Environmental Accounting Practices Research Articles

Does air pollution motivate organisations to adopt environmental management accounting practices? Evidence from South Africa

This paper identifies the extent of air pollution in motivating companies to implement environmental management accounting (EMA) practices in 67 mining and cement companies listed on the Johannesburg Stock Exchange (JSE), South Africa, from 2012 to 2021. Pooled ordinary least squares regression is applied to analyse the data. EMA is proxied by environmental training, environmental audits and energy efficiency, while air pollution is measured based on the air quality index (AQI). The results show that air pollution is essential for companies to adopt EMA practices. This means that when air quality declines within a company’s locality, a company proactively adopts EMA practices. This suggests that air pollution is a key basis of companies' adoption of EMA, as predicted by the legitimacy theory. The study includes three control variables: size, return on assets (ROA) and number of years listed on JSE. Two control variables, namely Size and ROA, portray a positive and significant effect on adopting EMA from air pollution. This portrays that a financially stable company tends to submit to air pollution and use EMA to counter the pollution. In contrast, as the number of years increases for companies listed on JSE, EMA will likely be adopted less to reduce air pollution.

Nexus of environmental accounting, sustainable production and financial performance: An integrated analysis using PLS-SEM, fsQCA, and NCA

This study delves into the complex interplay of environmental accounting, sustainable production, and financial performance within the textile industry in Bangladesh. The background highlights the growing importance of sustainable practices in the business landscape and the need for empirical insights in the context of textile companies. The purpose of the study is to uncover the impact of environmental accounting practices, such as environmental cost accounting, carbon accounting, and sustainability reporting, on financial performance. Employing a comprehensive methodology that combines Partial Least Squares Structural Equation Modeling (PLS-SEM), fuzzy-set Qualitative Comparative Analysis (fsQCA), and Necessity Condition Analysis (NCA), the research provides a nuanced understanding of the intricate relationships among these variables. The results reveal that environmental accounting positively influences financial outcomes, and sustainable production acts as both a direct enhancer of financial performance and a mediator in the relationship between environmental accounting initiatives and financial success. Practical and managerial implications emphasize the strategic integration of environmental accounting practices, prioritization of sustainable production, and the role of transparency in sustainability reporting for long-term financial success. Thus, the study offers a roadmap for businesses navigating the intersection of sustainability and financial performance, contributing valuable insights for both academia and industry practitioners.

The role of environmental accounting in enhancing corporate social responsibility of industrial companies listed on the Amman Stock Exchange

This study aims to examine the impact of environmental accounting on corporate social responsibility in industrial companies listed on the Amman Stock Exchange. A quantitative approach was employed, utilizing a questionnaire to verify this impact. The results indicated a strong and positive relationship between environmental accounting practices and corporate social responsibility. These findings call for serious measures to embrace environmental accounting practices in industrial companies, as they have the potential to enhance professional development and overall corporate performance. Decision-makers in this context are advised to take steps towards integrating environmental accounting concepts, as this move can contribute to increased productivity and success within these organizations, considering the challenges of our rapidly changing and interconnected world.

Unveiling the link between environmental management accounting, energy efficiency, and accountability in state-owned enterprises: An integrated analysis using PLS-SEM and fsQCA

The rising importance of sustainability and accountability in organizations has prompted the exploration of innovative approaches to enhance environmental performance and energy efficiency (ENE). The purpose of this research is to examine the extent to which environmental management accounting (EMA) and ENE practices contribute to accountability within state-owned enterprises (SOEs) in Bangladesh. This study employs both symmetrical (PLS-SEM) and asymmetrical (fsQCA) approaches. The study verifies internal consistency, reliability, validity, common method bias, and collinearity issues through measurement model analysis and conducts path analysis after testing model fitness in structural model analysis. Finally, the study uses fsQCA to conduct in-depth analyses of causal contributions from different conditions to a specific outcome of interest. The PLS-SEM analysis revealed significant positive relationships between EMA and ENE with transparency, responsibility, and answerability. These results indicate that organizations adopting EMA and ENE practices are more likely to exhibit higher levels of transparency, demonstrate greater responsibility towards environmental matters, and be more answerable to stakeholders for their accountability. Further, the study identified ENE as a mediator of EMA and accountability. Finally, the fsQCA analysis supported the importance of both EMA and ENE as necessary conditions for achieving accountability indicating the integration of EMA and ENE to foster transparency, responsibility, and answerability effectively. This study implies that by implementing EMA systems and focusing on energy-efficient operations, organizations can enhance transparency, responsibility, and answerability to stakeholders, fostering a positive image and reputation. Therefore, SOEs may consider integrating these practices into their overall sustainability strategies to maximize their impact on accountability and environmental performance.

