Environmental Sustainability, Production Cost Efficiency, and Financial Performance in Indonesian Manufacturing Firms Listed on the Indonesia Stock Exchange 2022–2024

Abstrak

The development of sustainable practices in industry manufacturing is becoming increasingly important amid growing pressure from regulations, environmental concerns, and stakeholder demands, while still safeguarding performance and finances. Research. This aims to analyze the influence of the performance sustainability environment on the performance of the finance company, considering the roles of mediation efficiency and production costs in the company's manufacturing operations in the Cirebon area, post-carbon tax regulations. Methods used are quantitative, with an associative design, using secondary data from the financial and sustainability reports for the 2020–2024 period, and analyzed using Structural Equation Modeling based on Partial Least Squares (SEM-PLS). The expected research results show that a sustainable performance environment has a positive influence on financial performance, directly, and no direct influence through improved efficiency in production costs. Efficient cost production serves as a mechanism that bridges operations and sustainability practices, improving the company's profitability. In conclusion, the implementation of sustainability strategies integrates environmental efficiency with operational No only does it help the company fulfill regulations, but it also sustainably increases performance, especially in the context of the manufacturing industry in the region develop like Cirebon