Current Volume 9
Abstract
This study investigates the impact of Environmental, Social, and Governance (ESG) performance on firm profitability in the Indian Fast-Moving Consumer Goods (FMCG) sector. Using panel data from NSE-listed firms over the period 2019–2024, the study employs fixed-effects regression models to examine the relationship between ESG scores and firm performance, measured by Return on Assets (ROA), Return on Equity (ROE), and Net Profit Margin (NPM). The results reveal a statistically significant positive association between ESG performance and both ROA and ROE, indicating that firms with stronger ESG practices achieve improved asset efficiency and enhanced shareholder returns. However, ESG performance does not exhibit a statistically significant relationship with Net Profit Margin, suggesting that ESG benefits may not immediately translate into operational profitability. The findings remain robust after controlling firm size, leverage, and revenue growth. By providing sector-specific panel evidence from an emerging market context, this study contributes to the growing literature on ESG and financial performance and highlights ESG as a strategic driver of long-term value creation.
Keywords
ESG Performance, Firm Profitability, FMCG, Panel Data, ROA, ROE, India
Citations
IRE Journals:
Kumud Vashisht, Dr. Syed Shahid Raza "Impact of ESG Performance on Firm Profitability: Evidence from Indian FMCG Firms" Iconic Research And Engineering Journals Volume 9 Issue 11 2026 Page 698-703 https://doi.org/10.64388/IREV9I11-1717390
IEEE:
Kumud Vashisht, Dr. Syed Shahid Raza
"Impact of ESG Performance on Firm Profitability: Evidence from Indian FMCG Firms" Iconic Research And Engineering Journals, 9(11) https://doi.org/10.64388/IREV9I11-1717390
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IRE Journals is an open access online journals established with an aim to publish high quality of research work in various diciplines. We have more than 6 years in publications. Over 2500+ papers already published.
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