The Effect of SDGs 7 And 13 Disclosure on Firm Value in the SRI-KEHATI Index 2020-2024

Abstract

This study examines the effect of Sustainable Development Goals (SDGs) 7 (Affordable and Clean Energy) and SDGs 13 (Climate Action) disclosures on firm value among companies listed in the SRI-KEHATI Index during 2020–2024. The population comprised all companies included in the SRI-KEHATI Index, with purposive sampling producing 42 companies and 123 observations in an unbalanced panel dataset. Firm value was measured using Tobin's Q, while SDGs 7 disclosure was assessed based on GRI 302 and SDGs 13 disclosure based on GRI 305. The analysis employed panel data regression uses the Fixed Effect Model (FEM), with firm size (SIZE), profitability (ROA), and leverage (DER) as control variables. The results show that SDGs 7 disclosure has a negative and significant effect on Tobin's Q, whereas SDGs 13 disclosure has no significant effect. These findings indicate that the Indonesian capital market may perceive clean energy disclosure and investment as short-term costs that reduce firm value, while climate action disclosure may have limited valuation effects because sustainability characteristics among SRI-KEHATI companies are relatively homogeneous. This study implies that regulators and capital market authorities should improve the quality and depth of SDGs disclosures and encourage communication strategies that highlight the long-term economic benefits of sustainable investments.