Environmental Audit Committee Research Articles

Peran Moderasi Dewan Komisaris Independen dan Auditor External Dalam Hubungannya Diantara Pengungkapan Akuntansi Lingkungan dan Nilai Perusahaan

Research objective: To provide empirical evidence of independent boards of commissioners and external auditors in moderating the influence of environmental accounting disclosures on firm value. Method/approach: This research uses multiple regression analysis and purposive sampling method with the sample criteria being firms that take part in the environmental management assessment of the Ministry of Environment and Forestry. A total of 112 companies in 2021 and 2022 were used from various sectors except the financial sector. Results: Environmental accounting disclosures, company size, profitability and audit committee were found to have no influence on company size. Meanwhile, the independent board of commissioners and the big four external auditors were found to have an influence on environmental accounting disclosures, however only the independent board of commissioners could moderate the influence of environmental accounting disclosures on firm value. Practical implications: Independent boards of commissioners in natural resource, service and manufacturing firms have exercised their independence as proven by being able to moderate the influence of the spread of environmental accounting on firm value. This may attract the attention and investment interest of investors and stakeholders. Originality/novelty: Making the independent board of commissioners and external auditors as moderating variables, adds evidence to agency theory that simply giving power and appointing firm management is not enough but the independent board of commissioners must carry out independent supervision so that it can increase firm value.

PENGARUH KINERJA LINGKUNGAN DAN FAKTOR LAINNYA TERHADAP NILAI PERUSAHAAN MANUFAKTUR DI INDONESIA

The purpose of this study was to determine the effect of environmental performance, profitability, firm size, board of director on firm value. In addition, this study uses audit committee, institutional ownership and capital structure to determine the effect on firm value. The population of this study are manufacturing companies listed on Indonesia Stock Exchange during 2019 – 2021 period. The sampling technique use purposive sampling with the results of 35 companies which were tested using multiple linear regression. The following results from this study indicate that environmental performance, profitability, audit committee, institutional ownership and capital structure has no effect on firm value. While, company size and board of directors affect firm value because each of these variables can attract investors to invest.

Pengaruh Pengungkapan Akuntansi Lingkungan dan Mekanisme Good Corporate Goverence terhadap Kinerja Keuangan Perusahaan: Studi Empiris Perusahaan Pertambangan dan Consumer Non Cylicals yang terdaftar di Bursa Efek Indonesia Periode 2018-2022

Financial performance is a description of the achievement of a company or the results of achievements that have been achieved by the company's management in carrying out its function of effectively managing the company's assets during a certain period. The purpose of this study was to examine the effect of environmental accounting implementation and good corporate governance mechanisms on company financial performance. The population in this research is mining companies and consumer non-cyclicals listed on the IDX in 2018-2022. Sampling using purposive sampling method, so that 12 companies will be used as research samples. The variables used are environmental accounting, constitutional ownership, audit committee, and independent commissioners as independent variables, while the company's financial performance as the dependent variable Hypothesis testing is carried out using a simultaneous significant test using multiple linear regression models. Partial significance test (t test) with α = 5% is used to test the hypothesis.The results of the tests that have been carried out indicate that there are two variables of environmental accounting disclosure and audit committee that have a significant positive effect on financial performance, while constitutional ownership and independent commissioners have no statistically insignificant effect on the company's financial performance.

PENGARUH PROFITABILITAS, ENVIRONMENTAL MANAGEMENT SYSTEM, KEPEMILIKAN INSTITUSIONAL DAN KOMITE AUDIT TERHADAP CARBON EMISSIONS DISCLOSURE

This study aims to analyze the effect of profitability, environmental management systems, institutional ownership, and audit committees on carbon emission disclosure. The research population is energy companies registered on the Indonesia Stock Exchange in 2019-2021. The sample selection used a purposive sampling technique and resulted in 47 companies as the final sample. The results of this study show that the environmental management system and audit committee significantly affect carbon emission disclosure. In contrast, profitability and institutional ownership do not significantly affect carbon emission disclosure.

