The Potential of Carbon Emission Disclosure as a Foundation for Business Sustainability in Mining Companies in Indonesia

This study aims to analyze the influence of environmental performance and financial performance on business sustainability with carbon emission disclosure as a moderating variable. This study was conducted on coal mining manufacturing companies listed on the Indonesia Stock Exchange (IDX). This research is a quantitative study so that the type of data used is documentary data. While the data sources used in this study are secondary data . The number of samples in this study is 20 samples. The research method used is moderated regression analysis obtained from annual reports and company sustainability reports.
Research results show that environmental performance has a positive and significant impact on business sustainability. Financial performance has a positive and significant impact on business sustainability. Carbon emissions disclosure strengthens the influence of environmental performance on business sustainability. Carbon emissions disclosure does not strengthen the influence of financial performance on business sustainability.

Environmental Performance, Financial Performance, Business Sustainability

1. K. Ramadhani, MS Saputra, and L. Wahyuni, “The effect of green accounting implementation and environmental performance on financial performance with corporate governance as a moderating variable,” vol. 0832, no. September, pp. 227–242, 2022. [Google Scholar] [Crossref]

2. M. Apriliani and MW Abdullah, “Tanjidor Art Philosophy in the Implementation of Corporate Social Responsibility,” J. Akunt. Multiparadigma , vol. 9, no. 2, pp. 377–393, 2018, doi: 10.18202/ jamal .2018.04.9023. [Google Scholar] [Crossref]

3. Idrawahyuni, Alimuddin, and & et al., “Essence of Environmental Accounting in,” Essence of Environmental Accounting in Corporate Sustainability , vol. 3, no. November, pp. 147–159, 2020, doi: 10.35326/jiam.v3i2. [Google Scholar] [Crossref]

4. S. Muchlis and M. Mariyani, “Social Responsibility Accounting Sues Corporate Finances Reviewed from the Concept of Going Concern,” JPS (Jurnal Perbank. Syariah) , vol. 2, no. 1, pp. 95–113, 2021, doi: 10.46367/jps.v2i1.299. [Google Scholar] [Crossref]

5. G. Das Prena and KW Diarsa, “The Influence of Financial Performance and Company Value on Business Sustainability (Going Concern) in Banking Companies on the Indonesia Stock Exchange (BEI),” vol. 14, no. 1, pp. 1–8, 2019. [Google Scholar] [Crossref]

6. ANF Fathia and S. Virna, “Ibn Sina University (UIS),” REALIBLE Account. J. , vol. 3, no. 1, pp. 1–12, 2023. [Google Scholar] [Crossref]

7. RI Adyaksana and BG Pronosokodewo, “Do Environmental Performance and Environmental Costs Influence Environmental Information Disclosure?,” InFestasi , vol. 16, no. 2, pp. 157–165, 2020, doi: 10.21107/infestasi.v16i2.8544. [Google Scholar] [Crossref]

8. R. Brouwers, F. Schoubben, C. Van Hulle, S. Van Uytbergen, and K. Leuven, “The link between corporate environmental performance and corporate value: A literature review,” Rev. Bus. Econ. Lit. , vol. 58, no. 4, pp. 343–374, 2014, [Online]. Available: https://lirias.kuleuven.be/1665413 [Google Scholar] [Crossref]

9. AM Gerged, E. Beddewela, and CJ Cowton, "Is corporate environmental disclosure associated with firm value? A multicountry study of Gulf Cooperation Council firms," Bus. Strategy. Environ. , vol. 30, no. 1, pp. 185–203, 2021, doi: 10.1002/bse.2616. [Google Scholar] [Crossref]

10. L. Judijanto, RE Arini, and P. Andiani, “The Role of Financial Performance Evaluation in the Context of Business Sustainability: A Bibliometric Analysis Review,” vol. 03, no. 04, pp. 479–488, 2024. [Google Scholar] [Crossref]

11. NG Ronaldo and RRS Handayani, “The Effect of Sustainability Report Disclosure on the Financial Performance of Banking Companies in Indonesia,” Diponegoro J. Account. , vol. 12, no. 4, pp. 1–14, 2023, [Online]. Available: http://ejournal-s1.undip.ac.id/index.php/accounting [Google Scholar] [Crossref]

12. K. Kirk, TL McClair, SP Dakouo, T. Abuya, and P. Sripad, "Introduction of digital reporting platform to integrate community-level data into health information systems is feasible and acceptable among various community health stakeholders: A mixed-methods pilot study in Mopti, Mali," J. Glob. Health , vol. 11, pp. 1–12, 2021, doi: 10.7189/jogh.11.07003. [Google Scholar] [Crossref]

13. N. Putry and N. Pangestu, “Evaluation of Company Financial Performance Based on Profitability Ratios at PT Bank BTPN Syariah (National Syariah Pension Savings Bank Tbk) Listed on the Indonesia Stock Exchange,” vol. 4, no. 5, pp. 1086–1091, 2024. [Google Scholar] [Crossref]

14. M. Awliya, “Profitability Analysis (Return on Assets (ROA) and Return on Equity (ROE) at PT Sido Muncul Tbk (2015-2018 Period),” J. Econ. Educ. , vol. 1, no. 1, pp. 10–18, 2022. [Google Scholar] [Crossref]

