The Department of Commerce, under the Paari School of Business, is proud to present the research publication of Dr Lakshamana Rao Ayyangari, Guest Faculty Dr Sankar Rao, and Research Scholar Mr Akhil Pasupuleti. Their research paper, titled “Assessing the impact of ESG scores on market performance in polluting companies: a post-COVID-19 analysis,” is featured in the Q2 journal “Discover Sustainability.” Here is an interesting abstract of their research.
Abstract:
The study aims to unravel the impact of Environmental Social Governance (ESG) scores on the firm’s market performance of polluting companies. Moreover, the study also finds out the moderating effect of green initiatives. The study’s population consisted of 67 companies that were chosen from the list of polluting companies given by the Central Pollution Control Board of India for the post-COVID-19 timeframe of 2020–2023. The results indicate that the performance of ESG will improve the financial performance of the company.
Practical Implementation:
The analysis showed that companies with higher ESG scores generally perform better in the market. This means that firms that are more responsible in terms of environmental, social, and governance practices tend to do well financially. However, the study found that green initiatives did not have a significant impact on this relationship.
These findings are important for company managers and stakeholders. Understanding the connection between ESG practices and market performance can help managers create strategies to improve their ESG scores, ultimately boosting their financial performance.
Future Research Plans:
i) Focus on the R&D investment and sustainability.
ii) Studying the relationship between green finance and sustainability
iii) Exploring the relationship of CSR in sustainability