PENGARUH KINERJA LINGKUNGAN DAN KOMITE AUDIT TERHADAP PENGUNGKAPAN CORPORATE SOCIAL RESPONSIBILITY DENGAN RISK MINIMIZATION SEBAGAI VARIABEL MODERASI

This study aims to examine and obtain empirical evidence regarding the Effect of Environmental Performance and Audit Committee on Corporate Social Responsibility Disclosure with Risk Minimization as a Moderating Variable. The population in this study are non-financial sector companies listed on the Indonesia Stock Exchange in 2017 – 2021. The data collection technique in this study uses secondary data with the data collection method, namely documentation. The sample collection technique for this research was purposive sampling using the Eviews 9 media software. This study used samples obtained from 13 non-financial sector companies, the analysis technique used was panel data regression. The research used is an associative quantitative approach. The results of this study indicate that Environmental Performance has no effect on Corporate Social Responsibility Disclosure, Audit Committee has no effect on Corporate Social Responsibility Disclosure, Risk Minimization cannot moderate the effect of Environmental Performance on Corporate Social Responsibility Disclosure, and Risk Minimization cannot moderate the effect of Audit Committee on Corporate Social Responsibility Disclosure.

Does media exposure and media legitimacy moderate the relationship between environmental audit committee and environmental disclosure quality?

PurposeThis study aims to examine the moderating effect of media exposure and media legitimacy on the environmental audit committee (EAC) regarding environmental disclosure quality as measured by voluntary and timely disclosure.Design/methodology/approachThis paper was based on a sample of 81 French nonfinancial companies listed on the SBF 120 index and covered a six-year period; from 2014 to 2019. To test the hypotheses, a feasible generalized least squares regression was applied. Moreover, the authors checked the results using an additional analysis and the generalized method of moment model for endogeneity problems.FindingsThe results obtained show that for 482 French firm-year observations during the period 2014–2019, the media exposure does not play a moderating role between the EAC and the voluntary environmental disclosure; However, it plays a moderating role between the EAC and the timely environmental disclosure. The results also show that media legitimacy plays a moderating role between the EAC and the quality of environmental information. After testing for endogeneity problems, the findings remain unchanged.Research limitations/implicationsThe findings of this study may be of interest to academic researchers, practitioners and regulators who are interested in determining the quality of environmental disclosure by considering the role of the EAC while giving a role to media exposure and media legitimacy in the French context. Considering the EAC as a powerful source of effective corporate governance to improve the quality of environmental disclosure for decision-making, the research provides valuable insights for policymakers and managers on the importance of this mechanism and the importance of the environmental media and its tone in making environmental reporting useful and relevant.Originality/valueThe originality of the work lies in the fact that it is one of the first works that deal with the moderating effect of media exposure on the relationship between the EAC and the quality of environmental information disclosure measured by voluntary and timely disclosure. To the best of the authors’ knowledge, no previous empirical studies have been conducted on this relationship in the French context or in other contexts.

The Influence of CSR, Environmental Awareness and Audit Committee Quality on Company Earnings Quality

This study aims to examine the effect of Corporate Social Responsibility (CSR), environmental awareness and audit committee quality on earnings quality. The research methods used are quantitative research methods and associative methods. The population in this study is the Sri Kehati Index company listed on the Indonesia Stock Exchange for the 2016-2020 research period, totaling 25 companies, from the total population a purposive sampling technique is used with several criteria to determine the sample, so that a sample of 8 companies is obtained. The data analysis technique used in this study uses eviews10 which includes descriptive statistical tests, panel data model analysis, classical assumption tests and hypothesis testing. The results of this study indicate that partially corporate social responsibility (CSR) is considered to have an effect on the Earning Quality of Sri Kehati Index companies listed on the Indonesia Stock Exchange for the 2016-2020 period, while environmental awareness and audit committee quality are considered to have no effect on the Earnings Quality of Sri Kehati Index companies. Sri Kehati listed on the Indonesia Stock Exchange for the period 2016-2020. The results of this study also show that simultaneously the three independent variables, namely Corporate Social Responsibility (CSR), Environmental Awareness and the Audit Committee, do not have a significant influence on the dependent variable of Earnings Quality.

