Does A Sustainability Committee Matter? Examining Its Moderating Role Between Sustainability Disclosure and Firm Value : Evidence from Indonesia

Amid increasing climate risks, stricter sustainability regulations, rising stakeholder expectations, evaluating the economic relevance of sustainability disclosure become critical, particularly in environmentally sensitive sectors within emerging markets. This study examines the effect of sustainability disclosure on firm value, with the sustainability committee serving as a moderating governance mechanism. Using a quantitative causal approach, this study analyzes panel data from 27 energy sector companies listed on the Indonesia Stock Exchange (IDX) over the 2022–2024 period, yielding 81 firm-year observations selected through purposive sampling. Panel data regression was conducted using EViews 12, and the Random Effect Model (REM) was identified as the most appropriate estimation technique based on the Chow, Hausman, and Lagrange Multiplier tests. The results indicate sustainability disclosure has a positive but statistically insignificant relationship with firm value. Similarly, the sustainability committee does not have a significant direct effect on firm value. The moderating analysis further shows that the interaction between sustainability disclosure and the sustainability committee is insignificant, suggesting that the presence of a sustainability committee does not strengthen the disclosure–firm value relationship. These findings imply that sustainability disclosures and related governance structures in Indonesia’s energy sector remain largely symbolic and have not yet been substantively embedded in corporate value creation strategies. This study contributes to the sustainability governance literature by highlighting the limited economic implications of sustainability disclosure and sustainability committees in an emerging market context, while offering insights for firms and policymakers to enhance the strategic role of sustainability governance in supporting long-term firm value.