The Impact of Environmental, Social, and Governance Disclosure on Financial Performance with Green Intellectual Capital as an Intervening Variable

ABSTRACT : The aim of this research is to identify the relationship between Environmental, Social, and Governance (ESG) disclosure and financial performance measured using ROA with Green Intellectual Capital as an intervening variable. Green Intellectual Capital is measured by three components: Green Human Capital, Green Structural Capital, and Green Relational Capital. This type of research uses a quantitative method. To see how the independent variable impacts the dependent variable, this research uses panel data regression, which is a combination of time series data and cross-sectional data.The researcher uses Stata 14, a statistics and data software created by StataCorp in 1985 and used for statistical analysis. The data source for this study is based on financial statements, annual reports, and sustainability reports of companies in the energy sector for the period ending December 31, 2020–2023. Data was accessed through the official website of the Indonesia Stock Exchange (IDX) at www.idx.co.id and the official company websites. Additionally, data sources for this research were accessed through the official Thomson Reuters Eikon site to obtain the ESG scores of the companies studied. The results of this study indicate that ESG disclosure does not have a significant effect on ROA. ESG disclosure has a significant effect on GSC and GRC, while it does not have a significant effect on GRC. Furthermore, GSC has a significant effect on ROA, while GHC and GRC do not have a significant effect. GSC can mediate the relationship between ESG disclosure and ROA, while GHC and GRC cannot mediate.