India's Top 100 Firms Score 7.22 in Disclosure Index—But Gaps in Governance, Diversity and Cyber Remain

The index evaluates non-financial disclosures across leadership, governance, risk preparedness, sustainability and workforce transparency. The assessment is based on publicly available information from annual reports, Business Responsibility and Sustainability Report (BRSR) filings and corporate websites reviewed between July and September 2025.

IT, technology and telecom companies emerged as the top performers with an average score of 8.5, buoyed by stronger cyber-risk practices and detailed climate-transition reporting. They were followed by the food, beverage and agriculture sector, which registered an average score of 7.9.

In contrast, banks, financial services, pharmaceutical and healthcare firms ranked among the lowest-performing sectors. These companies were found to have inconsistent disclosures relating to governance quality, board evaluations, inclusion parameters and regulatory preparedness.

Twelve out of the 100 companies scored 9 or above, with Varun Beverages achieving a perfect 10, while Vedanta and Nestle India followed at 9.75. Several corporates, including Varun Beverages, Nestle India, Maruti Suzuki and Asian Paints, recorded significant year-on-year improvements. However, seasoned performers such as Bharti Airtel and Infosys saw slight declines due to the index's expanded methodological framework introduced this year.

The report highlights that 76% of companies now disclose strategic considerations around geopolitical risks, AI-driven transformation and demographic trends. Yet, governance gaps persist, with three in four companies still not conducting independent third-party board evaluations.

On shareholder responsiveness, 92 per cent of firms now offer proxy or e-voting options for AGMs and EGMs, indicating broad adoption of digital governance tools.

Workforce diversity disclosures remain uneven. Only 47 per cent of companies report having at least 20 per cent women employees, though most firms do have two or more women directors. A mere 23 per cent disclose employing 1 per cent or more differently-abled workers. Additionally, 61 per cent report resolving all POSH complaints, marking improvement in workplace conduct transparency.

Climate-related disclosures showed notable advancement, with 84 per cent outlining a Net Zero or green-transition plan. Scope 1 and 2 emissions reporting is now widespread, and Scope 3 disclosures are steadily rising.

However, 16 per cent of companies continue to provide minimal or no climate preparedness information.

Cyber preparedness remains a concern, with breach disclosures slipping to 78 per cent from 83 per cent in 2023. The report notes that 28 per cent of companies do not disclose regular cyber audits, while 32 per cent lack clarity on dedicated cyber-governance roles, raising questions about market-wide readiness for escalating cyber threats.

While 78 per cent of companies demonstrate strong vendor due-diligence processes, a quarter lag in supply-chain resilience disclosures.

The report stresses that although Indian corporates are increasingly aligning with global transparency expectations, substantial improvement is needed in board independence, workforce inclusion, and cybersecurity governance.

- ANI