The effect of CSR mediation between green financing and environmental costs on sustainable business performance

Purpose: This study seeks to examine the environment caused by mining activities and cases of misuse of Corporate Social Responsibility (CSR) funds, emphasizing the importance of green financing and cost management to improve sustainable business performance. CSR is seen as an important element in reducing environmental and social impact. Methods/approaches: This study used multiple linear regression and mediated examination to evaluate the relationship between different variables. using secondary data from 177 records in 39 mining businesses in the energy and essential raw materials industry sector listed on the IDX (2021-2023). Findings: These findings reveal that companies that implement green finance positively impact CSR and contribute to sustainable business performance improvements. However, environmental costs do not show a significant impact on CSR or business performance. CSR effectively mediates the correlation between green finance and sustainability of business performance but fails to serve as an intermediary in the relationship in cost and environmental performance. Contribution of Practice and Theory/Originality: This study provides valuable insights for mining companies in decision-making related to green financing and the implementation of environmental costs to improve sustainability. The study uses stakeholder theory, which suggests that companies should consider stakeholder interests and environmental impacts to achieve sustainable business performance. Research Limitations: This study was limited by the small sample size, as many mining companies still do not have sustainability reports.