Does the COVID-19 Pandemic Affect the Transparency of Indonesian Industrial Company in Managing Energy, Water, Carbon Emissions, and Wastes?
Heri Yanto, Maryati

Faculty of Economics, Universitas Negeri Semarang
E-mail: heri.yanto[at]mail.unnes.ac.id

Abstract

The COVID-19 pandemic affected Indonesia^s economic growth which was marked by an economic growth of -2.1% in 2020. This economic contraction also affected the growth of industrial companies in Indonesia in the same year by -2.93%. These minus growths are also likely to reduce the transparency quality of industrial companies in managing their environmental impacts. This study aims to identify the effect of COVID-19 on the transparency of industrial companies in managing energy, water, carbon emissions, and waste. By analyzing the financial statements of 125 industrial companies operating in Indonesia, it was found that there was a significant decrease in the number of industrial companies reporting on energy, water, carbon emissions, and waste management in their annual reports. The number of companies reporting energy and water management decreased significantly during the pandemic, while the decline in the number of companies reporting carbon and waste emissions was not statistically significant. The Ministry of Forestry and Environment and the Indonesian Institute of Accountants need to require all companies to disclose environmental reports in their financial statements.

Keywords: Environmental Disclosure, Industrial company, Impacts of COVID-19, Global Reporting Initiatives

Topic: The Role of Education in Global Warming and Climate Change Mitigation