THE ROLE OF GREEN ACCOUNTING AND CSR IMPLEMENTATION ON FINANCIAL PERFORMANCE OF ENERGY COMPANIES IN THE GREEN ECONOMY ERA

Abstract

This study analyzes the impact of green accounting and corporate social responsibility (CSR) on the financial performance of energy companies in Indonesia from 2019 to 2023. Financial performance is measured by Return on Assets (ROA), while green accounting and CSR are assessed using the Environmental Cost Index and CSR Disclosure Index. Utilizing a quantitative approach with secondary data from financial statements, annual reports, and sustainability reports of companies listed on the Indonesia Stock Exchange, the findings reveal diverse impacts. Green accounting negatively affects financial performance, as the costs of adopting eco-friendly practices and transparent reporting strain short-term profitability. Meanwhile, CSR does not show a significant direct impact on financial performance during the study period. However, when analyzed simultaneously, green accounting and CSR influence financial performance, indicating their synergy in building a positive corporate image and enhancing long-term financial outcomes. The study underscores the strategic value of integrating green accounting and CSR to improve social legitimacy and stakeholder relationships, despite limited immediate profitability benefits. These findings provide a valuable reference for energy companies and stakeholders in shaping effective sustainability strategies that balance environmental and financial goals.