Impact of Sustainability Reporting on Firm Performance: Evidence from Indian Listed Companies

This study investigates the impact of sustainability reporting on firm performance among publicly listed companies in India. Drawing on panel data from 200 BSE/NSE-listed firms spanning 2018–2025, the research employs fixed-effects regression, structural equation modelling (SEM), and propensity score matching to examine the relationship between Environmental, Social, and Governance (ESG) disclosures and key financial metrics including Return on Equity (ROE), Return on Assets (ROA), and Tobin’s Q. Results confirm that sustainability reporting significantly enhances corporate transparency (+22%), strengthens governance indices (β = 0.45, p < 0.01), and builds stakeholder trust, leading to 15% higher operational efficiency, 12% lower risk exposure, and 18% superior ROE in high-reporting firms. Companies such as Tata Motors, Infosys, HDFC Bank, and NTPC serve as empirical anchors, corroborating the quantitative findings. The study contributes to the growing body of Indian ESG literature and provides actionable insights for regulators, investors, and corporate managers.