Analysis of Greenwashing Indications in Mining Companies in Indonesia
DOI:
https://doi.org/10.24036/wra.v14.i2.18Keywords:
Greenwashing, GRI 300, media coverage, PROPER rating, sustainability report.Abstract
Objective – This study aims to analyze indications of greenwashing practices among mining companies in Indonesia through environmental disclosure in Sustainability Reports based on GRI 300, PROPER ratings, and online news coverage related to environmental issues.
Research methodology – This study employs a qualitative approach using content analysis. The sample was selected using purposive sampling and consists of 15 mining-sector companies listed on the Indonesia Stock Exchange during the 2022–2024 period. Research data were obtained from sustainability reports, PROPER ratings, and online news coverage related to environmental issues. Indications of greenwashing were identified by comparing the level of environmental disclosure with PROPER ratings and information on environmental issues reported in online news during the study period.
Findings – The results show that three companies are indicated as engaging in greenwashing, while the other twelve companies are not indicated as doing so. The findings also show that high levels of environmental disclosure do not necessarily correspond to lower indications of greenwashing, because high disclosure may coexist with inconsistencies in environmental information obtained from external sources.
Research implications – This study contributes to the development of accounting research, particularly the application of legitimacy theory to explain inconsistencies between corporate environmental disclosures and environmental information from external sources.
Limitations and implications – This study uses GRI 300, PROPER, and online news coverage as the basis for identifying indications of greenwashing. Future research may employ other indicators, such as ESG performance, environmental certifications, or assessments by independent institutions, to obtain a more comprehensive picture of greenwashing practices in Indonesia.
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