According to the analysis, over one-third, or 172, of the Nifty500 companies follow a structured approach to reporting sustainability-related information, but the majority of the listed firms might find it difficult to comply with Sebi's guidelines on business and sustainability responsibility reports, Economic Times reported.
The analysis of the Nifty 500 companies by Sculpt Partners, a sustainability-oriented advisory firm, released on Thursday showed that only 23 per cent of the companies (40 of 172) reported conducting a proper stakeholder engagement exercise to identify the material sustainability topics that need to be disclosed.
As per the analysis, more than 90 per cent (157 of 172) of the reporting companies have aligned their sustainability disclosure with internationally accepted standards.
Further, only one-quarter (125) of the Nifty 500 companies have linked their enterprise mission to sustainability themes, and less than 20 per cent (98 of 500) were committed to time-bound, sustainability-linked goals, as per the analysis.
Only 4 per cent of firms (22 of 500) disclosed if sustainability-related criteria are incorporated into the board's evaluation process, and only three companies disclosed specific details of how sustainability indicators are linked to management remuneration, the ET report said.
The report also revealed that despite the absence of a formal sustainability report, there are some pertinent disclosures related to environmental and natural capital dimensions.
Almost 57 per cent (283 of 500) of the companies disclosed some information on greenhouse gas emissions, 58 per cent (288 of 500) on water consumption; and 63 per cent (313 of 500) on bio-diversity, it said.
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