Keywords
corporate performamnce
net emission
CRISIL
sustainability
How to Cite
Abstract
The growing demand for companies is for ESG practices to minimize the input and maximize the output with net emission. Companies were adopting sustainability finance. In sustainability development, ESG plays vital role. ESG India’s Oil and Gas Corporation's aim is to achieve net zero emissions by 2050. This study attempts is empirically examine the ESG score practices with Indian oil and gas companies’ financial effectiveness. Data was generated from official website of Crisil for peer listed 6 Oil and Gas companies with past three years (2022-2024) data were chosen. Exploratory research methodology is used to examine this study. Analysis indicated, “there is no statistically significant correlation between ESG scores and financial performance of companies,” with only moderate variation observed. ESG practices do not seem to possess effect on firm functioning. Results indicated that, implementation of ESG in their firm efficiency it will positively increase the outputs and firm value to build their expertise.
References
1 Agoraki, M.-E.K., Giaka, M., Konstantios, D., Patsika, V., 2023. Firms’ sustainability, financial performance, and regulatory dynamics: evidence from European firms. J. Int. Money Finance 131, 102785.
2 Branco, M. C., & Rodrigues, L. L. (2006). Corporate social responsibility and resource-based perspectives. Journal of Business Ethics, 69(2),111–132.
3 Bui, T. D., Ali, M. H., Tsai, F. M., Iranmanesh, M., Tseng, M.-L., & Lim, M. K. (2020). Challenges and trends in sustainable corporate finance: A bib-liometric systematic review. Journal of Risk and Financial Management,13(11), 264.
4 Cardoni, A., Киселева, Е., & Terzani, S. (2019). Evaluating the Intra-Industry Comparability of Sustainability Reports: The Case of the Oil and Gas Industry. In Sustainability (Vol. 11, Issue 4, p. 1093). Multidisciplinary Digital Publishing Institute. https://doi.org/10.3390/su11041093
5 Cl´ement, A., Robinot, ´E., Trespeuch, L., 2023. The use of ESG scores in academic literature: a systematic literature review. J. Enterprising Communities People Places Glob. Econ. (ahead-of-print).
6 Dziadkowiec, A., & Daszynska-Zygadlo, K. (2021). Disclosures of ESG misconducts and market valuations: Evidence from DAX companies. Engineering Economics, 32(2), 95–103. https://doi.org/10.5755/j01.ee.32.2.25209
7 Garbie, I. H., & Shaqsi, R. A. (2019). Building sustainable models and assessments into petroleum companies: theory and application. In International Journal of Industrial and Systems Engineering (Vol. 33, Issue 4, p. 473). Inderscience Publishers. https://doi.org/10.1504/ijise.2019.104275
8 Fatemi, A., Glaum, M., & Kaiser, S. (2018). ESG performance and firm value: The moderating role of disclosure. Global Finance Journal, 38, 45-64. https://doi.org/10.1016/j.gfj.2017.03.001
9 Heim, I., Vigneau, A.C., Kalyuzhnova, Y., 2023. Environmental and socio-economic policies in oil and gas regions: triple bottom line approach. Reg. Stud. 57 (1),181–195.
10 Lai, F., Shad, M. K., & Shah, S. Q. A. (2021). Conceptualizing Corporate Sustainability Reporting and Risk Management Towards Green Growth in the Malaysian Oil and Gas Industry. In SHS Web of Conferences (Vol. 124, p. 4001). EDP Sciences. https://doi.org/10.1051/shsconf/202112404001
11 Why ESG is here to stay. (2020, May 26). McKinsey & Company. https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/why-esg-is-here-to-stay?cid=eml-web
12 Malik, N., & Kashiramka, S. (2024). “Impact of ESG disclosure on firm performance and cost of debt: Empirical evidence from India.” Journal of Cleaner Production, 448. https://doi.org/10.1016/j.jclepro.2024.141582
13 Orazalin, N., Mahmood, M., 2018. Economic, environmental, and social performance indicators of sustainability reporting: evidence from the Russian oil and gas industry. Energy Pol. 121, 70–79.
14 Orazalin, N., Mahmood, M., Narbaev, T., 2019. The impact of sustainability performance indicators on financial stability: evidence from the Russian oil and gas industry. Environ. Sci. Pollut. Control Ser. 26 (8), 8157–8168.
15 Patel, V., & Aditya, K. (2024). ESG And its Impact on Performance: A Study of Metal Industry in India. In Business Review (Vol. 3). http://www.opju.ac.in/opjubr/
16 PwC. Global Investor Survey: The Economic Realities of ESG. December 2021. Available online: https://www.pwc.com/gx/en/services/audit-assurance/corporate-reporting/2021-esg-investor-surve
17 Ramírez-Orellana, A., Martínez-Victoria, M., García-Amate, A., Rojo-Ramírez, A.A.,2023. Is the corporate financial strategy in the oil and gas sector affected by ESG dimensions? Resour. Pol. 81, 103303.
18 Tamala, J.K., Maramag, E.I., Simeon, K.A., Ignacio, J.J., 2022. A bibliometric analysis of sustainable oil and gas production research using VOS viewer. Clean. Eng. Technol.7, 100437.
19 The Oil and Gas Industry in Energy Transitions. (2020). In OECD eBooks. Organization for Economic Cooperation and Development. https://doi.org/10.1787/aef89fbd-en
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Copyright (c) 2025 South India Journal of Social Sciences