Article Sidebar

Download
Download Article

Main Article Content

Abstract

This study investigates the effects of green credit and carbon emission disclosure on bank profitability, measured by Return on Assets (ROA), while examining the mediating role of Non-Performing Loans (NPLs) in Indonesian conventional commercial banks listed on the Indonesia Stock Exchange during the 2021–2025 period. A quantitative causal research design was employed using secondary data collected from annual reports and sustainability reports. The sample consisted of 25 commercial banks (125 firm-year observations) selected through purposive sampling. Panel data regression analysis was conducted using EViews. The findings indicate that both green credit and carbon emission disclosure have positive and significant effects on profitability, whereas NPL has a significant negative effect on profitability. Green credit does not significantly affect NPL; however, the mediation analysis indicates that NPL mediates the relationship between green credit and profitability. These findings suggest that sustainable financing practices, supported by transparent environmental disclosure and effective credit risk management, contribute to improving bank financial performance. This study contributes to the sustainable finance literature by providing empirical evidence on the interaction between green credit, carbon emission disclosure, and credit risk in the Indonesian banking sector, while offering practical insights for bank management and financial regulators in strengthening sustainable banking policies.

Keywords

Green Credit Carbon Emission Disclosure Non-Performing Loans Profitability Return on Assets

Article Details

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

How to Cite
Felicia, Y., & Sofie, S. (2026). Green Credit, Carbon Emission Disclosure, and Bank Profitability: The Mediating Role of Non-Performing Loans. Golden Ratio of Finance Management, 6(2), 457–477. https://doi.org/10.52970/grfm.v6i2.2472
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Akhdan, A. I. H., Syahdina, A., Yusuf Saputra, R., Sausan, R., Harizahra, M., & Aulia, N. (2025). Determinasi profitabilitas perbankan dari variabel loan to deposit ratio, capital adequacy ratio, non performing loan: Studi empiris pada bank yang terdaftar di Bursa Efek Indonesia. EMAS, 6(6), 1413–1423. https://doi.org/10.36733/emas.v6i6.11741
  2. Al Idris, M. Y., Mansur, F., & Hernando, R. (2025). The influence of green accounting, environmental performance, and carbon emission disclosure on profitability. Jurnal Akuntansi dan Keuangan Universitas Jambi, 10(1), 102–114. https://doi.org/10.22437/jaku.v10i01.45654
  3. Ali Fata, F., & Arifin, Z. (2024). The impact of green credit distribution on bank performance and influencing factors. International Journal of Research in Business and Social Science (2147-4478), 13(1), 323–332. https://doi.org/10.20525/ijrbs.v13i1.3185
  4. Al-Qudah, A. A., Hamdan, A., Al-Okaily, M., & Alhaddad, L. (2023). The impact of green lending on credit risk: Evidence from UAE’s banks. Environmental Science and Pollution Research, 30(22), 61381–61393. https://doi.org/10.1007/s11356-021-18224-5
  5. Andaiyani, S., Muthia, F., & Novriansa, A. (2023). Green credit and bank performance in Indonesia. Diponegoro International Journal of Business, 6, 50–56. https://doi.org/10.14710/dijb.6.1.2023.50-56
  6. Andrian, T., & Kevin. (2021). Determinant factors of carbon emission disclosure in Indonesia. Journal of Southwest Jiaotong University, 56(1). https://doi.org/10.35741/issn.0258-2724.56.1.32
  7. Andriani, S. (2023). Green financing, profitabilitas dan efisiensi kaitannya dengan resiko kredit perbankan di Indonesia: Green financing, profitability and efficiency related to banking credit risk in Indonesia. www.idx.co.id
  8. Buchory, H. A. (2024). Analyzing the impact of cost of funds and non-performing loans on bank profitability. International Journal of Finance & Banking Studies (2147-4486), 13(3), 54–59. https://doi.org/10.20525/ijfbs.v13i3.2994
  9. Budhathoki, P. B., Ghimire, S. R., & Sharma, Y. N. (2025). Green finance and credit risk in Nepalese banking industry. HOLISTICA – Journal of Business and Public Administration, 16(2), 31–48. https://doi.org/10.2478/hjbpa-2025-0015
  10. Choi, B. B., Lee, D., & Psaros, J. (2013). An analysis of Australian company carbon emission disclosures. Pacific Accounting Review, 25(1), 58–79. https://doi.org/10.1108/01140581311318968
