Do Carbon Exchanges Make a Difference to Carbon Disclosure and Performance? Evidence from Indonesia

The presence of the Indonesia Carbon Exchange (ICE) puts pressure on management to carry out its active role in reducing the potential of climate change through business strategies such as disclosure and improving carbon performance. This study seeks to prove the significant difference in carbon disclosure and performance after the launch of the ICE, as well as to review the profound differences in the increase in carbon disclosure and performance in the high and low-polluting sectors in the population of companies listed on the Indonesia Stock Exchange for the 2022 and 2024 periods. The two research models used in formulating the results are the Wilcoxon test and the Difference-in-Differences model. The results of this study indicate a significant difference in carbon disclosure and performance after the launch of ICE, which illustrates the changing dynamics of environmental regulations encouraging companies to improve transparency and corporate carbon performance in an effort to maintain their legitimacy. This study shows that there was no significant difference in the comprehensiveness of carbon disclosure or the improvement in carbon performance between high- and low-polluting sectors after the launch of ICE.