<![CDATA[Using financial distress as a moderating variable, this study sought to ascertain the relationship between a company's actual earnings management procedures and its corporate responsibility in declaring carbon emissions in Indonesia. The company's financial statements reports and sustainability reports are used in this study to evaluate the values of the variables under investigation. The exploratory quantitative technique is used to offer the test findings discussed in this study. Companies in the energy sector sub-industry that are listed on the Indonesia Stock Exchange for the 2019–2023 period make up the research sample. The Purposive Sampling method was employed in the sample determination process. The study's findings demonstrate that actual earnings management procedures are not much impacted by a company's disclosure of carbon emissions. Moreover, the poor financial condition of the company cannot moderate the influence of carbon emission disclosure on real earnings management. The disclosure of carbon emissions by companies is carried out as a manifestation of their responsibility towards the environment and the encouragement from society, particularly stakeholders, to maintain the company's image. The level of financial difficulty of the company is also not a driving factor for companies that disclose good carbon emission reporting to engage in earnings management practices. Companies are more likely to avoid social conflicts and political pressure in their carbon emission disclosure reporting. The presence of government regulations also plays a role, prompting companies to simultaneously prioritize non-financial reporting such as carbon emission disclosures to avoid disciplinary sanctions from the government and social pressure from the community. Companies that are financially struggling tend to not participate in good environmental disclosures, as they are more concerned about the loss of their resources than before. The implications of this research play an important role for stakeholders and the government to pressure companies to avoid earnings management practices and prioritize non-financial reporting such as carbon emission disclosure as a form of social responsibility]]>
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