Jurnal Penelitian Ekonomi dan Bisnis How is using of the Indonesian Banking Environmental Disclosure with GRI?

banking ____________________ Abstract ______________________________________________________ This study aims to determine how the differences in environmental disclosure in conventional banking with Islamic banking using the GRI index. This study found that conventional banking has a higher environmental disclosure than Islamic banking. In addition, the results of this study state that the disclosure of the Islamic banking environment is more representative when using the ISR index when compared to the GRI index. The data used are in the form of annual reports and sustainability reporting of conventional banking companies and Islamic banking listed on the Indonesia Stock Exchange in 2019. The data analysis technique used in this study is content analysis and statistical tests to confirm the


INTRODUCTION
Green banking concept (Bai et al., 2013) where a bank whose operations are environmental l y friendly, has environmental responsibility and performance and considers environmental protecti on aspects in running its business (Sahoo & Nayak, 2007). By considering environmental aspects in making business decisions, it can reduce the negative impact of the operating activities of financial institutions so that it can help corporate social responsibility efforts and achieve sustainability (Shaumya & Arulrajah, 2017). Therefore, through the initiation of green banking, the bank will introduce the concept of paperless and information technology-based banking services to existing and prospective customers and, on the other hand, seek to promote the role of the bank to become responsible corporate citizens for achieving sustainable development (Fernando & Fernando, 2017). The company's challenge in maintaining the company's image in society is the reason why a bank in Indonesia conducts social reporting (www.worldbank.org).
The concept of CSR (Corporate Social Responsibility) is developing in a conventional economy and developing in an Islamic economy. The idea of CSR in Islam is closely related to companies tha t carry out business activities according to the Islamic concept expected by companies that can carry out Islamic corporate social responsibility. In disclosing sustainability reports, conventional banking is higher when compared to Islamic banking (Nobanee & Ellili, 2016). This is likewise confirmed by (Hartanti, D. dan Fitria, 2010)) who have conducted research on the comparison of conventional banking Corporate Social Responsibility (CSR) disclosures and show that traditional banking disclosures are better than Islamic banks, as seen from the GRI index and ISR index. The absence of regulations on CSR standards in sharia (Islam) causes various activities and reporting of CSR in Islamic banking to be uneven. Measurement of social performance in many Islamic banks in Indonesia still refers to the GRI Index (Saridona & Cahyandito, 2015).
In environmental disclosure practice, Islamic banking should have a higher level. This is because Islamic banking adheres to the concept that Islamic banking has a relationship with God, humans, and the environment (Elasrag, 2015). Sharia entities are required to contribute to economic development as part of their relationship with humans and the environment in accordance with the Maqasid Sharia (Mohamed Zain et al., 2014). Moreover, in the concept of sharia which states that he is a Khalifah/leader (Mara & Mara, 2014), humans, in this case, the company, have the responsibility to maintain all of Allah's creation (Tafti et al., 2012). The concept of CSR in Islam emphasizes that humans are Khalifah who are obliged to protect all of Allah's creation within the scope of the company (Mohamed Zain et al., 2014). There are very few studies that have compared the environmental disclosure of conventional banking with Islamic banking.
Meanwhile, related to the need for disclosure of social responsibility in Islamic banking, currently discussing the Islamic Social Reporting Index (hereinafter referred to as the ISR index) (Hartanti, D. dan Fitria, 2010). The ISR index is believed to be a starting point in terms of CSR disclosure standards in accordance with an Islamic perspective (Nugraheni & Azlan Anuar, 2014). With the use of Islamic banking, this study also looks at the breadth of the disclosure of the Islamic banking environment as measured by the GRI-G4 indicator when compared with the use of the ISR index.

METHOD
This research belongs to qualitative research using a descriptive approach. This study focuses on analyzing information in the theoretical literature related to research topics. The data used in this research is secondary data. Secondary data is the data that already exists and does not need to be collected by researchers alone (Martins et al., 2018) or the data obtained by accessing secondary data sources that can be trusted and can be scientifically justified. The data used are in the form of annual reports and sustainability reporting for conventional and Islamic banking companies listed on the Indonesia Stock Exchange in 2019.
The data analysis technique used in this study was carried out in two stages. First, looking and understanding the differences of environmental disclosures carried out by conventional banking and Islamic banking by comparing the results of the calculation of the GRI G4 index, which consists of 34 items with content analysis. It is 0 value if there is no disclosure regarding the item and one value if there is disclosure related to the item. Furthermore, to strengthen the results in testing, the t-tes t statistical testing was carried out with the SPSS version 20 testing tool.
Generally speaking, the disclosure indicators in the environmental scope in GRI show the environmental dimensions of sustainability that affect the organization's impact on living and nonliving natural systems, including ecosystems, soil, water, and air. Meanwhile, the information disclosed in the environmental theme includes conservation environment, non-polluting the environment, education about the environment, awards in the environmental field, and environmental management systems (Haniffa & Hudaib, 2007;Othman et al., 2009)

