Title:
The Influence of Environment, Social, and Governance (ESG) Practices on Bank Financial Performance

Authors:
Romli, Eddy Winarso*, Indonesia

Abstract:

This study aims to investigate the impact of ESG practices on bank financial performance. To this end, we investigated 19 banks listed on the Indonesia Stock Exchange for the period 2020 to 2024, using regression analysis using STATA. The results indicate that ESG practices have a positive and significant impact on bank financial performance. This study also found that NIM has a significant positive effect on bank financial performance, while NPL and LDR have a significant negative effect. These findings can add to the existing literature on the relationship between ESG disclosure and financial performance. They also provide empirical justification for regulators and bank management to continue promoting and integrating ESG practices into banking business and operational strategies as part of efforts to create a more sustainable financial system.

DOI: https://doi.org/10.51505/IJEBMR.2025.9815