ABSTRACT
In recent years value proposition for investing in sustainable business practices has been growing rapidly. The investors are showing more interest in firm's approach in incorporating sustainability in their business strategy. At the same time business leaders wish to understand impact of annual results on the company's financial statements. Understanding return on investment on various sustainability policies is important in enhancing the overall strategy of business enterprises. The result of sustainability practices (Environmental, social and Governance) on financial metrics along with its performance in Indian listed companies is being researched. Study covers a choice of listed companies of India from NSE's Nifty50 for the financial year 2023-24. Overall ESG scores have been extracted from CRISIL ESG ratings and annual financial information about companies. Data has been analyzed using regression and generalized methods of moments. Considering moderating & control variables, researchers found positive as well as negative consequences of sustainability practice on financial performance. The important contribution towards existing literature is about existence of risk component for organizations in implementing sustainability practices, as they pursue the process which is against pure economic justification. On the other side, a positive relationship amongst financial performance with ESG not only helps organizations, but also regulators and investigators in recognizing impact for a better governance arrangement.
