<![CDATA[This study examines the effect of Environmental, Social, and Governance (ESG) performance on financial performance and firm value among energy sector firms listed on the Indonesia Stock Exchange during 2021–2024. Using purposive sampling, the study analyzes 264 firm-year observations from 66 companies. ESG functions as the independent variable, financial performance proxied by Return on Assets (ROA) serves as the mediating variable, and firm value proxied by Price to Book Value (PBV) represents the dependent variable. Data were analyzed using PLS-SEM with SmartPLS. The findings indicate that ESG has a negative and insignificant effect on financial performance but a positive and significant effect on firm value. Financial performance also significantly mediates the relationship between ESG and firm value in a negative direction, suggesting that market valuation responds more strongly to ESG legitimacy than to short-term profitability performance.]]>
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