GREEN FINANCE AND CORPORATE PERFORMANCE: AN EMPIRICAL ANALYSIS OF SUSTAINABILITY: DRIVEN INVESTMENT STRATEGIES

Abstract

Green finance has emerged as a significant strategy for promoting sustainable economic development and improving corporate performance in the modern business environment. The present study entitled “Green Finance and Corporate Performance: An Empirical Analysis of Sustainability-Driven Investment Strategies” examines the relationship between sustainabilityoriented financial practices and organizational growth. The study is based on secondary data collected from research journals, ESG reports, World Bank publications, OECD reports, SEBI guidelines, and corporate sustainability reports published between 2010 and 2026. Independent variables considered in the study include Green Bonds, ESG Compliance, Sustainable Investments, Renewable Energy Financing, and Sustainability Reporting, while dependent variables include Return on Assets (ROA), Return on Equity (ROE), Earnings per Share (EPS), Market Performance, and Corporate Reputation. Statistical tools such as Percentage Analysis, Correlation Analysis, Regression Analysis, Trend Analysis, Comparative Analysis, and Descriptive Statistics were used for interpretation. The findings reveal that ESG Compliance recorded the highest positive impact on corporate financial performance with ROA (0.88), ROE (0.91), EPS (0.86), and regression coefficient value (β = 0.89). Governance practices showed 91% profitability and 90% operational efficiency, while long-term profitability from green finance initiatives recorded a 92% growth trend. The study concludes that sustainabilitydriven investment strategies significantly enhance profitability, investor confidence, operational efficiency, and long-term corporate competitiveness.