Corporate governance and carbon emissions disclosure: Evidence from non-financial companies in Indonesia

Abstract

Increasing global pressure to mitigate climate change has intensified the demand for corporate transparency in carbon emissions, particularly in emerging economies where disclosure practices remain largely voluntary. This study examines the effect of corporate governance on carbon emissions disclosure. Corporate governance is proxied by gender diversity, the proportion of independent commissioners, foreign ownership, company size, and company age. The data were obtained from the annual and sustainability reports of non-financial companies listed on the Indonesia Stock Exchange (IDX) over the period 2020–2024. Purposive sampling was employed to select 40 companies, resulting in 200 firm-year observations. Data were analyzed using panel data regression with the Fixed Effects Model (FEM). The results show that gender diversity, the proportion of independent commissioners, and foreign ownership do not have significant effects on carbon emissions disclosure. In contrast, company age has a positive and significant effect, whereas company size has a negative and significant effect. These findings imply that formal corporate governance attributes alone are insufficient to enhance carbon transparency in emerging economies, particularly when disclosure remains largely voluntary and regulatory enforcement is still developing. For policymakers, the results highlight the need to strengthen regulatory frameworks and move beyond voluntary disclosure toward mandatory and standardized reporting practices. For management, the findings suggest the importance of developing internal sustainability capabilities and integrating environmental disclosure into long-term strategic planning, particularly for large firms that may tend to limit transparency.