Factors That Can Be Predictors of Carbon Emissions Disclosure

Arini Nur Khulil Jannah, I Made Narsa

doi:10.24912/ja.v25i1.725

Abstract

This research is to analyze the role of ISO 14001, performance environment index PROPER, environmental committee, and foreign diversity to carbon emissions disclosure in the plantation company that registered at the Indonesian stock exchange of 2013 to 2019. The data used was 77 companies. The testing of hypotheses uses multiple linear regression with a minimal significance of 5%. this research proves that there is four a variable that has a significant result on the disclosure of the carbon emission in plantation company that is ISO 14001, performance environment index PROPER, environmental committee and Foreign diversity. Three variables have no effect on the disclosure of carbon emissions that is age company, leverage, and return of equity. This research can be used stakeholder to see the company’s responsibilities through their environment to ensure there is no risk in the company’s future performance before reaching their investment decision.

Highlights

Despite the acceleration and success of the world’s technology and industry, several inevitable adverse effects can be attributed to the drastic climate changes (Stern, 2008; Yunus et al, 2016)
The causal relationship examined in this study is the effect of International Standardization Organization (ISO) 14001, environmental performance, environmental committee, and foreign diversity on carbon emission disclosure
Carbon emission disclosure in this research are adopted from (Choi et al, 2013) and the checklist is based on information which consists of six categories of risks and climate change; calculation of greenhouse gas emissions; energy consumption; reduction of greenhouse gases; cost and accountability of carbon emissions; all further detailed into 18 index items of the Carbon Emission Disclosure Checklist

Summary

Introduction

Despite the acceleration and success of the world’s technology and industry, several inevitable adverse effects can be attributed to the drastic climate changes (Stern, 2008; Yunus et al, 2016). The International Standardization Organization (ISO) published an environmental management certification that companies can voluntarily accomplish, i.e., ISO 14001 (Hettige et al, 2000). ISO 4001 is an international standard environmental management system that contains requirements for structured management approaches for environment conservation to ensure that all process in a company has fulfilled its commitment to the environment (Orcos and Palomas, 2019). A previous study discovered companies that implemented the internal management procedures based on ISO 14001 reported better carbon emission disclosures and environmental performance (Hettige et al, 2000; Ikram et al, 2019; Orcos and Palomas, 2019)

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