J
Jurnal Teknika dan Informatika Abnus Publisher

Analysis of Environmental, Social, and Governance Disclosure Quality in Indonesian Manufacturing Companies

2025-05-21
Published
1-19
Pages
OPEN
Access
FN
Fitra Nur
Accounting Study Program, Faculty of Economics and Business, Muhammadiyah University of Makassar
WR
Wa Ode Rayyani
Accounting Study Program, Faculty of Economics and Business, Muhammadiyah University of Makassar
Abstract

Purpose: This study aims to analyze the quality of Environmental, Social, and Governance (ESG) disclosures among manufacturing companies listed on the Indonesia Stock Exchange (IDX) during 2021–2025 using the Global Reporting Initiative (GRI) Standards 2021 and the Indonesian Financial Services Authority (OJK) framework.

Research Methodology: A descriptive quantitative approach was employed through content analysis of sustainability and annual reports. Purposive sampling selected 85 manufacturing companies, resulting in 425 firm-year observations. ESG disclosure quality was measured using a GRI-based disclosure index, while panel data regression examined the effects of firm size, profitability, institutional ownership, leverage, and regulatory pressure.

Results: The findings indicate that ESG disclosure quality improved consistently between 2021 and 2025, with the average ESG disclosure index increasing from 35.00 to 47.28. Governance achieved the highest disclosure level, followed by social and environmental dimensions. Firm size, profitability, institutional ownership, and regulatory pressure positively and significantly influenced ESG disclosure quality, whereas leverage had a significant negative effect. 

Conclusions: ESG disclosure quality among Indonesian manufacturing companies has improved over time, although considerable disparities remain across firms. Corporate characteristics and regulatory pressure are important determinants of disclosure quality.

Limitations: This study focuses only on manufacturing companies listed on the IDX and evaluates disclosures based on publicly available reports.

Contributions: The findings enrich the literature on ESG disclosure quality in emerging markets and provide practical implications for regulators, investors, and corporate managers seeking to strengthen sustainability reporting practices in Indonesia.

