The study investigates the impact of Environmental, Social, and Governance (ESG) disclosure and Carbon performance on financial performance of high-polluting industries in Indonesia. Using panel data regression analysis and a comprehensive set of control variables, the authors find that ESG disclosure and carbon performance have significant impacts on financial performance, as measured by Return on Assets (ROA). Specifically, higher levels of ESG disclosure are associated with better financial performance, while higher carbon intensity is associated with lower financial performance. The study highlights the importance of considering both ESG disclosure and carbon performance in assessing the financial implications of corporate sustainability practices. The findings have important implications for companies, investors, and policymakers in Indonesia and other emerging economies, particularly in the context of addressing climate change and promoting sustainable development.
