The Influence of ESG Disclosure, Green Investment, and Green Fund on Company Value in the Energy Sector Listed on the Indonesia Stock Exchange

Abstract

The growing global awareness of climate change has driven energy sector companies to adopt sustainable business practices. As one of the largest contributors to carbon emissions, the energy sector faces increasing pressure from society, regulators, and markets to enhance environmental responsibility through Environmental, Social, and Governance (ESG) practices, Green Investment, and Green Fund initiatives. This study aims to examine the effect of ESG Disclosure, Green Investment, and Green Fund on firm value in energy sector companies listed on the Indonesia Stock Exchange (IDX). The research employed an associative method with a quantitative approach. The population consisted of all 40 energy sector companies that published a 2024 sustainability report and disclosed ESG or CSR initiatives. Data collection was conducted through documentation of the sustainability reports, and analysis was carried out using multiple linear regression. The regression model produced was Y = 23.308 - 0.024 X1 + 0.161 X2 - 0.242 X3. The correlation coefficient (R) was 0.316, indicating a weak relationship among the variables. The coefficient of determination (R²) was 0.100, meaning that only 10% of the variation in firm value can be explained by the three variables. The F test showed a significant simultaneous effect (Sig. 0.000 < 0.05). However, partial tests revealed that only Green Fund had a significant effect (Sig. 0.022 < 0.05), while ESG Disclosure and Green Investment did not. The study concludes that while ESG, Green Investment, and Green Fund collectively affect firm value, Green Fund is the only factor with a significant individual impact.