Environmental accounting practices and their impact on company performance in Pakistani manufacturing industries

Abstract

Environmental accounting -- including environmental management accounting (EMA) and green accounting/reporting -- have become an important mechanism for firms to monitor, report and manage their environmental impacts with their financial performance. This research is focused on the impact of environmental accounting practices on the performance of firms involved in manufacturing industries in the country of Pakistan. Using a mixed-method approach, which is based on the recent empirical studies of Pakistani's firms read the existing literature and put forward the conceptual framework with providing data analysis using secondary panel data and hypothetical samples results. The evidence do support the adoption of environmental accounting practices as positively related to financial performance indicators and as well as organizational sustainability although the effectiveness of the environmental accounting practices are found to vary depending on the quality of reporting, engagement of stakeholder and integration of environmental strategies. This study contributes to the knowledge of environmental accounting, a strategic tool, for sustainable development for developing economies.