THE EFFECT OF CARBON EMISSION INTENSITY, GREEN INVESTMENT AND CSR DISCLOSURE ON FINANCIAL PERFORMANCE WITH GOOD CORPORATEGOVERNANCE AS A MODERATING VARIABLE (Study on Energy and Mining Sector Companies Listed on the IDX 2019-2024)

Abstract

This study aims to examine the effect of Carbon Emission Intensity, Green Investment, and Corporate Social Responsibility Disclosure on financial performance, with Good Corporate Governance proxied by the Board of Directors as a moderating variable. This study is motivated by the increasing global pressure on sustainability issues, especially in the energy and mining sectors which have a large contribution to carbon emissions. Sustainability strategies such as green investment and CSR disclosure are seen as solutions to environmental and reputational risks. However, previous studies have shown inconsistent results regarding their effect on financial performance. This study uses a quantitative approach with panel data regression methods and Moderated Regression Analysis on energy and mining sector companies listed on the Indonesia Stock Exchange for the period 2019–2024. The results show that Carbon Emission Intensity has a significant negative effect on financial performance, while Green Investment has a significant positive effect. Meanwhile, CSR disclosure has no significant effect. In terms of moderation, the Board of Directors does not moderate the relationship between CEI and CSRD on financial performance, and actually weakens the effect of Green Investment on financial performance. This finding indicates the need to strengthen sustainability capacity at the board level so that environmental policies can be implemented strategically and have an impact on company performance.