IDEAS home Printed from https://ideas.repec.org/a/aac/ijirss/v8y2025i6p1489-1503id9948.html
   My bibliography  Save this article

Impact of ESG reporting on financial performance: Evidence from energy sector in India

Author

Listed:
  • Jaba Chakraborty

  • Razia Nagina

  • Sowmya Kethi Reddi

  • Mandakini Paruthi

  • Rashmita Saran

Abstract

This study aims to investigate the impact of Environmental, Social, and Governance (ESG) reporting on the financial performance of Indian energy firms. It seeks to address the existing research gap by examining how ESG disclosures influence key financial outcomes in one of the most ESG-sensitive industries. The analysis covers all energy sector companies listed on the BSE Sustainability Index, along with an equal number of energy sector firms from the BSE 500 Index, over the period 2015–2023. A quantitative explanatory approach is applied, employing panel data analysis to measure the effect of overall ESG scores, as well as individual ESG components Environmental (E), Social (S), and Governance (G) on financial performance indicators including Return on Assets (ROA), Return on Equity (ROE), and Earnings Per Share (EPS). Firm age, size, and leverage are incorporated as control variables. The results demonstrate that overall ESG performance has a significant and positive impact on financial indicators. Among the dimensions, Environmental and Governance factors show particularly strong positive associations with ROA and ROE, while the Social dimension, though weaker, also exhibits a positive relationship. The findings underline the strategic importance of ESG integration for firms in the energy sector, suggesting that enhanced ESG practices contribute to long-term financial sustainability.

Suggested Citation

  • Jaba Chakraborty & Razia Nagina & Sowmya Kethi Reddi & Mandakini Paruthi & Rashmita Saran, 2025. "Impact of ESG reporting on financial performance: Evidence from energy sector in India," International Journal of Innovative Research and Scientific Studies, Innovative Research Publishing, vol. 8(6), pages 1489-1503.
    • Handle: RePEc:aac:ijirss:v:8:y:2025:i:6:p:1489-1503:id:9948
    as

    Download full text from publisher

    File URL: https://ijirss.com/index.php/ijirss/article/view/9948/2267
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aac:ijirss:v:8:y:2025:i:6:p:1489-1503:id:9948. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Natalie Jean (email available below). General contact details of provider: https://ijirss.com/index.php/ijirss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.