Influence of environmental management accounting practices on the environmental sustainability of South African cement and mining companies
-
DOIhttp://dx.doi.org/10.21511/ee.13(1).2022.09
-
Article InfoVolume 13 2022, Issue #1, pp. 101-113
- Cited by
- 572 Views
-
107 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Most companies in emerging economies need to be more conscious of environmental initiatives such as environmental management accounting practices (EMAP) that can effectively improve environmental sustainability. Therefore, this study investigates the effect of EMAP on the environmental sustainability of listed South African cement and mining companies. To achieve the aim of the study, 45 Johannesburg Stock Exchange-listed cement and mining companies were sampled based on data extracted from the annual integrated reports, financial statements, environmental and sustainability reports from 2012 to 2021. IBM SPSS Statistics 24 was used to analyze the relationship between EMAP and environmental sustainability. The results show that two environmental sustainability proxies, water consumption and recycled water, are significantly and positively related to EMAP. However, carbon emissions (p < .061) insignificantly influence environmental sustainability. This suggests that some EMAP used by the sampled companies are inadequate to amplify environmental sustainability. The paper is essential to provide empirical evidence that managers of the cement and mining companies in South Africa need to devise better and new EMAP to reduce carbon emissions.
- Keywords
-
JEL Classification (Paper profile tab)M41, Q01, Q56
-
References54
-
Tables6
-
Figures0
-
- Table 1. Recycled water: Model summary
- Table 2. Coefficients of dependent variable: Recycled water
- Table 3. Water consumption: Model summary
- Table 4. Coefficients of dependent variable: Water consumption
- Table 5. Carbon emissions: Model summary
- Table 6. Coefficients of dependent variable: Carbon emissions
-
- Agyemang, A. O., Yusheng, K., Twum, A. K., Ayamba, E. C., Kongkuah, M., & Musah, M. (2021). Trend and relationship between environmental accounting disclosure and environmental performance for mining companies listed in China. Environment, Development and Sustainability, 23, 12192-12216.
- Appannan, J. S., Said, R. M., Ong, T. S., & Senik, R. (2020). Environmental proactivity on environmental performance: an extension of natural resource-based view theory (NRBV). International Journal of Industrial Management, 5, 56-65.
- Aslam, S., Elmagrhi, M. H., Rehman, R. U., & Ntim, C. (2021). Environmental management practices and financial performance using data envelopment analysis in Japan: The mediating role of environmental performance. Business Strategy and the Environment, 30(4), 1655-1673.
- Balabanis, G., Phillips, H. C., & Lyall, J. (1998). Corporate social responsibility and economic performance in the top British firms: are they linked? European Business Review, 98(1), 25-44.
- Bananuka, J., Bakalikwira, L., Nuwagaba, P., & Tumwebaze, Z. (2021). Institutional pressures, environmental management practices, firm characteristics and environmental performance. Accounting Research Journal, 34(6), 637-665.
- Burritt, R. L., Hahn, T., & Schaltegger, S. (2002). Towards a comprehensive framework for environmental management accounting – Links between business actors and environmental management accounting tools. Australian Accounting Review, 12(27), 39-50.
- Busch, T., Bassen, A., Lewandowski, S., & Sump, F. (2022). Corporate carbon and financial performance. Organization & Environment, 35(1), 154-171.
- Christine, D., Yadiati, W., Afiah, N N., & Fitrijanti, T. (2019). The relationship of environmental management accounting, environmental strategy and managerial commitment with environmental performance and economic performance. International Journal of Energy Economics and Policy, 9(5), 458-464.
- Doda, B., Gennaioli, C., Gunderson, A., Grover, D., & Sullivan, R. (2016). Are corporate carbon management practices reducing corporate carbon emissions? Corporate Social Responsibility and Environmental Management, 23(5), 257-270.
- Dzomonda, O., & Fatoki, O. (2021). Water sustainability and financial performance of firms listed on The Johannesburg Stock Exchange (JSE). Acta Universitatis Danubius, 17(3), 24-47.
- Earnhart, D., & Lizal, L. (2010). The effect of corporate environmental performance on financial outcomes – profits, revenues and costs: Evidence from the Czech transition economy. DRUID: Frederiksberg, 12(46), 1-44.
- Ekundayo, G., & Odhigu, F. (2021). Environmental accounting and corporate sustainability: A research synthesis. International Journal of Business and Management, 16(1), 1-7.
