Impact of Environmental Management Accounting Practices on Mining Entities’ Financial Performance: Case of Bindura Mining Companies

Abstract

This research was set up to investigate the impact of Environmental Management Accounting Practices on Financial Performance (ROI) for mining firms operating in Bindura. The study objectives were to identify environmental management accounting practices employed by mining firms, establish the roles of environmental management accounting practices and to assess the relationship of environmental management accounting practices on environmental performance (EP) and on return on investment (ROI). Mixed method research strategy which blends characteristics of both quantitative and qualitative research design were used. Data was collected from a sample of 41 participants using questionnaires and interviews as data collection instruments. Descriptive statistics and inferential statistics analysis tools were employed. Data analysis and presentation employed the convenience of SPSS and MS Excel packages. The research concluded that mining companies mainly use environmental budgeting, environmental capital appraisal and environmental performance tools in their mining processes and activities. It also concluded that EMAPs improves environmental performance (EP) and ultimately financial performance. To the primary beneficiaries the research study suggested that mining firms should embrace EMAPs as part of strategic management process so that they maximise from benefits associated with adoption of EMAPs. The research also recommended that the Central government should consider designing fiscal incentive policies to encourage more investment in environmentalism. Lastly, media has been recommended to stimulate public interest in environmentalism for it is anticipated that public interest pressure groups activism will accelerate the speed on adoption of environmental management accounting practice