The Impact of Environmental Commitment on Financial Performance: With Green Innovation As Mediating Variable

Commitment to the community is part of a larger corporate plan involves not only development and expansion but also a concern for social responsibility. The issue of commitment to environmental sustainability has recently become increasingly popular and this has been emphasized in the 2030 Agenda and Sustainable Development Goals (SDGs) Agenda 2063. The purpose of this study was to examine the effect of environmental commitments referring to ISO 14001 as an independent variable on the financial performance of companies using return on assets (ROA) as the dependent variable through green product innovation as a mediating variable. The sample was taken from the financial reports of manufacturing companies listed on the Indonesia Stock Exchange (IDX) for 2019-2021. Samples were selected using the method of purposive sampling. Analysis using SPSS 25 with path analysis method and multiple linear regression analysis with a significance level of 5%. The results of this study indicate that environmental commitment has no effect on financial performance,  but green product innovation has succeeded in partially mediating the effect of environmental commitment on financial performance