Determinants of carbon emission disclosure and the moderating role of environmental performance

Figures & data

Figure 1. Framework of the study.

Figure 2. Trends in carbon emissions disclosure among non-financial listed companies in Indonesia from 2017 to 2021.

Source: Processed data by authors, 2023.

Figure 3. PROPER rank and carbon emissions disclosure score by year and sector.

Source: Processed data by authors, 2023.

Figure 4. Trends in the most frequently disclosed item categories of carbon emissions disclosure in sustainability reports from 2017 to 2021.

Source: Processed data by authors, 2023.

Figure 5. Item preferences disclosed by companies based on scores.

Source: Processed data by authors, 2023.

Table

Category	Items
Climate change risks and opportunities	CC1 – Assessment/description of the risks (both specific and general rules/regulations) related to climate change and the actions taken or actions taken to address these risks.
	CC2 – Current (and future) assessment/description of the financial implications, business implications and opportunities of climate change.
GHG emissions calculation	GHG1 – Description of the methodology used to calculate (calculate) GHG (greenhouse gas or ISO) emissions.
	GHG2 – The existence of verification from external parties in measuring the amount of GHG emissions by whom and on what basis.
	GHG3 – Total GHG emissions produced.
	GHG4 – Disclosure of scope 1 and 2, or scope 3 direct GHG emissions.
	GHG5 – Disclosure of GHG emissions based on origin and source (for example: coal, electricity, etc.)
	GHG6 - Disclosure of GHG emissions by facility or segment level of GHG
	GHG7 – Comparison of GHG emissions with the previous year
Energy consumption	EC1 – Total energy consumed (e.g. tera joule MAP-joule).
	EC2 – Quantification of energy used from renewable resources.
	EC3 – Disclosure by type, facility or segment
GHG costs and reduction	RC1 – Detailed plan or strategy to reduce GHG emissions
	RC2 – Specification of target levels and years for reducing GHG emissions
	RC3 – Emission reductions and costs or savings achieved to date as a result of carbon emission reduction plans
	RC4 – Cost of future emissions costs taken into account in capital expenditure planning
Carbon emission accountability	ACC1 – Indication of the board committee (or other executive body) that has responsibility for action related to climate change
	ACC2 – Description of the mechanism by which the board (or another executive body) reviews the company’s progress on climate change

Table 1. Selection of firms for the Year 2017–2021.

Criteria	Total
Population non-financial companies listed on IDX within 2017–2021	2285
Minus:
Inconsistent companies in disclosing sustainability report	$\frac{(2085)}{200}$
Non-participated PROPER rank companies	$\frac{(15)}{185}$
Companies with incomplete data and unavailable report	$\frac{(10)}{175}$
Outlier data	$\frac{(10)}{175}$
Total sample companies	165

Table 2. Variable definitions.

Variables	Measurements	Data source	References
Dependent variable: Carbon emission disclosure (CED)	An analytical approach to the content disclosed in a company’s sustainability reports and scored with a binary scale, the formula is as follows: $\frac{\text{Total disclosure score}}{18}$	Sustainability report	(Bae Choi et al., 2013); (I. F. S. Wahyuningrum et al., 2022)
Independent variable: Institutional ownership (KI)	Institutional ownership: $\frac{\text{Number of shares owned by the institution}}{\text{Number of outstanding shares}}$	Annual report	(Pirzada et al., 2015)
Independent variable: National diversity of the board (FD)	The national body of the board: $\frac{\text{Number of foreign board members}}{\text{Total members of the board of directors and commissioners}}$	Annual report	(Jannah & Narsa, 2021)
Independent variable: Profitability (ROA)	The return on asset ratio: $\frac{\text{Net Income}}{\text{Total Assets}}$	Annual report	(Uyar et al., 2021)
Independent variable: Leverage (DER)	The debt-to-equity ratio: $\frac{\text{Total Debt}}{\text{Total Equity}}$	Annual report	(Lu & Abeysekera, 2014)
Independent variable: Media exposure (ME)	A dummy variable, that takes the score of 1 for companies that provide information related to carbon emission disclosure through company websites, and the score of 0 otherwise.	Companies’ website	(Abdullah et al., 2020)
Moderating variable: Environmental performance (KL)	The scoring is according to the PROPER rating as follows: Black = 1, Red = 2, Blue = 3, Green = 4, Gold =5.	Announcement or report of PROPER rank every year	(Abdullah et al., 2020)

Table 3. Results of descriptive statistics.

Variables	N	Minimum	Maximum	Mean	Std. Deviation
KI	165	0	0.99	0.70	0.19
FD	165	0	66.67	14.77	18.27
ROA	165	−0.12	0.53	0.07	0.09
DER	165	0.11	3.41	0.91	0.67
ME	165	0	1.00	0.52	0.50
KL	165	2.00	5.00	3.39	0.61
CED	165	5.56	83.33	37.47	23.06

Source: Output SPSS, 2023.

Table 4. Statistical test results.

Model	Unstandardized coefficients		Standardized coefficients	T	Sig
	B	Std. Error	Beta
(Constant)	−48.385	26.590		−1.820	0.071
KI	57.135	40.379	0.467	1.415	0.159
FD	1.403	0.434	1.112	3.231	0.002
ROA	182.537	74.949	0.750	2.435	0.016
DER	−33.702	13.308	−0.975	−2.532	0.012
ME	44.000	15.478	0.956	2.843	0.005
KL	27.686	7.962	0.735	3.477	0.001
KI*KL	−28.296	12.288	−0.831	−2.303	0.023
FD*KL	−0.356	0.130	−0.928	−2.744	0.007
ROA*KL	−48.798	21.343	−0.734	−2.286	0.024
DER*KL	10.108	4.125	0.944	2.450	0.015
ME*KL	−4.392	4.710	−0.361	−0.932	0.353

Source: Output SPSS, 2023.

Table 5. Robustness check.

	Model 1 (ENV)			Model 2 (LnENV)
	T	Sig	T		Sig
(Constant)	−1.820	0.071	−1.423		0.157
KI	1.415	0.159	1.160		0.248
FD	3.231	0.002	2.847		0.005
ROA	2.435	0.016	3.619		0.000
DER	−2.532	0.012	−2.120		0.036
ME	2.843	0.005	2.351		0.020
KL	3.477	0.001	2.488		0.014
KI*KL	−2.303	0.023	−1.632		0.105
FD*KL	−2.744	0.007	−2.465		0.015
ROA*KL	−2.286	0.024	−3.363		0.001
DER*KL	2.450	0.015	2.079		0.039
ME*KL	−0.932	0.353	−0.698		0.108

Source: Output SPSS, 2023.

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Data availability statement

The authors confirm that the data supporting the findings of this study are available within the article (and/or) its supplementary materials.