Carbon emission report: a review based on environmental performance, company age and corporate governance

Abstract

This research aims to explore the practice of carbon emission disclosure in the manufacturing company. This paper also examines the factors that influence the disclosure of carbon emissions. The factors tested are environmental performance, company age, managerial ownership, institutional ownership, and independent commissioners. This study uses a sample of 40 manufacturing companies listed on the Indonesia Stock Exchange in 2012 - 2015. The data analysis methods included were descriptive statistical analysis and panel data regression analysis. The carbon emission disclosure level in Indonesia’s manufacturing companies is low because companies are less concerned about environmental reporting problems. The results of this study indicate that company age, institutional ownership, and independent commissioners have a positive effect on the disclosure of carbon emissions, while environmental performance and managerial ownership do not affect the disclosure of carbon emissions.

Do Board of Commissioners Characteristic and International Environmental Certification Affect Carbon Disclosure? Evidence from Indonesia

“…The results of this study are supported by Pradini & Kiswara (2013), Ningrum (2018), and Solikhah et al (2021.…”

“…This means that the greater the proportion of independent commissioners, the more capable they are of providing adequate disclosure to stakeholders. This research is supported by research by Solikhah et al (2021) which reveals that the proportion of independent commissioners has a positive relationship with the disclosure of carbon emissions. As supervisors, the board of commissioners tends to realize that voluntary disclosure of carbon emissions can maintain the company's legitimacy.…”

“…Factors that encourage the disclosure of carbon emissions are the existence of corporate governance and international environmental certification (Choi et al, 2013); (Mutmainah & Indrasari, 2017); (Solikhah et al, 2021); (Rahmawati & Budiwati, 2018). One of the indicators in corporate governance is the board of commissioners, it is possible that in the disclosure of carbon emissions, the board of commissioners has a significant role.…”

The impact of audit committee characteristics, financial performance, and listing age on greenhouse gas emission disclosures of highly emitted industry in Indonesia

“…The mean score of GHG disclosures is about 72%. The score is better than those in manufacturing companies 18.7% [33], in non-financial firms, 34% [6], and in the mining industry, 24% [31]. The highest score of GHG was achieved by four companies in the mining industry, namely PT Vale Indonesia, PT.…”

The Effect of Company Size and Audit Committee on Sustainability Reporting

“…This research is based on the theory of legitimacy as the theoretical framework. Big companies will surely get more attention from the public, because the more business operation is done, the greater the impact caused by their activities [23]. The sustainability report aims to maintain the good image and good name of the company [7].…”