Sustainability Disclosure and Corporate Performance in Indonesia's Basic Materials Sector

Financial performance has become a central indicator of how effectively companies manage resources and sustain long-term value, particularly in environmentally sensitive industries. This study investigates the impact of Good Corporate Governance, Environmental Disclosure, and Capital Structure on Financial Performance in the basic materials sector listed on the Indonesia Stock Exchange during the period 2022–2024. A quantitative approach is employed using secondary data derived from annual and sustainability reports. From a population of 114 companies, 78 firms were selected through purposive sampling, yielding 190 firm-year observations after data screening. Multiple linear regression is applied to examine the proposed relationships. The results demonstrate that Environmental Disclosure has a positive and significant effect on financial performance, indicating that firms with higher levels of environmental transparency tend to achieve superior profitability. In contrast, Good Corporate Governance and Capital Structure do not show significant effects, suggesting that their roles may depend on the effectiveness of their implementation and industry characteristics. However, the variables jointly influence financial performance. This study contributes by providing empirical evidence from an emerging market context, integrating governance, environmental, and financial perspectives, and contributing to the discussion of sustainability management in resource-intensive industries. The findings offer practical insights for managers and policymakers to enhance environmental transparency and strengthen corporate sustainability practices. Keywords: Financial Performance, Good Corporate Governance, Environmental Disclosure, Capital Structure, Basic Material Sector