Strengthening Carbon Accounting through Emission Transparency: Evidence from the Indonesian Energy Sector

Abstract

Climate change driven by increased carbon emissions from industrial activities has become a pressing global issue. The energy sector in Indonesia is a major contributor to carbon emissions, highlighting the need for the implementation of carbon accounting to enhance corporate environmental accountability. This study aims to analyze the influence of carbon emission measurement, recognition, recording, and disclosure on the implementation of carbon accounting. A descriptive-verificative approach with a quantitative method was employed in this research. The population comprises all energy sector companies listed on the Indonesia Stock Exchange (IDX) during the 2021–2023 period. The sampling technique used was purposive sampling, targeting companies that published annual and sustainability reports containing carbon emission information, resulting in a final sample of 22 companies. The data were analyzed using logistic regression analysis. The findings reveal that, simultaneously, measurement, recognition, recording, and disclosure of carbon emissions significantly influence the implementation of carbon accounting. Partially, emission measurement and disclosure are the most influential factors. This study provides practical insights for companies and regulators to promote more transparent and sustainable carbon emission reporting practices.