ENVIRONMENTAL, SOCIAL, GOVERNANCE (ESG), CARBON EMISSIONS, AND GREEN INVESTMENT: DETERMINANTS OF FIRM VALUE IN THE ERA OF SUSTAINABILITY

• Lintang Shafa Zahra

  Muhammadiyah University of Sidoarjo, Indonesia

• Aisha Hanif

  Muhammadiyah University of Sidoarjo, Indonesia

Objective: This study investigates the influence of Environmental, Social, and Governance (ESG) scores, carbon emission intensity, and green investment on firm value in response to increasing climate change pressures and the growing importance of sustainability in investment decisions. Method: A quantitative approach was employed using purposive sampling on companies listed on the Indonesia Stock Exchange that reported ESG values from 2021 to 2024, with data analyzed through multiple linear regression. Results: The findings indicate that ESG scores significantly enhance firm value, demonstrating the importance of effective environmental, social, and governance management. Carbon emission intensity also affects firm value, suggesting that emission levels serve as indicators of environmental performance and sustainability risk perceptions. Furthermore, green investment shows a measurable impact on firm value, emphasizing the need for strategic allocation of sustainability-related capital to balance both short- and long-term financial outcomes. Novelty: This study provides empirical evidence from the Indonesian market on the combined effects of ESG performance, carbon emission intensity, and green investment on firm value, offering new insights into how sustainability dimensions shape corporate valuation in emerging economies

N. O. and A. Administration, “Climate Change Impacts,” NOAA. Accessed: Jun. 02, 2025. [Online]. Available: https://www.noaa.gov/education/resource-collections/climate/climate-change-impacts

UNFCCC, “The Paris Agreement,” United Nations Climate Change. Accessed: Jun. 02, 2025. [Online]. Available: https://unfccc.int/process-and-meetings/the-paris-agreement

W. Contributors, “List of parties to the Paris Agreement,” Wikipedia. Accessed: Jun. 02, 2025. [Online]. Available: https://en.wikipedia.org/w/index.php?title=List_of_parties_to_the_Paris_Agreement&oldid=1292340325#References

H. Regita Andieni Dewantoro, “Pengaruh Intensitas Emisi Karbon , Biaya Lingkungan dan Budaya Organisasi Hijau Terhadap Nilai Perusahaan,” vol. 3, no. 5, pp. 1634–1646, 2024.

S. Ana and D. T. Wibowo, “Nilai Perusahaan dalam Formula Tobin’s Q Ratio,” MUQADDIMAH: Jurnal Ekonomi, Manajemen, Akuntansi dan Bisnis, vol. 3, no. 1, pp. 126–135, 2025.

M. Muslim, “The Dilemma Between Shareholder Value and Long-term Business Sustainability,” Advances in Management & Financial Reporting, vol. 3, no. 1, pp. 15–29, 2025, doi: 10.60079/amfr.v3i1.427.

H. Prayitno et al., “Perkembangan Penilaian ESG di Indonesia,” The Reform Intiatives, 2024.

C. P. Ida Ayu Putu and S. Devi, “Pengaruh Enviromental Social Governance (ESG) Score dan Struktur Modal Terhadap Nilai Perusahaan,” JIMAT (Jurnal Ilmiah Mahasiswa Akuntansi) Undiksha, vol. 15, no. 01, pp. 166–173, 2024, doi: 10.23887/jimat.v15i01.76346.

IDX, “Nilai ESG,” Bursa Efek Indonesia (IDX). Accessed: Jun. 08, 2025. [Online]. Available: https://www.idx.co.id/Id/Perusahaan-Tercatat/Nilai-ESG

F. Kartika, A. Dermawan, and F. Hudaya, “Pengungkapan environmental, social, governance (ESG) dalam meningkatkan nilai perusahaan publik di Bursa Efek Indonesia,” SOSIOHUMANIORA: Jurnal Ilmiah Ilmu Sosial Dan Humaniora, vol. 9, no. 1, pp. 29–39, 2023, doi: 10.30738/sosio.v9i1.14014.

