A Study on the Impact of ESG Disclosures on Financial Performance and Investing Behaviour in The Indian Energy Sector

This study examines the relationship between Environmental, Social, and Governance (ESG) disclosures, financial performance, and investor behaviour in the Indian energy sector. An ESG Disclosure Index was constructed using manually coded data from company sustainability and annual reports. Financial and investment indicators were obtained from secondary sources. Correlation and regression analyses were conducted to assess the influence of ESG disclosure on profitability, market valuation, and institutional investment flows. The results indicate weak and statistically insignificant relationships across all tested variables, suggesting that ESG transparency does not currently serve as a determinant of financial outcomes or investor confidence within the sector. These findings highlight the limited market responsiveness to ESG information and underscore the need for improved disclosure quality and standardisation. The study contributes sector-specific evidence from an emerging market and identifies directions for future research on ESG reporting practices