The concept of sustainability has traditionally emphasized the environment, although the focus of achieving sustainability encompasses other factors, such as economic development and social equity. In the last few decades, financial reporting practices have changed drastically from its black and white domain to greener pastures. In spite of such developments, there is no unique business reporting structure that could illuminate the investors about the sustainable performance of an organization besides the traditional financial statements. This paper unveils the significance of disclosing sustainability performance statements in annual reports of the companies and the initiatives that have been taken in that direction.

In the last few decades, business reporting has experienced a plethora of metamorphosis. Financial reporting pattern has changed drastically in the post-decolonization period and it has moved from its black and white domain to green pastures. Green accounting, sometimes called as environmental accounting, has given rise to `sustainability reporting'.

Sustainability reporting also encompasses social and developmental issues. With the advent of multinationalization in business, social organizations, citizens' groups, and environmentalists at different levels (local, national, regional and global) have identified a multiplicity of reasons to regulate and restrict these entities. Governments in many nations have started taking different measures. The environmental pressure sources were identified as: legislation, fiscal measures, business combinations, corporate customers, greener competitors, investors, financial institutions, employees, trade unions, public concern and environmental groups.

Management Research Journal, Sustainability Reporting, Economic Development, Social Equity, Business Accountability, Environmental Accounting, Financial Institutions, Environmental Protection Act, EPA, Global Reporting Initiative, Corporate Social Responsibility, CSR, International Finance Corporation, IFC, Credit Rating Information Services, CRISIL, KLD Research and Analytics.