Decoupling Climate Disclosure from Emission Performance: Evidence from Indonesia’s High-Impact Sectors
DOI:
https://doi.org/10.24843/JIAB.2026.v20.i02.p04Keywords:
greenwashing, climate-related disclosure, carbon emissions, legitimacy theory, high-impact sectorsAbstract
This study examines whether climate-related disclosure reflects substantive environmental accountability or is more consistent with a legitimacy-oriented reporting strategy among firms operating in Indonesia’s environmentally sensitive sectors. Using 130 firm-year observations from 35 listed companies over 2019–2023, the study estimates Ordinary Least Squares (OLS) regressions with robust standard errors. Climate-related disclosure is measured using a 36-item index developed from GRI 305, POJK No. 51/2017, the TCFD recommendations, and ISO 14064. The findings show that firms experiencing increases in carbon emissions provide more extensive climate-related disclosure, whereas improvements in environmental performance are not associated with greater disclosure. This pattern is consistent with firms using climate-related reporting, at least in part, to respond to legitimacy pressures rather than as a direct reflection of substantive environmental improvement. The study extends the application of legitimacy theory to Indonesia’s mandatory sustainability-reporting environment and highlights the importance of stronger regulatory oversight and independent assurance in improving the credibility of corporate climate-related disclosure.
Keywords: greenwashing, climate-related disclosure, carbon emissions, legitimacy theory, high-impact sectors
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