Title: Analysis of The Disclosure of Greenhouse Gas Emissions and Environmental Performances in Listed Firms at The Jakarta Islamic Index

Authors: Dwi Swasana Ramadhan1, Azizah Anshori2, Sri Iswati1, Sri Herianingrum1

Affiliations: 1. Postgraduate School Universitas Airlangga Surabaya, Indonesia; 2. Psychology Faculty Airlangga University Surabaya, Indonesia

Publisher: Atlantis Press

Abstract

Indonesia fully supports the United Nations by designing and legalising Constitution No. 17 2004 about the Kyoto Protocol to the United Nations Framework Convention on Climate Change, Presidential Decree No. 61 2011 about the National Action Plan to Reduce Greenhouse Gas Emission, and Presidential Decree No. 71 2011 about the Inventory Operation of National Greenhouse Gas. The energy sector in Indonesia contributes 20% of greenhouse gas emission with the annual percentage increasing to 3.5% which comes from the burning of fossil fuels to boost Indonesia’s national economy. Since 1995, the Indonesian government has issued a policy about the Corporate Performance Rating Program in Environmental Management or PROPER (Program Penilaian Pemeringkatan Kinerja Perusahaan dalam Pengelolaan Lingkungan). The result of the ranking is in the form of the colours of gold, green, blue, red, and black. AlQur’an in Surah Al-A’raf verse 56 and Surah Ar-Rum verse 41 states that those of the Islamic faith are ordered to maintain the world’s environment. The research sample consists of 150 listed firms in the Jakarta Islamic Index at the end of each year from 2012 to 2016. This research uses the quantitative methodology with binary logistic regression and multinominal regression analysis. The results of this research indicate that corporate performance, profitability in the form of ROA and ROE, firm size and environmental performance are not significant influences related to the disclosure of greenhouse gas emissions. But, through the Classification Table, the output shows that the logistic regression model used is good enough because it was able to predict correctly as much as 89.3% of the conditions. Whereas corporate performance, profitability in ROA and ROE, and firm size are significant influences on the environmental performance of the company. This proves that the listed firms in JII have good environmental performance in accordance with corporate performance, profitability and firm size.

Keywords: greenhouse gas emissions; environmental performance; Jakarta Islamic Index (JII); annual report; financial statement

Sources: https://www.atlantis-press.com/proceedings/icpsuas-17/25891247