Determinants of Environmental Performance: Corporate Social Responsibility, Governance, Disclosure, Green Accounting, Firm Size

Abstract

The plantation sector, particularly palm oil businesses, plays a major role in driving economic growth in Indonesia. However, on the other hand, operational activities in this sector are also associated with the potential for adverse impacts on environmental sustainability. This study was conducted to examine various factors that influence the environmental performance of plantation companies listed on the Indonesia Stock Exchange during the period 2019–2024. The independent variables used include corporate social responsibility, corporate governance, disclosure, green accounting, and company size, while the dependent variable is environmental performance as measured by the PROPER rating. The testing in this study used a panel data regression method based on the Random Effect Model approach, with seven palm oil plantation companies as the research sample. The results of the joint testing show that all independent variables have a significant effect on environmental performance, with the model's ability to explain the variation in the dependent variable at 73.10%. In the partial testing, corporate social responsibility, disclosure, green accounting, and company size were found to have a positive and significant effect on environmental performance. Conversely, corporate governance showed a negative but still significant effect. These findings have policy implications for Indonesia, particularly for the government and capital market authorities, to strengthen regulations and supervision in order to encourage more tangible sustainability practices and transparency in environmental reporting. In addition, companies are advised to continue optimizing the implementation of sustainability programs and green accounting on an ongoing basis so that environmental performance improves and long-term competitiveness is maintained.