This study evaluates the effect of internal carbon pricing (ICP) disclosure on the financial performance of publicly listed firms in India, an emerging economy. Firm performance is measured through return on assets (ROA), return on equity (ROE), return on capital employed (ROCE), and earnings per share (EPS). Employing Panel-Corrected Standard Errors (PCSE) and two-stage least squares (2SLS), the analysis reveals consistent positive associations for ROA, ROE, and EPS, with ROCE positive but insignificant. Findings underscore ICP disclosure as a strategic sustainability mechanism that strengthens corporate accountability, enhances firm value, and informs policy debates on climate-related financial disclosure in emerging markets.