Analysis of ESG score and Market price in Indian cement industry

In the recent scenario the entire world is directed towards
achievement of sustainability and countries are working extremely
on framing sustainable policies and practices. The focus of a
company now has been changed to ESG and future prospects and
market sustainability of firms can be ensured with ESG score. In
the past and current scenario, investors were inclined towards the
f
inancial performance of the firm and it is expected that the trend will
be changed towards ESG which is a non-financial element. In India
75% - 80% of emissions are in the form of CO2 (carbon emission)
and it is estimated that 24% of carbon emission is contributed by the
cement industry. Due to this the researcher is interested in analysing
the ESG score of the cement industry and its impact on market price.
The major aim of this study is to analyse the ESG score obtained by
f
irms from the cement industry in India in the financial year 2022
and analyse how firms ESG score impacts the market price in the
stock market. The sample of 18 firms from the cement industry was
taken for analysis and was listed in the BSE market. The ESG score
and market price of these companies were collected from secondary
sources like CRISIL, BSE, published articles, and the companies’
annual reports. Collected data were considered for various statistical
methods like percentage analysis, mean and standard deviation and
correlation to know the impact of the ESG score
on market price. Results show that a majority of the firms obtained
adequate ESG scores and a positive correlation between ESG scores
and market price among cement industries in India