in GRI’s Sustainability Disclosure Database from May 2013 to December 2015. To enrich the study with valuable insights and encourage others to integrate sustainability in their practices, we engaged in one-on-one interactions with six leading companies in India. In the long term, the transformation of an organization towards a sustainable future depends greatly on its ability to evaluate, measure, monitor, and disclose its impacts. The power of trustworthy and transparent disclosures that can create a culture of accountability in the corporate boardroom cannot be ignored; rather, it needs to be strengthened. However, reporting is often seen as an exercise in public relations rather than a tool for corporate transformation which can contribute to a sustainable economy. The study reveals that there is a varying level of maturity across Indian companies. However, businesses are gradually integrating macro-economic trends, showcasing material topics, and sustainability performance is becoming a boardroom agenda, with increasing commitment from senior decision makers and greater use of GRI reporting guidance over the years. The authors would like to thank the many organizations that have generously supported this study. While the conclusions are our own and based on a limited data set, it is hoped that these findings will help hasten the transition of the Indian industry onto a more sustainable trajectory.