Environmental Disclosure Practices of Indian Manufacturing Industries: An Empirical Analysis

Abstract

Growing global concerns about climate change and sustainable development have placed increased scrutiny on corporate environmental responsibilities. In India, with its rapid industrialization and significant environmental challenges, the role of manufacturing industries is pivotal. This study empirically examines the environmental disclosure practices of Indian manufacturing industries over the period of 10 years from 2013-14 to 2022-23 using secondary data obtained from Thomson Reuter database. Descriptive statistics are used to assess the overall level of environmental disclosure, while trend regression and growth analysis are used to examine changes in disclosure practices over time. A sample of 268 manufacturing companies listed in Bombay Stock Exchange on the basis of their market capitalisation have been included in the study. The result indicates that the Tobacco industry leads in environmental reporting and disclosure practices, followed by the Aluminium industry. It is further found that 77% of industries have a significant upward trend, suggesting increasing responsiveness to regulatory requirements, stakeholder pressure, and sustainability expectations. In terms of growth, 28 industries exhibit significant growth which indicates there is an increasing corporate awareness and commitment towards environmental accountability and transparency.