Determinant of Carbon Emission Disclosure: The Role of Leaders' Low Carbon Awareness

Abstract

Purpose: This study investigates the determinant of carbon emission disclosure. This study examine impact of leaders' low-carbon awareness on the relationship between pressure and carbon emission disclosure. Design/methodology/approach: The research adopts a quantitative approach and uses secondary data from 57 public companies listed on the Indonesia Stock Exchange between 2018 and 2022. Findings: By applying stakeholder theories, we delve into the determinant of carbon emission disclosure. The analysis reveals that economic, financial, and regulatory pressures have a substantial impact on the disclosure of carbon emissions. Internal pressure does not influence carbon emissions disclosure. The study's findings indicate that corporate leaders' low-carbon awareness significantly influences the disclosure of carbon emissions. However, the moderating effect of low-carbon awareness among corporate leaders weakens the relationship between pressure and carbon emission disclosure. Research limitations/implications: These findings have implications for stakeholders who are responsible for overseeing companies in order to achieve climate change sustainability objectives. This result indicates that stakeholder pressure can increase carbon emission disclosure. According to the regression analysis, low carbon awareness has not moderation the interaction between pressure and carbon emission disclosure. The result suggests a pressing need to reevaluate the current strategies and policies to address pressure and carbon emission disclosure. Originality/value: There is a clear need for additional research on moderating leaders' low-carbon awareness in the relationship between pressure and carbon emission disclosure. The existing literature in this area is notably limited, so further investigation is vital to gain a comprehensive understanding of this complex relationship.