RESULT AND DISCUSSION Descriptive statistics Environmental Disclosure GRI Index Conventional Banking vs. Islamic Banking
The results of environmental disclosure assessment in conventional banking companies and Islamic banking are shown in the following Number of grievances about environmental impacts filed, handled, and resolved through the official grievance mechanism 1.36 0.18 Figure 1. The following presents a descriptive analysis of the assessments that have been obtained from the environmental disclosure of conventional banking and Islamic banking. The chart results on the environmental disclosure of conventional banking and Islami c banking ( Figure 1) show that conventional banking discloses environmental items higher than Islamic banking in its annual report and sustainability reporting. This result is also confirmed in the following t-test: From the results of the t-test that has been conducted, it shows that there are differences in environmental disclosure carried out by conventional banking with Islamic banking, and conventional konvensional syariah banking is higher in disclosing environmental disclosure (p-value = 0,000, and the mean environmental disclosure of traditional banking is higher than Syariah banking). These results support the research (Nobanee & Ellili, 2016).

Environmental Disclosure Islamic banking with the GRI index vs. the ISR index
The results of the assessment of the disclosure of the Islamic banking environment using the ISR index are as follows: To find out the difference in the average value in the environmental disclosure GRI index and the environmental disclosure ISR index, an Independent Samples Test was conducted as follows: Based on the output table above, it is known that the number of environmental disclosure items for the GRI index is 34 items, while for the ISR index, there are five items. The average value of the results of environmental disclosure assessment of the mean for the GRI index is 0.3709, while for the ISR index is 0.6360. Thus, statistically descriptive, it can be concluded that there is a difference in the average index of environmental disclosure between GRI and ISR. Furthermore, to prove whether the difference is significant (real) or not, the "Independent Samples Test" output is interpreted as follows: Based on the output of the "Independent Samples Test" the sig value is known. Levene's Test for Equality of Variances is 0.860> 0.05, which means that the data variance between the GRI index and the ISR index is homogeneous or the same. In the "Equal variances assumed," the sig value is known.
(2-tailed) of 0.060 <0.1, so it can be concluded that there is a significance (real) between the average assessment of Islamic banking environmental disclosure and the GRI index and the ISR index. The obtained Levene Statistic number is 12,728 with a probability value (sig.) of 0,000, so it can be concluded that the variants of the index used in viewing the environmental disclosure of Islamic banking are different or heterogeneous. Each disclosure theme has a sub-theme as an indicator for the disclosure of that theme (Leipziger, 2015;Traxler et al., 2018). This result is also corroborated by the plots shown as follows:

Figure 2. Plots of Aspects in the ED GRI Index and the ED ISR Index
From the results of the independent samples test, homogeneity, and plot, it can be concluded that the assessment of environmental disclosure of Islamic banking is better if using the ISR index (Belal et al., 2015;Santoso et al., 2018).
The item of reducing energy consumption is the most frequently disclosed item by conventional banking and Islamic banking. Banking in Indonesia has supported government programs as stipulated in Presidential Instruction No. 10/2005 regarding Energy Saving (Indonesian Government, 2014). In accordance with the instructions of the Financial Services Authority (OJK), companies that are in the financial sector can carry out energy conservation by going through the following stages: The involvement of the private sector in managing environmental and social risks is also regulated in Law Number 32 of 2009 concerning Environmental Protection and Management, which, among other things, regulates the obligation for industry to protect nature and the environment. The initiation of banks to adopt green banking practices in Indonesia is inseparable from the issuance of relevant regulations that encourage the implementation of environmentally friendly banks. Various ways can be performed in the adoption of green banking, such as online banking, internet banking, green checking accounts, green loans, mobile banking, electronic banking outlets , and saving energy use that contributes to environmental sustainability programs (Gupta, 2015). (Iqbal et al., 2016) with the factor analysis approach, found one of the factors of why banks adopt green banking practices to ensure sustainable economic development, namely environmental interests. The adoption of green banking in the banking business is a crucial issue as it becomes an identifier for companies that care about the environment in their business and can strengthen their competitive advantage (Bryson et al., 2016).
In the environmental aspect, the implementation of the Islamic banking CSR report shows that the items in the ISR index are more appropriate to measure environmental performance (Zafar & Sulaiman, 2019). These aspects include environmental conservation, protection of endangered animals or habitats, prevention of environmental pollution, environmental education, concern for green world issues, environmental audits, and the establishment of an environmental management system.
The advantage of using the ISR index in Islamic banking disclosure compared to the GRI index is that the ISR index can reveal indicators related to transactions that occur in companies that are free from elements of usury (riba'), speculation and gharar and disclosed zakat, Islamic compliance status, and social aspects. Such as alms, waqf, qard al hassan, to the disclosure of worshipping within the company environment (Sunarsih & Ferdiansyah, 2016). The ISR index is also able to describe ethical aspects that represent accountability to God and humans as well as transparency regarding all company activities, which are needed by humans to ensure that all comply with the provisions of Allah SWT (Haniffa & Hudaib, 2007).

