DISCLOSURE OF ENVIRONMENTAL PERFORMANCE, LINKS TO OWNERSHIP STRUCTURE, AND PRESENCE OF FEMALE DIRECTORS
Etti Ernita- Endah Dwi Kusumastuti-Amanda Nazwa Maharani,Muhammad Daffa Nadiwinata

Politeknik Negeri Bandung

Abstract

Environmental issues are urgent topics that are widely discussed at meetings around the world. The world^s environmental problems are related to climate change, pollution and the accelerated loss of biodiversity. Many countries are committed to addressing these issues, including Indonesia. Indonesia has set a long-term strategy to achieve low carbon and climate resilience by 2050 (Indonesia LTS-LCCR 2050). Achieving this strategy requires the involvement of various parties such as industry and society. Through appeals and policies that aim to involve, guide, control and monitor the achievement of goals. One of the government policies is the disclosure of sustainability performance, which is regulated in POJK 51/POJK.03/2017 and detailed in SEOJK 16/SEOJK.04/2021. One aspect of sustainability performance is environmental performance. The company is required to report the environmental costs incurred by the company, information on the use of environmentally friendly materials, the amount and intensity of energy used, the emissions released, the use of renewable energy, and the efforts made to achieve energy efficiency and emissions. The company is also required to disclose the impact of its operations on surrounding protected areas and the company^s efforts to conserve biodiversity. In addition, the company must report on the amount of waste and wastewater and the management mechanism. Companies must also disclose water usage and environmental complaints received and resolved.
In meeting government requirements, corporate governance (institutional ownership, managerial ownership and composition of female directors) plays an important role in decision making. Disclosure and improvement of environmental performance cannot be separated from investment decisions and costs. Careless decisions can disrupt the company^s operations. However, these decisions must be made immediately because they are related to government regulations. Failure to comply with regulations puts the company at high risk. In addition to government sanctions (from warnings to closure), the company may be reported by environmental or community activists. There is a risk of high costs to resolve the problem, and the company^s reputation is tarnished in the short term. The purpose of this study is to examine the effect of institutional ownership, board ownership, and the presence of women on the board of directors on the disclosure of corporate environmental performance.
This study uses secondary data with documentation data collection techniques. The sample of this study is mining companies listed on the Indonesia Stock Exchange in 2022-2023. This study measures environmental performance using 13 points based on SEOJK 04 of 2021. This study uses two control variables, namely company size and leverage. This study uses the STATA analysis tool. The analysis results show that the most appropriate model to use is the random effects model (REM). The results show that institutional ownership, board ownership, and female board composition have no significant effect on environmental performance disclosure. Only firm size has a significant positive effect on environmental performance disclosure.

Keywords: Environmental Performance Disclosure, Institutional Ownership, Female Directors, Firm Size, Leverage

Topic: Sustainable development