Evolving Sustainability Disclosure Practices in India: Exploring Company Longevity's Impact: A Case Study

Indian businesses increasingly recognize the growing significance of disclosing their sustainability efforts, which encompass environmental, social, and economic effects. However, different sectors and industries disclose differently, depending on their awareness, regulations, and standards. This study examines the disclosure practices of 25 Indian companies operating in various sectors, aiming to explore the relationship between the age of a company and its inclination towards disclosure. Primary data was collected through a a questionnaire on various aspects of sustainability, including environmental policies, legal compliance, management systems, product impact, waste/energy management, water usage, and packaging/transportation. Based on the responses, a Sustainability Disclosure Index (SDI) was calculated for each company. The study employed regression analysis to test the hypothesis that older companies have a stronger positive correlation with SDI. The results revealed SDI scores ranged from 55.35% to 98.21%, with an average of 82.67%. The pharmaceutical and steel industries showed the highest SDI scores, while the textile, port, and chemical sectors scored lower. The regression analysis confirmed a significant positive relationship between the age of a company and its SDI, indicating that older companies disclose sustainability information more comprehensively. This research underscores the dynamic nature of sustainability disclosure in India, emphasizing the need for stricter regulations and standardization to enhance the quality and comparability of disclosures. It highlights the notable connection between a company's age and its disclosure practices, suggesting that older companies with more experience, resources, and stakeholder expectations generally engage in more comprehensive sustainability reporting.