Unveiling the Impact: How Specific Bank and Macroeconomic Factors Influence on Sustainability Report

Abstract

This research examines the influence of bank-specific and macroeconomic factors on the sustainability reporting of Islamic banks in Indonesia. Using quantitative methods and data from 44 observations, this study evaluates the influence of independent board of commissioners (BC_IND), size, growth, age, leverage, BOPO ratio, GDP, and inflation on sustainability reporting as measured by the Global Reporting Initiative (GRI) G4 index. The results indicate that growth, BOPO ratio and macroeconomic faktors have no significant effect on sustainability reporting. In contrast, size, age, have a positive effect while the size of the board of independent commissioners (BC_IND) has a negative effect on sustainability reports. These results suggest that a larger number of independent commissioners contributes significantly to lower sustainability reporting. This highlights the importance of age and size in improving sustainability performance in Islamic banks. Increasing assets and maintaining business sustainability can enhance performance in sustainability reporting. This research provides valuable insights for policy makers and bank management in the Islamic financial sector in Indonesia and highlights the need for further exploration of asset size in Islamic banks and the impact on sustainability.