The Corporate Biodiversity Paradox: Evidence of Biodiversity Disclosure and ESG Performance in Indonesia
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Abstract
This study aims to analyze the effect of biodiversity disclosure on ESG performance in manufacturing companies listed on the Indonesia Stock Exchange, as well as to examine the moderating role of board gender diversity and firm size in this relationship. The background of this research is driven by the increasing urgency to integrate biodiversity issues into the global sustainability framework and the paradox of low biodiversity disclosure in Indonesia, despite a significant increase in the issuance rate of corporate sustainability reports. Using purposive sampling, this study utilizes data from companies included in the IDX30 index for the 2020–2025 period.
The results of this study demonstrate that biodiversity disclosure has a positive and significant effect on ESG performance. Board gender diversity is proven to negatively moderate this relationship, indicating that board gender diversity actually weakens the positive influence of biodiversity disclosure on ESG performance. Conversely, firm size moderates the relationship positively and significantly, showing that larger companies are able to strengthen the positive impact of biodiversity disclosure on ESG performance. These findings reinforce that biodiversity disclosure is a crucial factor in enhancing ESG performance, but its effectiveness is influenced by governance characteristics and corporate capacity.
The results are expected to provide theoretical contributions to the development of stakeholder theory and legitimacy theory within the context of biodiversity, as well as practical contributions for companies, regulators, and investors in designing effective biodiversity disclosure strategies to improve ESG performance and strengthen corporate legitimacy in emerging markets like Indonesia.
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