The Effect of Green Strategy and Green Investment Toward Carbon Emission Disclosure

Abstract

This research aims to test the influence of the green strategy and green investment against disclosure of carbon emissions. Global warming leads to extreme climate change in various places around the world including in Indonesia. There is strong evidence that it is caused by human activity, mainly from burning fossil fuels so as to have an impact on the increasing greenhouse gases. One of the company's efforts in reducing the impact of carbon emissions is by disclosure of carbon emissions. Research on the relationship of the disclosure of carbon emissions by a factor of green strategy and green investments at private sector organization is still relatively limited and there are differences in the methods used. This research contributes to providing empirical evidence about the influence of the green strategy and green investment against disclosure of carbon emissions. Research on the relationship of the disclosure of carbon emissions by a factor of green strategy and green investments at private sector organization is still relatively limited and there are differences in the methods used. This research contributes to providing empirical evidence about the influence of the green strategy and green investment against disclosure of carbon emissions. This research using a sample of companies listed on stock exchanges in the country which is included in the rate of carbon emissions in the world, namely Indonesia and German. This study uses data from the 2014-2016 period in the annual report and the corporate sustainability report. The results showed that there is a significant influence of the green strategy and green investment against disclosure of carbon emissions

Carbon Performance, Green Strategy, Financial Performance Effect on Carbon Emissions Disclosure: Evidence from High Polluting Industry in Indonesia

“…As a result, the reduction in carbon emissions motivates the company to disclose its performance, which may have an impact on the carbon emissions disclosure in the following year because the company wants to show success in implementing the company's green strategy through its good carbon performance. This is in line with the findings of studies [19,46,47], that relationship between green strategy and company's carbon disclosure exist. Given this, the following hypotheses can be assumed: H2: Green strategy (t) give positive impact on company's carbon disclosure in the following year (t+1).…”

Does Code of Conduct Moderate Corporate Attributes and Carbon Emission Disclosure?

“…Based on the results of the statistical t-test (t-test) it can be concluded that the variable green strategy has a positive and significant influence on the disclosure of carbon emissions. This study is in line with the study by Makower (2008); Afni et al (2018) according to which companies can integrate risks and opportunities into corporate strategies that affect the environment and create opportunities by harnessing competitive advantage through an green strategy, climate change will demonstrate the ability of companies to manage carbon emissions by disclosing information about carbon emissions so they can respond to competitiveness, legitimacy, and environmental responsibility to marketing and improve the company's financial performance.…”

“…Beside, ethical awareness and ethical awareness of owners and managers play an important role in pursuing the green strategy of Kabiraj, Topkar, and Walke (2010). Hence, researchers believe that companies that capitalize on the effects of climate change by employing green strategies to capitalize on the effects of climate change are demonstrating their ability to manage carbon emissions by disclosing information about carbon emissions (Makower, 2008) &Afni, Gani, Djakman, andSauki (2018). On this basis, the following hypothesis can be formulated:…”

Corporate governance in Basic Material and Energy Sector Companies, green strategy, and carbon emissions disclosure

“…Green strategy is a strategy that many companies use to reduce the level of risk and anticipate the impact of climate change. Risk IOP Publishing doi:10.1088/1755-1315/1324/1/012085 9 management activities and mitigation actions for climate change can be traced to company disclosures [8].…”

“…Likewise, there is a positive relationship between corporate governance and carbon emissions disclosure. Previous research has tested the influence of green strategy and green investment and found a significant influence of these two variables on activities to reduce the company's carbon emission levels [8]. This research aims to find empirical evidence of the influence of corporate management and green strategy on corporate behavior in reducing carbon emissions as measured by disclosure information in the company's annual report.…”