Climate transparency under the lens: determinants of environmental disclosures in Indian banking

Jyoti Singh, Meena Bhatia and Kirti Sharma

Social Responsibility Journal, 2026, vol. 22, issue 7, 1550-1570

Abstract: PurposeClimate change is severely impacting financial ecosystem and banking sector plays a pivotal role as a financial intermediary in addressing these challenges. Considering increasing regulatory and stakeholder pressure for enhanced climate disclosures, this study aims to offer a timely review of climate disclosure practices in the Indian banking sector with a focus on climate risk governance.Design/methodology/approachUsing content analysis and a panel regression model, the research analyses Indian banking sector over the period 2019–2024. A Climate Disclosure Index, derived from Task Force on Climate-related Financial Disclosures (TCFD) framework, is used to evaluate disclosures in annual reports.FindingsDespite a notable increase in climate disclosures, banks still lack integration of climate risks in their operational framework and measurement of climate impact of their financing activities. Regression results reveal that women and independent directors significantly improve climate disclosure, whereas board size, audit committee size and CEO age do not show statistically significant effects. Larger, more profitable banks with greater financial capacity disclose more on climate-related aspects, while public sector banks lag behind private ones.Practical implicationsThis study captures the post-TCFD diffusion period in Indian banking sector, highlighting that diverse and independent boards not only comply with disclosure mandates but also strategically use climate transparency to reinforce legitimacy and stakeholder trust. The study supports capacity building for smaller banks and establishing frameworks and incentives that strengthen climate accountability and align the Indian banking sector with global best practices.Originality/valueThis study captures the post-TCFD diffusion period in Indian banking sector, highlighting that diverse and independent boards not only comply with disclosure mandates but also strategically use climate transparency to reinforce legitimacy and stakeholder trust. The study supports capacity building for smaller banks and establishing frameworks and incentives that strengthen climate accountability and align the Indian banking sector with global best practices. This research advances theoretical and empirical understanding of governance mechanisms driving climate transparency in emerging markets.

Keywords: Climate disclosure; Banking industry; Determinants; Sustainability; Environmental; Board characteristics; Governance; Climate risk; Women directors (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:eme:srjpps:srj-07-2025-0671

DOI: 10.1108/SRJ-07-2025-0671

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