“An Empirical Study on the association of Green HRM Practices and ESG Financial Performance”

Abstract

In the contemporary corporate environment, Environment, Social, and Governance (ESG) performance is emerging as a critical indicator of sustainable financial success. Organizations are rapidly merging Green Human Resource Management practices to align human capital techniques with environmental sustainability objectives. This study examines the connection between Green HRM conventions and ESG-based financial performance. The research investigates the extent of GHRM practices such as green employment and recruitment & selection, training and development, performance appraisal, and payoff systems, and their influence on ESG financial outcomes including cost efficiency, risk mitigation, investor confidence, and long-term profitability.Adopting a quantitative research design, data is collected from employees and HR professionals working in IT organizations. Statistical tools such as correlation and regression analysis are implemented to assess the strength and importance of the connection among the GHRM customs and ESG financial performance. The outcome shows that organizations implementing structured GHRM practices demonstrate improved ESG ratings, enhanced operational effectiveness , and stronger financial resilience. The research serves to the growing literature linking sustainable HR practices with financial sustainability and provides managerial insights for integrating HR strategy with ESG frameworks. It emphasizes that the practice is not merely an environmental initiative but a strategic financial driver for long-term organizational sustainability.