Published date: Oct 15 2024

Journal Title: KnE Social Sciences

Issue title: 8th International Conference on Sustainability (8th ICoS): Sustainable Economics

Pages: 390–403

DOI: 10.18502/kss.v9i29.17270

Yusuf .mjoes808@gmail.comFaculty of Economics, University of Merdeka Malang, Indonesia

Anwar SanusiFaculty of Economics, University of Merdeka Malang, Indonesia

Harmono .Faculty of Economics, University of Merdeka Malang, Indonesia

Eny LatifahFaculty of Economics and Islamic Business, Institut Agama Islam Tarbiyatut Tholabah Lamongan, Indonesia

The objective of this research is to understand the role of environmental, social, and governance (ESG) in improving the financial performance of insurance companies in Indonesia. A qualitative, library study method was employed, Research results show (1) the role of ESG as definers of competitive advantage, in improving performance, and guaranteeing the sustainability of the company in the future; and (2) the strategy of insurance companies in Indonesia with respect to ESG is to run business with sustainable financial principles and create environmental-based service products. The implications of this study are that the application of ESG principles to insurance companies in Indonesia is expected to drive government programs to implement sustainable development governance (SDGs) in sustainable finance. The novelty of this research is its emphasis on environmentally-based sustainable financial principles.

Keywords: social and environmental governance, roles, strategies, performance, insurance

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