Impact of ESG on Financial Performance- An empirical study on Indian Listed Firms

Abstract

In this study, we examine impact of Environmental, Social, and Governance (ESG) on financial performance and evaluates its impact in Indian listed firm. the present study based on the secondary data. The ESG factors score and financial data are extracted from the Bloomberg data base from 2012 to 2021. employed panel data techniques to estimate the impact of ESG factors on financial performance, typically involving operational metrics, ROA. The study of its impact examines the significance of relationship of ESG with FP individually by taking ESG scores. The findings reveal that the ESG factors in influencing financial performance. Finally concluded that companies focusing on environmental, social, and governance aspects tend to exhibit better financial performance.