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JoSS:
Journal of Social Science
WHETHER ENVIRONMENTAL PERFORMANCE CAN
STRENGTHEN CORPORATE GOVERNANCE RELATIONSHIP TO
CARBON EMISSION DISCLSOURE
Ulfa¹, Khomsiyah²
Universitas Trisakti
1,2
[email protected]
1
, khoms[email protected]
2
KEYWORDS
Corporate
governance, carbon
emission disclosure,
leverage
environmental
performance, firm
size, and
profitability
ARTICLE INFO
Accepted:
December 01, 2022
Revised:
December 04, 2022
Approved:
December 10, 2022
ABSTRACT
This research aims to examine the impact of the correlation between
corporate governance and moderated carbon emission disclosure and
environmental performance. This study used secondary data using
purposive sampling techniques. Twelve companies met the specified criteria
and obtained 60 data during the research period from 2017 to 2021. The data
analysis technique used is "Moderated Regression Analysis (MRA)." From
the results of research on corporate governance, it negatively affects carbon
emission disclosure, and environmental performance negatively affects
carbon emission disclosure. Environmental performance deduces the
correlation between corporate governance and carbon emission disclosure.
INTRODUCTION
Currently, the issue of climate change is being discussed. This issue has received a special
discussion discussed by state leaders and leaders at the "World Economic Forum (WEF)"
Annual Meeting 2020 in Davos, Switzerland. The WEF was first held in 1971. One of the
issues raised was the environmental issue which became a long-term global risk that must be
faced by business people, investors, and policymakers.
Global heat change and climate change are among the most important issues on the global
agenda today, including Indonesia. According to the Intergovernmental Panel on Climate
(Pörtner et al., 2022), the impact of climate change is due to global temperature warming, which
can damage the health of the planet. The activities of human and species gatherings and the
survival that underpins the existence of living things on planet earth are one of the effects of
climate change. According to the Climate Change Performance Index (CCPI, 2021), Indonesia
is ranked 24th, and Indonesia is on the list of medium performers in CCPI 2021. This ranking
is up from the previous year, which kept the rank of 39 with the existence of an increase.
Companies in Indonesia can be said to be able to carry out activities that can overcome the
effects of climate change. One of the activities that can be done is for companies to make
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disclosures related to corporate social responsibility. These efforts can be disclosed through
annual reports, Sustainability Reports, and the Company's Website.
Rising temperatures on earth cause the atmosphere to warm up, and the surface layer of
the oceans will also warm up, so the volume will enlarge and raise the sea level. Warming has
also led to melting polar ice caps, which has an impact on increasing the volume of seawater.
In addition, warming also causes various disasters, such as droughts, floods, landslides, erratic
weather changes, and other disasters (Rachmawati, 2021).
Indonesia is the country that contributes the largest per-capita emissions in the world
after the European Union, the US, and China (Jaggi, Freedman, & Martin, 2011), but according
to the Bank Information Center (2017), Indonesia has dropped to the sixth largest country after
China, the US, Russia, Japan, and the European Union which could result in investors
withdrawing their funds from companies categorized as environmental destroyers. Many
emissions are produced by industries that use 70% of fossil energy from the total energy
consumed (Ministry of Energy and Mineral Resources, 2013). More than 80% of Indonesia's
greenhouse gas emissions come from the land use sector and from the energy sector. In order
for Indonesia to meet its emission targets, it needs to strengthen the policies that have been
implemented by the Government of Indonesia (EG & Murtanto, 2021).
Forests that originally functioned as the lungs of the world capable of producing oxygen
and absorbing carbon dioxide exchanged functions to become producers of carbon dioxide gas.
The biggest source of emissions in Indonesia is land use change and forestry, particularly
logging and forest burning. As much as 62% of emissions produced by Indonesia or as much
as 945 MtCo2 (million metric tons) are the impacts of forest burning. This has caused Indonesia
to become the country with the highest forest loss rate in the world (Bank Information Centre,
2017). Without the calculation of emissions sourced from forests, Indonesia will be ranked in
the top ten of its emissions.