Stakeholder Perspectives on Environmental Accounting Disclosure: A Case Study of North Toraja District Government

This research uses an ethnographic approach to explore environmental accounting reporting practices in the local government of North Toraja regency. Through participatory observation, in-depth interviews, and document analysis, qualitative data were obtained to understand the dynamics of environmental accounting practices at the local level. The findings show the complexity of environmental accounting reporting practices, which are not only influenced by economic and environmental factors, but also closely related to local cultural preservation needs. Interviews with stakeholders, including government officials, environmentalists, financial officers, and research employees, revealed additional dimensions of environmental accounting practices. The integration of these practices with local cultural preservation highlights the central role of socio-cultural aspects in environment-related decision-making. In addition, the importance of active community involvement and proper budget allocation was highlighted, with adequate financial support considered crucial for the effective implementation of the practice. Corporate social responsibility is not only seen as a regulatory obligation, but also as a positive contribution to the local community and environment.

Environmental Management Accounting Practices on Environmental Performance among Students and Lecturers

Environmental Management Accounting Practices on Environmental Performance among Students and Lecturers

Evaluating the influence of environmental accounting practices on the operational efficiency of seafood businesses in Vietnam

This paper deals with factors affecting environmental accounting adoption and its impact on operational performance in Vietnamese seafood enterprises. The data were collected from seafood enterprises in Vietnam. Structural equation modeling was applied to explore the causal relationship between operational performance and other factors. The results show that the factors affecting the implementation of environmental accounting based on normalized weights include manager support, with the strongest impact (0.286), followed by the level of technology (0.155), qualifications of accountants (0.191), pressure from stakeholders (0.129), business characteristics (0.117), financial resources (0.113), legal regulations (0.103), and finally environmental changes (0.1). The results also show that environmental accounting implementation strongly impacts operational performance (standardized weight 0.351). The correlation relationships in the model are all statistically significant, with a 95% confidence level (p = 0.000 < 0.05). The paper contributes to perfecting the factors affecting the implementation of environmental accounting, clearly seeing its benefits and positive impacts on performance in seafood enterprises in Vietnam, to achieve environmental protection goals, increase economic benefits, and sustainable development. AcknowledgmentThis study is conducted within the framework of the doctoral project subject to Decision No. 1807/QD-ĐHDT dated May 10, 2023, Duy Tan University, Vietnam. The authors would like to acknowledge the reviewers and the editor-in-chief for their assistance.

Research on the Disclosure of Environmental Accounting Information in Listed Steel Companies

Amid escalating global environmental challenges, the transparency in environmental accounting is now central to upholding corporate social responsibility and fostering sustainable growth. In China, where the steel industry significantly contributes to carbon emissions, the transparency of its environmental accounting is pivotal to meeting the nation's "dual carbon" objectives. This study analyzed environmental accounting data from 28 publicly listed steel companies, drawing from their annual corporate and social responsibility reports between 2018 and 2022. The findings reveal advancements in the steel industry's environmental accounting practices; however, notable inconsistencies persist in disclosure content, format, frequency, and accuracy. To rectify these inconsistencies, this paper suggests targeted measures to standardize and improve the environmental accounting disclosures of China's listed steel companies, supporting the industry's and nation's progression towards sustainability.

