The Analysis of Information Content towards Greenhouse Gas Emissions Disclosure In Indonesia’s Companies

Abstract

This study aimed to obtain empirical evidence about the influence of ISO 14001 certified
Environmental Management System, the existence of environment function, report environment
information in accordance with the Global Reporting Initiative version 3.1, the rank of PROPER,
firm size, companies’ leverage, companies’ profitability and type of industry to the extent of
greenhouse gas emissions disclosure in Indonesia companies. The population of this study was all
of companies listed in Indonesia Stock Exchange (ISX) in 2010 and 2011. Sample consists of
companies in agriculture, mining and manufacture sectors that disclosed their greenhouse gas
emissions. The total sample was 30 companies, with observation’s period is two years so the total
sample which be checked was 53 reports. Data analysis was performed with the classical
assumption and hypothesis testing that it used regression analysis. The results of this study
indicated that the factor of report environment information in accordance with the Global
Reporting Initiative version 3.1, the rank of PROPER and firm size had significantly influence to
the disclosure of greenhouse gas emissions. Meanwhile, ISO 14001 certified Environmental
Management System, existence of environment function, companies’ leverage, companies’
profitability and type of industry had no significant effect on the disclosure of greenhouse gas
emissions in Indonesia. Implication of this research showed that practice of greenhouse gas
emissions disclosure was still minimize to fulfil ISO 14064-1 guideline.