Environmental Performance and Financial Performance of Indonesian Publicly Listed Companies
Ratna Wulaningrum(1*), Venti Eka Satya(2), Amiril Azizah(3), Dwi Yana Amalia Sari Fala(4)

Accounting Department, Politeknik Negeri Samarinda, Samarinda, Indonesia(1)
Center for Research Expert Body, Dewan Perwakilan Rakyat Republik Indonesia, Jakarta, Indonesia (2)
Business Administration Department, Politeknik Negeri Samarinda, Samarinda, Indonesia (3)
Economic and Business Faculty, Universitas Khairun, Ternate, Indonesia (4)

Corresponding email: ratna[at]polnes.ac.id

Abstract

The company not only focuses on achieving maximum profit but also pays attention to its contribution to society and the environment. The issue of environmental preservation has long been a concern of the government, the community and environmental observers, therefore indirectly in its business activities the company will also pay attention to whether it has a responsibility towards environmental sustainability or not. The company^s attention to the environment will provide long-term benefits for the company, because if the company is responsible for the community and the environment, then society will give an assessment that the company has carried out its business activities properly. This study aims to analyze the environmental and financial performance of public companies listed in Indonesia during 2018-2022. The research model is quantitative descriptive. Selection of research samples with the purposive sampling method. The research sample is a public company registered in Indonesia that has obtained a PROPER rating for 2018-2022. Companies must not only achieve maximum profit but also pay attention to the impact of their business on society and the environment. The research findings show that publicly listed companies in Indonesia with good environmental performance will also produce good financial performance. Corporate responsibility for the environment is very important and will impact the sustainability of the company^s business. The achievement of the company^s financial performance must be comparable to the company^s environmental performance.

Keywords: environmental performance- financial performance- publicly listed companies

Topic: Economics