The Effect of Environmental Performance and Green Supply Chain Management on Financial Performance: A Study of Mining Sector Companies Listed on the Indonesia Stock Exchange (2017–2025)

Abstrak

This study aims to analyze the effect of Environmental Performance and Green Supply Chain Management (GSCM) on the financial performance of mining sector companies listed on the Indonesia Stock Exchange (IDX) during the 2017–2025 period. A quantitative associative design was employed. The population comprised all mining sector companies listed on the IDX during the observation period (42 companies), from which 13 companies were selected using purposive sampling based on the consistent, complete annual publication of financial reports, sustainability reports, and PROPER environmental rating participation, yielding 117 firm-year observations. Data were obtained from annual reports, sustainability reports, and IDX publications, and analyzed using multiple linear regression in SPSS. Environmental Performance was measured through PROPER ratings (gold = 5 to black = 1), GSCM through a disclosure index (items disclosed/total indicators), and financial performance through Return on Assets (ROA). The classical assumption tests (normality, multicollinearity, heteroscedasticity, and autocorrelation) were satisfied. Results show that Environmental Performance has a positive and significant effect on financial performance (β = 0.055, t = 3.399, Sig. = 0.001), and GSCM also has a positive and significant effect on financial performance (β = 0.652, t = 9.228, Sig. < 0.001). Simultaneously, Environmental Performance and GSCM significantly affect financial performance (F = 61.592, Sig. < 0.001), explaining 51.1% of its variance (R² = 0.511). These findings indicate that stronger environmental performance and more effective GSCM implementation can enhance corporate financial performance, supporting Stakeholder, Legitimacy, and Signaling theories; mining companies are therefore encouraged to strengthen environmental management practices and optimize GSCM implementation as a strategy to support sustainability while improving financial performance.