<![CDATA[This study examines the relationship between the implementation of Environmental, Social, and Governance (ESG) and corporate financial performance, with digital transformation as a moderating variable. Profitability is measured using the indicators return on assets (ROA)and return on equity (ROE). The objects of this study are companies listed on the Indonesia Stock Exchange during the period 2019-2023 and have published sustainability reports annual reports containing ESG information. The sampling method used was purposive sampling, resulting in a number of companies that met the research criteria. The results of this study indicate that ESG has a negative and significant effect on ROA. However, the effect on ROE is not significant, which indicates that an increase in ESG is not directly correlated with an increase in equity returns. On the other hand, digital transformation is proven to strengthen the relationship between ESG and ROA, but does not significantly moderate the relationship between ESG and ROE. This study provides important implications that ESG-based sustainability strategies and digitalization contribute to increased efficiency and operational performance, but are not always reflected in returns to shareholders. Therefore, companies need to consider broader performance metrics in assessing the impact of ESG.]]>
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