Determinants of Environmental Performance with the Carbon Management Strategy as an Intervening Variable

Abstract

The purpose of this study is to examine the determinants of environmental performance with carbon management strategy as mediation. Environmental management system, environmental committee, number of director meetings, director's educational background are dependent variables. Environmental performance as dependent variable, carbon management strategy is an intervening variable. In Addition, three control variables are: Firm age, Firm size, and leverage. This study using the population of companies that publish sustainability reports from 2014-2016,exwith 82 research objects. From this study found that environmental management system, environmental committee, number of director meetings and the directors' educational background did not have a positive effect on environmental performance. However, after the mediation of the carbon management strategy, the independent variables all had a positive effect on environmental performance. Thus, it is found that companies that have carbon management strategies will encourage better environmental performance so that they can mitigate greenhouse gases. This study implications for corporate leaders are expected to be able to implement a carbon management strategy to improve better Environmental Performance. Practitioners and the public should be followed to take care of the environment and be more obedient and participate in realizing government regulations regarding house gas mitigation for the preservation of the earth.

Influence of performance measures and sample characteristics on the relationship between corporate environmental management and firm performance: A meta‐analytic review

“…From the perspective of stakeholder theory, the organization's motive should be to fulfill the needs and expectations of all stakeholders (Lince, 2019). In the wake of sustainability, the stakeholders are more aware of environmental concerns and their rights in developed countries as compared to developing countries.…”