The Impact of ESG Performance on Corporate F...

The Impact of ESG Performance on Corporate Financial Performance

Author Name : Dr. P. Y. Mulla(Sharikmaslat), Mr. Mohammed Meer Ahmed M. Ali

DOI: https://doi.org/10.56025/IJARESM.2025.130425647

ABSTRACT The role of Environmental, Social, and Governance (ESG) factors in corporate performance has become a pivotal concern in contemporary business research. As sustainability becomes a more prominent issue for investors, companies are increasingly under pressure to integrate ESG factors into their business practices. This study investigates the impact of ESG performance on corporate financial performance, with a focus on global companies covering various industries. The study states the hypothesis that firms with higher ESG performance will show superior financial outcomes, such as increased profitability, stock returns, and financial stability. The findings provide insight into how ESG integration may influence a company’s financial performance and offer guidance to investors, policymakers, and corporate leaders