Praktik akuntansi lingkungan pada sektor ekonomi kreatif Indonesia: Studi niat perilaku UMKM milenial

Global environmental problems are receiving increasing attention from academics, policymakers, regulators, activists, and the public. Although economically significant, Indonesian Micro, Small, and Medium Enterprises (MSME) are the main contributors to environmental pollution. Environmental Accounting (EA) calculates the cost of the environmental impact of business operations. However, it is unclear whether environmental impact costs have been calculated in traditional accounting. The millennial generation dominates MSME owners in Indonesia. This study analyzes the factors that encourage the intention of millennial MSME owners to apply Environmental Accounting Practices. This study uses the theory of planned behavior and an online survey with 164 respondents. Data analysis using PLS-SEM. The results show that the benefits of environmental accounting, price, complex integration, and subjective norms affect the attitude of millennial MSME owners toward environmental accounting. The price and complexity of integration encourage millennial MSME owners to control their behavior. Organizational environmental regulations and orientation have no significant effect. Subjective norms, attitudes, and behavioral controls affect the behavioral intention of environmental accounting in millennial generation MSMEs. These findings are essential for MSME owners, policymakers, MSME associations, and Indonesian academics.

Environmental Accounting in the European Accounting Review: A Reflection

We reflect upon how European Accounting Review has conceived of environmental accounting (and to some extent social/sustainability accounting work) over its 30-year history, with the aim of discussing ways in which environmental accounting research can further develop, both within and beyond this journal. After outlining the broader social and ecological context from which environmental accounting has emerged (and noting that this context is evolving in substantive ways), we provide an overview of the types of research published in EAR. We combine these elements to identify three themes that we argue are critical for the direction of future research: the financial materiality of ecological issues and the impact this has on risk; how environmental accounting practices are constructed; and how a new relationship between nature and society may affect accounting practices. We finally conclude by envisioning a future of environmental accounting research that dovetails with the sustainability ambitions that can be draw from an examination of the detailed targets that underpin the Sustainable Development Goals.

Exploring the historical roots of environmental and ecological accounting from the dawn of human consciousness

PurposeThis paper seeks to broaden the agenda for environmental and ecological accounting research across several dimensions, extending the form of accounting in this field by encouraging research into its historical roots and developing a definition of accounting that can address the severe environmental and ecological challenges of the 21st century.Design/methodology/approachThe authors explored environmental and ecological accounts from the dawn of human consciousness across a wide variety of media and in a broad range of forms. This theoretical approach reacts to the cold capitalist commodification of nature inherent in much environmental accounting practice, which documents, values and records usage of natural capital with little attempt to address depletion and loss.FindingsBy analysing the earliest ecological and environmental “accounts” recorded by humans at the dawn of human consciousness, and considering a wide array of subsequent accounts, the authors demonstrate that rather than being a secondary, relatively recent development emerging from financial accounting and reporting, environmental and ecological accounting predated financial accounting by tens of thousands of years. This research also provides a wealth of perspectives on diversity, not only in forms of account but also in the diversity of accountants, as well as the broadness of the stakeholders to whom and to which the accounts are rendered.Research limitations/implicationsThe paper can be placed at the intersection of accounting history, the alternative, interdisciplinary and critical accounts literature, and environmental and ecological accounting research.Practical implicationsPractically, the authors can draw ideas and inspiration from the historical forms and content of ecological and environmental account that can inform new forms of and approaches to accounting.Social implicationsThere are social implications including the diversity of accounts and accountants derived from studying historical ecological and environmental accounts from the dawn of human consciousness especially in the broadening out of the authors' understanding of the origins and cultural roots of accounting.Originality/valueThis study concludes with a new definition of accounting, fit for purpose in the 21st century, that integrates ecological, environmental concerns and is emancipatory, aiming to restore nature, revive biodiversity, conserve species and enhance ecosystems.

Analyzing enviromental management accounting to increase university awareness towards sustainability

Currently, universities are concerned about environmental issues and their impacts. As a university with a conservation perspective, Universitas Negeri Semarang plays a significant role in solving environmental problems. This study explores environmental management accounting (EMA) practices and the motivations for their use in universities. The focus was on waste management, energy, and climate change. Qualitative content analysis was used in this research with the main source of the UI Green Metrics document and in-depth interviews with the head of the Conservation Technical Implementation Unit and its divisions. The results show that the two categories support environmental management accounting. Both energy and climate change contributed 21% to the EMA, and waste management accounted for 18%. Energy and climate change include energy-efficient appliance usage, smart building implementation, number of renewable energy sources on campus, number of renewable energy sources on campus, and total carbon footprint divided by the total campus population (metric tons per person). Furthermore, the waste in the college will be recycled through several programs, such as paper and plastic reduction, organic and inorganic waste management, sewage disposal, and toxic waste treatment.

