Financial performance, moral action & ESG: An integrated approach to sustainability : Through comparative case studies in Indian power generation companies

Abstract: With the rise in climate action, reducing greenhouse gas emissions and keeping the temperature rise to a minimum, the energy sector emerges as the largest contributor accounting for three-quarters of the greenhouse gas emissions in the world. This makes it important for the energy sector to focus on sustainability practices for the net-zero transition. The purpose of this study is to understand how Indian power generation companies are integrating sustainability and ESG (Environmental, Social, Governance) in their operations. The research is based on a comparative case study approach of four Indian power generation companies—NTPC, Tata Power, Adani Power and Adani Green. In order to answer the research question, the study derives a robust theoretical framework to measure sustainability for corporations. The analysis has been conducted by breaking down the concept of sustainability into three measurable concepts—corporate financial performance, moral action and ESG. The research integrates both quantitative and qualitative measures for the company’s overall corporate sustainability performance. Previous research has used either one or two of the measurable concepts, while the results from this study conclude that each company performs differently on the three measures, and together they provide a holistic picture. Overall, NTPC, Adani Power and Adani Green show below average sustainability integration and Tata Power shows above average sustainability integration.