Sabnis, Anushk2024-11-172024-11-172024https://dans.nls.ac.in/handle/123456789/2132The escalating significance of Environmental, Social, and Governance (ESG) factors within global investment strategies has ignited a debate on the potential link between ESG performance and financial outcomes in Indian companies. This study investigates this relationship by analysing ESG scores alongside financial performance metrics for 515 listed companies in India. The tests show varied results as far as this nexus is concerned. When looking at the impact of ESG Scores on Return on Capital Employed (ROCE) of companies studied, firstly through linear regression, the same did not show any significant relationship. However, deploying multiple linear regression by regressing ROCE with Environment, Social and Governance Scores individually, while controlling for the other two showed a positive correlation between Governance Scores and ROCE. When the relationship between Net Profit and ESG scores was tested, the same showed a significant relationship between the said two variables. Furthermore, a correlation between Social Score and Net profits was also observed. We also tested whether the publishing of ESG scores had any impact on the stock price of companies. Here, we found no relationship between the same. Finally, we also looked at the sectoral performance of listed firms in India on ESG parameters. This showed varying degrees of success on ESG parameters across various sectors. However, most sectors showed limited variance and skewness.Thesis