Sustainable development is something that is needed in this situation. Sustainable
development is the development needed to meet this generation in such a way that without
borders must reduce the ability of future generations to meet their needs (Kusumaningtias,
2013). Sustainable development needs to be carried out because current global economic
activities are likely to reduce the fulfillment of future needs by damaging global ecosystems.
In an effort to preserve the environment to avoid damage to global ecosystems, accounting
science has a role in disclosing financial reporting related to environmental costs
(Kusumaningtias, 2013). Presidential Regulation Number 59 of 2017 regarding the
Implementation of Achieving of the SGD is "a form of the government's political commitment
to implementing the SDGs in a participatory manner that includes many parties." According to
POJK No. 51/POJK.03/2017, "The Continuous Action Plan is a written document that details
the business activity plan, the short-term (one year), and the long-term (five years) LJK work
programs in accordance with the principles used to implement Sustainable Finance." It also
includes strategies to carry out the work plan and program in accordance with the targets and
timeline set while still paying attention to the fulfillment of caution and the application of risk
management.
Public awareness of environmental issues began to grow, marked by the development of
efforts to deal with this. Several world countries, including Indonesia, have signed the Kyoto
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Protocol. The Kyoto Protocol is an amendment to the United Framework Convention on
Climate Change (UNFCCC). Countries around the world that ratified the Kyoto Protocol
expressed their commitment to reducing carbon emissions.
The Government of Indonesia is committed to reducing carbon emissions through
Presidential Regulation No. 61 of 2011 and Presidential Regulation No. 71 of 2011. According
to Presidential Regulation No. 71 of 2011, Greenhouse Gases (GHGs) are gases in the
atmosphere, either natural or anthropogenic, that absorb and re-emit infrared radiation.
Greenhouse gas emissions are the release of greenhouse gases into the atmosphere in a certain
area within a certain period of time. In article 4 of Presidential Regulation No. 61 of 2011,
business actors also take part in impacts to reduce GHG emissions. GHGs contain carbon
dioxide (CO2) compounds, perfluorocarbons (PFCs), nitrous oxide (N2O), methane (CH4),
hydrofluorocarbons (HFCs), sulfur hexafluorides (SF6).
Disclosure of the Company's environment is an implementation of the concept of
corporate governance, whose principles include that the Company needs to pay attention to the
interests of stakeholders for the long-term survival of the Company. Companies with high-
quality corporate governance tend to integrate climate change as their business strategy and
maintain a long-term commitment effectively to address the risks and opportunities of climate
change across all operations (Milliken & Martins, 1996) : (Ibrahim & Angelidis, 1995) : (Liao,
Luo, & Tang, 2015) : (Rupley, Brown, & Marshall, 2012) : (Peters & Romi, 2014) : (Paek,
Pak, Kweon, & Hwang, 2013)
The success of the Company is strongly influenced by good corporate governance
(GCG). With good corporate governance, it is hoped that it will be able to carry out supervision
and control so as to generate added value for the Company (Ariningtika, 2013). With good
corporate governance, it should be able to enhance how the environment is implemented and
disclosed.
In recent years, irresponsible behavior by managers and negligence in carrying out
corporate social responsibility has increased the importance of corporate governance, trust,
business ethics, and accountability. This has led to widespread acceptance of the Company
having formal or informal obligations not only to shareholders but to a large number of
stakeholders. Disclosure of greenhouse gas emissions is part of corporate social responsibility,
which is a form of implementation of the concept of GCG.
The issue of corporate governance in the last few years in Indonesia has become a special
concern for stakeholders and stockholders. Companies with a good level of environmental
performance sometimes have poor corporate governance. It is said that managers only focus
on disclosing environmental performance to attract investors. One of the state-owned
companies that received the Proper assessment award from the Ministry of Environment of the
Republic of Indonesia with a vision and commitment as a 'Green Airline' actually has had very
poor corporate governance in the past two years.
