綠色經濟倡議、股票表現與「漂綠」之間的關係：印尼銀業的個案研究

Abstract

In order to achieve Net Zero Emissions by 2060, the Indonesian government issued the law related to the mandatory ESG report in 2017 to promote sustainable business operations. However, because of the lack of regulation of ESG report assessment, the banking companies only focus on the administrative aspect. This research aims to check whether investors react to the regulation announcement of mandatory ESG report issuance for the short- and long-term as an indicator of investors’ reaction to ESG issues. It also checks whether there is any banking company that conducts the “greenwashing” behavior, and whether the “greenwashing” behavior, the ESG report disclosure score, ESG performance, and carbon emissions, simultaneously impact the actual stock returns. This research paper uses 40 banking companies listed in the Indonesia Stock Exchange over two periods: 2017-2018 and 2020-2023. The result shows that the investors might not pay attention to the ESG part in either the short- or the long-term, and the actual return might not be impacted by being the early adopter of issuing an ESG report, a higher ESG disclosure score, a higher ESG performance, and lower carbon emissions. Furthermore, there is an indication of “greenwashing” conducted by some of the banking companies observed, as shown by the positive “greenwashing” scores. To conclude, the green initiatives do not translate into the actual return in the banking sector in Indonesia. This research paper gives insight to the government, companies, and investors on how the market reacts to the green initiatives, particularly in the banking sector.

In order to achieve Net Zero Emissions by 2060, the Indonesian government issued the law related to the mandatory ESG report in 2017 to promote sustainable business operations. However, because of the lack of regulation of ESG report assessment, the banking companies only focus on the administrative aspect. This research aims to check whether investors react to the regulation announcement of mandatory ESG report issuance for the short- and long-term as an indicator of investors’ reaction to ESG issues. It also checks whether there is any banking company that conducts the “greenwashing” behavior, and whether the “greenwashing” behavior, the ESG report disclosure score, ESG performance, and carbon emissions, simultaneously impact the actual stock returns. This research paper uses 40 banking companies listed in the Indonesia Stock Exchange over two periods: 2017-2018 and 2020-2023. The result shows that the investors might not pay attention to the ESG part in either the short- or the long-term, and the actual return might not be impacted by being the early adopter of issuing an ESG report, a higher ESG disclosure score, a higher ESG performance, and lower carbon emissions. Furthermore, there is an indication of “greenwashing” conducted by some of the banking companies observed, as shown by the positive “greenwashing” scores. To conclude, the green initiatives do not translate into the actual return in the banking sector in Indonesia. This research paper gives insight to the government, companies, and investors on how the market reacts to the green initiatives, particularly in the banking sector.