Exploring the Investor–Sustainability – Performance Nexus: Evidence from ESG-Compliant Companies in India

In recent years, corporate sustainability has become a critical focus in the global business arena, with investors increasingly considering Environmental, Social, and Governance (ESG) factors in their decisions. Understanding investor perceptions of sustainability practices and their impact on organizational performance is therefore essential, particularly for ESG-oriented companies. This study examines such perceptions and their influence on the performance of ESG companies in India, focusing on Chennai as a key metropolitan hub. Adopting an exploratory research approach, primary data was collected from 200 retail investors in ESG companies across Chennai using purposive and convenience sampling methods. Structured questionnaires were employed, resulting in 196 valid responses for analysis. Both descriptive and inferential statistical techniques were applied to assess the data. Findings indicate a strong positive relationship between corporate sustainability practices and organizational performance. Among the various practices, “Environmental Protection” emerged as the most influential factor driving performance, while “Transparency & Disclosure” was found to have the least impact. The study concludes that ESG companies must prioritize strong sustainability measures to align with investor expectations, enhance competitiveness, and achieve long-term success in an evolving business environment. Such practices are pivotal for maintaining resilience and ensuring sustainable growth.