15. CH Putri, T. Lestari, and N. Ritawaty, “The Effect of Return on Assets, Equity and Earning Per Share on Stock Prices in the Banking Sector on the Indonesia Stock Exchange,” Owner , vol. 6, no. 2, pp. 2230–2240, 2022, doi: 10.33395/owner.v6i2.862. [Google Scholar] [Crossref]

16. K. Citra, Y. Faisal, C. Wibisono, and E. Gumala Sari, "The Effect of Capital Adequacy, Liquidity and Firm Size on Earnings Management With Corporate Governance As Moderating Variables in Conventional Banking Listed on Idx 2015 – 2019," Cashflow Curr. Adv. Res. Sharia Financ. Econ. Worldw. , vol. 1, no. 1, pp. 33–49, 2021, doi: 10.55047/cashflow.v1i1.20. [Google Scholar] [Crossref]

17. REE Freeman, “A Stakeholder Approach to Strategic Management,” SSRN Electron. J. , no. January 2001, 1984, doi: 10.2139/ssrn.263511. [Google Scholar] [Crossref]

18. B. Parmar, S. de Colle, and jeffrey S. Harrison, “Stakeholder theory: The state of the art,” Stakehold. State Art Theory , pp. 1–343, 2010, doi: 10.1017/CBO9780511815768. [Google Scholar] [Crossref]

19. K. Davis and R.L. Blomstrom, “Business and Its Environment,” Acad. Manag. J. , vol. 11, no. 2, pp. 237–238, 1968, doi: 10.5465/amj.1968.4297423. [Google Scholar] [Crossref]

20. IC Ghozali, Accounting Theory, 3rd Edition . Diponegoro University, Semarang., 2013. [Google Scholar] [Crossref]

21. S. Bahri and FA Cahyani, “The influence of environmental performance on corporate financial performance with corporate social responsibility disclosure as an intervening variable (Empirical study on manufacturing companies listed on the IDX),” Ekonika J. Ekon. Univ. Kadiri , vol. 1, no. 2, 2016. [Google Scholar] [Crossref]

22. Fahmi, Financial Performance Analysis . Alfabeta: Bandung, 2011. [Google Scholar] [Crossref]

23. IB Suratno, D. Darsono, and S. Mutmainnah, “The Influence of Environmental Performance on Environmental Disclosure and Economic Performance (Empirical Study on Manufacturing Companies Listed on the IDX 2001-2004),” Indones. Account. Res. , vol. 10, no. 2, 2007, doi: http://doi.org/10.33312/ijar.174. [Google Scholar] [Crossref]

24. MI Rahmawati and A. Subardjo, “The effect of environmental disclosure and environmental performance on economic performance moderated by good corporate governance,” J. Bul. Stud. Ekon. , vol. 22, no. 2, pp. 200–226, 2017. [Google Scholar] [Crossref]

25. B.B. Choi, D. Lee, and J. Psaros, “An Analysis of Australian Company Carbon Emission Disclosures,” Pacific Account. Rev. , vol. 25, no. 1, pp. 58–79, 2013, doi: https://doi.org/ 10.1108/ 01 140581311318968. [Google Scholar] [Crossref]

26. ER Amaliyah and D. Puspawati, “Implementation of Green Accounting on Environmental Performance (Case Study on Mining and Energy Companies Listed on the Indonesia Stock Exchange 2014-2020) Implementation of Green Accounting on Environmental Performance (Case Study on Companies,” pp. 191–200, 2022. [Google Scholar] [Crossref]

27. SW Hadiningtiyas and A. Mahmud, "Accounting Analysis Journal Determinant of Environmental Disclosure on Companies Listed in Indonesia Stock Exchange (IDX) Article History," Aaj , vol. 6, no. 3, pp. 380–393, 2017, [Online]. Available: http://journal.unnes.ac.id/sju/index.php/aaj [Google Scholar] [Crossref]

28. NM Mastuti and NLP Wiagustini, “THE ROLE OF SOCIAL CAPITAL AND REPUTATION CAPITAL IN FINANCIAL PERFORMANCE AND BUSINESS SUSTAINABILITY,” Management Accounting, Econ. , vol. 8, no. 11, 2024. [Google Scholar] [Crossref]

29. KO Saputri, “Financial performance on the company's sustainable capability,” vol. 11, no. 1, pp. 24–32, 2019. [Google Scholar] [Crossref]

30. Y. Mandaika and H. Salim, “The Effect of Company Size, Financial Performance, Industry Type, and Financial Leverage on Corporate Social Responsibility Disclosure: An Empirical Study of Manufacturing Companies Listed on the Indonesia Stock Exchange in 2011-2013,” J. Accountant . , vol. 8, no. 2, pp. 181–201, 2015, doi: 10.25170/jara.v8i2.18. [Google Scholar] [Crossref]

• The Role of Value and Growth Stocks in Portfolio Returns: Insights From the Nigerian Stock Market
• The Impact of Environmental, Social, Governance (ESG) and Profitability on Firm Value Moderated by Firm Size
• Assessment of the Impact of Environmental Operating Costs on Return on Assets: Evidence from Listed Breweries in Nigeria
• Mobile Money and Digital Financial Services Ecosystem in Adamawa State
• A Quantitative Approach of Professional Skepticism and Fraud Detection among Malaysian Internal Auditors