<![CDATA[Growing demands for sustainable transformation have encouraged companies to adopt responsible investment practices within operational activities. However, existing empirical findings concerning the association between sustainable investment and corporate value remain inconsistent in environmentally sensitive industries. The present research examines how sustainability-oriented expenditures influence corporate performance appraisal among Indonesian energy firms by incorporating ESG disclosure and financial performance as mediating variables. A quantitative explanatory design was employed in this analysis by utilizing secondary information obtained from corporate annual publications and sustainability disclosures of petroleum, natural gas, and coal enterprises traded on the Indonesia Stock Exchange throughout the 2020–2024 period. Based on purposive sampling criteria, 65 firm-year observations from 13 companies were included in the analysis. Multiple regression and path analysis were employed to examine direct and indirect relationships between the variables. The findings reveal that sustainable investment positively affects financial performance and corporate value, whereas its influence on ESG disclosure is statistically insignificant. Financial performance also positively contributes to corporate value and mediates the relationship between sustainable investment and corporate value. In contrast, ESG disclosure does not exhibit a significant mediating effect. These results indicate that investors in Indonesia’s energy sector remain more responsive to profitability and outcomes than to sustainability practices when assessing corporate value.]]>
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