This research was motivated because of some of these issues and from previous research.
(Choi, Lee, & Psaros, 2013) Ghomi et al. 2013; Jannah and Muid 2014; (Deantari, 2018),
(Pradini, 2013) conducted research on the factors that influence the disclosure of carbon
emissions. The basis for measuring the disclosure of carbon emissions is the information
request sheet provided by the CDP (Carbon Disclosure Project) developed by (Choi et al.,
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2013). However, the factors influencing the disclosure of carbon emissions in the study vary.
(Choi et al., 2013) use Company Size, Carbon Emission Level, Profitability, Industry Type,
and Quality Corporate Governance as independent variables. (Ghomi, Huot, Bau, Beaudouin-
Lafon, & Mackay, 2013) Use Firm Size, Leverage, Listing Status, Industry, Corporate
Governance, Age of Firm, And Ownership Concentration as independent variables. Jannah and
(Muid, Karakaya, & Koc, 2014) use Industry Type, Environmental Performance, Media
Exposure, Profitability, Company Size, and Leverage as independent variables. Meanwhile,
(Deantari, 2018) uses Environmental Management System, Environmental Performance,
Company Size, Profitability, and Leverage to determine the factors influencing GHS Emission
Disclosure.
Based on some of the studies above, this research aims to analyze the correlation between
good corporate governance and carbon emission disclosure with environmental management
systems as moderation variables. This research is different from previous research because this
study looked at whether there is an indirect relationship between environmental management
systems and good corporate governance. The reference for this study is the research of (Choi
et al., 2013), where dependent variables are adopted, namely the disclosure of carbon
emissions. (Choi et al., 2013) examined the reporting of carbon emissions in 100 of Australia's
largest companies listed on the Australian Stock Exchange in June 2009. The difference
between this study and the research of (Choi et al., 2013) lies in its independent variables. The
independent variables used by (Choi et al., 2013) are the size of the Company and profitability
are used as control variables.
Similar research conducted by (Arisandi & Mimba, 2021) and (Akhiroh & Kiswanto,
2016) discusses the factors that impact the disclosure of carbon emissions, and good corporate
governance is an independent variable adopted by this study. The results of (Arisandi &
Mimba, 2021) research show that companies that respond to carbon emission disclosure tend
to have an independent board on their board of commissioners. In contrast to the research
(Akhiroh & Kiswanto, 2016), which stated that the proportion of independent commissioners
has no impact on the disclosure of carbon emissions.
Previous research conducted by (Deantari, 2018), (Dewayani, Udin, & Djastuti, 2020),
and (Maulidiavitasari & Yanthi, 2021) discussed indicators affecting the disclosure of carbon
emissions. The free variable is environmental performance, which is used as a moderation
variable in this study.
A. Legitimacy Theory
The community expects something from the Company, where the Company also has
expectations for its activities that will have an impact on the community directly. This makes
legitimacy a potential source for an entity to be phased in. The theory of legitimacy states
that companies with good environmental records are more inclined to disclose
environmental information because doing so will enhance their standing with the public and
help to maintain the legitimacy of their business practices (Wahyuningsih, 2020). This
theory also states that Since the public would be more aware of large corporations' actions
than of small ones, societal demands and pressures will be greater, leading large companies
to enhance their environmental responsibility.
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The theory of legitimacy is one of the theories that underlie the intensive disclosure
of social and environmental accountability reports voluntarily (Liao et al., 2015). The theory
of legitimacy explains that in maximizing the financial power of the Company for the long
term, social responsibility must be expressed in order to gain legitimacy from the social
actors in which the Company is located. The social contract that exists between the firm and
the society in which the Company operates and uses economic resources serves as the
theoretical underpinning of legitimacy. (Ulum, Ghozali, & Chariri, 2007).
