Green Accounting Implementation and Its Influence on Corporate Environmental Responsibility Disclosure in Indonesian Public Companies

Yofy Syarkani

doi:10.54783/endlessjournal.v8i2.346

Authors

Yofy Syarkani Universitas Langlangbuana, Bandung, Indonesia

DOI:

https://doi.org/10.54783/endlessjournal.v8i2.346

Abstract

This study investigates the implementation of green accounting and its influence on corporate environmental responsibility disclosure among public companies in Indonesia through a comprehensive literature review. As environmental concerns continue to shape corporate governance globally, the adoption of green accounting practices has become increasingly relevant in emerging economies. This paper synthesizes previous research findings to evaluate how green accounting frameworks contribute to the transparency and accountability of environmental reporting. By analyzing scholarly articles, regulatory documents, and industry case studies published between 2010 and 2024, the study identifies key drivers, barriers, and patterns in environmental disclosure. It further explores how Indonesian public companies respond to environmental pressures and regulatory demands through green accounting mechanisms. The findings suggest that while regulatory frameworks support disclosure initiatives, practical implementation remains inconsistent due to limited awareness and resource constraints. Moreover, companies with proactive environmental strategies tend to disclose more comprehensive sustainability reports. This paper contributes to existing knowledge by contextualizing global green accounting practices within the Indonesian corporate landscape. The study also highlights the need for enhanced policy enforcement and capacity building to strengthen disclosure quality. Ultimately, the review underscores the strategic role of green accounting in promoting long-term environmental accountability in corporate reporting.

References

Adisty, T. J., & Sumarna, A. D. (2025). Investigating the effect of green accounting adoption and sustainability disclosure in Indonesian manufacturing companies. Journal of Applied Accounting and Taxation, 10(1), 106–113. https://doi.org/10.30871/jaat.v10i1.9095

Afrizal, A., & Rahardjo, D. (2023). Environmental disclosure practices in Indonesia’s energy sector: A sectoral analysis. Journal of Environmental Accounting, 10(1), 45–62. https://doi.org/10.31058/jea.2023.10105

AIBPM Publisher. (2024). Implementation of Green Accounting: Literature Review. Current Issues & Research in Social Sciences, Education and Management, 2(2), 64–73.

Ajibola, A. M., & Tejumola, A. A. (2023). Green accounting and environmental sustainability practices among Nigerian listed companies. African Journal of Accounting, Auditing and Finance, 12(2), 143–159. https://doi.org/10.1504/AJAAF.2023.130841

Alaika, A. A., & Firmansyah, A. (2024). Unveiling the impact of green accounting and sustainability disclosure on firm value: Evidence from the Indonesian palm oil industry. Journal of Governance, Risk Management, Compliance and Sustainability, 4(2), 45–61. https://doi.org/10.31098/jgrcs.v4i2.2436

Andi Arjuni K., Alimuddin, Habbe H., Mediaty, & Maulana K. (2020). Green Accounting and Its Implementation in Indonesia: challenges in measuring environmental externalities. Universitas Hasanuddin.

Bilal, G., Gerged, A. M., Arslan, H. M., Abbas, A., Chen, S., & Manzoor, S. (2023). A bibliometric review of corporate environmental disclosure literature. Journal of Accounting Literature, 46(2), 214–237. https://doi.org/10.1108/JAL‑01‑2022‑0006

CarbonChain. (2025). Carbon accounting explained. Retrieved from https://www.carbonchain.com/carbon-accounting

CDP. (2024). CDP Global Environmental Disclosure Report. Retrieved from https://www.cdp.net/

Chauvey, J.-P., Giordano-Spring, I., & Cho, C.-H. (2019). A study of the determinants of environmental disclosure quality. Journal of Business Ethics. https://doi.org/10.1007/s10997-019-09474-0

Chen, Y., Zhang, P., & Li, X. (2025). Role of environmental disclosure in stock price crash risk. Journal of Corporate Finance, xx(x), xxx–xxx.

Dewi, I. A., Prasetya, T. H., & Kurnia, A. (2024). Effects of OJK sustainable finance roadmap on environmental reporting practices in Indonesian public firms. Indonesian Journal of Sustainability Accounting, 15(2), 55–71.

Dunakhir, S., Idrus, M., & Afiah, N. (2024). The implementation of green accounting in Indonesia: A case study of SOEs. Journal of Social Science and Business Studies, 2(4), 294–302. https://doi.org/10.61487/jssbs.v2i4.106

Endah, E., & Buanaputra, V. G. (2025). Analysis of green accounting implementation in utility companies in Indonesia: Case study of PT PLN. Indonesian Journal of Environmental Accounting, 3(1), 17–28. https://doi.org/10.52578/ijea.v3i1.217

Fauzi, H., Svensson, G., & Rahman, A. (2022). Board governance and environmental disclosure: Evidence from multinational corporations. Journal of Business Ethics, 175(4), 857–875. https://doi.org/10.1007/s10551-020-04699-0

Financial Times. (2025, June 15). Carbon reporting urgently needs fixing here’s how to do it.

