DOI: https://doi.org/10.14710/presipitasi.v23i1.77-94

Good Corporate Governance and Environmental Disclosure: The Moderating Role of the Sustainability Committee

*Akbar Bayu Saputro  -  Universitas Negeri Semarang, Indonesia
Indah Fajarini Sri Wahyuningrum  -  Universitas Negeri Semarang, Indonesia
Fitra Roman Cahaya  -  University of Essex, United Kingdom

Citation Format:
Abstract

This study investigates how elements of good corporate governance (GCG) affect environmental disclosure as a manifestation of corporate environmental responsibility, with the sustainability committee examined as a moderating variable. A quantitative research design was employed using a moderated regression analysis. The study relies on secondary data obtained from 110 basic materials sector companies listed on the Indonesia Stock Exchange (IDX) during the 2019–2023 period. Data analysis was conducted using SPSS Statistics version 26. The findings reveal that domestic institutional investors and institutional investors from developed countries positively influence the extent of environmental disclosure. In contrast, institutional investors from developing countries, board size, and gender diversity do not demonstrate a significant effect. The sustainability committee strengthens only the relationship between board size and environmental disclosure, while it does not moderate the effects of the other governance variables. This study extends prior research on the linkage between corporate governance mechanisms and environmental reporting. The existence of a sustainability committee reflects a company’s commitment to integrating sustainability principles into its policies and operational strategies, aligning corporate activities with the Sustainable Development Goals (SDGs) through the pursuit of balanced economic, social, and environmental performance.

Fulltext View|Download Email colleagues
Keywords: Basic Material; environmental disclosure; good corporate governance; sustainability committee

Article Metrics:

