The Crucial Role of ESG in Sustainable Reporting: A Determining Factor for the Performance of Indian Co

This research paper aims to explore the relationship between financial performance (ROE), market performance (Tobin’s Q), and business performance (ROA) of a company with its environmental, social, and governance (ESG) rating. “Return on equity” (ROE), “Return on assets” (ROA), and Tobin’s Q are considered as dependent variables, while ESG rating is considered as the independent variable. The assumption is that companies with higher ESG ratings are more attractive to investors than those with lower ratings. The research seeks to understand the impact of ESG ratings on the financial, market, and business performance of companies. The findings indicate that there is no significant impact on financial performance due to ESG factors.