Author(s) :

Saket Mishra, Rachana Vishwakarma.

Volume/Issue :

Abstract :

This study investigates the impact of sustainability reporting on the corporate performance of Indian Maharatna companies. This study gathered data on sustainability performance through the Bloomberg database and employs the panel OLS method to measure the impact of sustainability reporting on the corporate performance of Maharatna Companies. The study findings revealed a negative relationship between sustainability performance and with financial performance of the firm. This study also revealed that firms that invest more in reporting authentic information about their sustainability practices and risks tend to bring down their corporate performance. The study concludes that sustainable investing and reporting can be an effective tool for firms to improve their corporate performance. However empirical evidences show a negative impact of sustainable environmental investing and its reporting on market & operational performances of the firm. This study points out the need to determine the gestation period of negative returns for sustainable investments.

No. of Downloads :

55

KEYWORDS:

Sustainability Reporting; Sustainability; Risk Disclosure; Maharatna Companies; Bloomberg

INTRODUCTION & OBJECTIVES:

Environmental sustainability has become bizarre for the world, and for organizations, it is extremely crucial to report their environmental performance to stakeholders (Gallego-Álvarez & Ortas, 2017). Sustainability reporting is the process of disclosing an organization's sustainability performance to its stakeholders. It provides stakeholders with information about the organization's environmental, social, and governance impact and how it is addressing issues related to this nonmaterial aspect of business. Sustainability reporting can take different forms, including standalone environmental reports, integrated annual reports, and sustainability reports. Environmental reporting has become increasingly important for organizations due to the growing concern about the environment and the need for transparency in business operations (Christensen et al., 2021). In recent years, emphasis on sustainable development has been increased continuously, companies are required to provide more specific and comprehensive information about the risks they face. Risk disclosure refers to the practice of informing investors or clients about the potential risks involved in a financial product or investment. This disclosure helps investors make informed decisions and understand the potential consequences of their investment decisions. Risk disclosure statements typically include information about the nature and extent of risks associated with an investment, the likelihood of those risks occurring, and the potential financial impact of those risks (UNCTAD, 2017). Risk disclosure typically covers various types of risks, including financial, operational, legal, and reputational risks, among others. Risk disclosure aims to provide complete and accurate information to investors so they can assess the risk-reward balance before investing (Boffo, R., 2020)

DOI:

10.58426/cgi.v5.i2.2023.23-36