Corporate environmental management and financial disclosure in Bangladesh

https://doi.org/10.35912/ijfam.v7i1.2771
Published: Jun 18, 2025

Abstract:

Purpose: This study evaluates EMA practices and proposes policies for broader adoption.

Method: In January 2022, Dhaka Stock Exchange (DSE)-listed companies were methodically analyzed. 61 manufacturing companies were selected from 181 after exclusion. Interviews, structured questionnaires, and 2020–2022 corporate annual reports were used to collect data. A multiple regression model calculated and assessed the Corporate Environmental Management Reporting Index (CEMRI), using total assets, sales, stock prices, and board size as independent variables.

Results: Sector-wise analyses showed differences in EMA adoption. In the textile industry, total sales and board size positively influence CEMRI, while stock price negatively but statistically insignificantly affects it. Total assets are positively associated with CEMRI in the pharmaceutical industry; however, other characteristics are negatively connected. CEMRI and financial indicators were slightly correlated in food and associated industries. Sales fell, while stock prices and assets rose in the ceramic industry. EMA reporting was most predictable in the fuel and power sectors, where total assets, revenue, and stock prices affected CEMRI.

Conclusions: This study highlights the uneven adoption of Environmental Management Accounting across manufacturing sectors in Bangladesh and underscores the need for stronger policies, regulatory frameworks, and corporate commitment to promote sustainable business practices.

Limitations: The study is limited to manufacturing enterprises and a specific timeframe (2020–2022), potentially affecting generalizability.

Contribution: The findings guide policymakers and managers to strengthen sustainable corporate accountability in Bangladesh.

Keywords:
1. Bangladesh
2. CEMRI
3. Dhaka Stock Exchange (DSE)
4. Environmental Management Accounting (EMA)
Authors:
Md Al Amin
JSC Atomstroyexport, ROSATOM, Bangladesh
https://orcid.org/0009-0005-8223-2976
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How to Cite
Amin, M. A. (2025). Corporate environmental management and financial disclosure in Bangladesh. International Journal of Financial, Accounting, and Management, 7(1), 61–75. https://doi.org/10.35912/ijfam.v7i1.2771
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Issue & Section
Vol. 7 No. 1 (2025): June
Articles
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References

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    Mayndarto, E. C., & Murwaningsari, E. (2021). The effect of environmental management accounting, environmental strategy on environmental performance and financial performance moderated by managerial commitment. Journal of Industrial Engineering & Management Research, 2(2), 35-38. doi:https://doi.org/10.7777/jiemar.v2i2.126

    Mohd Fuzi, N., Habidin, N. F., Janudin, S. E., & Ong, S. Y. Y. (2019). Critical success factors of environmental management accounting practices: findings from Malaysian manufacturing industry. Measuring business excellence, 23(1), 1-14. doi:https://doi.org/10.1108/MBE-03-2018-0015

    Mondal, M. S. A., Akter, N., Moni, S. J., & Polas, M. R. H. (2023). Financial and non-financial disclosures on sustainable development: The mediating role of environmental accounting disclosure practices. International Journal of Financial, Accounting, and Management, 5(3), 387-406. doi:https://doi.org/10.35912/ijfam.v5i3.1702

    Mondal, M. S. A., Akter, N., & Polas, M. R. H. (2023). Factors influencing the environmental accounting disclosure practices for sustainable development: A systematic literature review. International Journal of Financial, Accounting, and Management, 5(2), 195-213. doi:https://doi.org/10.35912/ijfam.v5i2.1365

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    Orajekwe, J. C., & Ogbodo, O. C. (2023). Firm-specific characteristics and environmental disclosure of energy firms in Sub-Saharan Africa. International Journal of Financial, Accounting, and Management, 5(2), 251-264. doi:https://doi.org/10.35912/ijfam.v5i2.1601

    Rahman, M. M., & Akhter, B. (2021). The impact of investment in human capital on bank performance: evidence from Bangladesh. Future Business Journal, 7(1), 61. doi:https://doi.org/10.1186/s43093-021-00105-5