Article Info
Section: Original Research Article
Language : EN
Most cited articles
POTENSI NITRIFIKASI OLEH BAKTERI YANG TERDAPAT DI LAUT ALIRAN KALI PLUMBON, LAUT ALIRAN KALI BANJIR KANAL BARAT DAN LAUT ALIRAN KALI BANJIR KANAL TIMUR EVALUASI PENGELOLAAN SAMPAH RUMAH SAKIT PUSAT ANGKATAN DARAT GATOT SOEBROTO EVALUASI DESAIN INSTALASI PENGOLAHAN AIR PDAM IBU KOTA KECAMATAN PRAMBANAN KABUPATEN KLATEN PENENTUAN CAMPURAN LUMPUR LAPINDO SEBAGAI SUBSTITUSI PASIR DAN SEMEN DALAM PEMBUATAN PAVING BLOCK RAMAH LINGKUNGAN ANALISIS KUALITAS AIR DAN STRATEGI PENGENDALIAN PENCEMARAN AIR SUNGAI BLUKAR KABUPATEN KENDAL More cited articles
  1. Abdullah, A., Yamak, S., Korzhenitskaya, A., Rahimi, R., and McClellan, J. 2024. Sustainable development: The role of sustainability committees in achieving ESG targets. Business Strategy and the Environment 33, 2250–2268
  2. Acar, E., Çalıyurt, K.T., and Zengin-Karaibrahimoglu, Y. 2021. Does ownership type affect environmental disclosure? International Journal of Climate Change Strategies and Management 13, 120–141
  3. Adnan, S.M., Alahdal, W.M., Alrazi, B., and Mat Husin, N. 2023. 2023. The impact of environmental crimes and profitability on environmental disclosure in Malaysian SME sector: the role of leverage. Cogent Business & Management. 10
  4. Agyemang, A.O., Yusheng, K., Ayamba, C.E., Twum, A.K., Chengpeng, Z., and Shaibu, A. 2020. Impact of board characteristics on environmental disclosures for listed mining companies in China. Environmental Science and Pollution Research 27, 21188–21201
  5. Akhter, F., Hossain, M.R., Elrehail, H., Rehman, S.U., and Almansour, B. 2023. Environmental disclosures and corporate attributes, from the lens of legitimacy theory: a longitudinal analysis on a developing country. European Journal of Management and Business Economics 32, 342–369
  6. Alshbili, I., Elamer, A.A., and Moustafa, M.W. 2021. Social and environmental reporting, sustainable development and institutional voids: evidence from a developing country. Corporate Social Responsibility and Environmental Management 28, 881–895
  7. Amira, M.P., Ermaya, H.N.L., and Miftah, M. 2024. Faktor-Faktor yang Mempengaruhi Carbon Emission Disclosure. Indonesian Journal of Auditing and Accounting 1, 21–41
  8. Ardyaningsih, N., and Oktarina, D. 2022. Pengaruh kinerja lingkungan, kepemilikan publik dan ukuran perusahaan terhadap environmental disclosure. Jurnal Akuntansi AKUNESA 11, 49–59
  9. Assiva, R., and Kaharti, E., 2021. Pengaruh kinerja lingkungan, kinerja keuangan dan ukuran perusahaan terhadap environmental disclosure pada perusahaan manufaktur yang terdaftar di BEI Tahun 2016-2019. Jurnal Ilmiah Mahasiswa Manajemen, Bisnis dan Akuntansi 3, 993–1008
  10. Ayu Indriyani, D., and Sudaryati, E. 2020. Pengaruh keragaman gender dewan, industri dan ukuran perusahaan terhadap donasi corporate social responsibility. E-Jurnal Akuntansi 30, 2009
  11. Bhatia, A., and Makkar, B. 2020. CSR disclosure in developing and developed countries: a comparative study. Journal of Global Responsibility 11, 1–26
  12. Bose, S., Hossain, S., Sobhan, A., and Handley, K. 2022. Does female participation in strategic decision-making roles matter for corporate social responsibility performance? Accounting & Finance 62, 4109–4156
  13. Bose, S., Lim, E.K.Y., Minnick, K., and Shams, S. 2024. Do foreign institutional investors influence corporate climate change disclosure quality? International evidence. Corporate Governance: An International Review 32, 322–347
  14. BPK. 2012. Peraturan Pemerintah (PP) Nomor 47 Tahun 2012 tentang Tanggung Jawab Sosial Dan Lingkungan Perseroan Terbatas [WWW Document]. URL https://peraturan.bpk.go.id/Details/5260/pp-no-47-tahun-2012#:~:text=PP No. 47 Tahun 2012 (accessed 9.22.24)
  15. BPS-Statistics. 2024. Statistik Lingkungan Hidup Indonesia - Environment Statistics of Indonesia 2024. BPS-Statistics Indonesia
  16. Budianto, Setiawan, D., Widarjo, W., and Arifin, T. 2025. Influence of corporate sustainability committees , environmental performance , and environmental costs on carbon disclosure in energy , mining , and transportation companies in Indonesia. Journal of Asian Energy Studies 9, 91–110
