Influence of Corporate Sustainability Committees, Environmental Performance, and Environmental Costs on Carbon Disclosure in Energy, Mining, and Transportation Companies in Indonesia

Abstract

Corporate carbon disclosure aims to provide transparency to stakeholders regarding a company's environmental impact. This disclosure can drive emission reductions and enhance sustainability. This study examines the influence of sustainability committees (SCOM), environmental performance (PROPER), and environmental costs (ENCOST) on carbon disclosure (CDIS). Using panel data from annual and sustainability reports of energy, mining, and transportation companies in Indonesia (2019–2023), CDIS is measured with 15 indicators developed by Park et al. The results indicate that SCOM and good PROPER positively affect CDIS practices. Companies with SCOM in their governance structure tend to disclose carbon emissions more transparently. Similarly, firms with high PROPER ratings are more likely to report carbon information to stakeholders. However, ENCOST do not significantly impact CDIS, as some companies do not explicitly report these costs. To strengthen carbon emission management, Indonesia should establish SCOM, enhance the PROPER program with fiscal incentives, and standardize reporting systems; concurrently, regional collaboration through ASEAN and the Belt and Road Initiative (BRI) can support green technology, finance low-carbon projects, and harmonize emission reporting standards, accelerating the nation's transition to a globally competitive and responsible green economy.