Stakeholder Theory
Stakeholders are a group that is able to provide support for the existence of an organizati on (Parmar et al., 2010). According to (R. E. E. Freeman & McVea, 2005) Stakeholders are groups or individuals who can influence or be influenced by the process of achieving the goals of an organization. Stakeholder theory says that a company is not an entity that only operates for its own interests but must provide benefits for its stakeholders (shareholders, creditors, consumers, suppliers, government, society, analysts, and other parties) (Laplume et al., 2008). The existence of a company is strongly influenced by the support provided by stakeholders for the company (Friedman & Miles, 2002). (Gray et al., 1995) said that the company's survival depends on stakeholder support and that support must be sought so that the company's activity is to seek that support. The more powerful the stakeholders, the greater the company's efforts to adapt (Ullmann, 1985).
Stakeholder theory, related to the concept of corporate social responsibility, is not only limited to maximizing profit and shareholder interests but also must pay attention to the community, customers, and suppliers as part of the company's operations itself. (Argandoña, 1998). Stakeholders will support the company's operational activities if they disclose reliable and relevant information so that stakeholders continue to trust and help the company in making decisions (R. E. Freeman et al., 2017).

Environmental Disclosure with the Global Reporting Initiative
According to (Gray & Bebbington, 2000), disclosure of corporate social and environmental responsibility aims to show the public the activities carried out by the company and the impact on society. (Clarkson et al., 2008) have a view of the environmental disclosure theory, which states that companies that have performed their environmental performance well will prefer to disclose thei r environmental information, which is not easily imitated by other companies with poor environmental performance. Furthermore, environmental disclosure is a collection of information related to environmental management activities by companies in the past, present, and future (Khalil & O'sullivan, 2017).
The guidelines used to prepare a sustainability report are made by the Global Reporti ng Initiative (GRI), which is headquartered in the Netherlands. GRI is a non-profit organization that has pioneered guidelines for sustainability reports or reports on social and environmental responsibility (GRI, 2013). In the GRI G4 standard, performance indicators are divided into three main components , namely economic, environmental and social. The total indicators contained in the GRI reached 91 items (www.globalreporting.org). This study, using the assessment guide to compare the environmental disclosure of banking with GRI, which has become a reference for sustainable reporting guidelines around the world, to determine the differences in environmental disclosures between conventional banking and Islamic banking. In addition, GRI is considered as a tool that can harmonize many approaches related to sustainability reporting by companies (Lozano 2006b;Newport, Chesnes, and Lindner 2003).

Islamic Social Reporting Index
Islamic Social Reporting Index is an alternative to the standard of Corporate Social Responsibility disclosure for Islamic-based companies issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). (Othman et al., 2009), developed a relevant disclosure index on Islamic Social Reporting (ISR). Islamic Social Reporting (ISR) is a conceptual framework for CSR disclosure based on Islamic principles that not only help make decisions for Muslims but also helps companies fulfill their obligations to Allah and society at large (Sunarsih & Ferdiansyah, 2016). Furthermore, the conceptual framework is in accordance with the Islamic entity to reveal matters related to Islamic principles as a transaction that is free from elements of usury (riba'), speculation and gharar (the sale of what is not yet present) and zakat disclosure, islamic status and social compliance aspects such as alms (sadaqah), waqf, qard al hasan (an interest-free loan), to the disclosure of worshipping in the corporate environment.
An important factor that forms the basis of sharia in the formation of Islamic Social Reporti ng (ISR) is Tauhid (One True God) which forms the perception of a Muslim to be willing to accept all the provisions of Islam-based on two main sources, namely Al-qur'an and Al-Hadith. All the advantages contained in the GRI Index still have disadvantages, in the sense that it is not suitable for companies that are unique, such as Islamic-based companies. This discrepancy is considered natural because GRI is an organization dominated by westerners, resulting in standards that are more in line with conventional companies (Alam et al., 2017).
In addition to knowing how the differences in the environmental disclosure in conventional banking and Islamic banking, this study also looks at the differences in the assessment of the environmental disclosure of the Islamic banking as measured by the GRI index and the ISR index. In this study, the measure used to assess the level of ISR disclosure was the ISR index designed by Othman et al. (2009).

CONCLUSION AND RECOMMENDATION Conclusions
This study aims to determine what differences are found in environmental disclosure in conventional banking and Islamic banking using the GRI index. This study found that conventional banking has a higher environmental disclosure than Islamic banking. The item of reducing energy consumption is the item most frequently disclosed by conventional banking and Islamic banking. In addition, the results of this study indicate that the environmental disclosure of the Islamic banking is more representative when using the ISR index as compared to the GRI index.
One of the implementations of banking transparency principles is by conducting environmental disclosures. This implementation can increase the reputation and value of the company , which has an impact on increasing the trust of consumers and society. In the policy aspect, this research contributes to supporting the importance of regulation for bank financial institutions to practice more ethically towards environmentally friendly banks.

Recommendation
It is important for banks to implement and report CSR, especially on environmental disclosure, not only to comply with existing regulations but also more in the awareness that by doing CSR, they will get a competitive advantage which will have an impact on a good reputation and in the end can improve long-term financial performance. For future researchers, it is advisable to conduct further research to determine the motivation of banking companies on environmental disclosure efforts in the annual report and in the sustainability report by using primary data sources such as questionnaires.