B. Stakeholder Theory
This theory says a company must help its stakeholders as well as it is own and is not
merely an entity that pursues its own interests (Ulum et al., 2007). According to the concept
of responsibility defined as' stakeholder theory, a company's stakeholders have an impact
on its ability to sustain itself. Stakeholders have different expectations of the Company, and
their stakeholders put pressure on the Company directly or indirectly to disclose the
environment as a fulfillment of their expectations (Ghomi et al., 2013). Based on stakeholder
theory, the interaction of large companies with the public tends to be more numerous and
has a significant economic impact, and large corporate organizations are more visible to the
media, policymakers, regulators, and also the public, making companies face political
pressure and get strict regulations from external parties so that companies are more
concerned with environmental issues, including in disclosing carbon emissions (Brammer
& Pavelin, 2004), (Lorenzo-Seva & Ten Berge, 2006), (Luo et al., 2009). According to
(Amdani, 2016), the idea of corporate social responsibility is relevant to stakeholder theory,
according to which stakeholders have an impact on a company's ability to survive.
Therefore, the Company voluntarily discloses its social and environmental responsibilities
in order to get support from stakeholders (Situmorang & Yanti, 2020).
C. Carbon Emission Disclosure
Greenhouse gases or known as carbon emissions are gases in the atmosphere, either
natural or anthropogenic, that absorb and re-emit infrared radiation (Presidential Regulation
No. 71 of 2011). One of the biggest emitters of carbon emissions is the Company's
operational activities because companies still use fossil fuels as an energy source.
Companies are required to be more open to information about the Company's activities. The
information disclosed in the Company's report is grouped into two, namely mandatory
disclosure and voluntary disclosure. In general, entities prefer to disclose the information if
the information is considered to provide increased value for the Company. Companies tend
to prefer to retain information if it is deemed to be detrimental to the Company's position or
reputation. Carbon emission disclosure is a voluntary disclosure that is voluntary, in
disclosing environmental reports as part of an additional report that has been stated in PSAK
No. 1 (2015 revision) paragraph fifteen, which requires disclosing the responsibility for
environmental and social problems of the Company. Climate change corporate governance
plans, GHGs emission reduction targets and performance that have been achieved, risks and
opportunities connected to the impacts of climate change, as well as the intensity of GHGs
and energy emissions, are all included in environmental disclosures. (Ulfa & Ermaya, 2019).
Disclosure of carbon emissions in this study is measured by adopting from research
Choi et al. (2013) 's research. The study by (Choi et al., 2013) divided the checklist into five
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broad categories and then subdivided into 18 items to identify. There are five categories
related to climate change and carbon emissions, namely:
1) Greenhouse Gas (GHG) emissions
2) Climate change risks and opportunities (CC)
3) Reduction and Cost reduction (RC)
4) Energy consumption (EC)
5) Accountability of carbon emissions (AEC)
D. Corporate Governance
Corporate governance is based on a set of systems and principles by which a company
is directed, managed, or controlled to the objectives for which it is directed by its rule
(Vallabhaneni et al., 2016). In general, from the results of research, corporate governance is
a set of correlations from company management, boards, shareholders, and other
stakeholders that provide the structure through established corporate objectives and ways to
achieve those goals and monitor performance determined (OECD, 2004). From the
description above, it can be stated that good corporate governance includes good company
performance and accountability (Wang, Song, & Yao, 2013).
Company leaders must establish the principles of GCG for the Company, which
contain guidelines used and applied by employees and also company leaders so that all
actions and decisions set by the Company are aimed at supporting the interests of the
Company and shareholders (OECD, 2004).
