Foreign ownership, green intellectual capital, and carbon emissions in basic materials sector and the energy companies

The issue of environmental damage has encouraged the world community to commit together to save the environment, one of which is by reducing carbon emissions in each country. Indonesia is one of the countries committed to controlling the destruction of the earth. This study aimed to obtain empirical evidence on the Effect of Foreign Ownership and Green Intellectual Capital on Carbon Emission Disclosure on basic materials and energy sector companies listed on the Indonesia Stock Exchange 2018-2022. The type of data used was secondary data from the Annual Report and Sustainability Report, and 105 samples consisting of 21 companies in 5 periods are determined by using the purposive sampling method. Data analysis was performed with a panel regression model using the E-Views application version 12. The result of this study shows that Foreign Ownership has a positive effect unsignificant and Green Intellectual Capital had a significant positive effect on Carbon Emission Disclosure.


Introduction
As one of the steps to overcome the world climate crisis, especially the problem of carbon emissions, the Government of Indonesia has created various strategic policies such as the Carbon Economic Value (NEK) policy, the periodic delivery of net zero ambitions by 2060 in accordance with the updated Nationally Determined Contribution (NDC), to formulate regulations on domestic carbon trading mechanisms.Human Resources Development Agency-Ministry of Energy and Mineral Resources of the Republic of Indonesia stated that in 2023 carbon trading will be implemented in the power plant subsector.This trade is expected to reduce greenhouse gas emissions by 155 million tons of CO2e by 2030.In COP 27, Indonesia also conveyed its current position to reduce greenhouse gas emissions and urged lower-middle countries to fulfill their commitments to realize USD 100 billion per year, in other words transparent and sustainable reporting must be used as a guideline in maintaining the increase in greenhouse gas emissions (Directorate General of Climate Change Control, 2022).This is in accordance with the initial efforts made by the Government of Indonesia by issuing Financial Services Authority Regulation (POJK) No. 51 of 2017 which requires every company to strive for preparation and reporting on company sustainability through sustainability reports which contain information about emissions produced by companies during their business processes.1324 (2024) 012084 IOP Publishing doi:10.1088/1755-1315/1324/1/012084 2 One of the ways applied by the company's management to jointly maintain and reduce greenhouse gas emissions that continue to grow is by making a Carbon Emission Disclosure which is outlined in the company's Annual Report and Sustainability Report [1].By pouring carbon emissions of a company, this can be used to determine the effectiveness of company performance as measured by carbon management as the main reference [2].To express how much carbon emissions are produced, there are references used as common standards.This is contained in the Information Request Sheets of the Carbon Disclosure Project (CDP), which are confirmed in the study [3].This disclosure consists of 5 major aspects where the total items are 18 items.And by using this calculation, it will be seen in the eyes of the public and investors in particular, which companies have high awareness and responsibility to disclose carbon emissions from their operational activities [4].
Talking about how a company is required to report carbon emissions resulting from its business activities, the existence of foreign ownership in a company will have a significant impact, especially in terms of policy formulation and company management decision making [5].On the other hand, the Green Intellectual Capital variable in a company will be an important factor related to how the company is able to have clear capabilities to its environment and especially its awareness of carbon emission disclosure [6].Green Intellectual Capital will be a very valuable corporate resource to carry out its operational activities while still maintaining environmental performance which in this case in the form of carbon emission disclosure is still carried out well [7].

Theoretical framework
Legitimacy theory explains that it is important for organizations to understand the limitations placed on the social norms and values of the society in which the organization operates [8; 9].Currently, when the issue of reducing world carbon emissions has become the focus of discussion and joint commitment, the reaction to reducing carbon emissions has become an important reason and encouragement for companies to carry out activities related to reducing corporate carbon emissions.Legitimacy theory predicts that an organization will exist if society perceives that the organization operates within that society's value system.Based on legitimacy theory, organizations will continually strive to ensure that they are perceived as operating within the boundaries and norms of society.Legitimacy theory is getting stronger with the support of stakeholder theory which explains that companies will continue to strive to ensure that company activities will accommodate stakeholder expectations so that company activities gain legitimacy.

