Determinant of Sustainability Report Quality in the Energy Sector
1Siti Choiriah- 2Maskata Perangin Angin

1,2 Magister Akuntansi, Universitas Mercu Buana, Indonesia
2Fakultas Ekonomi dan Bisnis Universitas Mercu Buana, Indonesia

Abstract

Sustainability reporting has become essential for companies to communicate their social, environmental, and economic impacts to stakeholders. In environmental science, sustainability reporting plays a crucial role in identifying, measuring, and managing the environmental impacts of corporate operations. With increasing attention to climate change, resource depletion, and ecological degradation, companies must be more transparent about managing their environmental impacts.
As a significant contributor to greenhouse gas emissions and natural resource consumption, the energy sector is at the forefront of sustainability efforts. High-quality sustainability reports enable energy companies to demonstrate their commitment to responsible environmental practices, build stakeholder trust, and meet regulatory and market expectations. Therefore, understanding the factors influencing the quality of sustainability reports in the energy sector is vital for promoting better sustainability practices.
This study aims to identify the factors influencing the quality of sustainability reports among energy companies listed on the Indonesia Stock Exchange (IDX) from 2018 to 2022. By examining the roles of Assurance Report, Foreign Institutional Ownership, and Sustainability Commitment, this research provides insights into how energy companies can improve their sustainability reporting, which can help reduce negative environmental impacts and support long-term sustainability.

Keywords: Sustainability Report Quality, Assurance Report, Foreign Institutional Ownership, Sustainability Commitment, Environmental Science

Topic: Sustainability Accounting and Integrated Reporting