Determinant Factors of Carbon Emission Disclosure in Indonesia

Currently, environmental issues are being discussed in various countries, including Indonesia. Erratic climate change greatly affects global warming worldwide, one of erratic climate change related to carbon emissions disclosures. However, there are still inconclusive findings regarding factors that determine the extent of carbon emissions disclosure. Based on comprehensive research, the objective of this paper is to examine a few selected factors and their relationship to the extent of carbon emissions disclosure. Green strategy, corporate social responsibility disclosure, good corporate governance, the board of directors, institutional ownership, and financial performance were analyzed to seek any significant relationships to the extent of carbon emissions disclosure. To this end, this study used a modified carbon emissions disclosure measurement from previous studies and a Corporate Social Responsibility Disclosure measurement using a combined corporate social responsibilitymatrix from three countries. Corporate annual reports from the consumer goods industry for the years 2015–2019 were examined to verify carbon emissions disclosure practices by applying content analysis and multiple regression analysis with a quantitative approach. The findings show that green strategy, Corporate Social Responsibility Disclosure, good corporate governance, and financial performance were found to have significant positive influences on the extent of carbon emissions disclosure. Meanwhile, the board of directors and institutional ownership had no significant influence on the extent of carbon emissions disclosure. This research can be used as a basis for developing an innovative strategy in environmental protection that can serve as a guideline for internal company regulations and public regulations to consider environmentally friendly products and services.