Beyond profit: How to create value in business by integrating ESG and sustainability accounting

Musviyanti Musviyanti; Muhammad Abadan  Syakura; Muhammad Harits Zidni Khatib  Ramadhani

doi:10.14414/tiar.v14i2.4765

Vol. 14 No. 2 (2024), Articles

Vol. 14 No. 2 (2024)

Beyond profit: How to create value in business by integrating ESG and sustainability accounting

Articles

DOI: 10.14414/tiar.v14i2.4765

Published 2025-01-10

Musviyanti Musviyanti⁺⁻
Muhammad Abadan Syakura⁺⁻
Muhammad Harits Zidni Khatib Ramadhani⁺⁻

Musviyanti Musviyanti

Mulawarman University, Samarinda, East Kalimantan, Indonesia

Muhammad Abadan Syakura

Mulawarman University, Samarinda, East Kalimantan, Indonesia

Muhammad Harits Zidni Khatib Ramadhani

Mulawarman University, Samarinda, East Kalimantan, Indonesia

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Keywords

ESG investment
Sustainability accounting
Green value

How to Cite

Musviyanti, Musviyanti, et al. “Beyond Profit: How to Create Value in Business by Integrating ESG and Sustainability Accounting”. The Indonesian Accounting Review, vol. 14, no. 2, Jan. 2025, pp. 289-00, https://doi.org/10.14414/tiar.v14i2.4765.

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Abstract

This study aims to explore the integration of Environmental, Social, and Governance (ESG) investment with sustainable accounting practices to achieve the Sustainable Development Goals (SDGs) in order to instill important values in sustainable busi-ness. This study is a qualitative study using a case study method at PT Pupuk Kali-mantan Timur (PKT) and its subsidiary, PT Kaltim Industrial Estate (KIE). Data collection was conducted through in-depth interviews. The findings of this study reveal that a proactive approach to ESG adoption is a strategic corporate initiative that emphasizes corporate governance compliance with government regulations, ethical business practices, and fraud prevention. In addition, this study explores insights into the decision-making process related to ESG projects through budget considera-tions for ESG implementation. The results of this study also indicate that there is an important role for management in adopting ESG practices as a company’s commitment to long-term environmental management. The implications of this study are for sustainable development, especially in the fertilizer industry, through the role of an integrated ESG strategy that will ultimately increase corporate profitability, preserve the environment and support the improvement of community welfare. This research contributes to the practical development of sustainability accounting on how industries can integrate sustainable business with environmental responsibility through ESG initiatives to achieve the SDGs.

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Beyond profit: How to create value in business by integrating ESG and sustainability accounting

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