THE EFFECT OF ENVIRONMENTAL COSTS AND ISO 14001 CERTIFICATION ON ENVIRONMENTAL INFORMATION DISCLOSURE IN MINING COMPANIES IN INDONESIA
Keywords:
environmental costs, ISO 14001, environmental disclosure, mining, sustainabilityAbstract
This study addresses the issue of environmental information disclosure in the context of mining companies in Indonesia, focusing on the influence of environmental costs and ISO 14001 certification. The disclosure of environmental information is becoming increasingly important as increasing pressure from regulators, the public, and investors who demand transparency over the ecological impact of corporate activities, especially in industries that have a high risk to the environment. The main problem in this study is the low level of environmental information disclosure by mining companies despite the allocation of environmental costs and ownership of ISO 14001 certification. The novelty of this study lies in the simultaneous approach that tests two main factors-environmental costs and ISO 14001-that were previously often studied separately, as well as the specific focus on the Indonesian mining sector that has not been comprehensively explored in environmental accounting studies. This study uses quantitative methods with an associative approach and multiple linear regression analysis. Secondary data was collected from annual reports and sustainability reports of mining companies listed on the Indonesia Stock Exchange (IDX) selected through purposive sampling technique. The results showed that neither environmental costs nor ISO 14001 certification had a statistically significant effect on the level of environmental information disclosure. In conclusion, cost and certification have not been the main drivers of sustainability reporting, so companies and regulators need to revisit disclosure strategies that are more substantial and effective.References
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