Islamic Business and Management Journal (IBMJ)
P-ISSN: 2622-6316
E-ISSN: 2622-6324
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The Effect of Green Accounting, Corporate Social
Responsibility (CSR), and Environmental Performance on
Sustainable Development Goals (SDGs) in Energy Sector
Manufacturing Companies
Dwi Saputri
Faculty of Economics and Business, Departemen of Accounting, Muhammadiyah University of
Surakarta, Sukoharjo, Jawa Tengah, Indonesia
[email protected]
Fatchan Achyani
Faculty of Economics and Business, Departemen of Accounting, Muhammadiyah University of
Surakarta, Sukoharjo, Jawa Tengah, Indonesia
[email protected]
Abstract
This study aims to analyze the impact of the implementation of Green Accounting, Corporate Social
Responsibility (CSR), and Environmental Performance on the Sustainable Development Goals (SDGs)
in manufacturing companies in the energy and mining sub-sectors that have been listed on the
Indonesia Stock Exchange (IDX) during the 2020-2023 period. The background of this research is based
on the importance of the contribution of the energy and mining sub-sectors to sustainable development,
especially in dealing with issues of climate change and environmental damage. The quantitative
approach was applied in this study with multiple linear regression methods, and data processing using
SPSS software version 25. This study has a sample of 60 energy and mining sub-sector companies. In
this study, it is stated that the Green Accounting variable has a significant positive effect on the
achievement of SDGs, while CSR and Environmental Performance show a significant negative effect.
The regression model has a coefficient of determination of 97.3% which proves that the three
independent variables can explain most of the variation in the achievement of SDGs. These findings
provide meaningful influence on companies and stakeholders to strengthen sustainability strategies
through more strategic and measurable environmental and social management.
Keywords: Green Accounting, Corporate Social Responsibility, Environmental Performance,
Sustainable Development Goals (SDGs).
1. Introduction
Climate change and environmental degradation is one of the most pressing global
issues, including in Indonesia. Therefore, it is necessary to increase people's knowledge and
awareness of the importance of protecting the environment. In this context, the Sustainable
Development Goals (SDGs), which are the continuation of the MDGs, are present as a global
agenda to achieve a balance between economic growth, social welfare, and environmental
protection until 2030. One of the focuses of the SDGs is climate change, which is included in
goal 13. This research highlights the relevance of the energy and mining sectors to the
achievement of SDgs through the application of green accounting, CSR programs, and
improved environmental performance as an effort by manufacturing companies to support
sustainable development.
The development of green accounting began in Europe around the 1970s in response
to NGO (Non-Governmental Organization) pressure and increasing public environmental
awareness. Green accounting functions as an integrated system that records financial, social,
Islamic Business and Management Journal (IBMJ)
P-ISSN: 2622-6316
E-ISSN: 2622-6324
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and environmental activities to produce relevant information for decision making (Sulistiawati
& Dirgantari, 2017). The goal is to improve the efficiency of environmental management by
assessing the costs and benefits of environmental activities (Ikhsan, 2008). Regarding its
influence on SDGs, Relin Kurniawan and Vika Fitranita (2024) found that green accounting has
a positive effect on achieving SSGs, while the approach taken by Justina Gresya and Meily
Surianti (2024) states the opposite, that green accounting has no effect on SDGs.
CSR is essentially a form of corporate contribution in improving community welfare
by encouraging the role of individuals to be sensitive to social issues, while participating in the
utilization and preservation of the environment (Theresia, 2018). And it can be said, how can
the company organize the process in its business to produce a positive impact on society or the
community. the approach taken by Umi Yuliasih and Budi Susetyo (2020) states that CSR) has
an impact on efforts to achieve the 2030 SDGs. While the approach taken by Meilda Wiguna,
Hardi, Eka Hariyanti, and Devi Safitri (2023) states that CSR has no effect on internal corporate
governance strength on sustainable development.
Environmental performance is a company's business practice that integrates aspects
of environmental protection in every operational process (May et.al, 2023). The success of a
company's performance can be assessed through its participation in PROPER (Environmental
Performance Rating Program), which is an initiative of the Ministry of Environment and
Forestry (KLHK). The PROPER program aims to encourage company compliance with existing
environmental regulations, while improving the effectiveness of company operations in
environmental management. The achievement of environmental aspects motivates companies
to increase attention to environmental and social responsibility in their business operations,
this is supported by the PROPER ranking program so that environmental performance is in
line with the Sustainable Development Goals (SDGs) this can also affect the achievement of
SDGs. The approach taken by Justina Gresya and Meiky Surianti (2024) suggests that
environmental performance affects SDGs. Meanwhile, research compiled by Yumi Yuliasih
and Budi Susetyo (2020) suggests that environmental performance has no effect on efforts to
achieve the 2030 SDGs.
