The Significance of Environmental Factor on Financial Performance

Abstract

The most difficult environmental crisis the world is facing is global warming and climate change. This issue will have ramifications for the planet's future, as seen from several perspectives. New environmental rules have emerged as a result of popular awareness about the difficulties created by climate change. One of the components that contribute to corporate governance is environmental accounting. The current study intends to analyses the existence of environmental disclosure and financial performance among India's top companies by reviewing previous research. It is motivated by the possibility that environmental accounting could accomplish sustainable growth and development.The existence of environmental disclosure procedures in India and financial success yield conflicting results, according to the report. Since environmental accounting is developing and expanding as the social attention on the environment grows, this subject is still being debated at the international and national levels. In India, there are no such regulations or regulatory requirements for businesses to provide information about environmental sustainability. However, if firms wish to justify their position in society and raise expectations in environmental measurement, environmental disclosure is still required. Regulators' duty is to make it easier for corporations to provide information that they are required to disclose without jeopardizing the needs of other parties.