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Impact of ESG (Environmental, Social, Governance) Metrics on Corporate Financial Performance

Aug 2026 · International Journal of Creative and Open Research in Engineering and Management · 0 citations

Abstract

The incorporation of Environmental, Social, and Governance (ESG) measures into business decision-making has received a lot of attention because of the potential influence on financial performance. This study examines the link between ESG elements and company financial performance, using Unilever as a case study. This study looks at how sustainability activities help to risk reduction, operational efficiency, and long-term value development by analysing ESG reporting in depth. The report emphasises the importance of ESG openness in boosting investor trust, developing brand reputation, and achieving financial success. This study presents a complete framework for understanding the strategic value of ESG in corporate finance by combining stakeholder theory, a resource-based perspective, and signalling theory. The findings show that organisations that effectively implement ESG principles likely to have increased financial stability. The findings are useful for firms, investors, and governments, highlighting the importance of standardised ESG disclosures and sustainable corporate policies.

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