Asep Marfu, Agung Purwanto, Dwi Atmanto
This study aims to investigate the role of environmental knowledge in building environmental awareness to enhance Environmental, Social, and Governance (ESG) performance and promote green innovation among Indonesian companies. The research aims to provide empirical evidence on how these factors interrelate, particularly within the Indonesian context. A quantitative research design was employed, with data collected from 200 companies across various sectors through structured questionnaires using Likert scales. The data were analyzed using PLS-SEM, MGA, and FIMIX-PLS to explore the relationships between environmental knowledge, environmental awareness, ESG performance, and green innovation. The key findings indicate that environmental knowledge significantly enhances environmental awareness, which subsequently has a positive impact on both ESG performance and the adoption of green innovation practices. However, companies face challenges such as high implementation costs, lack of understanding of ESG principles, and insufficient support from government and regulatory bodies, which hinder optimal ESG practices. The study recommends that companies invest in comprehensive environmental education programs and seek stronger collaboration with government bodies to improve ESG outcomes and drive green innovation. The novelty of this research lies in its empirical analysis of the mediating role of environmental knowledge in the relationship between ESG performance and green innovation, offering valuable insights for policymakers and business leaders aiming to enhance sustainability practices in Indonesia. © The Author(s) 2026.
Universitas Negeri Jakarta, Jakarta, Indonesia
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