The Role and Effectiveness of Institutional and Legal Framework to Combat Corruption Associated with Social and Environmental Accounting Practice to Strengthen the Achievement of Sustainable Development Goals (SDGs)

This research study analyses the vital role of legal and institutional frameworks in preventing corruption related to social and environmental reporting that adheres to promoting the fulfilment of the Sustainable Development Goals, also known as the SDGs, of the United Nations. Corruption provides a tremendous barrier to sustainable growth initiatives, particularly in the areas of social and environmental accounting, since it impacts accountability, transparency, and integrity. By examining existing literature, this study intends to highlight the key problems and best practices in preventing dishonesty, improving good governance, and boosting the efficiency of environmental and social accounting procedures. Ultimately, this research aims to provide knowledge and suggestions for governments, corporations, and stakeholders to boost the campaign against corruption and promote the SDGs.

Environmental Management Accounting – Developments Over the Last 20 years from a Framework Perspective

AbstractThe most cited framework for environmental management accounting to date was published in the Australian Accounting Review 20 years ago. This framework has until today considerably influenced the development of the environmental management accounting field. Set against new sustainability challenges it is now time to question if the framework remains relevant or if it needs to change, and in what ways, to address the contemporary challenges now facing society. Taking stock of environmental management accounting research and practice over the last two decades, a conceptual discussion is developed which is based on extant literature and the authors’ extensive experience of the topic. Thus, the paper looks back to reflect on the developments from the perspective of the framework and looks towards how environmental management accounting could be further developed in the future. It considers the current and future potential of environmental management accounting and managers to contribute towards sustainable development. This can be through: the development of new areas of application and thematic scopes targeting aspirational sustainability goals such as those represented by the United Nations Sustainable Development Goals and planetary boundaries; extending spatial scope beyond the organisation into supply chains and circular systems; development of new social and environmental measures of performance to complement economic measures; providing information specific to the needs and roles of new personnel using environmental and sustainability information; and building awareness and implementing new drivers for environmental and sustainability management accounting such as AI and chatbots.

Climate governance by numerical data: The kaleidoscopic political space of a decarbonization dashboard

ClimateOS is a software whose promise is to provide climate policymakers with reliable and actionable transition plans towards decarbonization, thanks to its algorithms’ ability to handle large amounts of numerical climate data. What data to feed ClimateOS’ algorithms? This is a question that greatly concerns its developers and one that I analyse in this article for its socio-political implications. Specifically, I unpack how developers relate to the accuracy and reliability of numerical data. I suggest that their multifaceted approach to numerical climate data allows ClimateOS to open a political space where the various transition plans the software offers can be tinkered with. This article brings critical geographers and material semiotics scholars in conversation. The former argue that data-driven (decarbonization) governance practices depoliticize climate issues, characterizing such initiatives as the effects and expressions of global political economic processes. The latter show how different environmental accounting practices, at different times, produce different performances of nature; and how different ways of relating to numbers enact alternative modes of treating numbers accountably. In this article, I show how ClimateOS opens a political space that engenders social relations and co-produces articulations of a decarbonized future. Because of its multifaceted approach to numerical data, I characterize this political space as kaleidoscopic, where different and often incompatible political values and logics are enacted simultaneously.

