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64 © Lindrianasari, and Yuztitya 2016 | Investigative Studies on Environmental Disclosure
policies to reduce waste, energy, and material reduction can be done permanently (for exam-
used; policies to reduce greenhouse gas, to pro- ple, without combustion of fuel and natural gas),
mote green products, and local consumption; then emission credit might be able to be rented.
and others. Sterman encourages communities to The issue offered in the paper of Marland et al.
focus on the causes and to make policies with a (2001) is quite interesting and is in line with the
low failure level to encourage the creation of sus- concept that has been explored by the Environ-
tainable development. mental Ministry of Columbia’s government. They
stated that regardless of the presence or the ab-
Tools for calculating and recording information sence of the Kyoto Protocol, carbon emissions
related to carbon emissions is being developed. should be a primary focus in planning.
Cook (2009) explains that the International Ac-
counting Standard Board (IASB), until now, has Another issue that is central to discussions on
been having discussions about accountancy and the Kyoto Protocol is the commitment of the pro-
carbon emissions. Marland, Fruit, and Sedjo tocol explaining this emission problem (com-
(2001) offer the idea of recognizing emission pany) does not discuss (uses fundamental con-
credit leasing when emission decreasing is un- sideration) problems / accountancy regulation
clear. This model is also assisted by CDM (the to measure emission or to give penalty on the
clean development mechanism), a development failure of commitment fulfillment of each com-
mechanism without carbon, especially in a devel- pany. Schlamadinger and Marland (2000 in Mar-
oping country. Sijm et al. 2006 in Hopwood 2009 land et al., 2001) have explained the needs for es-
has introduced a consistent price pattern that tablished accountancy regulations. However, the
merges opportunity cost and selling price. Sous- fact that carbon produced by a country or a com-
sana et al. 2007 conducted formulations of budg- pany is different should also be considered.
eting that can cover each CO2 change (as the ef-
fect of greenhouse gas). Neumayer (2000) pro- The challenge for accountancy spoils separately
poses the concept (might be only a “term”) of his- because the concept of the Kyoto Protocol does
torical accountability that was known as “natural not clearly count all carbon emissions in the at-
debt” (it was introduced by Grübler and Fujii mosphere or all changes of the carbon supply in
(1991) and Smith (1991) in Neumayer, 2000) as the biosphere. Marland et al. (2001) offers ideas
the concept that should be used to count emis- regarding conducting emission credit rental
sion allocation of a certain year over some peri- when the decrease of emissions is unclear,
ods of the following years. Burtraw, Palmer, whether or not it occurs permanently. This
Bharvirkar, and Paul (2001) proposed a substi- model will be assisted by CDM, which is the
tute for the cost allocation method that can be mechanism of clean development (without car-
used in the state electrical sector. Almost all bon) for developing countries.
studies in this area offer ideas on what recogni-
tion and recording are ideal for anticipating the Voluntary action taken by a company is a signal
effects of global climate change. to government that it is time to formulate regu-
lations to support voluntary actions (Haufler
This research tries to provide information on 2001 in Potoski and Prakash 2005). The study of
how companies in Indonesia respond to global Potoski and Prakash (2005) showed that the reg-
climate change caused by carbon emissions that ulation issued by the country for an entity will in-
form greenhouse and contribute to global warm- crease obedience from that entity more than be-
ing. Any means has been done by company as the fore. Börzel and Risse (2010) found corporate
form of sustainability development and social re- governance that is not supported by fundamen-
sponsibility. Marland, Fruit, and Sedjo (2001) tal regulations from government is able to run
conducted a study to provide quantitative evi- but without clear direction. Their research con-
dence on emissions produced from greenhouse firmed how important regulation in a country is
gas that, since 1998 (Kyoto Protocol), has be- to making corporate governance run well. The
come more of a focus for each country. A paper hypothesis built on the argument above is:
by Marland et al. (2001) offers that if emissions
H1: There is a significant relationship between
quality of environmental disclosure regarding
Science Target Inc. www.sciencetarget.com
