Governance Attributes Driving Sustainability Reporting in Indonesia’s Mining Industry

¹ Department of Accounting, Universitas Sebelas Maret, Surakarta 57121, Indonesia
² Department of Accounting, Universitas Janabadra, Yogyakarta 55231, Indonesia

^* Corresponding author: afifyoga79@student.uns.ac.id

Abstract

Corporate sustainability disclosure (CSD) is crucial for the mining industry, which destroys the environment and biodiversity in its operations. Such disclosures reflect the company’s effort in maintaining the environmental, social, and governance (ESG) issues of sustainability. This research investigates whether board attributes, including board size, board independence, and gender diversity, affect CSD in the mining industry in Indonesia. Panel data analysis applied to 43 firms listed in 2019–2023 reveals that board size does not affect CSD, whereas board independence and gender diversity positively affect CSD. The results indicate that firms with a higher number of independent directors and female directors tend to produce a higher score of CSD. This study’s findings provide information to the regulatory body to strengthen the regulation of directors’ independence and female directors’ involvement at the corporate level. The higher proportion of independent directors and female directors will help companies meet the growing demand for transparency and accountability in their ESG practices. This study’s focus on governance attributes in CSD provides novel regulatory insights to strengthen board composition requirements, thereby improving transparency and accountability in sustainability practices.