Academy of Marketing Studies Journal (Print ISSN: 1095-6298; Online ISSN: 1528-2678)


Impact of Environment Performance on Financial Performance

Author(s): Renuka and Padmaja

Todays’ Dynamic world has changed the pace of measuring the performance of the companies on the sole basis of financial performance. With mandatory ESG disclosure norms now the performance is measured on the basis of their compliance to ESG and also ESG disclosure index. Environmental performance is how strongly the companies comply with the environment while doing their business operations. This compliance requires a huge commitment of financial resources and this commitment has an impact on financial performance. This paper tries to answer the question of Does stronger environmental performers really more profitable by examining the relationship between environmental responsibility and financial performance of select Indian companies. The companies for the study were taken from BSE listed companies list and their environmental and financial performance was taken from CMIE PROWESS online database. The relationship between the two variables was tested by using statistical tests of correlation and regression. Through this paper it was found that there exists a significant relationship between the two variables. Based on the study results a regression model was proposed.

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