Fitri, N., & Aditya, R. (2024). Sustainability reporting among Indonesian service firms: Voluntary reporting patterns. Indonesian Journal of Business Sustainability, 12(2), 98–113. https://doi.org/10.20961/ijbs.v12i2.61170

Ghazali, N. A. M., Wel, C. A. M., & Shaari, M. S. (2022). Environmental, social, and governance disclosure: A literature review. ESG Disclosure Journal, 10(1), 34–56. https://doi.org/10.1234/esgdj.2022.010

Greenly. (2025). Carbon accounting: All you need to know. Retrieved from https://greenly.earth/en-us/blog/company-guide/carbon-accounting-all-you-need-to-know-in-2022

GRI. (2023, October). Global Reporting Initiative Universal Standards.

Gunawan, I., & Arifin, S. (2024). Sustainability committees and environmental disclosure: Evidence from Indonesian firms. Sustainability, 16(3), 1523. https://doi.org/10.3390/su16031523

Handayani, S., & Pratama, M. (2024). Green accounting adoption in light manufacturing firms. Asian Journal of Sustainability and Environmental Management, 8(2), 123–140. https://doi.org/10.1108/AJSEM-09-2023-0123

Hassan, R., & Bakar, A. H. (2023). Integration of green innovation and environmental accounting: Impacts on sustainability disclosure in emerging markets. Journal of Cleaner Production, 321, 129020. https://doi.org/10.1016/j.jclepro.2022.129020

Hódi Hernádi, B. (2012). Green accounting for corporate sustainability. Club of Economics in Miskolc TMP, 8(2), 23–30.

Islam, et al. (2023). Financial Services Authority: Sustainability reporting mandate. OJK Sustainable Finance Roadmap.

Islam, M. Z., Adil, M., & Mahmood, M. (2023). Financial Services Authority: Sustainability reporting mandate. OJK Sustainable Finance Roadmap.

Journal of IJEBL (2023). Green Accounting and Sustainable Development practices in Indonesia. JEBL, 3(2), 10–12.

Journal of IJEMBIS (2023). The Implementation of Green Accounting in Indonesia: bibliometric trends 2017–2023. IJEMBIS, 2023.

Kusniawati, A. K., Mujanah, S., & Fianto, A. Y. A. (2025). Research trends on green accounting, CSR, and financial performance in the Indonesian energy sector: A bibliometric analysis. International Journal of Economics and Management Research, 4(2), 32–44. https://doi.org/10.55606/ijemr.v4i2.363

Kusuma, W. E., Santoso, P., & Dewi, C. (2025). Embedding environmental KPIs into innovation roadmaps: Implications for corporate disclosure. Journal of Sustainable Innovation Management, 6(1), 12–28. https://doi.org/10.1108/JSIM-11-2024-0127

Li, L., Wang, Y., Sun, H., Shen, H., & Lin, Y. (2023). Corporate social responsibility information disclosure and financial performance: Is green technology innovation a missing link? Sustainability, 15(15), 11926. https://doi.org/10.3390/su151511926

Lim, J., & Koh, M. (2023). Gender diversity and environmental reporting quality: A global meta-analysis. Corporate Governance: An International Review, 31(1), 65–82. https://doi.org/10.1111/corg.12456

Liu, Y., & Zhou, H. (2022). Regulatory influence on environmental cost accounting: A cross-country comparison. Journal of Environmental Economics and Policy, 14(1), 87–104. https://doi.org/10.1080/21606544.2021.1975530

Mahendra, V., & Sutanto, E. (2025). Comparative study of agricultural and extractive industries in environmental reporting. Journal of Agribusiness and Environmental Management, 15(1), 79–95. https://doi.org/10.1080/21565603.2024.012345

MDPI. (2022). The influence mechanism of corporate environmental responsibility on performance. Sustainability, 14(17). https://doi.org/10.3390/su141710975

Mosaddeghi, M., & Saeidi, P. (2023). Board oversight, environmental reporting, and investor confidence. Journal of Cleaner Production, 378, 136729. https://doi.org/10.1016/j.jclepro.2022.136729

Mubarok, Y., Pratama, S. R., & Hidayah, N. (2024). Executive compensation and environmental performance disclosure in Indonesia. Asian Review of Accounting, 32(2), 205–223. https://doi.org/10.1108/ARA-12-2022-0241

Ndubuisi, O. K., & Kalu, J. U. (2023). Board independence and environmental reporting: Evidence from Sub-Saharan Africa. Environmental Accounting and Management Journal, 12(2), 112–130. https://doi.org/10.1080/20430795.2022.2068914

Nguyen, T. Q., & Phan, L. T. (2024). Dynamics between green accounting and innovation strategy: Evidence from Southeast Asian firms. Asian Journal of Environmental Accounting, 14(2), 77–93. https://doi.org/10.1504/AJEA.2024.115678

Nipper, M., Ostermaier, A., & Theis, J. (2022). Mandatory disclosure of standardized sustainability metrics: The case of the EU taxonomy regulation. arXiv.