    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. doi:https://doi.org/10.1108/BPMJ-06-2020-0264

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    Singh, S. K., Chen, J., Del Giudice, M., & El-Kassar, A.-N. (2019). Environmental ethics, environmental performance, and competitive advantage: Role of environmental training. Technological Forecasting and Social Change, 146, 203-211. doi:https://doi.org/10.1016/j.techfore.2019.05.032

    Tukur, S., Shehu, J., Mammadi, A., & Sulaiman, U. A. (2019). An assessment of corporate social responsibility of property developers in Bauchi Metropolis, Nigeria. International Journal of Financial, Accounting, and Management, 1(2), 119-129. doi:https://doi.org/10.35912/ijfam.v1i2.109

    Wu, J., Yang, J., & Zhou, Z. (2020). How does environmental regulation affect environmental performance? A case study of China's regional energy efficiency. Expert Systems, 37(3), e12326. doi:https://doi.org/10.1111/exsy.12326

    Yang Spencer, S., Adams, C., & Yapa, P. W. (2013). The mediating effects of the adoption of an environmental information system on top management's commitment and environmental performance. Sustainability Accounting, Management and Policy Journal, 4(1), 75-102. doi:https://doi.org/10.1108/SAMPJ-10-2011-0030

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  2. Aluonzi, B., Byamukama, E., Marus, E., & Charity, T. (2024). Credit risk management: An imperative for profitability of Centenary Bank Kabale Branch. International Journal of Financial, Accounting, and Management, 6(1), 19-31. doi:https://doi.org/10.35912/ijfam.v6i1.1904
  3. Anthony Jr, B. (2019). Green information system integration for environmental performance in organizations: An extension of belief–action–outcome framework and natural resource-based view theory. Benchmarking: An International Journal, 26(3), 1033-1062. doi:https://doi.org/10.1108/BIJ-05-2018-0142
  4. Baah, C., Opoku-Agyeman, D., Acquah, I. S. K., Agyabeng-Mensah, Y., Afum, E., Faibil, D., & Abdoulaye, F. A. M. (2021). Examining the correlations between stakeholder pressures, green production practices, firm reputation, environmental and financial performance: Evidence from manufacturing SMEs. Sustainable Production and Consumption, 27, 100-114. doi:https://doi.org/10.1016/j.spc.2020.10.015
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  8. Danso, A., Adomako, S., Amankwah?Amoah, J., Owusu?Agyei, S., & Konadu, R. (2019). Environmental sustainability orientation, competitive strategy and financial performance. Business Strategy and the Environment, 28(5), 885-895. doi:https://doi.org/10.1002/bse.2291
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  13. Gunarathne, A. N., Lee, K. H., & Hitigala Kaluarachchilage, P. K. (2021). Institutional pressures, environmental management strategy, and organizational performance: The role of environmental management accounting. Business Strategy and the Environment, 30(2), 825-839. doi:https://doi.org/10.1002/bse.2656
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  17. Jermsittiparsert, K., Somjai, S., & Toopgajank, S. (2020). Factors affecting firm's energy efficiency and environmental performance: the role of environmental management accounting, green innovation and environmental proactivity. International Journal of Energy Economics and Policy, 10(3), 325-331. doi:https://doi.org/10.32479/ijeep.9220
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  21. Kapiyangoda, K., & Gooneratne, T. (2021). Management accounting research in family businesses: a review of the status quo and future agenda. Journal of Accounting & Organizational Change, 17(3), 352-372. doi:https://doi.org/10.1108/JAOC-10-2020-0164
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  23. Latif, B., Mahmood, Z., Tze San, O., Mohd Said, R., & Bakhsh, A. (2020). Coercive, normative and mimetic pressures as drivers of environmental management accounting adoption. Sustainability, 12(11), 4506. doi:https://doi.org/10.3390/su12114506
