<![CDATA[The increasing focus on Sustainability and ESG (Environmental, Social, and Governance) has made environmental costs a key concern for Indonesian corporations, particularly in the energy sector where implementation costs are significant. This literature review, which analyzed ten scientific articles published between 2021 and 2025, sought to determine if these environmental costs act as a financial burden or a strategic investment impacting Return on Assets (ROA). The synthesis revealed mixed empirical evidence. The majority of studies (50%) support the view that environmental costs are long-term strategic investments that positively influence profitability, corporate reputation, and competitiveness, aligning with aspects of Legitimacy Theory. Conversely, 30% of the findings suggest these costs are a financial burden, negatively impacting net profit, often due to short-term market inefficiencies. The remaining 20% indicated no significant effect on profitability, showing a disconnect between environmental spending and financial performance fluctuations. This variation highlights a literature gap concerning the true impact of environmental costs within Indonesian energy companies. The study concludes that environmental expenditures spark a three-way debate investment, burden, or no effect underscoring the need for management to reassess strategies for converting environmental compliance costs into sustainable economic value.]]>
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