Sustainability in Accounting: Disclosure of Accounting Information Related to Climate Change

Abstract

There has been progress toward policy and implementation in Indonesia's development of climate change accounting disclosure. Accounting professionals in Indonesia are prepared to take the lead in climate change mitigation sustainable reporting[1]. One of the initiatives to achieve the SDGs is sustainable governance, which includes climate disclosure. The Chair of B20 Indonesia, Shinta W. Kamdani, claims that businesses have benefited greatly from the adoption of sustainable governance. A 19% gain in earnings has been reported by about 33% of companies that use sustainable techniques to reduce costs and boost operational efficiency [1]. This raises the question of how Indonesian businesses reveal corporate information on climate change in their sustainability reports. In order to help businesses achieve their sustainability goals, this research will examine how they disclose information on climate change. The study population is companies in the forestry, energy and transportation sectors in Indonesia. This selection is based on the main priority of reducing Indonesia's GHG emissions in the forestry, energy and transportation sectors which cover 97% of Indonesia's total nationally determined contribution (NDC) emission reduction targets [2]. Governance, strategy, risk management, and TCFD Metrics and Targets comprise the climate disclosure data that was evaluated using a descriptive qualitative research methodology [3].