Impact of ESG Rating on Financial Performance of Nifty 50 Companies

Abstract

The study investigates the relationship between ESG and the financial performance of Nifty 50 companies in India for the year 2025. Financial performance was measured using Return on Equity (ROE), Return on Investment (ROI), Return on Asset (ROA), Earning Per Share (EPS) and Net Profit Margin (NPM). The data was collected from the annual reports of the company, BSE & NSE website, ESG reports of respective company. The data was analyzed through descriptive statistics, correlation and linear regression method. The result indicates weak relationship between financial metrics and negative relationship between EPS. Regression analysis finds that ESG rating doesn’t have a significant relationship between financial metrics. The study reveals that ESG don’t influence the financial performance of Nifty 2025.