The effect of environmental management disclosure and green innovation on the Indonesian food and beverages industry’s sales growth

Abstract

The food and beverage industry is the largest contributor to waste in Indonesia. It is because the product packaging waste has not been handled properly. This industry will continue to grow following population growth and the level of people’s purchasing power every year, so there is a risk that it will generate more post-production waste. This study examines the disclosure of environmental management practices, and green innovations carried out by food and beverage companies in Indonesia. This study also wants to see the effect of information disclosure and environmental innovation implementation on product sales growth. Based on the purposive sampling technique, this study employed 54 food and beverage industry companies listed on the Indonesian stock exchange from 2017-2019. This study used descriptive statistical analysis and panel data regression. The research results showed that green innovation had a significant positive effect on sales growth, while environmental management disclosure has a significant negative effect. The company has also actively supported government programs in green innovation, among them using new technologies that can reduce waste and production materials that can be recycled.