Does Sustainability Improve Profitability? Evidence from Selected NIFTY 100 ESG Companies
Hitendra Kumar Gaur
, Dr. Veeresh Kumar Sharma
ESG disclosure; profitability; NIFTY 100 ESG; BRSR; sustainable strategy; panel data; India.
Sustainability has moved from a voluntary corporate responsibility narrative to a measurable strategic issue in Indian capital markets. This paper examines whether sustainability improves profitability among selected companies represented in the NIFTY 100 ESG universe. The study is positioned in the post-BRSR regulatory context, where Indian listed entities are increasingly expected to disclose comparable environmental, social and governance information. The proposed empirical design uses a balanced panel of selected NIFTY 100 ESG companies for FY 2020-21 to FY 2025-26 and measures sustainability through an ESG/BRSR disclosure index and pillar-level environmental, social and governance scores. Profitability is measured through return on assets, return on equity, net profit margin and earnings per share, with firm value measured through Tobin's Q. The study proposes correlation analysis, multicollinearity diagnostics, fixed-effects and random-effects panel regression, Hausman specification testing, heteroskedasticity-robust standard errors and lagged ESG robustness models. The central proposition is that sustainability may improve profitability when it reduces operational waste, strengthens stakeholder trust, improves risk management and lowers the cost of capital. However, the relationship is expected to be sector-sensitive and may appear with a time lag. The paper contributes by connecting Indian ESG regulation, NIFTY 100 ESG index design and profitability-based corporate performance analysis into a single empirical framework suitable for doctoral and Scopus-oriented research.
"Does Sustainability Improve Profitability? Evidence from Selected NIFTY 100 ESG Companies", JETNR - JOURNAL OF EMERGING TRENDS AND NOVEL RESEARCH (www.JETNR.org), ISSN:2984-9276, Vol.4, Issue 6, page no.b360-b373, June-2026, Available :https://rjpn.org/JETNR/papers/JETNR2606164.pdf
Volume 4
Issue 6,
June-2026
Pages : b360-b373
Paper Reg. ID: JETNR_235184
Published Paper Id: JETNR2606164
Downloads: 00063
Research Area: Commerce and Management, MBA All Branch
Country: -, -, India
ISSN: 2984-9276 | IMPACT FACTOR: 9.87 Calculated By Google Scholar | ESTD YEAR: 2023
An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 9.87 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator
Publisher: RJPN (IJPublication) Janvi Wave
