The Effect of CSR Departments, Leverage, and Good Corporate Governance on Carbon Emission Disclosure

Abstract

Indonesia is rich in natural resources that support national development but also contribute to increasing carbon emissions from energy and mining activities. This study examines the impact of the presence of a corporate social responsibility department, financial leverage, and principled corporate governance on carbon emission disclosure in energy and mining sector companies listed on the Indonesia Stock Exchange from 2019 to 2023. Adopting a positivist orientation with a panel data regression encompassing twelve entities across a quinquennial term, thereby yielding sixty discrete observations, the investigation employs the GRI version four index, the debt-to-equity quotient, and the magnitude of the board as analytic stand-ins. The outcomes illustrate that the institutional presence of CSR departments exerts a materially affirmative influence on the transparency of carbon emission disclosures, while leverage and the extent of board membership do not present statistically consequential effects. The three variables collectively explain 13.2% of the variation in disclosure, with CSR departments emerging as the dominant factor. These results underscore the pivotal role of sustainability-oriented organizational structures over financial or governance mechanisms in advancing environmental transparency amid global climate commitments.