  24. 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), 5152. doi:https://doi.org/10.3390/su11195152
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  26. Mayndarto, E. C., & Murwaningsari, E. (2021). The effect of environmental management accounting, environmental strategy on environmental performance and financial performance moderated by managerial commitment. Journal of Industrial Engineering & Management Research, 2(2), 35-38. doi:https://doi.org/10.7777/jiemar.v2i2.126
  27. Mohd Fuzi, N., Habidin, N. F., Janudin, S. E., & Ong, S. Y. Y. (2019). Critical success factors of environmental management accounting practices: findings from Malaysian manufacturing industry. Measuring business excellence, 23(1), 1-14. doi:https://doi.org/10.1108/MBE-03-2018-0015
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  30. Niu, J., Chang, C.-P., Yang, X.-Y., & Wang, J.-S. (2017). The long-run relationships between energy efficiency and environmental performance: Global evidence. Energy & Environment, 28(7), 706-724. doi:https://doi.org/10.1177/0958305X17724210
  31. Omran, M. S., Zaid, M. A., & Dwekat, A. (2021). The relationship between integrated reporting and corporate environmental performance: A green trial. Corporate social responsibility and environmental management, 28(1), 427-445. doi:https://doi.org/10.1002/csr.2059
  32. Orajekwe, J. C., & Ogbodo, O. C. (2023). Firm-specific characteristics and environmental disclosure of energy firms in Sub-Saharan Africa. International Journal of Financial, Accounting, and Management, 5(2), 251-264. doi:https://doi.org/10.35912/ijfam.v5i2.1601
  33. Rahman, M. M., & Akhter, B. (2021). The impact of investment in human capital on bank performance: evidence from Bangladesh. Future Business Journal, 7(1), 61. doi:https://doi.org/10.1186/s43093-021-00105-5
  34. 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. doi:https://doi.org/10.1108/BPMJ-06-2020-0264
  35. Scarpellini, S., Marín-Vinuesa, L. M., Aranda-Usón, A., & Portillo-Tarragona, P. (2020). Dynamic capabilities and environmental accounting for the circular economy in businesses. Sustainability Accounting, Management and Policy Journal, 11(7), 1129-1158. doi:https://doi.org/10.1108/SAMPJ-04-2019-0150
  36. Schaltegger, S., & Burritt, R. (2017). Contemporary environmental accounting: issues, concepts and practice: Routledge.
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  38. Shil, N. C., & Iqbal, M. (2005). Environmental disclosure–a Bangladesh perspective.
  39. Singh, S. K., Chen, J., Del Giudice, M., & El-Kassar, A.-N. (2019). Environmental ethics, environmental performance, and competitive advantage: Role of environmental training. Technological Forecasting and Social Change, 146, 203-211. doi:https://doi.org/10.1016/j.techfore.2019.05.032
  40. Tukur, S., Shehu, J., Mammadi, A., & Sulaiman, U. A. (2019). An assessment of corporate social responsibility of property developers in Bauchi Metropolis, Nigeria. International Journal of Financial, Accounting, and Management, 1(2), 119-129. doi:https://doi.org/10.35912/ijfam.v1i2.109
  41. Wu, J., Yang, J., & Zhou, Z. (2020). How does environmental regulation affect environmental performance? A case study of China's regional energy efficiency. Expert Systems, 37(3), e12326. doi:https://doi.org/10.1111/exsy.12326
  42. Yang Spencer, S., Adams, C., & Yapa, P. W. (2013). The mediating effects of the adoption of an environmental information system on top management's commitment and environmental performance. Sustainability Accounting, Management and Policy Journal, 4(1), 75-102. doi:https://doi.org/10.1108/SAMPJ-10-2011-0030
  43. Zeng, F., Lee, S. H. N., & Lo, C. K. Y. (2020). The role of information systems in the sustainable development of enterprises: A systematic literature network analysis. Sustainability, 12(8), 3337. doi:https://doi.org/10.3390/su12083337