PENGARUH ESG RISK RATING TERHADAP KINERJA DAN NILAI PERUSAHAAN DI INDONESIA

The increased awareness of society towards ESG (Environmental, Social, and Governance) issues led to a rise in ESG investment trends. ESG was related to SDGs, making it one parameter for implementing SDGs in the financial industry in Indonesia. Implementing ESG in Indonesia has proven to be difficult, even though it can greatly affect company performance and value. The goal of this study was to examine the impact of ESG risk rating on performance and value of Indonesian companies. The sample was selected using a purposive sampling technique, consisting of 19 companies listed in the IDX ESG Leaders index (IDXESGL) that consistently recorded over 5 major evaluation periods in March 2021 - March 2023, resulting in total of 95 observational samples. Data analysis was performed using descriptive statistical analysis and panel data regression using Microsoft Excel and E-views 9. The results of data analysis indicated that ESG risk rating did not have a significant effect on operational performance (ROA), financial performance (ROE), and company value (Tobin’s Q).