Linking ESG Strategies to Financial Performance: An Analysis of CIPLA and SUN PHARMA

Abstract

Sustainability is the prime focus area for the development. Businesses are considering environmental and social factors through governance as a desirable component for sustainable development. Objective of this paper is to evaluate impact of ESG factors on companies' financial performance on Indian pharmaceutical companies. Positive financial performance will increase interest of businesses towards adoption of sustainable practices. Conclusive research had used for the study. Financial data and ESG score of sun pharma and CIPLA pharmaceutical companies’ from 2021 to 2025 have been taken for the further analysis. Linear Regression was used for the analysis. By analysis it is found that ESG score positively influences the company's financial performance. it was found that relationship of variables- Sales, ROA, ROI, EPS, NPM is universally not true for all the companies. It varies company to company.