Sustainability reporting: Unfolding environmental, social, and governance practices in the banking sector

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Abstract

A sustainability report showcases a complete perspective of a banking business, its strategy, and environmental, social, and governance (ESG) disclosure. For the banks, the reporting is based on climate risk, responsible investment, and transparency. This report is unique for each industry, depending on its ESG risks, shareholders’ expectations, and sustainability framework. In India, the reporting framework is the business responsibility and sustainability report (BRSR) format, on the nine principles of National Guidelines on Responsible Business Conduct (NGRBC), as per the Securities and Exchange Board of India (SEBI) guidelines. This paper investigates the sustainability reporting practices adopted by Indian banks and explores how these institutions integrate the ESG framework into their reporting. A qualitative content analysis was performed on BRSRs published (fiscal years [FY] 2021–2022 and 2024–2025). Although disclosure volume has risen since the Reserve Bank of India (RBI) consultation, reporting quality remains uneven, only 28 percent of banks align fully with the Task Force on Climate-related Financial Disclosures (TCFD) pillars, and Scope 3 emissions. The pace of alignment with international standards needs acceleration. Integration of ESG reporting and carbon footprint reduction targets is more common in larger banks. The SEBI can make it compulsory for all listed banks to disclose their sustainability report, to disseminate exact awareness among the stakeholders. These findings will contribute to the banking sector and provide insights for policymakers, regulators, and industry stakeholders, with implications for enhancing corporate disclosure standards, fostering sustainable finance initiatives, and advancing the sustainability agenda in India’s banking sector.

Keywords: Sustainability Reporting and Financial Integrity, ESG Disclosures, Global Reporting Initiative (GRI), Integrated Reporting, Responsible Banking, Indian Banking Sector

Authors’ individual contribution: Conceptualization — E.S.S.; Methodology — E.S.S.; Resources — E.S.S.; Writing — Original Draft — E.S.S.; Supervision — D.V.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G14, G32, M41, M42, L60

Received: 06.05.2025
Revised: 30.06.2025; 13.09.2025; 17.11.2025
Accepted: 24.11.2025
Published online: 26.11.2025

How to cite this paper: Sina, E. S., & Vennila, D. (2025). Sustainability reporting: Unfolding environmental, social, and governance practices in the banking sector. Corporate Governance and Sustainability Review, 9(4), 102–113. https://doi.org/10.22495/cgsrv9i4p9