Regulatory and Voluntary Environmental Metrics as Predictor of Firm Performance: Evidence form Indonesian Mining Firms
Eiffeliena Nuraini Fisikaningputri Purwienanti, Clara Yully Diana Ekaristi

Applied Tax Accounting Program, Vocational School, Diponegoro University

Abstract

This study aims to investigate the relationship between environmental performance, disclosure and the financial performance of mining business listed on Indonesia Stock Exchange. The analysis focuses on firms participating in the PROPER program and reporting environmental information based on the GRI framework using panel data from 2021-2023 and using regression analysis. This study also analyses the ongoing change in sustainability reporting requirement such as the implementation of IFRS S1 and S2 established by ISSB. Those standards are expected to influence future ESG reporting practices in Indonesia, particularly in high impact sector with significant environmental effect. Using the combination of regulatory and voluntary metrics, the study will offer preliminary insight into the impact of structured sustainability disclosure on firms^ performance within a converging global reporting landscape.

Keywords: Environmental Performance, PROPER, GRI, mining, ESG Disclosure, Firm Performance

Topic: Financial management