The practice of disclosing carbon emissions in developing countries: Evidence from indonesia

Abstract

This study seeks to analyze the practice of disclosing carbon emissions by public companies in Indonesia. It also explores what determinants influence these emissions. The determinants that have been tested are institutional ownership, board diversity, profitability, leverage, and environmental performance. This study uses a sample of 35 public companies in non-financial sectors that were listed on the Indonesia Stock Exchange during the period 2017-2021. The collected data were analyzed using descriptive statistical analysis and multiple linear regression analysis. The results show that disclosure of carbon emissions in Indonesia still tends to be low. The factors found to influence this disclosure are environmental performance which has a positive effect and institutional ownership has a negative effect. Meanwhile, other variables such as the diversity of board nationalities, profitability, and leverage have no effect on the disclosure of carbon emissions.