Business Sustainability Performance on Pandemic: Lesson from IDX ESG Leaders Company

Abstract

The study aimed to determine the effect of the Covid-19 pandemic on company profitability on the IDX ESG Leaders index on the Indonesia Stock Exchange. The IDX ESG Leaders Index measures the stock price performance of companies that have sound ESG ratings. The constituents of the IDX ESG Leaders Index consist of 30 companies. The company’s profitability measurement uses earnings per share (EPS), EPS data used in research based on the company’s 2019 and 2022 financial statements. Data processing is done using SPSS statistics software. The study results concluded that during the Covid-19 pandemic, as many as 19 companies experienced an increase in profitability, and the remaining 11 companies experienced a decrease in profitability. The results of the ESG assessment show that as many as 14 companies are included in the medium risk score category; this provides an overview of the application of business sustainability practices in companies listed on the stock exchange is quite good. The Covid-19 pandemic has significantly affected companies’ profitability on the IDX ESG Leaders index. During the Covid-19 pandemic, companies implementing ESG practices have resilience and generate good profits.