Indian Journal of Sustainable Development

1. Md Afnan Alam ID – Research Scholar, Department of Commerce, University of North Bengal, Raja Rammohunpur, Darjeeling, West Bengal, India.

2. Soumitra Sarkar – Associate Professor, Department of Commerce, University of North Bengal, Raja Rammohunpur, Darjeeling, West Bengal, India.

Received
09-Jan-2026
Accepted
18-May-2026
Published
01-Sep-2026
Abstract
In today’s competitive market, sustainability is a crucial factor for companies, be it financial, environmental, or social. The demand for sustainability is largely driven by shifts in consumer preference. The common assumption that investors focus solely on financial sustainability is strongly challenged by growing awareness of social and environmental sustainability. This study seeks to examine the effect of financial sustainability on environmental and social sustainability. Data were collected from companies included in the BSE SENSEX index and BSE 100ESG index for the last five financial years, ranging from 2018-19 to 2022-23. Data analysis was carried out using Panel Logistic Regression. Predictors used to test the impact include various financial and market metrics such as earnings per share (EPS), Tobin’s Q, return on total assets (ROA), free cash flow (FCF), return on capital employed (ROCE), priceto- earnings (PE) ratio, and promoters’ shareholding pattern. Findings suggest that ROA has a negative and significant impact on sustainability compliance. Further, it is evident that although sustainability has gained recognition as an important topic among researchers, academicians, and environmentalists, corporate sustainability does not necessarily depend on financial or market performance.
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