Unveiling the Link: How Green Accounting and CSR Influence Financial Performance Through Environmental Performance

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Growing global concern regarding sustainability has encouraged companies to adopt environmentally responsible practices, including green accounting and corporate social responsibility (CSR). This study aims to analyze the influence of green accounting and CSR on financial performance, with environmental performance serving as a mediating variable. The research focuses on manufacturing companies listed on the Indonesia Stock Exchange during the 2020–2024 period. A quantitative approach was employed using secondary panel data obtained from annual and sustainability reports, which were analyzed through multiple regression and mediation analysis. The findings indicate that green accounting has a positive and significant effect on financial performance, suggesting that the integration of environmental costs into accounting systems contributes to operational efficiency and profitability. Meanwhile, CSR and environmental performance show positive but insignificant effects on financial performance, implying that sustainability initiatives are not yet fully integrated into corporate strategic management. Furthermore, environmental performance was found unable to mediate the relationship between green accounting and financial performance. These findings imply that companies should strengthen the implementation of sustainability practices and improve the integration between environmental reporting and financial management systems in order to achieve long-term business performance and competitiveness.