Sustainable Finance vs Traditional Investment: A Quantitative Analysis of Indian Stocks

Abstract

This study investigates whether ESG (Environmental, Social, and Governance) compliant companies outperform their Non-ESG counterparts in the Indian stock
market in terms of returns, risk, and dividend performance. Using a sample of top 10 ESG and Non-ESG firms based on S&P Global ESG scores, we analyzed
three years of financial data (2022–2024). Results show that while ESG firms offer more stable returns and higher dividends, Non-ESG firms outperform them
significantly in return generation. The findings offer insights for investors balancing financial objectives with sustainability considerations.