The purpose of this study was to determine the effect of GIC and GI on CES. The research focused on consumer goods sector listed on the IDX for 2018-2022 period with a sample of 42 companies. The research method uses quantitative data analysis with a panel data regression analysis approach. Findings reveal a significant and positive relationship between GIC and CES. GIC enables companies to adopt sustainable business practices, which increases company profitability. GIC provides a competitive advantage in managing environmental risks, meeting customer demands regarding environmental issues, and adapting to changes in regulations related to sustainability. However, the results also show a significant negative impact of GI on CES. GI may lead to a decline in CES in the short term because significant financial resources are required to implement green innovations, which can reduce a company's financial elasticity. This can force companies to abandon profitable production and investment activities.