Clustering of Companies Based on Sustainability Performance using ESG Materiality Approach: Evidence from Indonesia

• DOI: 10.32479/ijeep.15393
• Publication Date: 2024-03-15T07:45:44Z
• Authors: Erwin Saraswati; Abdul Ghofar; Sari Atmini; Ayu Aryista Dewi
• Keywords: Materiality; Sustainability Reporting

The framework for environmental, social, and governance (ESG) disclosure has become crucial throughout the world. Globally, various ESG reporting frameworks have emerged, but there are still few companies in Indonesia that involved ESG. This research aims to develop an performance assessment instrument based on material aspects of sustainability all industries Indonesia. data was obtained by extracting 472 corporate reports during 2021 indicators were determined through focus group discussions inter-rater reliability tests. this study adopted methodology Refinitiv Institute indicator weights modified according new indicators. A total 65 analyzed these showed majority relatively satisfactory a moderate level transparency important public. Cluster analysis with K-means algorithm shows each company needs improve at least one pillar. results support initiatives been taken global regulators stock exchanges require disclose information future.