E. Environmental Performance
According to (Bahri & Cahyani, 2016), the Company's environmental performance is
the Company's performance in creating a good environment. Environmental performance is
the Company's relationship with the environment regarding the environmental impact of the
resources used, the environmental effects of organizational processes, the environmental
implications of products and services, the restoration of product processing, and compliance
with work environment regulations. If the level of environmental damage is high due to
company activities, it means that the Company's environmental performance is poor, and
vice versa. The greater the impact of environmental damage, the worse the Company will
manage its environment. Types of environmental performance indicators, such as PROPER,
ISO (ISO 14001 and ISO 17025 environmental testing certifications for independent agency
environmental management systems), AMDAL (BOD and COD testing for wastewater),
and GRI (Global Reporting Initiative), are pioneering development frameworks in
sustainability reporting. The environmental performance of the Company in research is
measured by PROPER ratings. Here is a conceptual framework that describes the
relationship of dependent variables with independent\ variables and moderation variables in
this study:
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Figure 1
Research Models
Research Source: Research data processed by authors, 2022
F. The Impact of Corporate Governance on Carbon Emission Disclosure
The relationship between corporate governance and environmental performance to
environmental disclosure can be explained in legitimacy and stakeholder theory. In the
theory of legitimacy, it is explained that companies must be viewed as legitimate in order
for companies to live sustainably. A legitimate company is what society expects it to be.
Based on the theory, company stakeholders are under pressure from outside parties to be
more active in carrying out social and environmental responsibility. (Rankin, 2011) revealed
that companies with strong governance structures are more proactive in carbon disclosure
strategies because they can better manage environmental issues and have a broader
perspective on the long-term benefits companies will gain from transparent environmental
disclosures. (Galbreath, 2010) argues the institutional environment will have an effect on
the quality of climate change governance and encourages companies to be proactive in
tackling climate change.
Thus, the hypothesis developed as follows:
H
1
: Corporate governance has a positive impact on Carbon Emission Disclosure.
G. Impact of Environmental Performance with Carbon Emission Disclosure
Not all companies make a disclosure of their environmental performance, and this is
due to the voluntary nature of the disclosure in Indonesia. Companies that make
environmental disclosures tend to have good environmental performance because the
company already has various active strategies for the environmental problems caused.
According to (Calcarina, 2018),(Dewayani Et Al., 2020) which proves companies with
good environmental performance will disclose environmental information and their
environmental performance voluntarily, such as handling climate change from carbon
emissions produced. The Company conducts voluntary disclosure of environmental
information with the aim of avoiding negative media reports, improving its image,
maintaining the Company's reputation, as well as to maintain the Company's legitimacy
(liao et al., 2015). Thus, the hypotheses that can be developed are as follows:
H
2
: Environmental performance has a positive impact on Carbon Emission Disclosure
H. Impact of Corporate Governance on Carbon Emission Disclosure moderated
Environmental Performance
The theory of legitimacy and stakeholders describes the correlation between
corporate governance and environmental performance. Not all companies report their
environmental performance. This is due to the type of disclosure that is still voluntary in
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Indonesia. Companies that provide environmental information tend to have better
environmental performance because they already have various proactive strategies on
environmental issues. This is in accordance with the findings of (Calcarina, 2018)
Research. (Dawkins, 2004) show that companies with good environmental performance
voluntarily disclose their environmental and environmental performance information. The
Company voluntarily discloses environmental information in order to avoid negative
media coverage, improve its image, protect its reputation, and maintain the legitimacy of
its Company (Liao et al., 2015). From the above, we can make a hypothesis such as the
following:
H
3
: Environmental Performance strengthens the positive impact of Corporate
Governance on Carbon Emission Disclosure
METHOD RESEARCH
This type of study is a causality study that tests the correlation from variables based on
previous studies. This research is intended to determine the influence of corporate governance
on carbon emission disclosure moderated with environmental performance. The analysis unit
used in this research is a company listed on the IDX with a period of 2017-2021. This research
is quantitative, and the acquisition of secondary data obtained through financial statements and
company sustainability reports are used as samples that have gone through the purposive stage.
By the following criteria:
1. Non-financial companies listed on the IDX in 2017-2021.
2. The Company issued financial statements for 2017-2021 in full, with a reporting period
ending on December 31.
