Towards A Sustainable Future: Measuring The Impact Of ESG (Environmental, Social And Governance) Implementation, And The Crucial Role Of Independent Commissioners On Firm Value

Abstract

This research is related to the increasing pressure from stakeholders on companies to implement good ESG practices. This pressure is getting stronger because it is influenced by climate change factors, social crises, and demands for better corporate governance. Previous research found that ESG Giving advantage within firm value. Independent commissioners given maximum role within application of ESG in the company to minimize management's greenwashing methods. Research in Indonesia that examines the application of ESG to firm value by considering the role of Independent Commissioners as a supporting factor is still small. This study is expected to be able to explain the role of independent commissioners and encourage stakeholders to maintain the independence of an Independent Commissioner in public companies in Indonesia. This study uses a regression statistical model with ESG Risk Rating as the independent variable, Independent Commissioner as the moderating variable, and Tobin's Q as the dependent variable. The results showed that ESG risk Rating has a positive relationship and insignificant with Tobin's Q of 0.223, and this study found that independent commissioners as a moderator variable of ESG risk rating and Tobin's Q, have a negative relationship and insignificant of -0.523.