ESG, RSPO Certification and Financial Outcomes of the Palm Oil Industry: Evidence from Southeast Asia

Rizka Wahyuni; Dian Yuni Anggraeni; Khalilul Rahman

Authors

Rizka Wahyuni Andalas University Author
Dian Yuni Anggraeni Andalas University Author
Khalilul Rahman Tidar University Author

Keywords:

ESG, RSPO Certification, Financial Outcomes, Palm Oil, Southeast Asia

Abstract

This study investigates the impact of Environmental, Social, and Governance (ESG) performance along with RSPO certification on the financial results of palm oil companies between 2019 and 2023. The research employs a deductive approach, analyzing data through multiple linear regression using Ordinary Least Squares (OLS) implemented in STATA version 17. This method validates the relationships between ESG performance, RSPO certification, and corporate financial outcomes in Southeast Asian palm oil companies. The findings demonstrate that firms integrating ESG principles and obtaining RSPO certification experience significant improvements in Return on Assets (ROA), underscoring the vital role of sustainable practices in enhancing profitability amid environmental challenges. The results highlight the importance for palm oil firms to embed ESG factors and pursue sustainability certifications to boost competitive advantage and satisfy stakeholder demands. This study supports the Triple Bottom Line framework, emphasizing that balancing economic, environmental, and social objectives drives long-term business success in a rapidly evolving global market.

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