3. The Company publishes annual reports and sustainability reports for the period 2017-2021.
4. Disclosing information about carbon emissions, including at least one policy related to GHG
emissions or disclosing at least one item of expression of greenhouse gas emissions. Scale
Table 1
Variables and Measurements
No
Variable Type
Variabel
Indicators
Scala
1
Dependent Variabels
Carbon
Emission
Dislcosure
Five Catagories
Consisting Of 18
Items (Carbon
Emission Disclosure
Checklist)
Ratio
2
Independent Variables
Corporate
Governance
Using The Corporate
Governance Index
(Sawicki,2009)
Ratio
3
Moderation Variables
Environmental
Performance
Using Proper Ratings
3
5 = Gold
4 = Green
3 = Blue
2 = Red
1 = Black
Ordinal
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4
Control Variables
Leverage
Profitabilitas
LEV = 𝑇𝑜𝑡𝑎𝑙 𝐷𝑒𝑏𝑒𝑡
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡
ROA =
𝐿𝑎𝑏𝑎 𝑇𝑎ℎ𝑢𝑛 𝐵𝑒𝑟𝑗𝑎
𝑙𝑎𝑛 𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡
Frim Size = LN (Total
Asset)
Ratio
Ratio
Ratio
RESULT AND DISCUSSION
A. Descriptive Statistical Analysis
Statistics
CGI
KL
CGI.KL
ROA
LEVERA
GE
FIRM SIZE
CED
N
Valid
60
60
60
60
60
60
60
Missing
0
0
0
0
0
0
0
Mean
5.53
2.28
10.58
8.1332%
.5197425
31.20905804
1333320
9.833
Median
6.00
3.00
3.00
6.7050%
.4878050
30.99416989
0000002
11.000
Mode
7
0
0
0.47%
.74425
32.00290616
0000000
a
11.0
Std. Deviation
1.321
1.914
11.854
14.05340%
.24526947
1.184028155
370080
3.2530
Minimum
3
0
0
-50.59%
.16383
28.63433579
0000000
4.0
Maximum
7
5
35
46.66%
1.40373
33.53723002
0000000
15.0
a. Multiple modes exist. The smallest value is shown
The table above shows the descriptive statistics of carbon emission disclosure with a
min value of 4 owned by WSBP in 2017 and a maximum value of 15 owned by PTBA in
2019 to 2021, ANTM, and INTP in 2017, and with a standard deviation of 3.2530. Corporate
governance has a min value of 3, owned by PTBA in 2017, JSMR in 2018, AALI, and
WIKA in 2019, and a max value of 7 with a standard deviation of 1.321. The environmental
performance of the min value of 0 is owned by AALI in 2017 with 2018, JSMR in 2017-
2021, TOTL in 2017-2021, UNTR in 2017-2020, WSBP in 2017-2021, and a Max value of
5 owned by PTBA in 2019-2021 with a standard deviation of 1.914.
B. Normality Test
The results of this research show that on the p-plot graph, because the data spread out
around the diagonal line and moves in the same direction as the diagonal line, the data is
properly distributed. It can be concluded that the variables in this study meet the assumption
of normality.
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From the table showing a total of 60 research data, having an Asymp sig two-tailed
value of 0.200 > 0.05, t, then the data is normally distributed.
C. Heteroskedasticity Test
From the table showing the sig value of each of the variables studied has a value
exceeding 0.05, then the research data did not show any heteroscedasticity in this study, so
further testing could be continued.
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D. Multicollinearity Test
The table shows a tolerance value of > 0.10 and a VIF value of < 10 so that there are
no symptoms of multicollinearity in the study.
E. Uji Autokorelasi
b. Dependent Variable: CED
The Durbin Watson test results obtained were in the autocorrelation range (du < DW
< 4-du). So in conclusion there is no autocorrelation.
F. Hypothesis
The table shows the Adj. R Square in this study shows the number 0.689, meaning
that the variables CGI, KL, CGI*KL, ROA, LEVERAGE, and SIZE have a 68.9% effect
on CED, while the remaining 31.1% is influenced by other variables not examined in this
study.