Environmental, Social, and Governance (ESG) Indonesia Stock Exchange Manufacturing Companies Sustainability Report Disclosure Quality
How to Cite
Nur, F., & Rayyani, W. O. . (2025). Analysis of Environmental, Social, and Governance Disclosure Quality in Indonesian Manufacturing Companies. Jurnal Teknika Dan Informatika, 5(1), 1-19. https://doi.org/10.52909/jti.v5i1.362
Endnote/Zotero/Mendeley (RIS) BibTeX
References
  1. Alsayegh, M. F., Abdul Rahman, R., & Homayoun, S. (2020). Corporate economic, environmental, and social sustainability performance transformation through ESG disclosure. Sustainability, 12(9), 3910. https://doi.org/10.3390/su12093910
  2. ASEAN Capital Markets Forum. (2022). ASEAN sustainable finance state of the market 2022.
  3. Clarkson, M. E. (1995). A stakeholder framework for analyzing and evaluating corporate social performance. Academy of management review, 20(1), 92-117. https://doi.org/10.5465/amr.1995.9503271994
  4. Clarkson, P. M., Li, Y., Richardson, G. D., & Vasvari, F. P. (2008). Revisiting the relation between environmental performance and environmental disclosure: An empirical analysis. Accounting, organizations and society, 33(4-5), 303-327. https://doi.org/10.1016/j.aos.2007.05.003
  5. Daugaard, D., & Ding, A. (2022). Global drivers for ESG performance: The body of knowledge. Sustainability, 14(4), 2322. https://doi.org/10.3390/su14042322
  6. Deegan, C. (2002). Introduction: The legitimising effect of social and environmental disclosures–a theoretical foundation. Accounting, auditing & accountability journal, 15(3), 282-311. https://doi.org/10.1108/09513570210435852
  7. Dowling, J., & Pfeffer, J. (1975). Organizational legitimacy: Social values and organizational behavior. Pacific sociological review, 18(1), 122-136. https://doi.org/10.2307/1388226
  8. Duran, I. J., & Rodrigo, P. (2018). Why do firms in emerging markets report? A stakeholder theory approach to study the determinants of non-financial disclosure in Latin America. Sustainability, 10(9), 3111. https://doi.org/10.3390/su10093111
  9. Dyck, A., Lins, K. V., Roth, L., & Wagner, H. F. (2019). Do institutional investors drive corporate social responsibility? International evidence. Journal of Financial Economics, 131(3), 693-. https://doi.org/10.1016/j.jfineco.2018.08.013
  10. Firmansyah, A., Hadi, N., Sheila, S., & Trisnawati, E. (2021). Respon pasar atas pengungkapan keberlanjutan pada perusahan perbankan di indonesia: Peran ukuran perusahaan. Bina Ekonomi, 25(2), 190-204. https://doi.org/10.26593/be.v25i2.5339.97-111
  11. Freeman, R. E. (1984). Strategic management: A stakeholder approach.
  12. García‐Sánchez, I. M., Hussain, N., Khan, S. A., & Martínez‐Ferrero, J. (2022). Assurance of corporate social responsibility reports: Examining the role of internal and external corporate governance mechanisms. Corporate Social Responsibility and Environmental Management, 29(1), 89-106. https://doi.org/10.1002/csr.2186
  13. Gholami, A., Murray, P. A., & Sands, J. (2022). Environmental, social, governance & financial performance disclosure for large firms: Is this different for SME firms?. Sustainability, 14(10), 6019. https://doi.org/10.3390/su14106019
  14. Hardi, I., Idroes, G. M., Hardia, N. A. K., Fajri, I., Furqan, N., Noviandy, T. R., & Utami, R. T. (2023). Assessing the Linkage Between Sustainability Reporting and Indonesia’s Firm Value: The Role of Firm Size and Leverage. Indatu Journal of Management and Accounting, 1(1), 21-28. https://doi.org/10.60084/ijma.v1i1.79
  15. Hombach, K., & Sellhorn, T. (2019). Shaping corporate actions through targeted transparency regulation: A framework and review of extant evidence. Schmalenbach Business Review, 71(2), 137-168. https://doi.org/10.1007/s41464-018-0065-z
  16. Husada, E. V., & Handayani, S. (2021). Pengaruh pengungkapan ESG terhadap kinerja keuangan perusahaan (Studi empiris pada perusahaan sektor keuangan yang terdaftar di BEI periode 2017-2019). Jurnal Bina Akuntansi, 8(2), 122-144. https://doi.org/10.52859/jba.v8i2.173
  17. Hörisch, J., Johnson, M. P., & Schaltegger, S. (2015). Implementation of sustainability management and company size: A knowledge‐based view. Business Strategy and the Environment, 24(8), 765-779. https://doi.org/10.1002/bse.1844
  18. Indonesian Institute for Corporate Governance. (2023). Survei kualitas tata kelola dan keberlanjutan perusahaan Indonesia 2023.
  19. Jamil, A., Mohd Ghazali, N. A., & Puat Nelson, S. (2021). The influence of corporate governance structure on sustainability reporting in Malaysia. Social Responsibility Journal, 17(8), 1251-1278. https://doi.org/10.1108/SRJ-08-2020-0310
