The Influence of Environmental Performance and Financial Performance on Sustainability Report Disclosure

Abstract

This study aims to examine the effect of environmental performance and financial performance on Sustainability Report Disclosure (SRD) in energy sector companies listed on the Indonesia Stock Exchange (IDX) during the 2021–2025 period. Environmental performance is measured using the Corporate Performance Rating Assessment Program (PROPER), while financial performance is represented by profitability (Return on Assets/ROA), liquidity (Current Ratio/CR), and leverage (Debt to Equity Ratio/DER). Sustainability Report Disclosure is measured using the Global Reporting Initiative (GRI) Standards 2021, consisting of 91 disclosure items. The sample comprises 90 firm-year observations selected through purposive sampling. Data were analyzed using multiple linear regression with SPSS version 25 after passing the classical assumption tests. The results indicate that environmental performance has a significant effect on Sustainability Report Disclosure, whereas profitability, liquidity, and leverage do not have significant partial effects. Simultaneously, environmental performance and financial performance significantly influence Sustainability Report Disclosure. These findings suggest that environmental performance remains an important determinant of sustainability reporting practices in Indonesia's energy sector, while financial performance indicators are not the primary drivers of disclosure.