Determinant of Sustainability Report Quality in the Energy Sector

Sustainability reporting has become essential for companies to communicate their social, environmental, and economic impacts to stakeholders. In environmental science, sustainability reporting plays a crucial role in identifying, measuring, and managing the environmental impacts of corporate operations. With increasing attention to climate change, resource depletion, and ecological degradation, companies must be more transparent about managing their environmental impacts. As a significant contributor to greenhouse gas emissions and natural resource consumption, the energy sector is at the forefront of sustainability efforts. High-quality sustainability reports enable energy companies to demonstrate their commitment to responsible environmental practices, building stakeholder trust, and meeting regulatory and market expectations. Therefore, understanding the factors influencing the quality of sustainability reports in the energy sector is vital for promoting better sustainability practices. The purpose of this study is to identify the characteristics that influence the quality of sustainability reports among energy enterprises listed on the Indonesia Stock Exchange (IDX) between 2018 and 2022. By examining the roles of assurance report, foreign institutional ownership, and sustainability commitment, this research provides insights into how energy companies can improve their sustainability reporting, which can help reduce negative environmental impacts and support long-term sustainability.