ESG Disclosures Correlation with Market Performance in Indonesia
Do ESG Disclosures Correlate with Market Performance in Indonesia? Globally, the answer appears to be a resounding yes. CDP, the leading environmental disclosure platform, claims that companies on its prestigious “Climate A List” have consistently outperformed global stock indexes.But does this trend hold true in Indonesia? To find out, NIN put this to the test. Methodology & Source: Using a transparent and repeatable process, NIN analyzed an equal-weighted portfolio of 20 major Indonesian companies that disclosed their environmental data to CDP in 2024. The performance was calculated for the trailing 12-month period from July 1, 2024, to July 1, 2025, using daily Adjusted Close prices sourced directly from Yahoo Finance to ensure an accurate total return figure. The Results: Over the last year, this portfolio of CDP-disclosing companies delivered a remarkable return of +16.04%.In the same period, the IDX Composite (BEI) returned -3.14%. This represents a staggering outperformance of 19.18 percentage points, showcasing significant resilience and growth even as the broader market faced headwinds. While this analysis doesn’t prove a direct causal link, it strongly suggests that companies committed to environmental transparency are not just meeting sustainability goals—they are also delivering exceptional value to their shareholders, both globally and right here in Indonesia.
