Since companies are under increasing pressure to show both financial performance and environmental responsibility, environmental accounting disclosure has become a crucial component of corporate reporting. Using the fiscal years 2022–2023 and 2023–2024 as two years, this study examines the patterns and extent of environmental accounting disclosures and their relationship to financial performance in well-known Indian companies. Secondary data was gathered from the annual reports, sustainability reports, ESG disclosures, and Bombay Stock Exchange filings of the top 50 companies by market capitalization using a quantitative, comparative research design. Environmental accounting disclosure was measured using the Environmental Disclosure Index, which was based on the Razeed (2010) framework. Financial performance was assessed using return on equity, return on assets, earnings per share, and net profit margin. Annual differences in financial indicators and disclosure practices were examined using a paired-samples t-test. The findings indicate that the company is increasing its revenue and making better use of its assets in 2023–2024, as evidenced by the notable improvements in the Net Profit Margin and Return on Assets. However, there was no statistically significant change in return on equity or earnings per share. It's significant to note that over the course of the two years, environmental accounting disclosure levels remained largely unchanged, as did reporting practices. According to the study, the environmental disclosures made by big Indian corporations exhibit a consistent pattern that isn't significantly impacted by transient shifts in financial performance. Environmental reporting practices remained unchanged despite improvements in certain financial indicators. This indicates that Indian companies' financial performance and environmental accounting disclosure are taking different paths
Khandelwal, A., & Jain, M. (2026). Environmental Accounting Disclosures and Financial Performance: A Two-Year Comparative Study of Indian Firms. Exploresearch, 03(01), 47–56. https://doi.org/10.62823/ExRe/2026/03/01.160
Article DOI: 10.62823/ExRe/2026/03/01.160