The Impact of Environmental Social Governance for Sustainable Development Goals to BTN Mutual Fund Investment Performance
Lely Nurjanti
ABSTRACT
Introduction: The aim of Investment is for obtaining profits in the future. Sustainable mutual fund is a choice as a major force across global financial markets. Sustainable business growth is not only measured by financial aspects but also measured by the positive impact that generates to the environment and society, which can enhance the competitiveness of the company. It is now common to conduct ESG (Environmental, Social, and Governance) scoring for Sustainable Development Goals (SDGs) against mutual fund stocks to obtain mutual funds that are environmentally friendly, and legally safe, with the goal of social welfare.
Objective: Understanding the impact of environmental social governance (ESG) and sustainable development goals (SDGs) on the performance and profitability of BTN mutual fund investment products.
Research Methods: Cohort/Time series research that describes the performance and profitability of BTN mutual fund products that is chosen by investors, based on secondary data from BTN's ongoing reports. The impact of environmental, social governance (ESG) and sustainable development goals (SDGs) on the performance and profitability of BTN mutual fund investment products is analyzed descriptively and quantitatively using multiple linear regression analysis in SPSS.
Novelty: Applied ESG screening/social environmental governance for the Sustainable Development Goals (SDGs), in the management and selection of mutual fund investment products, which will result in increased performance and profitability of low-risk, environmentally friendly, and safe mutual funds. Conclusion. The sustainability score and various pillars of the ESG score for Sustainable Development Goals (SDGs) have a positive impact on the performance and profitability of BTN mutual fund investments.