Low carbon footprint inhalers in England: a review of dispensing data

IntroductionDue to propellants, metered dose inhalers (pMDIs) have a higher carbon footprint than low carbon footprint inhalers (LCFIs), such as dry powder or soft mist inhalers (1). Consequently, pMDIs contribute 3.5% of the NHS’s CO2 equivalent emissions (2). Local and national guidelines (NICE, British Thoracic Society) have attempted to increase use of LCFIs, but their effects and factors influencing success are unknown.AimTo investigate temporal and geographical variation in LCFI dispensing in England over five years.MethodsClinical commissioning group (CCG) dispensed items (March 2016-February 2021) were obtained from openprescribing.net for five classes of inhaler where a choice between pMDIs and LCFIs is available: short-acting beta-agonists (SABAs), long-acting beta-agonists (LABAs), inhaled corticosteroids (ICS), ICS plus LABA inhalers (ICS/LABA) and ICS/LABA plus long-acting muscarinic antagonist inhalers (ICS/LABA/LAMA). CCG population age profiles were obtained from the Office for National Statistics. CCG emergency hospital admission and mortality rates were obtained from Public Health England. CCG formularies and guidelines were reviewed to identify where guidance is available to prescribers.To control for total inhaler dispensing, the key measure used is the %LCFI: the number of LCFI items dispensed relative to the total number of pMDI and LCFI items. Multivariate regression models were used to investigate geographical variation.ResultsThe total annual %LCFI increased from 19.5% to 26.3% over the study period. This was driven by the introduction of ICS/LABA/LAMA inhalers in 2018, as %LCFI decreased for SABA, ICS and ICS/LABA inhalers. %LCFI varied between classes. In the final year, it ranged from 6% for both SABA and ICS inhalers, to 41.2% and 43.9% for ICS/LABA and ICS/LABA/LAMA inhalers, respectively. Interestingly, the cost per item for ICS/LABA and ICS/LABA/LAMA inhalers was similar for both pMDIs and LCFIs, but for SABA and ICS inhalers LCFIs were more expensive.%LCFI in the final year varied between CCGs (10.7% to 30.9%). The North West, and Birmingham and London areas had consistently higher %LCFI for all classes. For SABA and ICS inhalers, both the presence of advice on climate change in CCG guidelines or formularies, and greater CCG asthma prevalence, were significantly associated with higher %LCFI (p<0.05). The proportion of CCG population <15 years had a significant negative association with %LCFI for ICS and ICS/LABA inhalers (p<0.05). There were no clinically significant associations between %LCFI and either emergency hospital admission or mortality rates.ConclusionCurrent initiatives have not been successful in increasing the use of LCFIs, indicating limited implementation of guidelines for unknown reasons. Further action is required to reduce the carbon footprint of inhaler prescribing. Actions to address the financial disincentives to LCFI prescribing, CCG leadership (e.g. guidelines) and the appropriate use of LCFI in young people should be considered. Research into facilitators and barriers to LCFI use would support this. An important limitation is the use of dispensed items data rather than the number of inhalers, although there is no evidence that the number of inhalers per item varies between pMDIs and LCFIs. In addition, the Covid-19 pandemic disrupted prescribing patterns and long-term NHS projects.References(1) Wilkinson AJK, Braggins R, Steinbach I, Smith K. Costs of switching to low global warming potential inhalers. An economic and carbon footprint analysis of NHS prescription data in England. BMJ Open. 2019; 9:e028763.(2) Environmental Audit Committee. UK progress on reducing F-Gas emissions inquiry: Fifth report of session 2017-19. London (UK): House of Commons Environmental Audit Committee; 25 April 2018. Available from https://publications.parliament.uk/pa/cm201719/cmselect/cmenvaud/469/469.pdf: [Accessed 27 September 2021].

Pengaruh Pengungkapan Akuntansi Lingkungan Dan Mekanisme Good Corporate Governance Terhadap Kinerja Keuangan Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia (Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Tahun 2017-2019)

ABSTRACTÂ This study aims to determine whether cash turnover affects profitability, whether environmental accounting disclosures and good corporate governance mechanisms affect financial performance and environmental accounting disclosures and whether good corporate governance mechanisms affech financial performance simultaneously. The research was conducted on manufacturing companies listed on the indonesian stock exchange in 2017-2019.This research uses purposive sampling method, with the number of companies 29 x 3 years of research and a total sample of 87. The statistical method used is SPSS multiple linear regression, with partial t statistical test hypothesis testing, simultaneous f test and coefficient of determination test.The results of this study state that: environmental accounting disclosures has a negative effect on financial performance, with a sig value of 0,361. Institutional ownership has a negative effect on financial performance, with a sig valeu of 0,980. Managerial ownership has a positive effect on financial performance, with a sig value of 0,041. The audit committee has a positive and significant effech on financial performance, with a sig valeu of 0,011. Disclosure of environmental accounting, Institutional ownership, Managerial ownership, audit committee, with a sig value of 0,021.Keywords: environmental accounting, Institutional ownership, Managerial ownership, audit committee and financial performance

