<![CDATA[The growing adoption of Environmental, Social, and Governance (ESG) principles has transformed the banking industry from a profit-oriented business model toward sustainable value creation. In the Islamic banking sector, ESG disclosure is closely aligned with the principles of Maqasid al-Shariah, which emphasize ethical conduct, transparency, social responsibility, and environmental stewardship. This study aims to examine the effect of ESG disclosure on the financial performance of Islamic commercial banks in Indonesia during the 2020–2025 period. The research employs a quantitative explanatory approach using panel data obtained from the annual reports and sustainability reports of Islamic commercial banks. ESG disclosure is measured through the environmental, social, and governance dimensions, while financial performance is represented by Return on Assets (ROA) and Return on Equity (ROE). Panel data regression analysis is applied to evaluate both the partial and simultaneous effects of ESG disclosure on financial performance. The findings indicate that environmental, social, and governance disclosures each have a positive and significant effect on financial performance, while the three dimensions jointly contribute to improving the profitability of Islamic banks. Among the ESG dimensions, governance disclosure demonstrates the strongest influence, highlighting the importance of transparency, accountability, and effective Shariah governance in achieving sustainable financial performance. These findings contribute to the literature on sustainable finance and Islamic banking by providing empirical evidence from Indonesia and offer practical implications for banking practitioners, regulators, and investors in strengthening ESG implementation to enhance long-term competitiveness and sustainable value creation.]]>
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