The study aims to unravel the impact of green performance and green initiatives on corporate financial performance, and also to explore and establish the relationship between specific components of green performance and financial performance. This study considers a panel dataset comprising 224 nonfinancial companies listed on NSE 500 index for the period of eight consecutive years, i.e., from 2014–2015 to 2021–2022. This study adopts both the static and dynamic panel estimations to explore the link between these variables. The estimation shows green initiatives have a positive impact on financial performance. In addition, this estimation also documents a positive impact of greenhouse gas (GHG) productivity and energy productivity (specific measure of green performance) on corporate performance. This finding provides several important suggestions for Indian companies and policymakers towards adopting more green initiatives along with improving green performance to enhance higher financial performance. This study may also help to implement green policies, which will help to minimize pollutions, and is ultimately beneficial for the whole of society as well as the environment. The novelty of the study is to provide deep understanding and bridge the knowledge gap about the relationship by considering key functional dimensions of Indian firms. In addition, specially by incorporating dynamic panel estimation, this study has controlled for potential endogeneity bias and also the dynamic effects, which are scarce in earlier literature.

该研究旨在揭示绿色绩效和绿色举措对企业财务绩效的影响，并探索和建立绿色绩效的具体组成部分与财务绩效之间的关系。本研究考虑的面板数据集包含连续八年（即 2014-2015 年至 2021-2022 年）在 NSE 500 指数上市的 224 家非金融公司。本研究采用静态和动态面板估计来探讨这些变量之间的联系。估计显示绿色举措对财务绩效产生积极影响。此外，该估算还记录了温室气体（GHG）生产率和能源生产率（绿色绩效的具体衡量标准）对企业绩效的积极影响。这一发现为印度企业和政策制定者采取更多绿色举措以及提高绿色绩效以提高财务绩效提供了一些重要建议。这项研究还可能有助于实施绿色政策，这将有助于最大限度地减少污染，最终有利于整个社会和环境。该研究的新颖之处在于，通过考虑印度公司的关键功能维度，提供深入的理解并弥合有关这种关系的知识差距。此外，特别是通过结合动态面板估计，本研究控制了潜在的内生性偏差和动态效应，这在早期文献中是很少见的。