Linkage Between Financial Viability and ESG Performance: A Panel Study of Select Energy Sector in India

Abstract

Energy plays a pivot a role in developing India’s economic and social development, from industrial growth to improving standard of living. On the other hand, energy is responsible for the majority of climate change-causing greenhouse gas emissions, mostly from the burning of fossil fuels. India stands 3rd in global ranking in emission of CO2 gases from fuel combustion [IEA]. With the growing concern for sustainability, in the energy sector, the responsibility of company has widened with the objective of strengthening financial position together with its involvement in the socially responsible activities. The study aims to explore the influence of CSR together with company financial performance on its future growth and to know the overall impact on ESG (Environmental, Social, and Governance) score of the energy sector in India.