Does Readability Annual Report, External Pressure, and Social Responsibility Disclosure Affect Carbon Emission Disclosure?

Accounting Department, Faculty of Economics & Communication, Bina Nusantara University, Jakarta, Indonesia, 11480

^* Corresponding author: anindya.putri001@binus.ac.id
^† Corresponding author: jessica.onggo@binus.ac.id
^‡ Corresponding author: tommy.andrian@binus.ac.id

Abstract

This study examines the effect of annual report readability, external pressure, and social responsibility disclosure on carbon emission disclosure. It uses control firm size, return on assets, debt to equity ratio, and media exposure variables. The study uses a quantitative approach and panel data using 174 firm-year observations of energy sector companies listed on the Indonesia Stock Exchange for the 2015- 2020 period. The data analysis technique used is multiple linear regression using SPSS 28 as a test tool. This study uses proxy measurement for social responsibility disclosure using the ISO 26000 index to give a new perspective on the company's commitment to carrying out its social responsibility disclosure. The result of this study's external pressure proxied by the proportion of tradable shares and financing debt ratio and annual report readability do not affect carbon emission disclosure. In contrast, social responsibility disclosure positively affects carbon emission disclosure. This study implies that companies should improve and pay more attention to the disclosure of social responsibility in aspects of sustainable resource use and climate change mitigation and adaptation to support the achievement of net-zero emissions and support sustainable development goals.