<![CDATA[Profitability is a key indicator of performance for oil palm plantation companies, but long-term profitability is increasingly influenced by their ability to manage environmental, social, and governance (ESG) risks and opportunities. This article presents a narrative literature review to develop an ESG-based sustainability model and examine its relationship with profitability, primarily proxied by Return on Assets (ROA). The Environmental dimension covers emissions reduction, biodiversity protection, land management, waste and water management, and sustainable production. The Social dimension encompasses worker welfare, occupational safety, community relations, human rights, and smallholder inclusion. The Governance dimension includes board oversight, transparency, risk management, compliance, and stakeholder accountability. The synthesis indicates that sustainability standards and early adoption can influence palm oil company performance, although financial impacts vary because ESG implementation involves costs alongside benefits such as operational efficiency, market access, reputation, and risk reduction. The proposed model positions ESG as a multidimensional strategic capability that influences profitability through operational efficiency, risk reduction, legitimacy, market access, and stakeholder trust. This article provides a conceptual foundation for future empirical testing of oil palm plantation companies without claiming statistical results from company data.]]>
Copyrights © 2026
