EVALUATION OF FINANICAL PERFORMANCE OF SELECTED COMPANIES BASED ON ESG RATINGS: A SECTORAL COMPARISON WITH THE NIFTY 50 INDEX

Authors

  • Nagendra Marisetty REVA B School, REVA University, Bengaluru, Karnataka.
  • P. V. Raveendra Department of Management Studies, M S Ramaiah Institute of Technology, Bengaluru, Karnataka, India 560054.
  • Chandrakala V. G. Department of MBA, Dr HN National College of Engineering, Bengaluru.
  • Lasya K. R. School of Business and Management, B M S Institute of Technology and Management, CHRIST University, Bengaluru, Karnataka.
  • Harish Kumar S. REVA B School, REVA University, Bengaluru, Karnataka.
  • Arun Kumar D. C. Department of Management Studies, M S Ramaiah Institute of Technology, Bengaluru, Karnataka, India 560054.

DOI:

https://doi.org/10.70917/ijcisim-2026-3781

Keywords:

ESG- Financial performance of ESG- ESG Rating-Risk and Return evaluation.

Abstract

ESG is gaining speed because investors have recognized the importance of sustainable business practices in charting risks linked to rapid industrialization, environmental degradation, and social inequality.  Investors find it hard to determine if firms with high ESG ratings offer a better balance of risk and reward than those with lower scores. The objectives of the study are to analyse return and risk of low and high ESG-rated companies within the sector and between other sectors and to calculate risk-adjusted performance between strong and weak ESG-rated firms across manufacturing, logistics, pharmaceutical, and IT sectors. The data has been collected from various review papers and company website. The data for five year period 2021-2025 has been analysed for 10 companies in different sectors. The financial performance of the same is compared with market Nifty. According to the study, ESG ratings do not always translate into higher financial returns within a particular industry. Some businesses with low ESG scores have outperformed their strong ESG counterparts over five-year periods, producing some of the highest returns in their respective industries. All-inclusive approach is necessary for investors, bringing together ESG scores with company fundamentals, sector trends, and macroeconomic context

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Published

2026-07-27

How to Cite

Nagendra Marisetty, P. V. Raveendra, Chandrakala V. G., Lasya K. R., Harish Kumar S., & Arun Kumar D. C. (2026). EVALUATION OF FINANICAL PERFORMANCE OF SELECTED COMPANIES BASED ON ESG RATINGS: A SECTORAL COMPARISON WITH THE NIFTY 50 INDEX. International Journal of Computer Information Systems and Industrial Management Applications, 18(11s), 703–712. https://doi.org/10.70917/ijcisim-2026-3781

Issue

Vol. 18 No. 11s (2026)

Section

Original Articles