International Journal of Scientific Research and Engineering Development

This study examines Environmental, Social, and Governance (ESG) performance as a strategic tool for long-term growth in selected Indian automobile companies. Using a sample of ten Nifty Auto Index companies over five financial years (2020-21 to 2024-25), the study analyzes the relationship between ESG disclosure scores and key financial performance metrics: Return on Equity (ROE), Return on Assets (ROA), and Net Assets. The methodology employs a content analysis approach, wherein ESG disclosures from annual reports and sustainability reports were systematically examined using a structured checklist of 68 ESG indicators derived from BRSR and GRI frameworks to identify and score the extent of ESG performance reporting by each company. Judgmental (non-probability) sampling was applied to select the ten companies. Statistical techniques including Descriptive Statistics, Pearson Correlation Analysis, and Regression Analysis were subsequently applied to assess ESG-financial performance linkages. Results reveal that the average ESG score improved from 0.829 to 0.951, while mean ROE grew from 0.064 to 0.198 and ROA from 0.051 to 0.095 over the study period. Pearson correlation analysis shows moderate positive correlations between ESG scores and both ROE (r = 0.43) and ROA (r = 0.34). Multiple regression confirms that ESG has an independent positive effect on ROE even after controlling for asset efficiency, with the model explaining approximately 39% of ROE variance. The findings conclude that strong ESG practices contribute to long-term corporate sustainability and improved firm performance in the Indian automobile sector, establishing ESG as a genuine strategic management tool rather than a mere regulatory obligation.

Rajveer Singh, Dr. Abhishek Jain,"ESG as a Catalyst for Sustainable Growth: Insight from Leading Indian Automobile Companies" International Journal of Scientific Research and Engineering Development, V9(3): Page(2319-2326) May-June 2026. ISSN: 2581-7175. www.ijsred.com. Published by Scientific and Academic Research Publishing.