Development of Climate-Related Disclosure Indicators for Application in Indonesia: A Delphi Method Study

Prianto Budi Saptono (), Gustofan Mahmud, Intan Pratiwi, Dwi Purwanto, Ismail Khozen, Muhamad Akbar Aditama, Siti Khodijah, Maria Eurelia Wayan, Rina Yuliastuty Asmara and Ferry Jie ()
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Prianto Budi Saptono: Department of Fiscal Administration, Universitas Indonesia, Depok 16424, Indonesia
Gustofan Mahmud: Accounting Research Department, Pratama Institute for Fiscal and Governance Studies, Jakarta 12530, Indonesia
Intan Pratiwi: Accounting Research Department, Pratama Institute for Fiscal and Governance Studies, Jakarta 12530, Indonesia
Dwi Purwanto: Accounting Research Department, Pratama Institute for Fiscal and Governance Studies, Jakarta 12530, Indonesia
Ismail Khozen: Accounting Research Department, Pratama Institute for Fiscal and Governance Studies, Jakarta 12530, Indonesia
Muhamad Akbar Aditama: Accounting Research Department, Pratama Institute for Fiscal and Governance Studies, Jakarta 12530, Indonesia
Siti Khodijah: Department of Fiscal Administration, Universitas Indonesia, Depok 16424, Indonesia
Maria Eurelia Wayan: Department of Business Administration, Universitas Indonesia, Depok 16424, Indonesia
Rina Yuliastuty Asmara: Accounting Department, Mercu Buana University, Jakarta 11650, Indonesia
Ferry Jie: School of Business and Law, Edith Cowan University, Joondalup, WA 6027, Australia

Sustainability, 2023, vol. 15, issue 14, 1-25

Abstract: Indonesia is currently preparing to adopt the climate-related disclosure standard. Before this new standard is implemented effectively, the Institute of Indonesia Chartered Accountants (IAI), the Indonesia Task Force on Comprehensive Corporate Reporting (CCR) leader, recognised the importance of harmonising this standard’s key disclosure indicators with Indonesian regulations and business characteristics. In this case, input from various constituencies may be required, particularly regarding the mechanism that enables entities with varying capabilities and levels of preparation to apply this new standard. Hence, the main objective of this paper is to develop weighted and applicable climate-related disclosure indicators. We use the Delphi method to achieve this objective by involving several experts representing various user groups that influence accounting standard formulation in Indonesia. The Delphi method is a decision-making tool that establishes an effective communication process, facilitating complex problem solving. This study finalised 44 climate-related disclosure indicators based on the results of two Delphi rounds. Overall, 48% (21/44) of climate-related disclosure indicators were identified to be highly applicable. Among these high-relevance indicators, there were 10% (2/21) Governance, 24% (5/21) Strategy, 42% (9/21) Risk Management, and 24% (5/21) Metrics and Targets indicators. Additionally, around 20% (9/44) of climate-related disclosure indicators received 100% approval from the experts. Along with various essential implications, we argue that these results provide useful additional information for the national standard setter for the climate-related disclosure standard that are efficient and less burdensome to entities.

Keywords: climate-related disclosure; applicable indicators; Delphi method; the national standard setting process; Indonesia (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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