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G. Hasil Uji F
From the table, showing the sig value shows the number 0.000 <0.05, which can be concluded
that the CGI, KL, CGI*KL, ROA, LEVERAGE, and SIZE variables have a significant
overall/simultaneous effect on CED.
H. Uji T
CGI.KL
.057
.027
.207
2.086
.042
ROA
-.009
.020
-.038
-.449
.655
LEVERAGE
3.333
1.124
.251
2.965
.005
FIRM SIZE
.008
.214
.003
.035"
.972
a. Dependent Variable: CED
The variables CGI, KL, and CG. KL and leverage have a positive effect on CED because
the sig value <0.05 and the t count > t table.
I. Analisis Regresi Linier Berganda Moderasi
From the results of the regression study on the t-test, the regression equation can be
obtained as follows:
Y = α + β1 CGI + β2 KL + β3 (CGI x KL) + β4 ROA + β5 Leverage + β6 Size + e
The partial test results are as follows:
1. The Impact of Corporate Governance on Carbon Emission Disclosure
The table, showing the sig value of the corporate governance variable, shows the
number 0.0002 < 0.05 with the value of B 0.683 in the positive direction. Then, variable
corporate governance has a positive impact on carbon emission disclosure. So H
1
is
accepted. The results of this study support the research of Appuhami and Tashakor, (2016)
which states that companies that hold meetings more frequently in a year have good
corporate governance so that it makes it easier for the audit committee in the process of
supervising the information to be disclosed. This study supports the agency theory, in
which companies that have good governance such as holding regular meetings, having an
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audit committee board, remuneration and nomination members tend to disclose
information well. The company reviews the information that will be disclosed in a more
detailed and thorough manner, thereby increasing the transparency of the company.
2. The Impact of Environmental Performance on Carbon Emission Disclosure
The table, showing the sig value of the environmental performance variable, shows
the numbers 0.000 < 0.05 with the value B 1.078 in the positive direction. So,
environmental performance variables have a positive effect on carbon emission disclosure.
So H
2
is accepted. This result is in line with previous research, (Calcarina, 2018);
(Dewayani et al., 2020) which proves companies with good environmental performance
will disclose environmental information and their environmental performance voluntarily,
such as handling climate change from the resulting carbon emissions.
3. Environmental performance moderates Corporate governance's relationship to
Carbon Emission Disclosure
The table, showing the sig value of the CGI*KL variable, shows the number 0.000/2 =
0.000 < 0.05 with a value of B 0.057 in a positive direction. So, Environmental
Performance is able to strengthen the positive impact of Corporate Governance on Carbon
Emission Disclosure Disclosure. Based on H
3
: Environmental Performance strengthens
the positive influence of Corporate Governance on Carbon Emission Disclosure, H
3
is
accepted. Environmental performance strengthens the positive relationship between the
two variables
CONCLUSION
From the results of the research analyzing the impact of Corporate Governance on
Carbon emission disclosure moderated by Environmental Performance in Companies Listed
on the IDX from 2017 to 2021, we can conclude that Corporate governance has a positive
impact on carbon emission disclosure. Environmental performance positive effects carbon
emission disclosure. Environmental performance strengthens the correlation between corporate
governance and carbon emission disclosure. Implications Theoretical Implications This
research is expected to be able to explain previous theories regarding the impact of corporate
governance on carbon emission disclosure with environmental management systems as
moderation variables. This research is also expected to be a reference for subsequent
researchers so that it can be reviewed and further research development carried out. Practical
Implications this research has implications for companies to increase disclosure of carbon
emissions because it affects the Company's image by improving Corporate Governance and
Media. Suggestions Further research can consider using other samples such as real estate, food,
and beverage sector companies, property, and others. And subsequent research can try to add
other variables to the research model, for example, the corporate social responsibility variable.
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