The Effect of Board Diversity on Carbon Emission Disclosure: Evidence from Indonesian Mining Companies

Abstract

Urged by the intensifying pace of global warming, carbon-intensive sectors most notably the mining industry are under escalating demands to elevate their environmental transparency. This inquiry investigates the impact of various board diversity dimensions, including gender, academic background, tenure, age, and nationality, on carbon emission disclosure (CED). Drawing upon Stakeholder and Upper Echelons theories, the inquiry employs a quantitative approach utilizing multiple linear regression analysis. Using a purposive sampling approach, this study obtained a final dataset consisting of 114 firm-year observations from mining companies registered on the Indonesia Stock Exchange (IDX) during the 2022–2024 period. The empirical evidence demonstrates that board diversity in terms of gender, education, and tenure significantly stimulates higher climate transparency. On the contrary, diversity in age and nationality exerts a notable adverse effect on CED, implying that generational divides and institutional hurdles potentially impede voluntary environmental reporting. Collectively, the F-test confirms the joint significance of all independent and control elements on CED. These insights contribute to the sustainability accounting literature and provide strategic implications for optimizing corporate governance to foster robust environmental accountability.

Keywords:  Board Diversity, Carbon Emission Disclosure, Mining Companies, IDX, Sustainability Accounting