Research method
The population used is basic materials and energy sector companies that have been listed on the Indonesia Stock Exchange from 2018 to 2022.The method used in sampling is Purposive Sampling which is a method of collecting samples using certain criteria as a limitation so that the sample has a character that is in accordance with the purpose of this study.Of the total population of 176, the remaining 21 companies in the Basic Materials sector and the energy that goes into all sample criteria.The reason for this is because many companies do not publish Sustainability Reports consistently from 2018 to 2022.So, the total samples used in this study are 105 samples obtained from 21 companies in the basic materials and energy sectors within a period of 5 years (2018 to 2022).Corporate carbon disclosure, based on 18 indices of 5 aspects of Carbon Emission Disclosure formed in Information Request Sheets [3] Foreign Ownership, can be measured using journal references, namely proxying the comparison between the number of shares owned by foreign investors compared to the total shares of companies outstanding.Green Intellectual Capital is measured by the assessment category compiled by [10] so there are 18 items to be assessed in each sample.Of the 18 items, 5 components are disclosures from Green Human Capital, 8 components of Green Structural Capital, and 5 components of Green Relationship Capital.

Descriptive statistical analysis
The first test conducted by researchers is a statistical test of description.This test is carried out to describe the data studied statistically.In accordance with the variables used in the study, in this descriptive statistical test, researchers will see an overview of the number of samples, the average, the maximum and minimum values of the samples, and the standard deviation of the variables studied.Based on the results of descriptive statistical tests that have been carried out, results such as Figure 4.1 are obtained.First, the results of a descriptive statistical test of the dependent variable, namely Carbon Emission Disclosure, show that the minimum value is at 0.170000 owned by PT Indika Energy Tbk in 2018, and PT Toba Pulp Lestari Tbk in 2018 and 2019.As for the maximum value of the CED variable, it is owned by PT Bukit Asam Tbk with a CED score of 1.000000 in 2022, this states that in terms of disclosure of carbon emissions, PT Bukit Asam Tbk complies with the 18 assessment items carried out.For the average of this dependent variable is 0.606381, with this number in general the company has disclosed more than nine existing items.This shows that on average, companies already have a good awareness in making carbon disclosures in the 2018-2022 period.Finally, if you look at the standard deviation value of this Carbon Emission Disclosure variable, it shows that the collected data is close to the average value of the variable where the standard deviation is 0.192339.
Second, for descriptive statistical testing of Foreign Ownership variables, it can be known that the minimum value of this variable is 0.000000 originating from PT Solusi Bangun Indonesia Tbk in the 2019 and 2020 periods.Meanwhile, the maximum value is owned by PT Toba Pulp Lestari Tbk of 0.990000 in 2020 and 2022.The average value of this variable is 0.288762 which illustrates that foreign ownership in the company is on average still below 50% of the total company ownership.And finally for the standard deviation value of 0.293348 which shows that overall, there is no deviation of values that are too large for this variable.
Third, for the results of descriptive statistical testing for Green Intellectual Capital variables, a minimum value of 0.280000 was obtained by PT Mitrabahtera Segara Sejati Tbk in 2018.On the other hand, PT Vale Indonesia Tbk as the company with the maximum value for this variable is at 0.890000 in 2021.The average of this variable is 0.696190 which indicates that this variable is the same as the independent variable where in general all companies have sufficient Green Intellectual Capital values because they have revealed more than half of the assessment items for this variable.And for the value of the standard deviation of this variable is 0.125632 which shows that the range of values from the median to the maximum or minimum value is not too far.