I. P. Devianti, “Pengaruh Environment, Social, dan Governance (ESG) terhadap nilai perusahaan pada sektor pertambangan yang terdaftar di ESG Leaders Indonesia Periode 2017-2022,” Jurnal Ilmu Manajemen, vol. 13, no. 1, pp. 159–173, 2024.

E. Institute, “Statistical Review of World Energy,” Energy Institute. Accessed: Jun. 02, 2025. [Online]. Available: https://www.energyinst.org/statistical-review

Badan Pusat Statistik, “Neraca Arus Energi Dan Neraca Emisi Gas Rumah Kaca Indonesia Badan Pusat Statistik Bps-Statistics Indonesia,” Bps-Statistics Indonesia, vol. 4, pp. 1–120, 2024.

S. Perdichizzi, B. Buchetti, A. F. Cicchiello, and L. Dal Maso, “Carbon Emission and Firms’ Value: Evidence From Europe,” Energy Econ, vol. 131, pp. 1–47, 2025.

A. K. Nurdiansyah, P. G. Lestari, and N. Heriyah, “Pengaruh Pengungkapan Emisi Karbon dan Green Investment Terhadap Nilai Perusahaan,” Universitas Informatika dan Bisnis Indonesia, vol. 23, no. 1, pp. 227–236, 2024.

Ayu Wijayanti and Yoseph Agus Bagus Budi N., “Dampak Green Governance, Green Investment, Dan Green Innovation Terhadap Nilai Perusahaan,” Jurnal Ekonomi Trisakti, vol. 4, no. 1, pp. 535–544, 2024, doi: 10.25105/jet.v4i1.19373.

N. M. I. Mentari and K. I. K. Dewi, “Moderasi CSR Disclosure Terhadap Pengaruh Green Investment Pada Nilai Perusahaan,” Jurnal Ilmiah Akuntansi dan Bisnis, vol. 8, no. 1, pp. 60–71, 2023, doi: 10.38043/jiab.v8i1.4663.

A. Tanasya and S. Handayani, “Green Investment Dan Corporate Governance Terhadap Nilai Perusahaan: Profitabilitas Sebagai Pemediasi,” Jurnal Bisnis dan Akuntansi, vol. 22, no. 2, pp. 225–238, 2021, doi: 10.34208/jba.v22i2.727.

N. A. N. Aeni and E. Murwaningsari, “Pengaruh Pengungkapan Emisi Karbon Dan Investasi Hijau Terhadap Nilai Perusahaan,” Jurnal Ekonomi Trisakti, vol. 3, no. 2, pp. 3135–3148, 2023, doi: 10.25105/jet.v3i2.17890.

H. T. Agatha and T. Aryati, “Pengaruh Volume Emisi Karbon, Pengungkapan Emisi Karbon, Dan Tata Kelola Perusahaan Terhadap Nilai Perusahaan,” Journal Of Social Science Research, vol. 4, no. 4, pp. 16288–16308, 2024, doi: 10.25105/jet.v3i2.17992.

A. R. Larasati, N. Arimuljarto, and Z. Azhar, “Pengaruh Green Investment Dan Kinerja Keuangan Terhadap Nilai Perusahaan Pada Perusahaaan Industri Pertambangan Yang Terdaftar Di Bursa Efek Indonesia Tahun 2017-2022,” NAMARA: Jurnal Manajemen Pratama, vol. 1, no. 1, pp. 1–22, 2024, [Online]. Available: https://namara-feb.unpak.ac.id/index.php/namara/index

F. A. N. Zulfa, “PENGARUH GREEN INVESTMENT, DIVIDEN, DAN LEVERAGE TERHADAP NILAI PERUSAHAAN DENGAN PROFITABILITAS SEBAGAI MODERASI,” Fakultas Ekonomi, pp. 1–123, 2024.

