The Influence of ESG Disclosure on Company Performance in the Energy Sector

Abstract

This study investigates the influence of Environmental, Social, and Governance (ESG) disclosure on company performance in the energy sector. The sample consists of 44 energy companies listed on the Indonesia Stock Exchange from 2021 to 2023, yielding 132 firm-year observations selected through purposive sampling. A quantitative approach is applied using descriptive statistics and a Generalized Linear Model. Company performance is measured through financial (ROE), operational (ROA), and market (Tobin’s Q) indicators. The findings reveal that ESG disclosure does not significantly affect financial and operational performance. However, ESG disclosure simultaneously shows a significant influence on market performance. Partially, Environmental and Social disclosures are insignificant, while Governance disclosure has a significant but negative effect on Tobin’s Q, indicating limited market appreciation of governance practices.