Determinants of Corporate Water Disclosure in Indonesia

Abstract

Water information disclosure by companies in Indonesia has become an important commitment to safeguarding water resources and taking responsibility for the environment and stakeholders. This study has two objectives. First, it investigates the extent of water information disclosed by manufacturing companies listed on the Indonesian Stock Exchange. Second, this study investigates the determinants that affect the disclosure of water information. Water information disclosure is analyzed using content analysis based on the Global Reporting Initiative (GRI)-G4, the CDP’s 2020 Water Safety Questionnaires, and indicators used in previous research. This study uses data from the annual reports and sustainability reports of manufacturing companies listed on the Indonesia Stock Exchange from 2017 to 2020. The determinants tested in this study include the existence of a CSR committee, board independence, government ownership, profitability, company size, and industry type. These findings indicate that companies with CSR committees disclose less water information. Meanwhile, share ownership by the government has a significantly positive effect on water information disclosure. The variables—board independence, profitability, company size, and industry type—do not affect water information disclosure. This study contributes to the literature by providing a comprehensive perspective on water information disclosure in Indonesia.