- Famiyeh, S., Adaku, E., Amoako-Gyampah, K., Asante-Darko, D., & Amoatey, C. T. (2018). Environmental management practices, operational competitiveness and environmental performance. Empirical evidence from a developing country. Journal of Manufacturing Technology Management, 29(3), 588-607.
- Fei-Baffoe, B., Botwe-Koomson, G. K., Mensa-Bonsu, I. F., & Appiah Agyapong, E. (2013). Impact of ISO 14001 environmental management system on key environmental performance indicators of selected gold mining companies in Ghana. Journal of waste management, 1(6), 14-24.
- Filho, M., Nunhes, T. V., Barbosa, L. C., Campos, F., & Oliveira, O. (2018). Opportunities and challenges for the use of cleaner production to reduce water consumption in Brazilian sugar-energy plants. Journal of Cleaner Production, 186, 353-363.
- Fuadah, L. L., Kalsum, U., & Arisman, A. (2021). Determinants factor influence environmental management accounting and corporate environmental performance: evidence in Indonesia. Journal of Southwest Jiaotong University, 56(3), 582-602.
- Fuzi, N. M., Abidin, F., Janudin, S., & Ong, S. Y.Y. (2019). Environmental management accounting practices, environmental management system and environmental performance for the Malaysian manufacturing industry. International Journal of Business Excellence, 18(1), 120-136.
- Gay, L. R., Mills, G. E., & Airasian, P. (2009). Educational Research Competencies for Analysis and Applications. Columbus: Pearson.
- Gomez, A., & Rodriguez, M. A. (2011). The effect of ISO 14001 certification on toxic emissions: an analysis of industrial facilities in the north of Spain. Journal of Cleaner Production, 19(9-10), 1091-1095.
- Halis, Muh., & Halis, Min. (2016). Relationship between environmental management systems implementation and environmental performance: findings from Turkish EMS certificated businesses. International Journal of Organisational Leadership, 5(2), 137-150.
- Hamdan, H. (2018). Auditing water management to achieve sustainable development in supply chain. International Journal of Supply Chain Management, 7(5), 697-706.
- Henri, J. F., & Journeault, M. (2010). Eco-control: The influence of management control systems on environmental and economic performance. Accounting, Organizations and Society, 35(1), 63-80.
- International Federation of Accountants (IFAC). (2005). International Guidance Document: Environmental Management Accounting. New York, USA: International Federation of Accountants.
- Ismail, M. S., Ramli, A., & Darus, F. (2014). Environmental management accounting practices and Islamic corporate social responsibility compliance: evidence from ISO 14001 companies. Procedia-Social and Behavioral Sciences, 145, 343-351.
- Klassen, R. D., & McLaughlin, C. P. (1996). The impact of environmental management on firm performance. Management Science, 42(8), 1199-1214.
- Kumar, S., & Bhatia, M. S. (2021). Environmental dynamism, industry 4.0 and performance: Mediating role of organizational and technological factors. Industrial Marketing Management, 95, 54-64.
- Kumar, S., & Dua, P. (2022). Environmental management practices and financial performance: evidence from large listed Indian enterprises. Journal of Environmental Planning and Management, 65(1), 37-61.
- Kumar, S., Teichman, T., & Timpernagel, T. (2012). A green supply chain is a requirement for profitability. International Journal of Production Research, 50(5), 1278-1296.
- Le, T. T., Nguyen, T. M. A., & Phan, T. T. H. (2019). Environmental management accounting and performance efficiency in the Vietnamese construction material industry-A managerial implication for sustainable development. Sustainability, 11(19), 1-32.
- Maama, H., Doorasamy, M., & Rajaram, R. (2021). Cleaner production, environmental and economic sustainability of production firms in South Africa. Journal of Cleaner Production, 298, 126707.
- Mahomed, R., & Jamil, C. Z. M. (2018). Environmental management accounting and environmental performance. Asia Proceedings of Social Sciences, 1(2), 33-36.
- Mbedzi, D. M., van der Poll, M., & van der Poll, J. (2020). Enhancing a decision-making framework to address environmental impacts of the South African coal mining industry. Energies, 13(18), 4897.