  17. Burke, J.J., Hoitash, R., and Hoitash, U. 2019. The heterogeneity OF board-level sustainability committees AND corporate social performance. Journal of Business Ethics 154, 1161–1186
  18. Carvajal, M., Nadeem, M., and Zaman, R. 2022. Biodiversity disclosure, sustainable development and environmental initiatives: does board gender diversity matter? Business Strategy and the Environment 31, 969–987
  19. Choiriah, S., and Ria. 2020. The effect of stakeholder power, board gender diversity and human capital on environmental disclosure with board independent as moderation variable. Research Journal of Finance and Accounting 11, 36–45
  20. Cucari, N., Esposito De Falco, S., and Orlando, B. 2018. Diversity of board of directors and environmental social governance: evidence from italian listed companies. Corporate Social Responsibility and Environmental Management 25, 250–266
  21. Daromes, F.E., Holly, A., and Loeferdy, M. 2023. Analisis aspek materialitas dalam pelaporan keberlanjutan. Wacana Ekonomi: Jurnal Ekonomi, Bisnis dan Akuntansi 22, 1–17
  22. Dowling, J., and Pfeffer, J. 1975. Pacific sociological association organizational legitimacy: social values and organizational behavior. Pacific Sociological Review 18, 122–136
  23. Driss, H., Drobetz, W., El Ghoul, S., and Guedham, O. 2024. The sustainability committee and environmental disclosure: international evidence. Journal of Economic Behavior & Organization, 221, 602–625
  24. Fernandes, S.M., Bornia, A.C., and Nakamura, L.R. 2019. The influence of boards of directors on environmental disclosure. Management Decision 57, 2358–2382
  25. Garanina, T., and Aray, Y. 2021. Enhancing CSR disclosure through foreign ownership, foreign board members, and cross-listing: does it work in Russian context? Emerging Markets Review 46, 100754
  26. Gerged, A.M. 2020. Factors affecting corporate environmental disclosure in emerging markets: the role of corporate governance structures, business strategy and the environment
  27. Ghozali, I. 2018. Aplikasi analisis multivariate dengan program IBM SPSS 25, 9th ed. Badan Penerbit Universitas Diponegoro, Semarang
  28. Giannarakis, G., Andronikidis, A., and Sariannidis, N. 2020. Determinants of environmental disclosure : investigating new and conventional corporate governance characteristics. Annals of Operations Research 294, 87–105
  29. Gürbüz, H., and Gürbüz, C. 2025. The mediating effect of the sustainability committee on the relationship of size of board of directors with environmental sustainability disclosures: a study in the transportation sector. Sustainability 17, 1–23
  30. Hamad, S., Lai, F.W., Shad, M.K., Shah, S.Q.A., Jan, A.A., and Ali, S.E.A. 2024. A reflection on the voluntary disclosure of sustainable development goals: the role of sustainability committee. Business Strategy and Development 7, 1–16
  31. Hilmi, and Mutia, R. 2020. Pengaruh profitabilitas dan leverage terhadap pengungkapan lingkungan. Jurnal Kajian Akuntansi dan Bisnis Terkini 1, 493–506
  32. Ismail, A.M., and Latiff, I.H.M. 2019. Board diversity and corporate sustainability practices: evidence on environmental, social and governance (ESG) reporting. International Journal of Financial Research 10, 31–50
  33. Jacoby, G., Liu, M., Wang, Y., Wu, Z., and Zhang, Y. 2019. Journal of international financial markets , institutions & money corporate governance , external control , and environmental information transparency : evidence from emerging markets. Journal of International Financial Markets, Institutions and Money 58, 269–283
  34. Jubaedah, S., and Setiawan, D. 2023. The effect of ownership structure on social and environmental disclosure in Indonesia. Diponegoro International Journal of Business 6, 24–35
  35. Khaireddine, H., Salhi, B., Aljabr, J., and Jarboui, A. 2020. Impact of board characteristics on governance, environmental and ethical disclosure. Social Responsibility Journal 15, 273–295