An empirical investigation of factors influencing the environmental reporting quality: evidence from France

PurposeThis study empirically tests a comprehensive set of relevant factors to explain environmental reporting quality. This study aims to understand whether environmental assurance has a direct effect on “environmental reporting quality”. In addition, this study also aims to examine the relationship between corporate governance and the quality of environmental reporting as measured by voluntary and timely reporting.Design/methodology/approachA number of econometric techniques are used including panel data specifications using a sample of French listed companies in SBF120 for the period 2012–2017.FindingsThe results demonstrate that the presence of an environmental audit committee and the size of the environmental external assurance firm has a significant effect on the level of voluntary reporting of environmental information. The results also reveal that the presence of the environmental audit committee, as well as the corporate social responsibility (CSR) committee, the size of the environmental external assurance and corporate governance index, affect the timely environmental reporting.Research limitations/implicationsThis study helps all market participants to more comprehensively evaluate the quality of environmental reporting in the French context and highlights whether various factors could affect the quality of the environmental information disclosed using a multi-theoretical framework.Originality/valueThis paper fills the gap in the literature by highlighting an unexplored field of literature about the quality of environmental reporting by linking on the division of the quality of environmental information reporting into sub-dimensions (voluntary reporting and timely reporting) in the French context. To the knowledge, no empirical study has been done on the timely reporting of environmental information in the French context or other contexts. The originality of the work consists of the fact that it is one of the first works that deal with the relationship between environmental external assurance, corporate governance and the quality of environmental reporting.

UK Export Finance: Scale and Impact of UKEF’s Financing of Fossil Fuels in Low and Middle-Income Countries - Environmental Audit Committee

This paper is the written evidence of NS Ghaleigh (University of Edinburgh, School of Law). It was submitted to the Parliament’s Environmental Audit Committee, in response to it call for evidence for the inquiry, UK Export Finance: Scale and impact of UKEF’s financing of fossil fuels in low and middle-income countries”. Ghaleigh also gave oral evidence to the Committee, on 5 February 2019.

Environmental Audit and Environmental Disclosure Quality

In this study we explore the association between environmental audit and the quality of environmental disclosure as measured by voluntary and timely disclosure. Relying on a multiple theory framework and using a sample of 81 French non-financial companies listed on the SBF 120 index covering the six-year period from 2012 to 2017, we found a positive and statistically significant relationship between the level of voluntary disclosure of environmental information and the environmental audit committee, the environmental auditor's BIG 4, debt levels, firm size, earnings management, and the industry. In addition, findings indicate that the environmental audit committee, CSR committee, the environmental auditor's BIG 4, earnings management, firm size, and the industry have an impact on the timely disclosure of environmental information. However, the regression of the results showed that there is no relationship between CSR committee and the level of the voluntary disclosure of environmental disclosure.

A commentary on the United Kingdom's leading food retailers' resilience plans in the face of climate change

In September 2019, the U.K. House of Commons Environmental Audit Committee warned that the United Kingdom's food supply was vulnerable to climate change. Within the U.K. food retailing is highly concentrated with the four leading food retailers accounting for almost 70% of all food sales. In the face of the threat of climate change to food supplies, a focus on resilience might be seen to have much to offer retailers. However, little work has been published in the academic literature on if, and how, retailers are employing the concept of resilience in their business plans. With these thoughts in mind, this commentary paper provides an exploratory review of how the United Kingdom's four leading food retailers, namely Tesco, Sainsbury's, Asda, and Morrisons, have publicly acknowledged the importance of resilience in the face of climate change. The paper outlines definitions of resilience and retail resilience, draws out four general themes within the U.K. food retailers' resilience plans, and offers some wider reflections on the retailers' resilience plans in the face of climate change.

