“ESG DISCLOSURE AND FINANCIAL PERFORMANCE OF INDIAN COMPANIES: AN EMPIRICAL INVESTIGATION”

Abstract

This study titled “ESG Disclosure and Financial Performance of Indian Companies: An Empirical Investigation” examines the relationship between ESG disclosure and financial performance among selected Indian companies. ESG disclosure includes three major dimensions: environmental responsibility, social accountability and governance transparency. The study highlights that ESG reporting has become an important part of corporate disclosure in India, especially after the introduction of SEBI’s Business Responsibility and Sustainability Reporting framework for the top 1000 listed companies. The paper explains that ESG disclosure helps companies communicate their environmental practices, social responsibilities, governance systems, risk management, ethical conduct and long-term sustainability strategy. The study uses selected Indian companies such as Reliance Industries Ltd., Tata Consultancy Services Ltd., Infosys Ltd., HDFC Bank Ltd., ICICI Bank Ltd., ITC Ltd., Hindustan Unilever Ltd., Tata Motors Ltd., Maruti Suzuki India Ltd. and NTPC Ltd. ESG disclosure is measured through environmental and governance scores, while financial performance is measured through Return on Assets and Return on Equity. The findings show that Infosys Ltd. records the highest total ESG score, while Tata Consultancy Services Ltd. records the highest total financial score. The study indicates that ESG disclosure strengthens corporate transparency, investor confidence, stakeholder trust and long-term financial sustainability. However, the relationship between ESG disclosure and financial performance may differ across companies and sectors.