The Effect of Green Investment and Sustainability Committee on Carbon Emission Disclosure: The Moderating Role of Environmental Performance

Fatin Husna Amalia; Aulia Fuad Rahman; Sari Atmini

doi:10.59261/inkubis.v8i3.263

Authors

Fatin Husna Amalia Universitas Brawijaya
Aulia Fuad Rahman Universitas Brawijaya
Sari Atmini Universitas Brawijaya

DOI:

https://doi.org/10.59261/inkubis.v8i3.263

Keywords:

Carbon emission disclosure, Green investment, Sustainability committee, Environmental performance

Abstract

Background: Carbon emission disclosure is an important component of non-financial reporting that demonstrates corporate transparency and accountability regarding climate change and environmental sustainability. Although green investment and sustainability committees may influence carbon emission disclosure, previous findings remain inconsistent, while evidence on the moderating role of environmental performance is limited.

Objective: This study aims to examine the effects of green investment and sustainability committees on carbon emission disclosure and to investigate whether environmental performance moderates these relationships.

Methods: This study employs a quantitative approach using panel data from 94 companies in the energy, transportation and logistics, basic materials, industrial, and consumer non-cyclicals sectors listed on the Indonesia Stock Exchange during 2021–2024, resulting in 315 observations. Data were analyzed using panel data regression with the random effect model.

Results: The findings show that green investment and sustainability committees have positive effects on carbon emission disclosure. Environmental performance strengthens the positive effect of green investment on carbon emission disclosure but does not moderate the effect of sustainability committees. Among the control variables, firm size and profitability have negative effects, whereas leverage has a positive effect on carbon emission disclosure.

Conclusion: Green investment and sustainability committees contribute to greater carbon emission disclosure, while environmental performance enhances the effectiveness of green investment but not sustainability committees. These findings highlight the importance of strengthening green investment, environmental performance, and sustainability governance to improve corporate carbon emission transparency.

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