  11. Darmawan, D. (2020). Dasar-dasar memahami rasio dan laporan keuangan. UNY Press.
  12. Deegan, C., Rankin, M., & Tobin, J. (2002). A test of legitimacy theory: An examination of the corporate social and environmental disclosures of BHP from 1983–1991. Accounting, Auditing & Accountability Journal, 15(3), 312–343.
  13. Donaldson, T., & Preston, L. E. (1995). The stakeholder theory of the corporation: Concepts, evidence, and implications. The Academy of Management Review, 20(1). https://www.jstor.org/stable/258887
  14. Fauzan, R., Kadek, I., Wishanesta, D., Thawap, R., Darwin, N., Tri, D., Nur, W., Frans, F., Mohammad, S., Manan, A., & Sofyanty, D. (2023). Manajemen perbankan.
  15. Fiana, F., & Endri, E. (2025). Corporate social responsibility and financial performance: The moderating role of firm size. International Journal of Economics and Financial Issues, 15(2), 244–251. https://doi.org/10.32479/ijefi.18059
  16. Fitriawati, I., Reviandani, W., Studi Manajemen, P., & Ekonomi dan Bisnis, F. (2024). Pengaruh return on asset dan current ratio terhadap nilai perusahaan dengan financial distress sebagai variabel intervening pada perusahaan sub sektor perdagangan eceran yang terdaftar di Bursa Efek Indonesia (BEI) tahun 2016–2023. Neraca. http://jurnal.kolibi.org/index.php/neraca
  17. Freeman, E., & McVea, J. (1984). A stakeholder approach to strategic management. http://papers.ssrn.com/paper.taf?abstract_id=263511
  18. Han, S. (2025). The impact of green credit on the profitability of commercial banks: An empirical study based on the Chinese banking industry. Frontiers in Economics and Management, 6(8). https://doi.org/10.6981/FEM.202508_6(8).0020
  19. Harahap, H. H., Rudy, F., Rajagukguk, S., Arifin, I. W., Tinggi, S., Ekonomi, I., & Karya, B. (2024). Peran pembiayaan hijau (green financing) dalam mendorong green economy di sektor usaha mikro, kecil, dan menengah di Sumatera Utara dengan produk ramah lingkungan sebagai variabel mediasi (Vol. 3, No. 2). http://www.journal.stie-binakarya.ac.id
  20. Hery. (2020). Analisis laporan keuangan. Grasindo.
  21. Khamisah, N., Ayu Nani, D., & Ashsifa, I. (2020). Pengaruh non-performing loan (NPL), BOPO dan ukuran perusahaan terhadap return on assets (ROA) perusahaan perbankan yang terdaftar di Bursa Efek Indonesia (BEI) (Vol. 3, No. 2). www.idx.co.id
  22. Krisyadi, R., Volensya, J., Ramadana, M., Bisnis, F., & Manajemen, D. (2026). Pengungkapan emisi karbon dan kinerja perusahaan: Apakah ukuran perusahaan penting? Jurnal Akuntansi dan Manajemen, 23(1), 117–132. https://doi.org/10.36406/jam.v23i1.350
  23. Kuddus, M. R., Hasan, M. M., Islam, M. S., & Hossain, M. K. (2026). Stakeholders’ pressure on carbon neutrality: The role of environmental leadership and green finance. International Journal of Economics and Financial Issues, 16(2), 118–132. https://doi.org/10.32479/ijefi.22408
  24. Kurniawan, I., Malini, H., & Syahputri, A. (2025). Peran credit risk dalam hubungan antara green finance dan profitabilitas bank di Indonesia. ECo-Fin, 7(2), 1154–1168. https://doi.org/10.32877/ef.v7i2.2585
  25. Lailatus Sa’adah, M. R. N., & Nur Aidah Fitriana. (2024). Analisis rasio profitabilitas sebagai alat ukur kinerja keuangan PT Bank Central Asia. Lokawati: Jurnal Penelitian Manajemen dan Inovasi Riset, 2(5), 144–155. https://doi.org/10.61132/lokawati.v2i5.1188
  26. Lalon, R. M., Faruk, M. O., & Amir, K. B. (2025). Investigating the impact of green banking initiatives on bank performance: Empirical evidence from emerging economy. Discover Sustainability, 6(1). https://doi.org/10.1007/s43621-025-01279-6
  27. Lee, P. C., & Suhendah, R. (2026). The effect of carbon emission disclosure, environmental performance, and firm size on profitability. Jurnal Akuntansi, Keuangan, dan Manajemen, 7(2), 289–300. https://doi.org/10.35912/jakman.v7i2.5749
  28. Li, Z., & Chen, P. (2024). Sustainable finance meets FinTech: Amplifying green credit’s benefits for banks. Sustainability, 16(18). https://doi.org/10.3390/su16187901
  29. Osman, R. N. A., Mukhzarudfa, M., Kusumastuti, R., & Tiswiyanti, W. (2026). The effect of environmental cost, carbon emission disclosure, and sustainability reporting on financial performance of consumer non-primary sector companies listed on the Indonesia Stock Exchange: A management accounting perspective with E-Views analysis. Oikonomia: Journal of Management Economics and Accounting, 3(3), 11–19. https://doi.org/10.61942/oikonomia.v3i3.577
