Environmental Management Practices and Performance in Canada

Abstract

In this paper, a model of the determinants of environmental management practices and the impact of these practices on environmental performance is described and tested using Canadian manufacturing facility-level data. Our results show that Canadian manufacturing facilities have indeed undertaken environmental initiatives as a result of pressures arising from the buyers of their products and corporate headquarters. The relationship between environmental management practices and environmental performance is curvilinear. Increases in environmental performance are observed as the number of environmental practices increases up to an inflection point. Past this inflection point, environmental performance diminishes with further increases in environmental practices. We also find that, across time, facilities with more comprehensive practices continue to see improvements in environmental performance.