Classic assumption test
The classic assumption test in this study consists of a normality test, multicollinearity test, heteroscedasticity test, and autocorrelation test.Normality testing on the data of this study shows the value of Prob.Jarque-Bera 0.651754 > 0.05 which concludes that Ho is accepted, and Ha is rejected so that the data of this study is distributed error normally.If it is made in the form of a figure 4.2, it will look like the image above.From the residual graph (blue) it does not cross the limit (500 and -500) meaning that the residual variables are the same, therefore there are no symptoms of heteroscedastic or passing the heteroskedastic test (Napitupulu et al., 2021).

Regression Model Selection Test
In determining the regression model that is the place for this research panel data, there are three tests that can be used, namely (1) the Chow Test, (2) the Hausman Test, and (3) the Legrange Multiplier Test.The results of the Chow test show that the value of Prob.Chi Square cross-section of 0.0000 < 0.05.With this result, Ho was rejected, and Ha was accepted, in other words for Chow's testing the model chosen was the Fixed Effect Model (FEM).Testing will be followed by performing the Hausman Test.The results of the Hausman Test show that the value of Prob.Chi-Square cross-section of 0.0844 > 0.05, Ho is rejected, and Ha is accepted, so a conclusion can be drawn that the Random Effect Model (REM) was selected on this panel data compared to the Fixed Model Effect (FEM).The results of the Legrange Multiplier test show that the value of Prob.Chi Square cross-section of 0.0000 < 0.05.With this result, Ho was rejected, and Ha was accepted, in other words from testing the model chosen was the Random Effect Model (REM).After conducting the Chow Test, Hausman Test, and Legrange Multiplier Test, the best model used in the regression of this research panel data is the Random Effect Model (REM).

Hypothesis testing
After conducting a model selection test and it was found that the best model for data regression of this research panel is the Random Effect Model (REM), the following are the results of the research panel data regression: Based on the regression above, a regression line equation is obtained as follows: -.16 -.12 -.08 -.04 .00 .

