Meiryani, Huang SM, Soepriyanto G, Audrelia J, Fahlevi M, Aljuaid M, Grabowska S. An exploration of circular water management accountability: A case from Indonesia.
Heliyon 2022;
8:e10556. [PMID:
36148275 PMCID:
PMC9485031 DOI:
10.1016/j.heliyon.2022.e10556]
[Citation(s) in RCA: 0] [Impact Index Per Article: 0] [Reference Citation Analysis] [What about the content of this article? (0)] [Affiliation(s)] [Abstract] [Key Words] [Track Full Text] [Download PDF] [Journal Information] [Subscribe] [Scholar Register] [Received: 01/19/2022] [Revised: 04/08/2022] [Accepted: 09/02/2022] [Indexed: 11/29/2022] Open
Abstract
Purpose
Palm oil is the leading commodity of the plantation sub-sector in Indonesia, providing a tremendous economic impact for the people and the government. However, the development of oil palm plantations raises the issue of environmental damage because oil palms use large quantities of water. The purpose of this study is to explore circular water management accountability practices through disclosures issued by each company and the effectiveness of water management voluntary disclosure under the Global Reporting Initiative (GRI) standards on increasing stakeholder trust and reducing information asymmetry.
Design/methodology/approach
This study used secondary data collected from reports published by plantation sub-sector companies listed on the Indonesia Stock Exchange (IDX) and accessible online. Analysis was performed using the method of Miles and Huberman (1992): data reduction, data presentation, conclusion drawing, and verification. Data reduction was conducted by identifying plantation sub-sector companies that reported water management practices consecutively from 2018 to 2020 and seeking all disclosures related to water management and circular water management practices with 3R indicators. Data presentation was carried out by presenting findings from circular water management disclosures and comparing inter-year circular water management accountability practices to examine reporting routines. Finally, conclusions were drawn and verified.
Findings
The results of this study show that only six of the 20 plantation sub-sector companies reported circular water management with 3R indicators for three consecutive years (2018-2020). Two of these six companies attached GRI index references to their reports consisting of GRI 303 (Water and Effluents) and GRI 306 (Waste), while the other four did not. In addition, water management voluntary disclosure under the GRI standards was shown to increase stakeholder trust and reduce information asymmetry.
Originality/value
This study raises the concepts of water accounting and circular water management accountability practices in plantation sub-sector companies listed on Indonesia Stock Exchange (IDX).
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