The Effect of Application of Sustainable Development Goals (SDGs) and Sustainability Report on Company Profitability

Abstract

The UN has set Sustainable Development Goals (SDGs) since 2015 as global guidelines for maintaining economic, social, environmental, and social justice. This study's goal is to examine how the use of economic indicators from the Sustainable Development Goals (SDGs) and Sustainability Reports impacts return on assets-based measures of firm profitability (ROA). The population consists of all businesses listed on the Indonesia Stock Exchange that publish sustainability reports between 2019 and 2021. A sample of 70 businesses was obtained using a purposive sampling technique. Panel data regression, the E-Views 12 application programme, and a significance level of 5% are used in the data analysis technique. This study found that economic indicators in the Sustainable Development Goals (SDGS) have a negative effect on company profitability, while economic indicators in sustainability reports have a positive effect on company profitability.