The Effect of ESG Disclosure, Green Accounting, and Workplace Safety on Profitability Value (Study on Mining Sector Companies listed on the Indonesia Stock Exchange 2019-2023)

Abstract

Introduction: Indonesia possesses extensive natural resources, with the mining industry playing a pivotal role in national economic development. Major mining activities particularly coal, oil, and gas are spread across regions like Kalimantan, Sumatra, and Sulawesi. Leading producers such as PT Bumi Resources and PT Adaro Energy significantly contribute to the nation's output. This study evaluates the profitability of 63 mining firms listed on the Indonesia Stock Exchange to guide stakeholder decision-making.

Objectives: The study investigates how ESG disclosure, green accounting, and workplace safety practices impact the profitability of mining companies traded on the IDX from 2019 to 2023.

Methods: This research adopts a quantitative approach, using secondary data sourced from the annual reports of eight mining companies. The study applies multiple linear regression analysis to evaluate how ESG disclosure, green accounting, and workplace safety influence profitability, measured by Return on Assets (ROA).

Results: Findings demonstrate that all three independent variables—ESG disclosure, green accounting, and workplace safety, have a significant effect on profitability, both jointly and individually.

Conclusions: The results highlight the financial advantages of integrating sustainability and safety practices. These insights may guide corporations in developing ESG strategies and inform policy-makers aiming to promote responsible corporate behavior in Indonesia’s mining sector.