  36. Kilincarslan, E., and Elmagrhi., M.H., Li, Z. 2020. Impact of governance structures on environmental disclosures in the Middle East and Africa. Corporate Governance 20, 739–763
  37. Kumari, P.S.R., Makhija, H., Sharma, D., and Behl, A. 2022. Board characteristics and environmental disclosures: evidence from sensitive and non-sensitive industries of India. International Journal of Managerial Finance 18, 677–700
  38. Latif, R.A., Yahya, N.H., Mohd, K.N.T., Kamardin, H., and Ariffin, A.H.M. 2020. The influence of board diversity on environmental disclosures and sustainability performance in Malaysia. International Journal of Energy Economics and Policy 10, 287–296
  39. Li, Y., Zhang, X., Yao, T., Sake, A., Liu, X., and Peng, N. 2021. The developing trends and driving factors of environmental information disclosure in China. China. Journal of Environmental Management 288, 112386
  40. Lie, C.A., and Setyani, A.Y. 2023. Pengaruh profitabilitas dan gender diversity terhadap luas pengungkapan CSR (Corporate Social Responsibility). Forum Manajemen Indonesia 2023 Papua 1, 243–256
  41. Mähönen, J. 2020. Integrated reporting and sustainable corporate governance from european perspective. Accounting, Economics and Law: A Convivium 10
  42. Manita, R., Bruna, M.G., Dang, R., and Houanti, L. 2018. Board gender diversity and ESG disclosure: evidence from the USA. Journal of Applied Accounting Research 19, 206–224
  43. Manrique, S., and Martí-Ballester, C.P. 2017. Analyzing the effect of corporate environmental performance on corporate financial performance in developed and developing countries. Sustainability 9
  44. Meutia, I., Mukhtaruddin, M., Saftiana, Y., and Faisal, M. 2017. CEO’s experience, foreign ownership and corporate social responsibility: a case of manufacturing companies. Corporate Ownership & Contro 14, 377–392
  45. Mougenot, B., and Doussoulin, J.P. 2023. A bibliometric analysis of the Global Reporting Initiative (GRI): global trends in developed and developing countries. Environment, Development and Sustainability 26, 6543–6560
  46. Muntaha, M.R., and Haryono, S. 2021. Pengaruh corporate governance, sustainability committee, dan degree of multinational activity terhadap CSR disclosure. AKSES: Jurnal Ekonomi dan Bisnis 16, 63–75
  47. Nagata, K., and Nguyen, P. 2017. Ownership structure and disclosure quality: evidence from management forecasts revisions in Japan. Journal of Accounting and Public Polic 36, 451–467
  48. Ofoegbu, G.N., Odoemelam, N., and Okafor, R.G. 2018. Corporate board characteristics and environmental disclosure quantity: evidence from South Africa (integrated reporting) and Nigeria (traditional reporting). Cogent Business & Management 5, 1–27
  49. Otoritas Jasa Keuangan (OJK), 2007. UU Nomor 40 Tahun 2007 tentang Perseroan Terbatas [WWW Document]. URL https://www.ojk.go.id/sustainable-finance/id/peraturan/undang-undang/Documents/5. UU-40-2007 PERSEROAN TERBATAS.pdf (accessed 9.24.24)
  50. Otoritas Jasa Keuangan (OJK), 2017. POJK No. 51 /POJK.03/2017 tentang penerapan keuangan berkelanjutan bagi lembaga jasa keuangan, emiten, dan perusahaan publik
  51. Otoritas Jasa Keuangan (OJK), 2021. Salinan Surat Edaran Otoritas Jasa Keuangan Republik Indonesia Nomor 16 /SEOJK.04/2021 tentang bentuk dan isi laporan tahunan emiten atau perusahaan publik
  52. Orazalin, N. 2020. Do board sustainability committees contribute to corporate environmental and social performance? the mediating role of corporate social responsibility strategy. Business Strategy and the Environment 29, 140–153
  53. Orazalin, N.S., Ntim, C.G., and Malagila, J.K. 2024. Board sustainability committees, climate change initiatives, carbon performance, and market value. British Journal of Management 35, 295–320
  54. Pinheiro, A.B., Oliveira, M.C., Freitas, G.A. de., and García, M.B.L., 2023. Board attributes and environmental disclosure: what is the nexus in liberal economies? Revista de Administração de Empresas 63, 1–23
