THE INFLUENCE OF ENVIRONMENTAL COST, ENVIRONMENTAL PERFORMANCE, AND CARBON EMISSION DISCLOSURE ON FINANCIAL PERFORMANCE

Abstract

The study aims to examine the influence of environmental cost, environmental performance, and carbon emission disclosure on a company’s financial performance. The population in this study included the mining companies listed on the Indonesia Stock Exchange from 2020 to 2022. The samples were determined using the purposive sampling technique with several predetermined criteria, resulting in 60 samples. The data used in this study is secondary data obtained from the company's financial reports, annual reports, and sustainability reports. The data analysis technique used is multiple linear regression using SPSS to test each hypothesis in this study. The results of this study demonstrate that including environmental costs in the company's business strategy can improve the company's financial performance. Additionally, a company with good environmental performance can also enhance the company’s financial performance. However, a company that discloses its carbon emissions information does not affect the company’s financial performance.