Published Paper Details:

This study examines the effects of environmental, social and governance (ESG) factors on the equity performance of Indian companies from 2020 to 2024, focusing on sectoral fluctuations in the adoption of ESG. The research examines the increasing importance of ESG practices. Part of this was implemented under regulatory framework conditions such as Business Responsibility and Sustainability Reporting (BRSR) introduced by the Securities and Exchange Commission of India (SEBI). This study analyzes how ESG values affect stock prices and considers the role of sustainability in improving financial stability and long-term value-added. Industry such as cement and metals facing greater regulatory pressures are becoming more ESG obligations. In contrast, sectors such as banks and real estate are lagging behind in ESG integration. In particular, this study shows that higher ESG values do not always correlate with stock price increases, and that other market variables also play an important role in stock reviews. Companies with consistent ESG performance, such as Infosys Ltd. and Hindustan Unilever Ltd, show market stability and strong investors' trust, highlighting the long-term benefits of ESG orientation. Nevertheless, there are clear indications of change in investor behavior compared to ESG-conscious investments. This reflects an increase in preference for companies that prioritize ethical practices and sustainability. As ESG reports become more standard, they are expected to play a more important role in the design of the company's performance and the financial markets of India, and for companies striving to adjust both sustainability, opportunities and challenges and profitability.