4 August 2012: A new publication of the German Gessellschaft für Internationale Zusammenarbeit (GIZ), titled “Sustainability Reporting Practices and Trends in India 2012,” analyzes sustainability reporting practices in eight economic sectors: oil and gas; pharmaceuticals; information technology (IT); banking; metals and mining; construction; power and the automotive industry.
The publication is based on joint research undertaken by GIZ India, the Global Reporting Initiative (GRI), and the Thought Arbitrage Research Institute (TARI) on the state of sustainability reporting in India. The study analyzed 110 annual reports, 110 websites, and 75 sustainability reports and disclosures that use specific guidelines from GRI, the Carbon Disclosure Project (CDP), or the UN Global Compact (UNGC) Principles.
The study highlights the need for companies to provide such information in order to monitor effectiveness of sustainability policies and to help in the development of new macro-level metrics such as national sustainable development indicators. It suggests that corporate governance is maturing in India, demonstrated by a number of policy shifts, including a 2011 directive from the Securities and Exchange Board of India (SEBI) requiring listed companies in India to provide “business responsibility reports” as part of their annual reports.
The analysis shows that the mining, oil and gas, construction, and automotive sectors are among the leading adopters of sustainability reporting, including social, environmental and governance aspects of their performance, such as disclosure of greenhouse gas (GHG) emissions, energy consumption, labor practice and training opportunities. It notes that information on biodiversity impacts is generally lacking in such reports. Around 80 companies were found to produce sustainability reports, with 60 declaring that they use GRI’s Sustainability Reporting Guidelines.
The report highlights that sustainability disclosures in annual reports lack impact indicators and therefore cannot be audited for performance efficacy and impact, while on the other hand, companies issuing separate sustainability reports rarely link these to their annual reports and risk analysis. The authors conclude that integrated reporting is still in a nascent stage, and that companies need more information and assistance in developing sustainability strategies, adding that stakeholder pressure could further develop this agenda.
The report was commissioned by the German Ministry of Economic Cooperation and Development (BMZ) through a bilateral cooperation initiative supporting innovations in sustainability practices of Indian businesses. GRI is a multi-stakeholder, network-based organization headquartered in Amsterdam, the Netherlands, which promotes transparent corporate sustainability reporting worldwide. [GRI Press Release] [Publication: Sustainability Reporting Practices and Trends in India 2012]