Green Productivity Analysis on Listed Coal Industry Companies

Abstract

Starting from the three aspects of sustainability reporting, i.e. environmental, social, and economic, then look at the environmental aspects of the annual report in the Environmental Corporate Responsibility form, Environmental Corporate Responsibility describes the company's commitment to protecting the environment. The company that adopts good corporate governance can be said as a sustainable company. Good corporate governance has five principles; it is transparency, accountability, responsibility, independency and fairness. One of the studied principles is transparency. Transparency is regarding the disclosure of the company's activities,both financial and non-financial. In this research, disclosure is associated with Environmental Corporate Responsibility in the annual report. Environmental Corporate Responsibility is supported by stakeholder's theory as one aspect of the report that influences the decision of stakeholder. Green productivity is one aspect of Environmental Corporate Responsibility. Green productivity is a strategy for enhancing productivity and environmental performance for overall socio-economic development. Green productivity is divided into a number of indicators according to the Asian Productivity Organization. This indicator has been adapted from the environmental aspects of sustainability reporting according to GRI (Global Reporting Initiative) guidelines Researcher conducted a content analysis of the 2015 annual report in accordance with the indicators of green productivity. The researcher conducted a case study on the coal sector companies listed on the Indonesia Stock Exchange. The researcher found the correlation between the value of green productivity in the annual report with the environmental as well as Occupational Safety and Health awards received by the company at local, national, and international level. In this paper, the researcher discusses the highest and lowest scores of green productivity and draws the connection with the awards received by the company. Researcher classifies green productivity indicators into four segments, namely raw materials, energy and water, also waste treatment, employment, and Occupational Safety and Health (OSH), and other segments.