Published Online:April 2025
Product Name:The IUP Journal of Corporate Governance
Product Type:Article
Product Code:IJCG010425
DOI:10.71329/IUPJCG/2025.24.2.6-28
Author Name:Preethi Karlapudi and Gaddam Naresh Reddy
Availability:YES
Subject/Domain:Management
Download Format:PDF
Pages:6-28
The paper introduces an environmental, social, and governance (ESG) Performance Measurement Index, specifically designed for Environmentally Sensitive Industries (ESIs), and investigates how it can strengthen corporate governance by ensuring accountability, transparency and compliance. Data from BRSR, ESG, and GRI Reports of 119 BSE-listed companies were analyzed using content analysis. A score between 0 and 3 based on level and quality of disclosure was assigned to ESG indicators identified from literature. Exploratory and Confirmatory Factor Analysis identified key ESG constructs: resource efficiency, sustainable sourcing, employee wellbeing, stakeholder relations, corporate governance, ethical business practices, and regulatory compliance. The developed index provides a framework for ESG performance evaluation and strengthens governance mechanisms. The study adds to the ESG literature by offering a methodology for evaluating ESG performance in highly polluting industries.
With growing importance of sustainability and responsible business practices, environmental, social, and governance (ESG) factors have become crucial for corporate governance (Rahman & Alsayegh, 2021).