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Sustainable finance is a business principle that can generate profit today without sacrificing future generations by considering the economic, social, and environmental aspects. Regulation on the implementation of sustainable finance for financial service institutions (FSI), issuers, and public companies issued by the Financial Service Authority/Otoritas Jasa Keuangan (FSA/OJK) is arranged in the Financial Service Authority Regulation/Peraturan OJK (POJK) Number 51/POJK.03/2017. FSI consists of all banks in Indonesia, including sharia commercial banks. This research aims to measure the level of sustainable finance disclosure in sharia commercial banks using POJK 51/ POJK.03/2017, testing its determinants i.e., corporate governance elements which consist of board of directors, independent directors, and audit committee, and observing its influence on the profitability. The study sample is 10 PSB issuing sustainable reports and annual reports on their websites with an observation period of 4 years (2016)(2017)(2018)(2019). The data were analyzed using Partial Least Square-Structural Equation Model (PLS-SEM). The study results show that sustainable finance disclosure is executed at a high level. Furthermore, the board of directors and the audit committee are determinants that have a positive effect on sustainable finance disclosure, while independent directors have a negative effect. However, sustainable finance disclosure itself has no effect on profitability.
Qudriyah et al. (Fri,) studied this question.