PENGARUH SUSTAINABILITY TERHADAP KINERJA KEUANGAN BANK PASCA PANDEMI COVID-19
DOI:
https://doi.org/10.25170/wpm.v15i2.5035Keywords:
sustainability, ESG score, financial performance, ROA, ROEAbstract
Sustainability is a word that has recently been discussed in scientific management articles and scientific forums in general. The banking sector in Indonesia is recovering along with the economy in the wake of the COVID-19 pandemic, as seen by the Indonesian banks' continuous growth in net earnings. Based on previous research, there were a variety of conclusions: some said the ESG (Environment, Social, and Governance) Sustainability Score had an impact on bank financial performance, while others said it did not. Sustainability in this research is measured based on the ESG Score from Sustainanalytics. Sustainanalytics is a private ESG rating company which is a subsidiary of Morningstar. Meanwhile, financial performance is measured by Return on Assets (ROA) and Return on Equity from the bank. The statistical tools used use simple regression with SPSS 22. The sample is 10 banks that are listed on the Indonesian Stock Exchange and have Environmental, Social and Governance (ESG) scores in the scores created by sustananalytics. The results of this research are that the ESG Score has no influence on the bank's ROA financial performance and the ESG Score has a significant negative influence on the bank's ROE financial performance.
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