L. Rahelliamelinda and J. Handoko, “Profitabiltas Sebagai Moderating Pengaruh Kinerja Esg, Green Innovation, Eco-Efficiency Terhadap Nilai Perusahaan,” Jurnal Informasi, Perpajakan, Akuntansi, Dan Keuangan Publik, vol. 19, no. 1, pp. 145–170, 2024, doi: 10.25105/jipak.v19i1.19191.

V. A. Agustine, H. N. Angraini, I. M. Riandy, and A. Lastiati, “Dampak ESG Score Terhadap Profitabilitas Perusahaan,” International & National Conference on Accounting and Fraud Auditing, vol. 5, no. 2, pp. 1–9, 2024.

S. Grishunin, E. Naumova, E. Burova, S. Suloeva, and T. Nekrasova, “The Impact of Sustainability Disclosures on Value of Companies Following Digital Transformation Strategies,” International Journal of Technology, vol. 13, no. 7, pp. 1432–1441, 2022, doi: 10.14716/ijtech.v13i7.6194.

D. S. Mubarok, M. Hikmah, and Y. Oktaviani, “Influence of Green Investment and Firm Size on Firm Value of Sector Energy Firm Listed on Idx 2018-2022,” Iqtishaduna : International Conference Proceeding, vol. 1, pp. 40–45, 2025, doi: 10.54783/wp25c635.

W. Yusnia, N. Hidayah, and P. S. Utami, “Effectiviness of Implementing Green Finance, Green Investment, and Evironment Cost in Increasing Firm Value in The Mining Sector,” Jurnal Distribusi Universitas Mataram, vol. 12, no. 2, pp. 323–338, 2024.

A. P. Nuurhasanat and A. Haq, “Pengaruh Pengungkapan Emisi Karbon, Inovasi Hijau, dan Investasi Hijau Terhadap Nilai Perusahaan,” EKOMA : Jurnal Ekonomi, Manajemen, Akuntansi, vol. 3, no. 5, pp. 2287–2297, 2024.

I. Ghozali, Aplikasi Analisis Multivariate dengan Program IBM SPSS 26, 10th ed. Universitas Diponegoro, 2021.

P. W. Anggraini and T. D. R. Sari, “Pengaruh Environment Social Governance (ESG) Score Terhadap Kinerja Keuangan Perusahaan Yang Terindeks IDX ESG Leader Tahun 2020-2023,” Journal of Accounting and Finance Management, vol. 5, no. 5, pp. 975–982, 2024.

Fathiyah Alifah Fitriyani, Gilbert Rely, and Pratiwi Nila Sari, “Pengaruh Green Investment, Eco Efficiency dan Good Corporate Governance Terhadap Nilai Perusahaan,” Jurnal Akuntansi, Keuangan, Perpajakan dan Tata Kelola Perusahaan, vol. 2, no. 3, pp. 890–904, 2025, doi: 10.70248/jakpt.v2i3.1953.

L. Widyastuti, “Hubungan Pengungkapan Corporate Social Responsibility (CSR) Terhadap Nilai Perusahaan dengan Earnings Management Sebagai Variabel Moderasi,” pp. 1–27, 2021.

A. K. Arditiyan and A. Purwanto, “Pengaruh ESG terhadap Cost of Capital selama Pandemi dengan Moderasi Kinerja Keuangan,” Owner: Riset & Jurnal Akuntansi, vol. 9, no. 2, pp. 1304–1317, 2025.

N. Hafsah, “PENGARUH GREEN INVESTMENT DAN RETURN ON ASSET TERHADAP NILAI PERUSAHAAN DENGAN EFISIENSI BANK SEBAGAI VARIABEL MODERASI,” Fakultas Ekonomi dan Bisnis Islam, vol. 11, no. 1, pp. 1–14, 2025, [Online].

• VIEW ARTICLE

• Regional Competitiveness

Copyright (c) 2025 Lintang Shafa Zahra, Aisha Hanif

This work is licensed under a Creative Commons Attribution 4.0 International License.