This research is intended to review the influence of variables whose previous results
show inconsistencies with the SDGs. This study is a replication of research by Arief Jatnika
Somantri and Ayi Mohamad Sudrajat (2030) who examined the effect of Green Accounting and
Environmental Performance on sustainable development in the basic and chemical industry
sectors. The difference lies in the addition of independent variables, namely the disclosure of
Corporate Social Responsibility (CSR), as well as the focus on what is the focus in this study
directed at manufacturing companies in the energy and mining sub-sectors. The results of this
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Islamic Business and Management Journal (IBMJ)
P-ISSN: 2622-6316
E-ISSN: 2622-6324
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study are expected to broaden the perspective on various aspects that have an impact on the
implementation of SDGs and their impact on corporate and environmental sustainability,
especially in the energy and mining sub-sectors listed on the Indonesia Stock Exchange (IDX).
2. Literature Review
Stakeholder theory, this concept was first introduced in 1963 by the Stanford Research
Institute, explaining that business organizations do not only act for internal interests but are
obliged to make positive contributions to various groups with an interest in the company.
These groups include investors, lenders or creditors, customers, suppliers, public authorities,
local communities, and fabric parties that have the potential to impact or be affected by the
company's operations. Stakeholder theory is a business approach to building positive
relationships with stakeholders through the fulfillment of their expectations, which is realized
in the form of Corporate Social Responsibility (CSR) information disclosure. Through CSR
disclosure, stakeholders can access information about the company's operational activities
(Asyidiki, 2018).
The sustainability of a company's business can be measured by the amount of profit or
profit earned. Increased profitability indicates better prospects for the company's development
in the future (Fakhroni, 2020). SDGs are global programs that seek to improve human welfare
both socially and economically while maintaining harmony with the environment (Hadiwijoyo
and Anisa, 2019: 42). SDGs at the regional and central levels need to be reinforced with a
commitment to the values of SDGs that prioritize the involvement of all parties and leave no
one behind, as has been built into the SDGs when they were developed at the world level. The
role of the state is very important to ensure the implementation of the SDGs.
According to Relin Kurniawan and Vika Fitranita (2024) the greater the application of
green accounting in companies, the higher the level of development achievement. With the
application of green accounting it is hoped that it can optimize resource utilization in order to
minimize adverse impacts on the environment, so that in the end it can encourage the
achievement of SDGs by increasing the transparency and accountability of companies for the
environmental impact of their operational activities. Research by Relin Kurniawan and Vika
Fitranita (2024) explains that Green Accounting affects the achievement of SDGs.
Based on stakeholder theory, companies that have implemented or disclosed
environmental CSR, such as reducing carbon emissions and sustainable waste management,
including contributions to meet the expectations of various interested parties, including
contributions to sustainable development goals. With the implementation of CSR, it can also
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Islamic Business and Management Journal (IBMJ)
P-ISSN: 2622-6316
E-ISSN: 2622-6324
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help companies to run various empowerment programs. Research by Umi Yuliasih and Budi
Susetyo (2020) explains that Corporate Social Responsibility (CSR) has a positive effect on
efforts to achieve the 2030 SDGs.
A company's environmental performance refers to its ability to maintain and improve
environmental conditions. A company's environmental performance, which includes waste
management, energy use, and climate impact mitigation, is critical in achieving sustainability
goals. A company's environmental performance can be considered good if the waste
management system is effective, efficient energy use, and minimizes the use of greenhouse gas
emissions. Research by Justina Gresya and Meily Surianti (2024) states that environmental
performance affects SDGs. The following hypothesis development is based on theory and
previous research findings.
3. Research Methods
The type of research used in this research is quantitative research by testing hypotheses.
This research is based on the collection and analysis of data in the form of numbers (numerical)
to explain, predict, and control the phenomena studied. Quantitative research focuses its
analysis on numerical data which will be processed by statistical methods (Leo, 2013: 98). By
using quantitative methods, the significance and relationship between variables can be
obtained.
1.1 Population and Sample
According to Sugiyono (2011: 80) population is a generalization area that includes
objects or subjects with specific qualities and characteristics that have been determined by
researchers to be investigated and then draw conclusions. The population in this study are
all energy and mining sub-sector manufacturing companies that have been listed on the
IDX (Indonesia Stock Exchange) for the period 2020-2023.
