An Analysis of Environmental Disclosure Practices in Indian Pharmaceutical and Chemical Industries

Environmental disclosure has become an integral component of corporate reporting, particularly in environmentally sensitive sectors such as pharmaceuticals and chemicals, where business operations entail significant environmental impacts. This study examines the environmental disclosure practices of a selection of Indian companies using an Environmental Disclosure Index (EDI). The analysis is based on secondary data gathered from the annual reports and Business Responsibility and Sustainability Reports (BRSR) of six companies: Sun Pharmaceutical Industries Limited, Cipla Limited, Dr. Reddy's Laboratories Limited, Aarti Industries Limited, Navin Fluorine International Limited, and Vinati Organics Limited for the 2025–2026 fiscal year. The results reveal that all selected companies achieved the maximum score on the Environmental Disclosure Index, indicating comprehensive environmental reporting. The study concludes that environmental disclosure practices have become largely standardised due to regulatory initiatives, specifically the BRSR framework. Furthermore, the findings suggest that company-specific factors exert limited influence on disclosure levels within a regulated reporting environment, highlighting the growing role of mandatory sustainability reporting in enhancing corporate transparency, accountability, and environmental governance.