- Miklosik, A., & Evans, N. (2021). Environmental sustainability disclosures in annual reports of mining companies listed on the Australian Stock Exchange (ASX). Heliyon, 7(7), e07505.
- Mokhtar, N., Jusoh, R., & Zulkifli, N. (2016). Corporate characteristics and environmental management accounting (EMA) implementation: evidence from Malaysian public listed companies (PLCs). Journal of Cleaner Production, 136, 111-122.
- Montabon, F., Sroufe, R., & Narasimhan, R. (2007). An examination of corporate reporting, environmental management practices and firm performance. Journal of Operations Management, 25(5), 998-1014.
- Mungai, E. M., Ndiritu, W., & Rajwani, T. (2020). Do voluntary environmental management systems improve environmental performance? Evidence from waste management by Kenyan firms. Journal of Cleaner Production, 265, 121636.
- Neeveditah, P., Karishma, A., & Devi, R. N. (2017). Environmental management systems and financial performance: The case of listed companies in Mauritius. Theoretical Economics Letters, 7(7), 2054-2069.
- Nikolaou, I. E., & Matrakoukas, S. I. (2016). A framework to measure eco-efficiency performance of firms through EMAS reports. Sustainable Production and Consumption, 8, 32-44.
- Nisar, A., Haider, S., Ali, F., Jamshed, S., Ryu, K., & Gill, S.S. (2021). Green human resource management practices and environmental performance in Malaysian green hotels: The role of green intellectual capital and pro-environmental behaviour. Journal of Cleaner Production, 311, 127504.
- Ong, J., Noordin, R., & Jaidi, J. (2020). Environmental management accounting in the Malaysian manufacturing sector. Asian Journal of Accounting Perspective, 13(1), 85-103.
- Porter, M. E., & van der Linde, C. (1995). Toward a New Conception of the Environment Competitiveness Relationship. Journal of Economic Perspectives, 9(4), 97-118.
- Pratiwi, Y., Meutia, I., & Syamsurijal, Y. (2020). The effect of environmental management accounting on corporate sustainability. Bus Business Review, 11(1), 43-49.
- Sari, R. N., Pratadina, A., Anugerah, R., Kamaliah, K., & Sanusi, Z.M. (2021). Effect of environmental management accounting practices on organizational performance: role of process innovation as a mediating variable. Business Process Management Journal, 27(4), 1296-1314.
- Silva da Rosa, F., Lunkes, R. J., & Mendes, A. C. (2020). Environmental management accounting and innovation in water and energy reduction. Environmental Monitor Assessment, 192(10), 621-677.
- Simionescu, N. L., Gherghina, S. C., Sheikha, Z., & Tawil, Z. S. (2020). Does water, waste, and energy consumption influence firm performance? Panel data evidence from S & P 500 information technology sector. International Journal of Environmental Research and Public Health, 17(14), 1-29.
- Singh, N., Ma, J., & Yang, J. (2016). Optimizing environmental expenditures for maximizing economic performance. Management Decision, 54(10), 2544-2561.
- Solovida, G. T., & Latan, H. (2017). Linking environmental strategy to environmental performance: Mediation role of environmental management accounting. Sustainability Accounting, Management and Policy Journal, 8(5), 595-619.
- Sroufe, R. (2003). Effects of environmental management systems on environmental management practices and operations. Production and Operations Management, 12(3), 416-431.
- Tung, A., Baird, K., & Schoch, H. (2014). The association between the adoption of an an environmental management system with organisational environmental performance. Australasian Journal of Environmental Management, 21(3), 281-296.
- United Nations (UN). (2001). Environmental management accounting: procedures and principles. New York.
- United Nations (UN). (2017). Eco-efficient cements: Potential economically viable solutions for a low-CO2 cement-based materials industry.
- Voinea, C. L., Hoogenberg, B., Fratostiteanu, C., & Hashmi, H. B. A. (2020). The relation between environmental management systems and environmental and financial performance in emerging economies. Sustainability, 12(13), 5309.
- Wang, S., Wang, H., Wang, J., & Yang, F. (2020). Does environmental information disclosure contribute to improve firm financial performance? An examination of the underlying mechanism. Science of the Total Environment, 714, 136855.
- Xu, Z., Dai, Y., & Liu, W. (2022). Does environmental audit help to improve water quality? Evidence from the China National Environmental Monitoring Centre. Science of the Total Environment, 823, 1-8.