While the sample is part of the number and characteristics possessed by the population
(Sugiyono, 2011: 81). The sample in this study were energy and mining sub-sector
manufacturing companies and the sampling method used purposive sampling technique.
According to Sugiyono (2011: 84) purposive sampling technique is a sampling
technique with certain considerations. In this study, the sample used was all energy and
mining sub-sector manufacturing companies that have been listed on the IDX (Indonesia
Stock Exchange), published their annual reports, and have participated in the PROPER
program. Thus, the number of samples obtained in this study were 60 companies.
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Islamic Business and Management Journal (IBMJ)
P-ISSN: 2622-6316
E-ISSN: 2622-6324
______________________________________________________________________________________________________________________
4. Results and Discussion
This study is entitled The Effect of Green Accounting, Corporate Social Responsibility
(CSR), and Environmental Performance on Sustainable Development Goals (SDGs) in Energy
Sector Manufacturing Companies, with the following research results:
4.3.1 The Effect of Green Accounting Implementation on Sustainable Development Goals
The first hypothesis (H1) in the study shows that the application of Green Accounting affects
the Sustainable Development Goals with a significance value of 0.000 <0.05, which means that H1
is accepted. This means that the greater the application of green accounting in the company, the
higher the level of development achievement. Selpiyanti and Fakhroni (2020) state that
environmental cost expenditures carried out by companies and their presentation in annual reports
have an important role in encouraging the achievement of sustainable development. Company
investment in environmental aspects, such as waste management, emission control, and other
environmentally friendly activities can contribute directly to the achievement of SDGs consisting
of 17 goals, one of which focuses on environmental protection and preservation. With the effect of
green accounting on sustainable development, it can help companies to get access to funding
because they are considered to have good green accounting reporting and can get incentives from
the government, such as tax cuts or ease of licensing. These results match the research conducted
by Relin Kurniawan and Vika Fitranita in 2024 that the application of green accounting has an effect
on sustainable development goals (SDGs).
4.3.2 The Effect of Corporate Social Responsibility Implementation on Sustainable
Development Goals
The second hypothesis (H2) in this study shows that the implementation of Corporate Social
Responsibility affects the Sustainable Development Goals with a significance value of 0.000 <0.05,
which means that H2 is accepted. Various CSR programs such as community empowerment, skills
training, education, and support for MSMEs, directly contribute to supporting programs in the
SDGs, such as poverty eradication, quality education, and decent work and economic growth. On
the other hand, the implementation of CSR that focuses on environmental preservation, such as
waste management, energy efficiency, and reforestation, also contributes to other SDGs goals, such
as tackling climate change and preserving marine and terrestrial ecosystems. The results of the
study match the research conducted by Umi Yuliasih and Budi Susetyo (2020) which suggests that
corporate social responsibility affects the implementation of Sustainable Development Goals.
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Islamic Business and Management Journal (IBMJ)
P-ISSN: 2622-6316
E-ISSN: 2622-6324
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4.3.3 Effect of Environmental Performance Implementation on Sustainable Development Goals
The third hypothesis (H3) in this study shows that the application of Environmental
Performance affects Sustainable Development Goals with a significance value of 0.000 <0.05, which
means H3 is accepted. Good environmental performance shows the company's excellence in
managing resources and ecological impacts, high environmental performance such as energy
efficiency, waste management, and emission reduction supports SDGs number 9 (tackling climate
change), 4 (healthy and prosperous life), and number 11 (responsible consumption and
production). Good environmental performance can be seen from the company's ability to maintain
the quality of natural resources, which includes keeping the air, water and soil clean. It can also be
seen from the company's ability to reduce the impact of climate change due to its operational
activities. This is consistent with research conducted by Justina Gresya and Meily Surianti (2024)
which states that environmental performance affects sustainable development goals.
5. Conclusion
This study shows that Green Accounting has a positive effect on the achievement of
SDGs, indicating that effective environmental accounting practices can strengthen the
company's contribution to sustainable development. In contrast, CSR shows a negative effect,
reflecting that its implementation in the energy and mining sectors is not yet fully relevant or
effective in supporting the goals of the SDGs. Environmental Performance is also proven to
have a significant effect, but it has not optimally encouraged the achievement of SDGs because
it still does not touch the strategic aspects of sustainability.
6. Suggestion
Companies need to strengthen the application of Green Accounting as a basis for
sustainable decision making. CSR programs should be more targeted and directly linked to
SDGs indicators so that their impact is more measurable. In addition, improving the quality of
environmental performance should be focused on strategic and integrated aspects so that its
contribution to SDGs goals becomes more significant and sustainable.
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P-ISSN: 2622-6316
E-ISSN: 2622-6324
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