This study explores the existing practices of firms listed on the National Stock Exchange (NSE) Nifty in India concerning responsible carbon accounting and reporting. To assess the importance and transparency of the revealed financial statements' current accounting practices, it aims to provide a basic comprehension of them. We looked at the financial data to learn more about the firms' carbon disclosure and reporting practices. Many of the companies that are listed on the NSE Nifty have shown that they are genuinely concerned about the environment and that they are willing to take voluntary steps to mitigate the negative effects of carbon emissions. The objective of the study was to know the significance of Carbon Disclosure and the impact of carbon credit revenue on firms’ profitability. To achieve the desired objective 126 NSE listed companies were identified out of which 106 companies were taken for the purpose of study the data has been collected from companies’ financial statements for the period of 2012-2018. On the other hand, our results provide light on the relationship between overall revenue and carbon credit income. The regression model demonstrates strong explanatory power (R-squared = 0.709) and a strong correlation (R = 0.842) between the variables. Moreover, the ANOVA test validates the model's considerable significance in explaining the variance in total revenue. This suggests that carbon credit income has a influence on the company's total revenue and financial performance.