16
. The above equation can be interpreted as follows: 1.The constant α of -0.041755 states that if variable X is constant, then the variable Carbon Emission Disclosure (CED) is -0.041755.2. The regression coefficient for the Foreign Ownership (FO) variable is 0.059034 which states that every time there is an increase in the Foreign Ownership variable by 1%, there will be an increase in the Carbon Emission Disclosure variable by 0.059034 assuming other independent variables are constant.3. The regression coefficient for the Green Intellectual Capital (GIC) variable is 0.906490 which states that every time there is an addition to the Green Intellectual Capital variable by 1%, there will be an increase in the Carbon Emission Disclosure variable by 0.906490 assuming other independent variables are constant.
The last test conducted by researchers is to conduct a hypothesis test.This test will begin with a simultaneous variable test with the F test, then continue with the partial T test and finally see how much the independent variable is able to explain the dependent variable through the coefficient of determination test.Focusing on table 4.5 the value of Prob.F-statistic 0.000000 < 0.05, then it can be concluded that Ho was rejected, and Ha was accepted.So that independent variables, namely Foreign Ownership and Green Intellectual Capital, together (simultaneously) affect the variable Carbon Emission Disclosure.The results of the study in table 4.4 show that the p-value (sig) of the t-statistic is 0.18125 (0.3625 ÷ 2) > 0.05, then Ho is accepted, and Ha is rejected.So, it can be concluded that Foreign Ownership has a positive insignificant effect on its dependent variable, namely Carbon Emission Disclosure.The results of the study in Figure 4.15 show that the p-value (sig) of the t-statistic is 0.0000 (0.0000 ÷ 2) < 0.05, then Ho is rejected, and Ha is accepted.So, it can be concluded that Green Intellectual Capital has a significant positive effect on the dependent variable, namely Carbon Emission Disclosure.
Based on table 4.5 the value of Adjusted R-squared is 0.257017 which explains that 25.7% Carbon Emission Disclosure (CED) can be explained by the two independent variables chosen by the researcher, namely Foreign Ownership (FO) and Green Intellectual Capital (GIC).While the remaining 0.742983 or 74% was explained by other variables that were not included in the research model.The first hypothesis of this study is that foreign ownership has a positive influence on the disclosure of carbon emissions in companies.The results of data processing also show that foreign ownership has a positive although not significant influence, therefore it can be said that the first hypothesis in this study is accepted.The exit of the results of the influence of foreign ownership is not significant, we can match with existing sample data, it appears that this variable is heading in a positive direction although the increase is not as large as the increase in carbon disclosure itself.
The results of this analysis are in accordance with prior studies which says that the greater the foreign ownership presentation of a company's shares, this will legitimize the amount of carbon disclosure made by companies voluntarily [11].Likewise, other research also states that the amount of foreign ownership in a company will encourage the level of voluntary disclosure of company carbon emissions [5].On the other hand, the results of this study are not in line showed that foreign ownership negatively affects the disclosure of carbon emissions made by companies [12].
With this explanation, we can know that the large percentage of foreign ownership in a company has a positive influence on the disclosure of carbon emissions from the company's operational activities.This is in accordance with the theory of legitimacy and stakeholders where foreign ownership as one of the stakeholders in a company can legitimize the operational activities of the company.However, there are many factors that make this influence insignificant, an obvious factor is the geographical distance between where the company runs and the foreign investor.Policy differences, and decision making that also cannot be forced make this independent variable have an insignificant effect on the disclosure of carbon emissions as a dependent variable.
The second hypothesis of this study is that green intellectual capital has a positive influence on the disclosure of corporate carbon emissions.The data showed that the β value on the t-test was 0.906490 and had a significance number of 0.0000.This confirms that the second hypothesis of this studies is accepted, because the analysis data show that there is a significant positive influence of the independent variable of green intellectual capital on the dependent variable.
The results of this research are in line with previous research findings which found that green human capital influences environmentally friendly human resource management [13].This environmentally friendly resource management is also included in activities to reduce carbon emissions produced by the company now and in the long term.Where these the previous studies resulted in the conclusion that green intellectual capital has a positive influence on the disclosure of company carbon emissions.This research is also in line with research which shows that green intellectual capital has a positive effect on the disclosure of corporate carbon emissions [7].This study also supports studies which found that carbon emission disclosure has a significant positive influence on company performance such as the cost of capital [14].However, reducing carbon emissions is also driven by company size [15; 16], profitability, and media exposure have a positive and significant influence [15].
Based on the results of this study, it can be said that companies with a high level of green intellectual capital have high awareness also related to sustainability and protecting the environment.Associated with the theory used in this study, it will be seen that the variable of green intellectual capital in which consists of company stakeholders can be a competitive advantage for the company.Then, if it is associated with a resource-based view, it will explain how important it is for the company to see the resources it has, which in this case is in the form of human resources.This is also in accordance with the 3 major groups that make up green intellectual capital, namely green human capital, green structural capital, and green relational capital.Starting from green human capital, having workers who are also consciously and care about the environment will certainly be a very expensive capital for the company.Human resources who are aware of the importance of protecting the environment are the first step for companies to improve the sustainability of their business.Then, the structure in the company also needs to be considered, companies with a strong green structure will certainly be more consistent in reporting sustainability reports, not only that, with a good green structure, this will encourage human resources in the form of workers to always pay attention to the direction of their goals in running a business.Likewise with green relational capital, a good company must also pay attention to the relationship it establishes IOP Publishing doi:10.1088/1755-1315/1324/1/0120848 with external parties, of course, companies that have sustainability principles will look for partners who also care about the environment.Not only that, companies with good green intellectual capital have users of their products who also care about and maintain environmental sustainability.

Conclusions, limitations, and suggestions
Researchers conducted a study that aims to empirically prove the influence of Foreign Ownership and Green Intellectual Capital on Carbon Emission Disclosure in companies engaged in the basic materials and energy sectors and listed on the IDX in the period 2018 to 2022.This study used 21 samples of companies that had been screened from a total of 176 company populations.The number of companies eliminated is due to a lack of awareness and consistency from companies to continue to release Sustainability Reports every year.This research is quantitative, in the form of panel data consisting of cross-section and time-series data.For this reason, this study used a panel data regression model studied with E-Views 12 software.

