Integrating Sustainable Business Through The Implementation of Environment, Social, and Governance (ESG) in Accelerating the Realization of a Green Economy
Keywords:
Sustainable Business, Green Economy, Environment, Social, Governance
Abstract
Background: In facing increasingly complex global challenges, the integration of Environment, Social, and Governance (ESG) and sustainable business plays an important role as a strategic approach not only to generate profits but also as a force to create sustainable positive impact. This research aims to determine the influence of ESG disclosure on the Green Economy with Sustainable Business as a moderating variable. Method: This study employs a descriptive research design with a quantitative approach. Operational measurement of variables is carried out through data on environmental, economic, and social aspects. Secondary data is sourced from BPS (Central Bureau of Statistics) data and the Annual Report of the Ministry of Environment and Forestry (KLHK). Data analysis utilizes Structural Equation Modeling (SEM) based on Partial Least Squares (PLS) using SmartPLS 4.0 software. Results: The results show that the disclosure of environmental and social aspects has a positive and significant impact on the realization of a green economy. Meanwhile, the disclosure of governance does not have a positive and significant impact on the green economy. Additionally, Sustainable Business strengthens the influence of Environment, Social, and Governance on the green economy. The R Square value indicates that the dependent variable (Green Economy) is 0.605, meaning that approximately 60.5% of the variability can be explained by the independent variables. Conclusion: The disclosure of environment and social aspects has a positive and significant effect on the realization of the green economy, while the disclosure of governance does not have a significant effect. Positive information about ESG practices sends good signals to investors about long-term prospects and commitment to sustainability.References
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Cheng, R., Kim, H., & Ryu, D. (2024). ESG performance and firm value in the Chinese market. Investment Analysts Journal, 53(1), 1–15.
Chopra, A., Avhad, V., & Jaju, S. (2021). Influencer marketing: An exploratory study to identify antecedents of consumer behavior of millennial. Business Perspectives and Research, 9(1), 77–91.
Deegan, C. M. (2014). Financial accounting theory. McGraw-Hill Education (Australia) Pty Ltd.
Dogaru, L. (2021). Green economy and green growth—Opportunities for sustainable development. Proceedings, 63(1), 70.
Fabiola, V. P., & Khusnah, H. (2022). Pengaruh Green Innovation Dan Kinerja Keuangan Pada Competitive Advantage Dan Nilai Perusahaan Tahun 2015-2020. Media Mahardhika, 20(2), 295–303.
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Gujrati, R., Gulati, U., & Uygun, H. (2023). Digital Transformation has changed consumer behaviour from Traditional market to Digital market. Academy of Marketing Studies Journal, 27(S2).
Hapsoro, N. A., & Bangun, K. (2020). Perkembangan pembangunan berkelanjutan dilihat dari aspek ekonomi di indonesia. Lakar: Jurnal Arsitektur, 3(2), 88–96.
Hardiningsih, P., Januarti, I., Yuyetta, E. N. A., Srimindarti, C., & Udin, U. (2020). The effect of sustainability information disclosure on financial and market performance: Empirical evidence from Indonesia and Malaysia. International Journal of Energy Economics and Policy, 10(2), 18–25.
Kasayanond, A., Umam, R., & Jermsittiparsert, K. (2019). Environmental sustainability and its growth in Malaysia by elaborating the green economy and environmental efficiency. International Journal of Energy Economics and Policy, 9(5), 465–473.
Kotler, P. (2017). Philip Kotler: some of my adventures in marketing. Journal of Historical Research in Marketing, 9(2), 203–208.
Lathifah, I. N. (2024). Pengaruh ESG Terhadap Profitabilitas Dan Nilai Perusahaan Di Indonesia.
Minggu, A. M., Aboladaka, J., & Neonufa, G. F. (2023). Environmental, Social dan Governance (ESG) dan Kinerja Keuangan Perusahaan Publik di Indonesia. Owner: Riset Dan Jurnal Akuntansi, 7(2), 1186–1195.
Nitro, C. A. I. (2020). Ekonomi, Bisnis dan Keuangan di Masa Covid 19. AA. Rizky.
Noviarianti, K. (2020). ESG: Definisi, contoh, dan hubungannya dengan perusahaan. Retrieved April 22, 2021.
Ramlah, R. (2020). The Company's share price as a result of changes in earnings and cash flows. Point of View Research Management, 1(4), 154–163.
Setiawati, A., & Hidayat, T. (2023). The Influence Of Environmental, Social, Governance (ESG) Disclosures On Financial Performance. Jurnal Ekonomi, Manajemen Dan Perbankan, 9(3), 225–240.
Tang, H., Xiong, L., & Peng, R. (2024). The mediating role of investor confidence on ESG performance and firm value: Evidence from Chinese listed firms. Finance Research Letters, 61, 104988.
Yuan, Y., Guo, X., & Shen, Y. (2024). Digitalization drives the green transformation of agriculture-related enterprises: A case study of A-share agriculture-related listed companies. Agriculture, 14(8), 1308.
Published
2026-06-20
How to Cite
Dyah Kusumastuti, A., Paningrum, D., & Dara Rasendriya, L. (2026). Integrating Sustainable Business Through The Implementation of Environment, Social, and Governance (ESG) in Accelerating the Realization of a Green Economy. Sharia Economic and Management Business Journal (SEMBJ), 7(2), 428-439. https://doi.org/10.62159/sembj.v7i2.1929
Section
Articles
Copyright (c) 2026 Anggit Dyah Kusumastuti, Destina Paningrum, Locita Dara Rasendriya
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