The emerging relevance of Environmental, Social and Governance (ESG) Strategies and ratings has led to Companies of all Industries, including Pharmaceutical to rethink their corporate finance practices. This study aims at the impact of ESG strategies and ratings on corporate finance in the pharmaceutical industry. The research problem take into account the comprehension of how implementing ESG principles make a difference in financial performance, cost savings, risk avoidance in pharmaceutical firm. The Objective of the present study is to examine the effect of ESG implementation and important financial factors like cost reductions, risk minimization in the context of how ESG scores affect investor's perception and firm value in such a closely regulated sector. This study incorporates a qualitative approach through the analysis of secondary data. Anticipated results indicate that companies with improved regulatory ESG ratings are likely to have improved access to capital, lower operational risk, reduced capital costs, and improved market performance. Expected findings: In addition, the research expects to discover certain ESG metrics most affecting pharmaceutical firms and investigate how such strategies are beneficial to longterm value creation. The study will provide meaningful implications for corporate financeinvestment decisions and ESGpolicy-makingin the pharmaceutical sector.
Saba et al. (Thu,) studied this question.