Authors :
Aishwarya Rao L.; Dr. Sathisha H. K.
Volume/Issue :
Volume 11 - 2026, Issue 8 - August
Google Scholar :
https://tinyurl.com/mjxzkkny
DOI :
https://doi.org/10.38124/ijisrt/26aug1443
Note : A published paper may take 4-5
working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and
ResearchGate.
Abstract :
ESG (environmental, social, and governance) compliance has become a crucial criterion for evaluating the ethical
responsibility and sustainability of companies in all sectors. ESG integration is not only a strategic necessity but also a
potential source of long-term efficiency and competitiveness in the manufacturing industry. The relationship between ESG
scores and firm value is the main emphasis of this paper's empirical examination of ESG compliance in the manufacturing
industry. The study uses ESG ratings from CRISIL other standardized rating platforms to analyse secondary data gathered
from publicly traded manufacturing companies during a period 2024. The impact of ESG practices on financial and
operational outcomes is evaluated using correlation analysis. The results point to a favourable correlation between increased
manufacturing efficiency (overall value of firm) and higher ESG scores, especially for companies with robust environmental
and governance policies.
Keywords :
ESG, ESG Integration, ESG Scores, ESG Practices, Manufacturing Industry.
References :
- Delmas, M. A., & Toffel, M. W. (2008). Organizational responses to environmental demands: Opening the black box. Strategic Management Journal, 29(10), 1027–1055.
- Friede, G., Busch, T., & Bassen, A. (2015). ESG and financial performance: Aggregated evidence from more than 2000 empirical studies. Journal of Sustainable Finance & Investment, 5(4), 210–233.
- Kotsantonis, S., Pinney, C., & Serafeim, G. (2016). ESG Integration in Investment Management: Myths and Realities. Journal of Applied Corporate Finance, 28(2), 10–16.
- Eccles, R. G., & Krzus, M. P. (2018). The Nordic Model: An Analysis of Leading Practices in ESG Disclosure. Harvard Business School.
- CRISIL (2022). ESG Ratings: Indian Industry Report.
- KPMG (2022). India ESG Reporting Survey.
- SEBI (2021). Business Responsibility and Sustainability Report (BRSR) Framework.
- World Economic Forum (2021). Stakeholder Capitalism Metrics.
- https://www.crif.in/blog/esg/beyond-profits-why-esg-matters-for-manufacturers/#:~:text=The%20manufacturing%20industry%20significantly%20impacts,socially%20conscious%20investors%20and%20customers.
- https://link.springer.com/article/10.1007/s43621-024-00547-1
ESG (environmental, social, and governance) compliance has become a crucial criterion for evaluating the ethical
responsibility and sustainability of companies in all sectors. ESG integration is not only a strategic necessity but also a
potential source of long-term efficiency and competitiveness in the manufacturing industry. The relationship between ESG
scores and firm value is the main emphasis of this paper's empirical examination of ESG compliance in the manufacturing
industry. The study uses ESG ratings from CRISIL other standardized rating platforms to analyse secondary data gathered
from publicly traded manufacturing companies during a period 2024. The impact of ESG practices on financial and
operational outcomes is evaluated using correlation analysis. The results point to a favourable correlation between increased
manufacturing efficiency (overall value of firm) and higher ESG scores, especially for companies with robust environmental
and governance policies.
Keywords :
ESG, ESG Integration, ESG Scores, ESG Practices, Manufacturing Industry.