Conclusions
1.The independent variable Foreign Ownership has no significant positive influence on the dependent variable Carbon Emission Disclosure (CED).In other words, the results of this test contradict the researchers' initial hypothesis.However, it should be noted that the effect is not significant, which means that the large percentage of foreign ownership in a company cannot be widely used as a measure of awareness of company management in disclosing its carbon emissions.2. The independent variable Green Intellectual Capital has a significant positive influence on the dependent variable Carbon Emission Disclosure (CED).This is in accordance with the initial hypothesis of the researcher.In other words, it can be concluded that the greater the Green Intellectual Capital in a company will increase the company's awareness to protect the environment and towards a sustainable company.Which means that companies are more aware of the importance of Carbon Emission Disclosure as one of the obligations that must be done.

Limitations
1. Too few companies are used as samples, this is because many companies in the basic materials and energy sectors do not consistently release Annual Reports and Sustainability Reports, especially in the period 2018 to 2022.Companies tend to report their Annual Reports more consistently only, therefore from the overall population many companies are eliminated.2. Limited time in conducting research and lack of previous research that discusses the effect of Foreign Ownership on Carbon Emission Disclosure and the effect of Green Intellectual Capital on Carbon Disclosure.In other words, these two variables are still relatively new, so the scientific references that can be used are limited.3. The value of the study's small, adjusted R square reflects the limitations of researchers in terms of selection and use of independent variables.The results of this study show that there is another independent variable that can explain the dependent variable of the study, namely the company's carbon disclosure better.

Suggestions
Based on the conclusions of the research results that have been presented by researchers, as well as the limitations experienced in conducting research.It is hoped that this research can be used as a reference for future researchers and to overcome the limited number of journal references, especially those that are national.Therefore, there are some suggestions from this study that can be used as guidelines for further research to avoid difficulties as experienced by researchers and of course can further develop research related to Foreign Ownership and Green Intellectual Capital on Carbon Emission Disclosure.
As for some of these suggestions, namely: 1.Companies are expected to raise awareness and awareness to publish Sustainability Reports consistently.Companies can use GRI standards to disclose honestly and transparently.To support this reporting, the management must mature the company's Green Intellectual Capital so that Carbon Emission Disclosure can be much better.One of the items in the Green Intellectual Capital assessment that has not been disclosed by the entire company is related to rewarding employees for their performance related to the environment.Speaking of rewards, of course, companies must properly examine the costs and benefits incurred.However, if you leave this aside, with compensation in the form of rewards, this will indirectly increase the role of human resources owned by the company to jointly improve the sustainability of its business.2. This research can be used as an illustration so that when making an investment decision, the company's sustainability and company concern for environmental issues are a concern and not just looking at its financial prospects.For investors who primarily invest in basic materials and energy sector companies, they should use their shareholding rights to mobilize management to further improve disclosure of carbon emissions from their operations.3. Further research can use the limitations of current researchers as a reference so as not to experience the same thing.In terms of research samples, it is hoped that further research can expand the population so that when sample elimination, many companies are found to pass all criteria.Furthermore, in terms of content analysis assessment, researchers are expected to be deeper in conducting research so that the data obtained is much more accurate.Finally, future research can also extend the research period to get a long-term picture of this topic.

Table 4 .
In the table 4.2 above, the correlation value of the variables Foreign Ownership and Green Intellectual Capital is smaller than 0.8, which is 0.112347.This shows that Ho is accepted, and Ha is rejected, so a conclusion can be drawn that the research regression model does not experience multicollinearity.

Table 4 .
Based on the test results at table 4.3, the value of Prob.The Foreign Ownership variable is 0.2598 > 0.05 and the Green Intellectual Capital variable is 0.8918 > 0.05.This shows that both variables have a value of Prob.which is greater than 0.05, then Ho is accepted, and Ha is rejected, so that the data studied are free from heteroscedasticity.