  20. Kordsachia, O., Focke, M., & Velte, P. (2022). Do sustainable institutional investors contribute to firms’ environmental performance? Empirical evidence from Europe. Review of Managerial Science, 16(5), 1409-1436. https://doi.org/10.1007/s11846-021-00484-7
  21. Krippendorff, K. (2018). Content analysis: An introduction to its methodology (4th ed.).
  22. Kusumawardani, A. M. T. (2022). Pengaruh Good Corporate Governance dan Ukura Perusahaan terhadap Pengungkapan Sustainability Report serta Dampaknya terhadap Return Saham: Studi Empiris pada perusahaan Perbankan yang terdaftar di Bursa Efek Indonesia Periode 2018–2020. Owner: Riset Dan Jurnal Akuntansi, 6(4), 3724-3742. https://doi.org/10.33395/owner.v6i4.1129
  23. Landis, J. R., & Koch, G. G. (1977). The measurement of observer agreement for categorical data. Biometrics, 33(1), 159-174.
  24. Liu, C., & Wang, X. (2022). Media and institutional investors focus on the impact on corporate sustainability performance. Sustainability, 14(21), 13878. https://doi.org/10.3390/su142113878
  25. Ningwati, G., Septiyanti, R., & Desriani, N. (2022). Pengaruh environment, social and governance disclosure terhadap kinerja perusahaan (the effect of environmental, social and governance disclosure on corporate performance). Goodwood Akuntansi dan Auditing Reviu (GAAR), 1(1), 67-78. https://doi.org/10.35912/gaar.v1i1.1500
  26. Otoritas Jasa Keuangan. (2021). Surat Edaran OJK Nomor 16/SEOJK.04/2021 tentang bentuk dan isi laporan tahunan emiten atau perusahaan publik.
  27. Priandhana, F. (2022). Pengaruh risiko environment social and governance terhadap kinerja keuangan perusahaan (Studi pada perusahaan didalam indeks IdxESGl). Business Economic, Communication, and Social Sciences Journal (BECOSS), 4(1), 59-63. https://doi.org/10.21512/becossjournal.v4i1.7797
  28. Putri, C. P., & Nasih, M. (2022). The effect of gender diversity in the boardroom and company growth on environmental, social, and governance disclosure (ESGD). Journal of Accounting and Investment, 23(3), 460-477. https://doi.org/10.18196/jai.v23i3.14402
  29. Qodary, H. F., & Tambun, S. (2021). Pengaruh Environmental, Social, Governance (ESG) dan retention ratio terhadap return saham dengan nilai perusahaan sebagai variabel moderating. Juremi: Jurnal Riset Ekonomi, 1(2), 159-172. https://doi.org/10.53625/juremi.v1i2.266
  30. Raimo, N., Caragnano, A., Zito, M., Vitolla, F., & Mariani, M. (2021). Extending the benefits of ESG disclosure: The effect on the cost of debt financing. Corporate Social Responsibility and Environmental Management, 28(4), 1412-1421. https://doi.org/10.1002/csr.2134
  31. Schiehll, E., & Kolahgar, S. (2021). Financial materiality in the informativeness of sustainability reporting. Business Strategy and the Environment, 30(2), 840-855. https://doi.org/10.1002/bse.2657
  32. Schreck, P., & Raithel, S. (2018). Corporate social performance, firm size, and organizational visibility: Distinct and joint effects on voluntary sustainability reporting. Business & Society, 57(4), 742-778. https://doi.org/10.1177/0007650315613120
  33. So, I. G., Haron, H., Gui, A., Princes, E., & Sari, S. A. (2021). Sustainability reporting disclosure in Islamic corporates: Do human governance, corporate governance, and IT usage matter?. Sustainability, 13(23), 13023. https://doi.org/10.3390/su132313023
  34. Suretno, F., Adrianto, F., & Alfarisi, M. F. (2022). Effect of environment, social and governance disclosure on firm value. JBTI: Jurnal Bisnis: Teori Dan Implementasi, 13(2), 121-128. https://doi.org/10.18196/jbti.v13i2.14458
  35. Widyawati, L. (2020). A systematic literature review of socially responsible investment and environmental social governance metrics. Business Strategy and the Environment, 29(2), 619-637. https://doi.org/10.1002/bse.2393
  36. Xie, J., Nozawa, W., Yagi, M., Fujii, H., & Managi, S. (2019). Do environmental, social, and governance activities improve corporate financial performance?. Business Strategy and the Environment, 28(2), 286-300. https://doi.org/10.1002/bse.2224
License
Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

How to Cite

Nur, F., & Rayyani, W. O. . (2025). Analysis of Environmental, Social, and Governance Disclosure Quality in Indonesian Manufacturing Companies. Jurnal Teknika Dan Informatika, 5(1), 1-19. https://doi.org/10.52909/jti.v5i1.362
Downloads
View PDF PDF · Open Access
Statistics
Issue
Vol. 5 No. 1 (2025): May
Articles

Most read articles by the same author(s)

1 2 > >>