Determinants of carbon emission disclosure of energy sector companies in Indonesia

Abstract

This study aims to provide empirical evidence on the effect of profitability, leverage, media exposure, the size of the board of commissioners, and the size of the board of directors on the carbon emissions disclosure of energy companies listed on the Indonesia Stock Exchange (IDX) for the years 2016 to 2021. There were 34 energy companies used as samples, this sector is the largest emitter of carbon emissions in Indonesia, while there is still a limited review of this sector in previous studies. The data analysis method uses multiple regression analysis. The study's findings that profitability and leverage do not affect companies' carbon emissions disclosures. However, media exposure, the size of the board of commissioners, and the size of the board of directors positively affect the company's carbon emissions disclosure. The findings imply that media exposure can serve as an effective mechanism for communicating corporate sustainability goals. The company should focus on managing the composition of its board of commissioners and directors. This is crucial as these two parties play a significant role in both monitoring and daily management functions of the company, enabling them to guide the company's decisions and actions toward disclosing its carbon emissions.