ESG Performance as a Determinant of Financial Performance of Firms: A Study on NSE Nifty 100 ESG Index Companies

Quantitative Study

Open Access

Peer-reviewed

ESG Performance as a Determinant of Financial Performance of Firms: A Study on NSE Nifty 100 ESG Index Companies

Ananya Patra , Dr. Swapan Sarkar

DIP: 18.02.S21/20251004

DOI: 10.25215/2455/1004S21

Received: November 17, 2025; Revision Received: November 22, 2025; Accepted: November 26, 2025

Abstract

In recent years ESG reporting has gained considerable importance. ESG performance of a firm is viewed as an important determinant of firm’s performance. In this context the present study examines the effect of ESG performance on the financial performance of select NSE Nifty 100 ESG Index companies. The financial performance, in the study, is measured through Return on Assets (ROA), Return on Equity (ROE) and Earnings per Share (EPS) while the ESG scores released by CRISIL has been taken as an independent variable along with several other control variables. The data used in this study is comprising of a 3 years’ panel data ranging from 2022-2024. A quantitative explanatory approach is applied to measure the effect of overall ESG score on the financial performance of the selected firms. The results indicate that Return on Assets and Return on Equity of the selected firms are significantly affected by its overall ESG performance measured in terms of total ESG score while Earnings per Share is not affected significantly by their total ESG score.

Keywords

The author(s) appreciates all those who participated in the study and helped to facilitate the research process.

The author(s) declared no conflict of interest.

This is an Open Access Research distributed under the terms of the Creative Commons Attribution License (www.creativecommons.org/licenses/by/2.0), which permits unrestricted use, distribution, and reproduction in any Medium, provided the original work is properly cited.

Responding Author Information

Ananya Patra @ rananya786@gmail.com

ESG Performance as a Determinant of Financial Performance of Firms: A Study on NSE Nifty 100 ESG Index Companies

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Article Overview

ISSN 2455-670X

DIP: 18.02.S21/20251004

DOI: 10.25215/2455/1004S21

Published in

International Conference on Business Responsibility for Sustainable Development 17.12.2025

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