  30. Pratiwi, A. M., & Lastiati, A. (2023). Pengaruh stakeholder pressure terhadap sustainability reporting quality dengan profitabilitas sebagai variabel moderasi. Proceeding Auditing and Accounting Conference 2023. https://jurnal.iapi.or.id/index.php/prosiding/article/view/62/39
  31. Putri, D. R., & Murtanto. (2023). Pengaruh carbon emission disclosure, carbon performance, dan green intellectual capital terhadap kinerja perusahaan. Jurnal Ekonomi Trisakti, 3(1), 1069–1080. https://doi.org/10.25105/jet.v3i1.16025
  32. Rahmah, M., Widyastuti, U., & Ahmad, G. N. (2025). The influence of digital transformation, liquidity, credit risk and green credit on bank performance. International Journal of Economics Studies, 2(1).
  33. Ratnawati, Y. (2026). CSR, CED, and financial performance: The moderating role of leverage in IDX transportation sector. EKOMA: Jurnal Ekonomi, 5(2).
  34. Rochman, I. Y. A., & Andayani, S. (2023). Teori sinyal dalam anomali window dressing 2022 dan penurunan risiko kredit macet pada subsektor perbankan: Studi kasus isu resesi 2023. Akuntansi, 2(3), 109–122. https://doi.org/10.55606/akuntansi.v2i3.334
  35. Ross, S. A., Westerfield, R., & Jordan, B. D. (2019). Fundamentals of corporate finance (11th ed.). McGraw Hill Education.
  36. Siddikee, M. J. A., Haq, A. H. M. Z., Parvin, S., Ahammed, M. M. U., & Zabin, S. (2024). Effects of green finance on non-performing loan of banks: Evidence from Bangladesh. Bangladesh Journal of Multidisciplinary Scientific Research, 9(6), 47–57. https://doi.org/10.46281/bjmsr.v9i6.2263
  37. Silpiani, S., & Kusumawardani, A. (2025). Pengaruh NIM, NPL, dan CAR terhadap ROA pada perusahaan perbankan yang terdaftar di BEI periode tahun 2021–2024. ECo-Buss, 8(1), 461–470. https://doi.org/10.32877/eb.v8i1.2713
  38. Simanjorang, G. A., & Leon, F. M. (2026). Digital transformation and green credit: Strategic implications for bank profitability. Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE), 9(1).
  39. Situmorang, R. A., & Yanti, H. B. (2020). Pengaruh carbon emission disclosure dan good corporate governance terhadap profitabilitas dengan media exposure sebagai variabel moderasi. Prosiding Seminar Nasional Pakar ke-3 Tahun 2020.
  40. Sofyan, M., Ratnasari, S. L., Lestari, E. P., Sunaryo, D., & Hidayat, A. (2026). Dynamic interactions of bank risk, capital, liquidity, and profitability in Indonesia: Evidence from VECM and ARDL models. Studies in Business and Economics, 21(1), 280–305. https://doi.org/10.2478/sbe-2026-0013
  41. Sriyono, S., & Nabellah, A. (2022). Can credit quality as a moderating variable in increasing profitability: Study on conventional commercial banks listed on the Indonesia Stock Exchange. Jurnal Siasat Bisnis, 26(1), 23–35. https://doi.org/10.20885/jsb.vol26.iss1.art2
  42. Suchman, M. C. (1995). Managing legitimacy: Strategic and institutional approaches. The Academy of Management Review, 20(3). http://www.jstor.org/stable/258788
  43. Sutrisno, S., Widarjono, A., & Hakim, A. (2024). The role of green credit in bank profitability and stability: A case study on green banking in Indonesia. Risks, 12(12). https://doi.org/10.3390/risks12120198
  44. Tahu, G. P., Gunadi, I. G. N. B., & Antara, I. G. S. (2025). Pengaruh capital adequacy ratio (CAR), non-performing loan (NPL), dan loan to deposit ratio (LDR) terhadap return on asset (ROA) pada perusahaan perbankan yang terdaftar di Bursa Efek Indonesia periode 2020–2022. EMAS, 6(4), 779–791. https://doi.org/10.36733/emas.v6i4.3846
  45. Tari, J. E., & Wahyuningrum, I. F. S. (2026). Carbon emission disclosure perusahaan non-keuangan dalam perspektif teori legitimasi dan stakeholder. AKUA: Jurnal Akuntansi dan Keuangan, 5(2), 268–281. https://doi.org/10.54259/akua.v5i2.6791
  46. Yam, J. (2023). Non-performing loan dan bank sustainability performance. Deepublish.
  47. Yulyanti, S., Lestari, R. A., Shaddiq, S., & Alhempi, R. R. (2022). The effect of NPLS and LDR on the profitability of conventional commercial banks listed on the IDX. International Journal of Latest Technology in Engineering: XI. www.ijltemas.in
  48. Zhou, X. Y., Caldecott, B., Hoepner, A. G. F., & Wang, Y. (2022). Bank green lending and credit risk: An empirical analysis of China’s Green Credit Policy. Business Strategy and the Environment, 31(4), 1623–1640. https://doi.org/10.1002/bse.2973