FTI Consulting Releases India Disclosure Index 2018
Study Finds Top 100 Listed Indian Companies Need to Improve Cyber and Sustainability Risk Disclosures
India Disclosure Index 2018 Highlights:
- Nine companies are corporate disclosure champions, with Voluntary Disclosure scores of 9 out of 10 or above. Only one of the nine corporate disclosure champions scored a perfect 10 out of 10.
Board Quality Scores:
- 19% of the top 100 listed companies do not have women serving as independent directors on their Board of Directors.
- 76% of companies have separate roles for Chairman and CEO/Managing Director.
- Independent directors make up at least half of the boards for 82% of the top 100 listed companies.
- Only 16% of companies provide specific information about their directors’ specialist expertise.
- Aggregated by industry, telecom/tech companies have the highest average Board Quality score of 2.7 out of 4, followed by financials and consumer goods/services at 2.4 out of 4. Natural resources/energy and auto/transport scored the lowest, with average Board Quality scores of 1.7 out of 4 and 1.8 out of 4, respectively.
Risk Disclosure Scores:
- 20% of the top 100 listed Indian companies lack a convenient whistleblowing mechanism (phone number or email) on their websites or in their annual reports, compared to 29% in 2017 and 37% in 2016. In comparison, 45% of publicly listed companies in the ASEAN region lack a convenient whistleblowing mechanism on their websites or in their annual reports, according to FTI Consulting’s ASEAN Disclosure Index 2018, which was released in September.
- 56% of the top 100 listed Indian companies do not provide information regarding cybersecurity or data security risk mitigation in their annual reports.
- Almost half of the top 100 listed companies (49%) provide sustainability reports without international benchmarks such as Global Reporting Initiative standards. Only 26% of listed companies in the ASEAN region provide sustainability reports without international benchmarks, according to FTI Consulting’s ASEAN Disclosure Index 2018.
- Aggregated by industry, telecom/tech companies have the highest average Risk Disclosure score of 4.7 out of 5, followed by financials and natural resources/energy, both at 3.5 out of 5. Cement/construction and industrial/manufacturing scored the lowest, with an average Risk Disclosure score of 2.8 out of 5 and 2.9 out of 5, respectively.
Commenting on the India Disclosure Index 2018 findings,
About the India Disclosure Index 2018
The India Disclosure Index 2018 is a report of corporate voluntary disclosure by India’s leading companies, by market capitalisation, as assessed on 12 publicly available information disclosure parameters. Full methodology and ranking of all 100 Indian listed companies with weighted voluntary disclosure scores (split by Performance Quality, Board Quality and Risk Disclosure Quality scores) can be found here.
1 Constituents of the S&P BSE 100 Index
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