The coronavirus disease (Covid-19) pandemic had a positive effect on reducing global carbon dioxide emissions by 17 percent compared to 2019 ( The reduction resulting from the decline in transportation and industrial activity during the pandemic is one of the largest single emissions reductions in history. However, these reductions and write-offs are usually only temporary. The future weakening of the global economy will only lead to temporary emissions reductions. After the economy has improved, emissions will rise again ( However, the fall in greenhouse gas emissions increases is set to become a new pandemic that could destroy a third of the human population on earth.

Various efforts have been made to overcome the consequences of global warming and climate change, either through cooperation between countries or through international negotiations. Starting with the United Nations Framework Convention on Climate Change (UNFCCC) in 1992. Thereafter, the Paris Climate Agreement of 2015 was adopted as a new instrument under the Kyoto Protocol, which is supposed to withstand the rise in global average temperatures well below the 2°C (Windyswara, 2019). From December 2015 to January 2018, 172 countries ratified the Paris Agreement, including Indonesia, which was later ratified as Law of the Republic of Indonesia No. 16 of 2016 ratifying the Paris Agreement. On this matter, top management is urged to reduce emissions and improve carbon disclosure policies to meet the data needs of various stakeholders. Despite pressure from voluntary initiatives and encouragement from regulators, non-binding regulations and voluntary carbon reporting have not been widely recognized.

In the context of legitimacy theory and stakeholder theory, researchers specifically examine research problems related to industrial companies in making claims on CO2 emissions, one of which is based on company attributes made up of characteristics that reflect the industry (Gunawan, 2013). The designation of green in main business activities is not a new phenomenon from an early stage but has been introduced since 1980 (Makower & Pike, 2008). This activity not only protects the earth from climate change due to the rise in earth temperature caused by the effects of greenhouses, but it can also increase business efficiency. Previous research found that a green strategy consists of raids, booms, and borders (Hansen & Klewitz, 2012). Other research has adopted an environmentally friendly strategy consisting of three types, namely pollution prevention, clean products, services, and technology (Masoumik et al., 2015). Research Duarte & Cruz-Machado (2013) recognize Green Up Lean & Green strategies. Not many found that using Moini et al., (2014) measurement modifications takes into account content analysis, which uses 4 themes, starting with formulating and pursuing a green strategy, the level of management involvement in the green strategy, changes in the business model of the company and the organization and Green Strategy Management to measure the extent to which a green industrial strategy can be formulated and pursued and what impact it has on the whole of the industry to understand the impact of climate change on the industry competence for emissions management, expressed in carbon emissions data disclosure.

Second, companies with high institutional ownership (INS) will improve corporate oversight and submit to pressure from stakeholders and shareholders (Pratiwi, 2017; Cotter & Najah, 2012; Borghei-Ghomi & Leung, 2013). According to Hermawan et al., (2018) and Kiswanto et al., (2020), however, a low INS will also promote good disclosure of carbon emissions as it is part of management policy. Third, according to Kieso et al., (2018), demographic data for accounting are also supported by educational level or educational diversity. The level of education shows the level of individual workability. The skill Ievel also shows the individual’s abiIity to think in various activities in life. The higher the level of training of the Board of Directors (BOD) or at least a Board of Directors with an economic and business background, the greater the awareness of the importance of disclosure of CO2 emissions and the better the management of the company, the better the company can meet its environmental responsibility (Amaliyah & Solikhah, 2019, Manurung et al., 2017,  Krisna & Suhardianto, 2016). According to Hossain & Farooque (2019) and Yunus et al., (2016), companies with no background in business and business education are likely to disclose less information about carbon emissions.

Several previous studies have used many variables that affect carbon emissions disclosure, such as research by Borghei-Ghomi & Leung (2013) using variables of business size and good governance. Luo & Tang (2014) used carbon performance variables, company size, leverage, and industry effects. Liao et al., (2015) used variables on gender diversity, independence from local councils, and committees. Ahmadi & Bouri (2017) use environmental sensitivity and asset return. Sudibyo (2018) uses variables such as company value, carbon emissions, and carbon management disclosure. Saptiwi (2019) uses variables of the industry type, environmental performance, and company characteristics. However, researchers have not found a variable that ethics uses to strengthen the relationship between each variable and carbon-emissions disclosure. Compliance with rules and guidelines, no need for reflection, and autonomous decision-making at the individual (individual or company level) seem to represent unethical behavior, as it means that no attempt is made to make decisions based on specific situations and no attempt is made to simply take responsibility, giving up regulatory responsibility or guidelines for decision making. This has been identified and needs to be reinforced by the company’s previous code of conduct that should be applied to carbon emissions disclosure practices. On this basis, the researcher hopes to use a code of ethics as a moderating variable in this study.

In this study, seeks to fill this gap by examining the effect of green strategy, institutional ownership, and board of director on carbon emission disclosure and this paper wants to know that the corporate code of conduct variable can moderate green strategy, institutional ownership, and board of director and carbon emission disclosure variable. The focus of research is on the zone of the consumer goods industry in Indonesia, which belongs to one of the highly sensitive industrial zones (Gunawan, 2013) in which it continues to grow, especially with increasing population development, so that it also leads to an increase in plastic waste resulting pollution. Therefore, companies in this zone receive particular attention from observers of the area as well as stakeholders regarding the incidents of area, pollution, and destruction of the intertwined areas. Therefore, the consumer goods industries zones listed on the Indonesian Stock Exchange in this research focus primarily on carbon emissions disclosure research that companies seek to assess the efforts of that consumer goods zone to assess the quality and responsibility of the products.

This study is the use of the measurement of the corporate code of conduct which is based on the highest index results for disclosing carbon emissions. This study uses quantitative approach and panel data regression using 140 Observations of 28 consumer goods companies listed in IDX for the period 2015-2019, and analyzed by using moderating regression analysis. The results of this study found that green strategy has a positive and significant influence on carbon emission disclosure, while institusional shareholding and board of director have no influence on carbon emission disclosure. Then, the code of conduct can strengthen the green strategy’s relationship to carbon emissions disclosure. Meanwhile, the code of conduct cannot moderate the relationship between institutional ownership and the board of directors on carbon emission disclosure. Companies must take advantage of opportunities from the impacts of climate change through a green strategy and supported by the implementation of an effective corporate code of conduct will strengthen the company’s competitive advantage through disclosure of carbon emission information.


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