This research explores the connection between Environmental, Social, and Governance (ESG) ratings, carbon emission disclosure, profitability, and firm value among publicly traded firms in Indonesia. Using path analysis, it investigates whether profitability acts as a mediator between sustainability factors and firm value. The results indicate that carbon emission disclosure enhances profitability, which subsequently boosts firm value, highlighting the role of profitability as a linking factor. However, ESG ratings do not exhibit a significant direct or indirect impact on firm value, implying that investors may not consider ESG scores as a reliable measure of financial performance. From the standpoint of signaling theory, transparent carbon disclosure reassures investors by reinforcing trust in a company’s financial strength and managerial effectiveness. These findings highlight the importance of integrating sustainability efforts with clear financial communication to maximize their influence. Future studies should explore industry differences and cross-country comparisons to gain deeper insights into the financial effects of sustainability practices.