Beyond the Bottom Line - A Qualitative Content Analysis of Sustainability Performance Drivers in Indonesian Banks

Oct 18, 2026

Uploaded by Aurelia

Banks shape sustainable development by reallocating capital toward sustainable initiatives, potentially driving transitions through financing, technical assistance, and risk management. This qualitative study identifies key drivers of sustainability performance in Indonesian banks using sustainability reports from PT Bank CIMB Niaga and PT Bank Mandiri across 2022–2023. The analysis links materiality, strategy, stakeholder engagement, external assurance, Green Taxonomy, firm valuation, and ESG risk ratings.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages20

Reading Time50 min

AccessFree to download

Abstract

Purpose

Design/methodology/approach

Findings

Originality/value

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QRFM 18,3 728 Received 7 September 2024 Revised 13 February 2025 Accepted 8 May 2025 Beyond the bottom line: a qualitative content analysis of sustainability performance drivers in Indonesian banks Iwan Suhardjo and Chris Akroyd Department of Accounting and Information Systems, University of Canterbury, Christchurch, New Zealand, and Meiliana Suparman Department of Accounting, Faculty of Management and Business, Universitas Internasional Batam, Batam, Indonesia Qualitative Research in Financial Markets Vol. 18 No. 3, 2026 pp. 728-747 © Emerald Publishing Limited 1755-4179 DOI 10. 1108/QRFM-09-2024-0241 Abstract Purpose – Banks are key to sustainable development, influencing corporate behavior by allocating capital towards sustainable initiatives. Because of this, they can drive the transition to a more sustainable future through financing, technical assistance and risk management. This study aims to identify the key drivers of sustainability performance in Indonesian banks by analyzing their sustainability reports. Design/methodology/approach – Grounded in stakeholder theory, we conducted a qualitative content analysis of the sustainability reports of two Indonesian banks (PT Bank CIMB Niaga Tbk [BNGA] and PT Bank Mandiri (Persero) [BMRI] from 2022 to 2023. The authors examined the alignment between materiality, strategy and stakeholder engagement, the presence of external assurance and the implementation of Green Taxonomy. The authors also analyzed the relationship between reported sustainability performance, firm valuation and environmental, social, and governance (ESG) risk ratings. Findings – The four key drivers that influence the sustainability performance of banks are the alignment of materiality, strategy and stakeholder engagement; implementation of Green Taxonomy; strong sustainability governance; and effective risk management. By incorporating environmental and social performance alongside governance and economic performance, these banks have demonstrated a comprehensive approach to sustainability that can positively impact their firm valuation and ESG risk ratings. This analysis showed that BNGA prioritizes customer data security, privacy and governance. BMRI highlights its own unique strengthsin sustainability reporting with different priorities and commitments. Originality/value – This study contributes to the literature by providing insights into the specific drivers of bank sustainability performance in Indonesian. It offers practical recommendations for banks seeking to improve their sustainability practices and contribute to positive social and environmental impacts. Keywords Sustainability performance, Materiality, Sustainability strategy, Stakeholder engagement, External assurance, Environmentally responsible lending Paper type Research paper 1. Introduction The concept of sustainability has evolved from a local concern to a global imperative. Throughout history, societies have grappled with the challenge of managing resources and practices for long-term viability. From early civilizations facing depletion of agricultural land to the environmental impact of the industrial revolution, the need to balance human needs with environmental well-being is a recurring theme (Milne and Gray, 2013) . The modern understanding of sustainability encompasses environmental, social and economic considerations, emphasizing responsible resource use, social equity and long-term economic prosperity. Indonesia, a nation rich in natural resources and experiencing significant economic growth, faces a unique challenge: to achieve development that is sustainable (The Organization for Economic Cooperation and Development, 2018). Balancing economic prosperity with environmental and social responsibility demands innovative solutions (Gai et al., 2023; Ielasiet al., 2023; Tan et al., 2021). Recognizing this challenge, Indonesia has taken steps towards amore sustainable future. One key init

FAQs

What is the purpose of this study?

The study aims to identify the key drivers of sustainability performance in Indonesian banks by analyzing their sustainability reports.

How was the research conducted?

Using grounded stakeholder theory, the authors conducted a qualitative content analysis of sustainability reports from two Indonesian banks for 2022–2023.

What key drivers were found to influence sustainability performance?

The four drivers are alignment of materiality, strategy and stakeholder engagement; implementation of Green Taxonomy; strong sustainability governance; and effective risk management.

Oct 18, 2026

Uploaded by Aurelia