Examining the impact of Environmental Management Accounting practices and Green Transformational Leadership on Corporate Environmental Performance: The mediating role of Green Process Innovation

Based on the Natural Resource-Based View (NRBV), we examined the impact of Environmental Management Accounting and Green Transformational Leadership (GTL) on Corporate Environmental Performance (CEP) and we also examined the mediating role of Green Process Innovation (GPI). For this purpose, a survey technique was used to collect data from certified manufacturing setups. SPSS and PLS-SEM 3.0 were used to examine the hypotheses and the results of the study indicate that GTL has a direct significant impact and indirect impact through GPI on CEP. Results also depict that EMA also has a significant impact on CEP. Our study contributed theoretically to NRBV by contributing to the role of GPI in attaining environmental performance. The results of the study also have practical implications by indicating that managers and policymakers should employ practices of EMA along with GTL style to satisfy the environmental sustainability concerns of the stakeholders and sustain their competitive edge in the market.

Environmental Accounting Practice and Financial Performance of Listed Aviation Firms in Nigeria

Environmental accounting practices is a concept that has received attention in recent times especially after the world experienced the adverse effect of environmental abuse. It was however discovered that the discourse focused majorly on the manufacturing sector with little attention on another sensitive sector such as the aviation industry. This study, therefore, investigated the effect of environmental accounting practices on the financial performance of Nigerian aviation firms, with a specific focus on their environmental research and development, environmental pollution control policy, and environmental waste management. An ex-post facto research design was used in the study. The population comprised the five aviation firms listed on the Nigeria Exchange Group as of 31st December 2021. A census sampling technique was used which automatically made the five firms the sample size of the study. Data were obtained from secondary sources through the published annual reports of the firms covering the period of 2016 – 2021. Data collected was analyzed using descriptive statistics and ordinary least squares (OLS) regression analysis. Findings revealed that environmental research and development, and environmental waste management had a negative and significant effect on return on assets; while environmental pollution control policy positively and significantly affect the return on assets of Nigeria aviation firms. The study concluded that environmental research and development, and environmental waste management could adversely affect financial performance if not well managed. It is recommended that the environmental management of firms should be given priority in order to maximize financial performance.

Accounting and Accountability in Competing Worlds: An Overview

ABSTRACT For this special issue we invited authors to consider the practice of accounting and the mobilisation of accountability in the contested spaces where worlds and values coexist in pluralist societies. We consider how accounting, as a technical practice, privileges market or economic interests and reflect on the implications for accountability to non-economic actors. Despite the limitations of accounting as merely technical, there is potential for accounting in a broader sphere to be enabling. This overview considers studies that have harnessed interdisciplinary approaches to identify the challenges for social and environmental accounting practice. In doing so, we acknowledge that achieving a normative ideal of accountability in pluralist societies requires a consensus understanding of the ‘common good’, the role of social movements in promoting an emancipatory civil society while recognising the problematic nature of politically mediated discourse.

The institutionalisation of social and environmental accounting practices in Europe

PurposeIn the last few years, the European context has been characterised by a high degree of attention paid by policymakers, practitioners and academics to the effects related to the transposition of Directive 2014/95/EU by the member states. In particular, one the main issues of the intervention made by the European Commission is represented by the theoretical misalignment between corporate communications and actions. According to this evidence, this paper aims to shed light on this debate through a critical evaluation of the effectiveness of Directive 2014/95/EU.Design/methodology/approachThe analysis was built using panel data analysis on a sample of 813 European listed companies. Furthermore, the authors performed additional analysis and robustness checks to assess the reliability of the analysis.FindingsThe analysis underlined the enabling role of the reporting scope, external assurance and corporate social responsibility (CSR) committees on sustainability reporting. Furthermore, the research highlighted the need to pay specific attention to the real contribution provided by companies to the sustainable development goals.Research limitations/implicationsThe research provided theoretical insights into the effects related to mandatory sustainability reporting, which represents an emerging field in accounting research.Practical implicationsThe analysis revealed the limited effects of Directive 2014/95/EU. In this regard, the paper contributes to the debate about accounting regulation in Europe.Originality/valueThis paper will shed light on the role of Directive 2014/95/EU in sustainable development. To the best of the authors’ knowledge, this is the first attempt to analyse CSR decoupling in Europe after the transposition of Directive 2014/95/EU by the member states.

Environmental Accounting Practice and Firm Value of Quoted Oil and Gas Companies in Nigeria

Environmental Accounting Practice and Firm Value of Quoted Oil and Gas Companies in Nigeria