The Evolution of Environmental Disclosure Practices in Indonesia

DOI

10.2991/978-94-6463-522-5_29How to use a DOI?

Keywords

Environmental Disclosure; Indonesian Public Companies; Sustainability Reports

Abstract

As part of sustainability principles, stakeholders demanded environmental disclosure practices that led to the business’s environmentally friendly agenda, requiring corporate environmental performance to be measured, accounted for, and disclosed to learn about company environmental risks, consequences, policies, goals, targets, costs, and liabilities. This study explores how much environmental disclosure practices Indonesian public companies have produced since they are still voluntary and moving forward to mandatory disclosure aligned with regulations issued by financial service authorities. Depth analysis, such as preferred information analysis to disclose, based on environmental-sensitive & non-sensitive companies analysis, and sectoral analysis were additionally investigated. This study attempts to show environmental disclosure practices by Indonesian public companies by gathering quantitative information and analyzing the content of companies’ environmental sections in sustainability reports. Over the research period of 2016–2022, the study recorded 756 stand-alone sustainability reports from the companies to explore environmental disclosure trends. The study finds that environmental disclosure practices in Indonesia have fluctuated, with variations in scores yearly. Indonesian public companies mainly prefer to disclose most energy, effluent & waste information. Environmentally sensitive industries perform better on environmental disclosure practices than non-sensitive industries, which presents evidence of the close relationship between environmental disclosure and industry type. Companies in the energy industry have the most outstanding levels of environmental disclosure practices compared to other sectors. Inconsistency in publishing quality indicates that companies can freely determine environmental disclosure, so the government should provide a suitable guideline based on the industry’s characteristics so companies can not avoid essential environmental information.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Indah Fajarini Sri Wahyuningrum
AU  - Hasan Mukhibad
AU  - Shanty Oktavilia
AU  - Retnoningrum Hidayah
AU  - Andryan Setyadharma
AU  - Regina Cahyani Yunita
PY  - 2024
DA  - 2024/10/04
TI  - The Evolution of Environmental Disclosure Practices in Indonesia
BT  - Proceedings of the International conference of Economics Business and Economics Education Science (ICE-BEES-24)
PB  - Atlantis Press
SP  - 358
EP  - 374
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-522-5_29
DO  - 10.2991/978-94-6463-522-5_29
ID  - Wahyuningrum2024
ER  -