  55. Qasem, A., AL-Duais, S.D., Wan-Hussin, W.N., Bamahros, H.M., Alquhaif, A., and Thomran, M., 2022. Institutional ownership types and esg reporting: the case of saudi listed firms. Sustainability 14, 1–23
  56. Richard, L., and Wijaya, H. 2022. Pengaruh media exposure, dewan komisaris, komite audit dan kepemilikan asing terhadap environmental disclosure. Jurnal Ilmiah Mahasiswa Akuntansi 11, 58–71
  57. Rmolsumsel. 2024. Dikelola oleh Powerindo Chemicals, limbah air asam tambang pt bas masih cemari sungai enim, aktivis desak cabut izin usaha! [WWW Document]. 17 Mei 2024. URL https://www.rmolsumsel.id/dikelola-oleh-powerindo-chemicals-limbah-air-asam-tambang-pt-bas-masih-cemari-sungai-enim-aktivis-desak-cabut-izin-usaha (accessed 9.23.24)
  58. Roberts, R.W. 1992. Determinants of corporate social responsibility disclosure: An application of stakeholder theory. Accounting, Organizations and Society 17, 595–612
  59. Rouf, M.A., and Al-Faryan, M.A.S. 2022. Does corporate governance affect environmental reporting? PSU Research Review 8, 514–527
  60. Saragih, A., Pratama, F., and Nurbaiti, A. 2021. Pengaruh profitability, environmental performance dan environmental certification terhadap environmental disclosure pada perusahaan indeks LQ45. Jurnal Ilmiah MEA: Manajemen, Ekonomi, dan Akuntansi 5, 2282–2295
  61. Sayadi, M.H., and Setiawan, D. 2024. Influence of ownership structure and international operations on web-based environmental disclosure in the Asian mining industry. Sustainable Futures 8
  62. Singhania, M., and Saini, N. 2023. Institutional framework of ESG disclosures: comparative analysis of developed and developing countries. Journal of Sustainable Finance & Investment 13, 516–559
  63. Siregar, I.M., and Haryono, S. 2023. Green banking: operating costs on operating income, capital adequacy ratio, financial slack, sustainability officer, and sustainability committee. Jurnal Ekonomi Syariah Teori dan Terapan 10, 427–442
  64. Siregar, M.Y., and Kusumawardhani, I. 2023. Ukuran perusahaan, profitabilitas, political cost, tipe industri, dan kinerja lingkungan terhadap environmental disclosure. Jurnal Informasi, Perpajakan, Akuntansi, dan Keuangan Publik 18, 1–14
  65. Surjati, M., and Yanti, Y. 2023. Disclosure of sustainability reports in basic materials and energy sector companies. Journal of Social Research 2, 3044–3056
  66. Suryarahman, E., and Trihatmoko, H. 2021. Effect of environmental performance and board of commissioners on environmental disclosures. Assets: Jurnal Akuntansi dan Pendidikan 10, 1
  67. Wahyudin, A. 2015. Metodologi penelitian (penelitian bisnis dan pendidikan). UNNES Press, Semarang
  68. Wahyuningrum, I.F.S., Agustina, L., Jati, K.W., Amal, M.I., and Sriningsih, S. 2024. A slight look environmental disclosure score trends during covid-19 outbreak: what’s driver the environmental disclosure in indonesian mining and manufacturing companies. International Journal of Energy Economics and Policy 14, 160–171
  69. Wahyuningrum, I.F.S., Safitri, L., Oktavilia, S., and Setyadharma, A. 2022. The determinant of environmental disclosure in ASEAN. Jurnal Presipitasi: Media Komunikasi dan Pengembangan Teknik Lingkungan 19, 24–33
  70. Wasiuzzaman, S., and Masliza, W.M.W. 2020. Board gender diversity and transparency of environmental, social and governance disclosure: Evidence from Malaysia. Managerial and Decision Economics 41, 145–156
  71. Wei, M., Wang, Y., and Giamporcaro, S. 2024. The impact of ownership structure on environmental information disclosure: Evidence from China. Journal of Environmental Management 352
  72. Wicaksono, A.P., Kusuma, H., Cahaya, F.R., Rosjidi, A. Al, Rahman, A., and Rahayu, I. 2024. Impact of institutional ownership on environmental disclosure in Indonesian companies. Corporate Governance 24, 139–154
  73. Zampone, G., Nicolò, G., Sannino, G., and De Iorio, S., 2024. Gender diversity and SDG disclosure: the mediating role of the sustainability committee. Journal of Applied Accounting Research 25, 171–193

Last update:

No citation recorded.

Last update: 2026-03-30 21:12:54

No citation recorded.