• DR VENKATESH C K

ESG Index (Environmental, Social and Governance) is getting high attention of both investors and prospective buyers over a period of time. Many Institutional Investors are placing their bets on this types companies that provide ESG performance reporting. Now ESG Index has become relevant to analysts, investors, customers and even employees. This article provides an overview of ESG Index and how it is related to overall risk management of the company. The study examines each component of ESG in detail and provides insights into financial performance of a company. The major part of this paper is emphasized on measuring the company’s profitability performance and value creation using Return on Assets and Tobin’s “q” Ratio. The paper has explored more than 45 companies listed in National Stock Exchange of India under NSE 100 ESG Index data base. The period used for the research is between 2021 to 2024. The current paper also has explored financial performance of companies using Regression Analysis. It has studied the influence of ESG factors on the economic performance of the firms. The study has revealed that good governance factors enhance the performance of a firm both emphasizing the Profitability and creation of Wealth. The findings have practical implications on the investors, regulatory authorities, companies itself and also the policy makers. The current study emphasizes the need for adopting ESG reporting and also the disclosure of ESG scores. This type of practice would improve in building sustainable businesses and would create wealth to the shareholders in the long term. While evaluating the Environmental factors the study has considered Climate Change, Green House Gas Emissions Resource Depletion including water, waste and pollution and deforestation. For Social factors the study has explored working conditions including slavery, child labor, local and Indian communities, health of the workers, safety of employees, diversity policies of the company and so on.

ESG INDEX, Risk Management, Financial Performance, Return on Assets, Tobin’s Q Ratio, Random Effect Financial Data, Profit Maximization, Wealth Maximization, Carbon Credits, Climate Exchanges, NSE ESG Index

"“An Analytical Study on the influence of ESG Index on Financial Performance of the Companies, with specific reference to selected Indian Companies”", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.12, Issue 2, page no.c97-c102, February-2025, Available :http://www.jetir.org/papers/JETIR2502214.pdf

"“An Analytical Study on the influence of ESG Index on Financial Performance of the Companies, with specific reference to selected Indian Companies”", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.12, Issue 2, page no. ppc97-c102, February-2025, Available at : http://www.jetir.org/papers/JETIR2502214.pdf