Font Size: 

The purpose of this study is to compare the impact of stock return and firm performance before and after the implementation of Financial Services Authority Regulation No. 51/POJK.03/2017. The population of this study is energy companies listed on the Indonesia Stock Exchange in 2016-2023. From 8 years of data of 92 companies selected through purposive sampling, 46 companies were selected. This study uses quantitative research with a comparative approach where sustainability reports were used as a benchmark to show the impact of POJK NO. 51. The result of this study indicated that the regulation of POJK No. 51 in Indonesia does not affect stock return, but instead affects the return on assets (ROA). While companies that diligently implement the rule shows that sustainability reports don’t affect stock return and ROA. The lack of awareness from the investor side and companies not fully disclosing all relevant information to sustainability reports become the main reason for these findings. Future studies could explore the long-term effects of mandatory ESG disclosures on different financial performance metrics, across multiple sectors, in addition to various factors such as investor awareness and the quality of sustainability reports.