Nisaa, R. K., & Hidayati, C. (2025). The impact of green accounting and environmental disclosure on firm value: Evidence from manufacturing firms. Jurnal Bisnis Mahasiswa, 5(1), 184–197. https://doi.org/10.60036/jbm.v5i1.333

Normative. (2024, July 29). The business benefits of carbon accounting. Retrieved from https://normative.io/insight/carbon-accounting-business-benefits

Nurhayati, E., Pramono, H., & Wicaksono, T. (2023). Environmental disclosure patterns in Indonesian mining and manufacturing firms. Journal of Resource-Based Accounting, 7(1), 12–29. https://doi.org/10.4189/jrba.2023.07.001

Patel, S., & Sharma, R. (2023). Sectoral environmental regulations and corporate disclosure mechanisms. International Journal of Environmental Management, 28(3), 223–239. https://doi.org/10.1504/IJEM.2023.125463

PJOES. (2023). Does corporate environmental responsibility promote sustainable development? Polish Journal of Environmental Studies. Retrieved from https://www.pjoes.com/pdf-168264-94172

Pringgandari, I., & Wibowo, A. (2024). Enhancing environmental disclosure through cross-functional collaboration in Indonesian corporations. Indonesian Journal of Business Research, 9(3), 45–62. https://doi.org/10.21776/ub.ijbr.2024.009.03.005

Purwanto. (2024). Implementation of green accounting in Indonesia: Literature review and policy analysis. AIBPM Journal, 2(1), 45–62. https://doi.org/10.61487/aibpmj.2024.02104

Rahman, M. (2023). Mandatory sustainability reporting and corporate transparency: Evidence from emerging markets. Emerging Markets Review, 54, 100-118. https://doi.org/10.1016/j.ememar.2022.100118

Rahman, M. M., & Islam, M. E. (2023). The impact of green accounting on environmental performance: Mediating effects of energy efficiency. Environmental Science and Pollution Research, 30(26), 69431–69452.

Ramadhan, R., Setiawan, M., & Harahap, F. (2023). Challenges in integrating sustainability innovation in environmental accounting: Case study of Indonesian firms. International Journal of Green Innovation, 4(2), 53–68. https://doi.org/10.1504/IJGI.2023.100529

Rasyid, S., Azis, N. A., & Rahmat, A. (2024). Green accounting for medium-sized enterprises: A review of participatory action research towards a sustainable future. International Journal of Economics and Financial Issues, 15(1), 84–92. https://doi.org/10.32479/ijefi.17331

Reuters. (2024, November 26). In the race to reduce emissions we need to be playing by the same rules.

Saragih, F. (2024). Implementation of green accounting: Literature review. Current Issues & Research in Social Sciences, Education and Management, 2(2), 64–73.

Sari, Y. P., & Widodo, B. (2023). Integration of environmental compliance and internal audit functions in Indonesian public companies. Journal of Cleaner Accounting Practices, 8(1), 102–119.

Sebastian, S. (2023). Green accounting: A fundamental pillar of corporate sustainability. Journal of Accounting and Financial Management, 9(8), 61–82.

SEC. (2023). Companies will soon have to disclose how they’re managing climate-related risk. MarketWatch.

Sitorus, F. Y. (2024). The effect of green accounting practices and carbon emission disclosure on environmental performance and firm value: Mining firms. International Journal of Research in Business and Social Science, 13(5), 649–662. https://doi.org/10.20525/ijrbs.v13i5.3204

Suryani, D. (2024). Governance mechanisms and environmental reporting practices: A study of the Indonesian banking sector. Indonesian Journal of Accounting and Finance, 21(1), 33–48. https://doi.org/10.21002/ijaf.v21i1.2024.4

Suryanto, H., & Wulandari, S. (2022). Enforcement and environmental disclosure: Insights from Indonesian high-risk sectors. Indonesian Journal of Environmental Governance, 5(2), 64–81.

Talibon, et al. (2021). Environmental accounting, CSR disclosure, financial performance and firm value: A review. Proceedings of the International Conference on IEOM, 5622–5640.

Talibon, J. M., Aquino, J. V., & Dewa, I. B. (2021). Environmental accounting, CSR disclosure, financial performance and firm value: A review. Proceedings of the International Conference on IEOM, 5622–5640.

Utami, D. W., & Prasetyo, A. (2023). The effect of green accounting and green innovation on SDG success in the basic materials sector. EAI Proceedings. https://doi.org/10.4108/eai.2-8-2023.2341704

WEF. (2023, September). Emissions accounting key to unleashing power of circularity. Retrieved from https://www.weforum.org/stories/2023/09/how-product-embedded-emissions-accounting-frameworks-offer-opportunities-for-circularity

Wikipedia. (2025, May). Corporate environmental responsibility. Retrieved from https://en.wikipedia.org/wiki/Corporate_environmental_responsibility

Yulianto, A., & Hartono, B. (2024). Superficial environmental reporting: Evidence of disconnected green accounting practices. Journal of Environmental Administration, 11(1), 23–39.

Zhao, W., Liu, Y., & Yang, Z. (2022). Environmental, social, and governance disclosure and firm performance. Frontiers in Environmental Science, https://doi.org/10.3389/fenvs.2023.1002357