Impact of ESG Factors on the Financial Performance of Corporates in India

Title

Impact of ESG Factors on the Financial Performance of Corporates in India

Creator

Patil, Anand; Sanwal, Neha

Description

This study investigates the connection between Indian companies' financial results and Environmental, Social, and Governance (ESG) performance, with a focus on socially and environmentally sensitive industries. There is little data on the financial effects of ESG integration in developing nations like India, even though it is becoming more and more crucial for long- term value development. Using a quantitative approach involving ESG ratings and financial indicators (Return on Equity [ROE], Return on Assets [ROA], and Return on Capital Employed [ROCE]) we analyze the performance of firms from 2021 to 2023 in five different sectors. Among the pillars, environmental issues had the most significant effect on material financial success, showing a positive but weak correlation with ESG scores. However, the study also investigates into sectoral distinctions, pointing to differential financial outcomes associated with ESG across industries. 2025 by IGI Global Scientific Publishing. All rights reserved.

Source

Behavioral Finance and AI Tools for Sustainability;pp.227-249

Date

01-01-2025

Publisher

IGI Global

Coverage

Patil A., Christ University, Bangalore, India; Sanwal N., Christ University, Bangalore, India

Rights

Restricted Access; Hardcopy may be available in the library

Relation

ISBN: 979-836939686-5; 979-836939684-1;

Format

online

Language

English

Type

Book chapter

Identifier

https://doi.org/10.4018/979-8-3693-9684-1.ch009

https://www.scopus.com/pages/publications/105021717693?origin=resultslist