Keywords
Environmental Governance
Environmental Sustainability
Green Technology Investment
Natural Resource Based View
Abstract
This study examines how green technology investment and environmental governance are associated with environmental sustainability among Indonesia Stock Exchange (IDX) basic materials companies during 2020-2024. Using sustainability report data from 20 firms (100 firm year observations), the relationships were estimated with partial least squares structural equation modeling (PLS-SEM). Green technology investment (β = 0.339, t = 4.920, p < 0.001) and environmental governance (β = 0.329, t = 4.804, p < 0.001) were positively associated with environmental sustainability. Model explanatory power was modest (R² = 0.208), and both effect sizes were small (f² = 0.145 and 0.136). Consistent with the Natural Resource Based View (NRBV), the findings suggest that technology investment and environmental governance operate as complementary capabilities, but neither is a dominant explanation of environmental sustainability. The study contributes contextual evidence from an environmentally intensive Indonesian sector while maintaining a noncausal interpretation.
References
Adi, S., & Wardi, A. (2022). Apa yang Meningkatkan Kinerja Lingkungan Perusahaan? Model Konseptual Berbasis Investasi Hijau dan Tata Kelola Perusahaan. Jurnal Ekombis Review: Jurnal Ilmiah Ekonomi dan Bisnis, 10(S1), 237-250. https://doi.org/10.37676/ekombis.v10iS1.2030.
Asila, N. F., & Falikhatun. (2023). Pengungkapan Lingkungan, Inovasi Teknologi Ramah Lingkungan dan Kinerja Keuangan Perusahaan Manufaktur di Indonesia. Prosiding Seminar Nasional UNIMUS, 6, 216-227.
Atif, M., Alam, M. S., & Islam, M. S. (2023). Firm-Level Energy and Carbon Performance: Does Sustainable Investment Matter?. Business Strategy and the Environment, 32(4), 2275-2295. https://doi.org/10.1002/bse.3248.
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to Use and How to Report the Results of PLS-SEM. European Business Review, 31(1), 2-24. https://doi.org/10.1108/EBR-11-2018-0203.
Handoyo, S., & Anas, S. (2024). The Effect of Environmental, Social, and Governance (ESG) on Firm Performance: The Moderating Role of Country Regulatory Quality and Government Effectiveness in ASEAN. Cogent Business & Management, 11(1), 2371071. https://doi.org/10.1080/23311975.2024.2371071.
Hart, S. L. (1995). A Natural-Resource-Based View of the Firm. Academy of Management Review, 20(4), 986-1014. https://doi.org/10.5465/AMR.1995.9512280033.
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A New Criterion for Assessing Discriminant Validity in Variance-Based Structural Equation Modeling. Journal of the Academy of Marketing Science, 43(1), 115-135. https://doi.org/10.1007/s11747-014-0403-8.
Hyun, E.-J., & Yu, S. (2024). The Strength within: CSR Governance as an Environmental Performance Driver in Weak Institutional Contexts. Systems, 12(12), 515. https://doi.org/10.3390/systems12120515.
Lumbanbatu, F., & Sriyanto, D. (2025). Teknologi Hijau dan Strategi Keuangan Berkelanjutan: Studi Implementasi Green Engineering dan Green Accounting pada Industri Manufaktur. All Fields of Science J-LAS, 5(2), 250-257.
Otoritas Jasa Keuangan. (2017). Peraturan Otoritas Jasa Keuangan Nomor 51/POJK.03/2017 tentang Penerapan Keuangan Berkelanjutan bagi Lembaga Jasa Keuangan, Emiten, dan Perusahaan Publik. Otoritas Jasa Keuangan.
Rifai, A., Ningrum, P. P., & Wahyudi, A. (2024). Penerapan Akuntansi Manajemen Lingkungan sebagai Bentuk Eco-Efficiency. GEMAH RIPAH: Jurnal Bisnis, 4(4), 34-39. https://doi.org/10.69957/grjb.v4i04.1699.
Rukh, L., Ullah, S., Sanober, I., Hayat, U., & Khan, S. (2025). Evaluating Green Finance: Investment Patterns and Environmental Outcomes. International Journal of Financial Studies, 13(4), 245. https://doi.org/10.3390/ijfs13040245.
Rumaningsih, D. W., & Rusmanto, T. (2024). Impact of the Corporate Governance on Sustainability Report Disclosure with Environmental Performance as a Moderation Variable in Indonesia. Jurnal Indonesia Sosial Sains, 5(9), 2163-2172. https://doi.org/10.59141/jiss.v5i09.1224.
Rusmayadi, G., Salawati, U., Haslinah, A., & Judijanto, L. (2023). The Effect of Investment in Green Technology and Renewable Technology Adoption on Energy Efficiency and Carbon Emissions Reduction in Indonesian Manufacturing Companies. West Science Interdisciplinary Studies, 1(11), 1187-1195. https://doi.org/10.58812/wsis.v1i11.347.
Sari, D. E., Suranto, S., Mustofa, R. H., Asila, N. F., Fadhilah, R., Laksmi, A. C. P., & Abdillah, R. A. (2025). Inovasi Teknologi sebagai Moderator Corporate Social Responsibility, Eco-Efficiency dan Kinerja Keuangan Perusahaan Manufaktur di Indonesia. Reviu Akuntansi dan Bisnis Indonesia, 9(2), 298-318. https://doi.org/10.18196/rabin.v9i2.26796.
Soussi, J. C., Aljaaidi, K. S., & Alwadani, N. F. (2025). Sustainable Environmental Governance and Corporate Environmental Performance: Empirical Evidence from Saudi Companies. Journal of Risk and Financial Management, 18(11), 616. https://doi.org/10.3390/jrfm18110616v.
Tiawon, H., & Miar, M. (2023). The Role of Renewable Energy Production, Energy Efficiency and Green Finance in Achieving Sustainable Economic Development: Evidence from Indonesia. International Journal of Energy Economics and Policy, 13(1), 250-260. https://doi.org/10.32479/ijeep.13915.
Vitale, G., Cupertino, S., Schiuma, G., & Troise, C. (2025). Investigating How Mandatory Sustainability Reporting Influences Corporate Governance Effects on ESG Performance: From Obligation to Impact for Sustainable Development. Corporate Social Responsibility and Environmental Management, 32(5), 6261-6282. https://doi.org/10.1002/csr.70025.
Wasyiah, A., Anjani, T. M., Syalwa, D. C., Maulidya, I., & Kustina, L. (2025). Pengaruh Green Innovation, Green Investment dan Eco-Efficiency terhadap Nilai Perusahaan di Perusahaan Manufaktur Sektor Tambang 2019-2023. Margin: Jurnal Lentera Managemen Keuangan, 3(1), 50-61. https://doi.org/10.59422/margin.v3i01.734.
Ye, J., & Dela, E. (2023). The Effect of Green Investment and Green Financing on Sustainable Business Performance of Foreign Chemical Industries Operating in Indonesia: The Mediating Role of Corporate Social Responsibility. Sustainability, 15(14), 11218. https://doi.org/10.3390/su151411218.
This work is licensed under a Creative Commons Attribution 4.0 International License.
Copyright (c) 2026 Silpia, Yanti, Ade Trisyanto