Corporate Social Responsibility Disclosure Mediation on the Effect of Environmental Performance and Audit Committee on Company Performance

Corporate Social Responsibility Disclosure Mediation on the Effect of Environmental Performance and Audit Committee on Company Performance

Editorial and News

Editorial and News

Nets and frames, losses and gains: Value struggles in engagements with biodiversity offsetting policy in England

Biodiversity offsetting (BDO) is presented as capable of mitigating development-related harm to populations of species while simultaneously enhancing economic development. The technique involves constructing such harm as a result of market failures, which can be resolved through market solutions. BDO is contentious, attracting outspoken proponents and opponents in equal measure. We examine competing perspectives of interested non-governmental actors through a structured discourse analysis, using qualitative data coding, of 24 written evidence submissions to the UK Parliament׳s Environmental Audit Committee׳s 2013 Inquiry into Biodiversity Offsetting in England. Nuanced positions and areas of agreement notwithstanding, we find that there is a discernible oppositional pattern producing core polarities between organisations favouring and resisting BDO. In interpreting these oppositional dynamics we observe that it is unlikely that this impasse can be resolved since although the debate is framed in terms of differences of view regarding the effectiveness or desirability of specific technical aspects of BDO policy, these differences arise from fundamentally divergent value framings. Struggles over offsetting involve irresolvable value struggles, and negotiations over the assumed (ir)rationality of biodiversity offsetting are thus located firmly within political and ideological arenas.

Does the Voluntary Adoption of Corporate Governance Mechanisms Improve Environmental Risk Disclosures? Evidence from Greenhouse Gas Emission Accounting

Prior research suggests that voluntary environmental governance mechanisms operate to enhance a firm’s environmental legitimacy as opposed to being a driver of proactive environmental performance activities. To understand how these mechanisms contribute to the firm’s environmental legitimacy, we investigate whether environmental corporate governance characteristics are associated with voluntary environmental disclosure. We examine an increasingly important attribute of a firm’s disclosure setting, namely the disclosure of greenhouse gas (GHG) information. GHG information represents proprietary non-financial information about the firm’s exposure to environmental concerns and is related to the firm’s operations and future profitability. Thus, we expect governance participants would view such information as a potentially important strategic device for managing stakeholders’ demands for information concerning environmental risks. We find that the presence of an environmental committee and a Chief Sustainability Officer (CSO) is positively associated with the likelihood of GHG disclosure and that CSOs are associated with disclosure transparency. Further analysis reveals that the likelihood of disclosure is associated with committee size, number of committee meetings, expertise of committee members and CSO, and overlap between the environmental committee and audit committee. Only expertise of the environmental committee members and the CSO are associated with GHG disclosure transparency, while larger committees tend to be associated with lower transparency. Our results are particularly important to those with interests in evaluating the potential role that corporate governance mechanisms play in responding to stakeholder concerns about environmental risks. Directors and officers who are considering appointment to similar governance positions, may wish to consider what attributes would make such governance positions more influential.

Emerging UK Arctic policy

How is the United Kingdom engaging with changing geopolitics of the Arctic in the twenty-first century? This article considers the UK's contemporary interest(s) in the Arctic at a time of unprecedented change in the northern latitudes of our planet. In particular, it focuses on the ongoing emergence of UK Arctic policy as an assemblage of processes involving various actors-government officials, scientists and other academics, environmental campaigners, journalists and the private sector-which not only define UK interests but also delimit what the term 'Arctic' means to, and demands of, the UK. The focus of the article is directed at the recent activities by the Ministry of Defence, the House of Commons Environmental Audit Committee and the related work of the Foreign and Commonwealth Office to develop an Arctic Policy Framework, drawing on official government documents and a series of interviews conducted between 2010 and 2013 for evidence. The article concludes with the author's thoughts on tensions and contradictions that remain in the UK's policy towards the Arctic and the implications this might have at a time when global interest in the Arctic is growing rapidly.

What's in a name? A UK Arctic policy framework for 2013

The UK Government has committed itself to releasing a ‘policy framework’ for the Arctic in 2013. This decision was taken in response to the recommendations of the parliamentary inquiry undertaken by the Environmental Audit Committee in 2012. The timing is significant, coming amid broader debates about whether the UK needs an Arctic Strategy. The Government insists that a ‘policy framework’ is not the same as a ‘strategy’, yet the decision to prepare such a document still signals a departure from the status quo. This commentary considers what the Government means by a ‘policy framework’, how this differs from a ‘strategy’, and why such a document is needed now.

Environmental Audit Committee (EAC) launches enquiry on well-being

Environmental Audit Committee (EAC) launches enquiry on well-being