T This study aims to analyze the impact of sustainability integration on banking profitability, the influence of competitiveness on profitability, and the moderating role of competitiveness in this relationship. sustainability integration is examined through risk governance and sustainable business cases, while profitability is measured using return on assets (roa). this study employs a multi-level analysis by developing the corporate sustainability management (csm) model, which is based on the sustainability performance measurement system - balanced scorecard (spms-bsc) and the triple i framework. this research produces the sustainability adoption (sa) index as a proxy for sustainability innovation diffusion.the data used in this study were collected from 44 banks listed on the indonesia stock exchange from 2017 to 2022 using a purposive sampling method. the findings indicate that sustainability integration has a significantly negative impact on bank profitability. competitiveness also negatively affects profitability, but it strengthens the relationship between sustainability integration and profitability. these results suggest that although sustainability may directly suppress profitability, competition in the banking industry can enhance the effectiveness of sustainability strategies in improving the financial performance of banks in indonesia.