Nexus of environmental management accounting, and carbon emission management on environmental, social, and governance performance: evidence from symmetrical and asymmetrical approach

Abstract In the face of increasing global pressure for sustainable business practices, the adoption of Environmental Management Accounting (EMA) has emerged as a critical tool for enhancing Environmental Social Governance (ESG) performance. However, there remains a research gap in understanding the...

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Main Authors: Liu Xia, Nazneen Fatema, Md. Mominur Rahman, Arman Hossain
Format: Article
Language:English
Published: Springer Nature 2025-07-01
Series:Humanities & Social Sciences Communications
Online Access:https://doi.org/10.1057/s41599-025-05465-9
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author Liu Xia
Nazneen Fatema
Md. Mominur Rahman
Arman Hossain
author_facet Liu Xia
Nazneen Fatema
Md. Mominur Rahman
Arman Hossain
author_sort Liu Xia
collection DOAJ
description Abstract In the face of increasing global pressure for sustainable business practices, the adoption of Environmental Management Accounting (EMA) has emerged as a critical tool for enhancing Environmental Social Governance (ESG) performance. However, there remains a research gap in understanding the specific impact of EMA practices on ESG outcomes, particularly in the context of Bangladesh’s manufacturing sector. This study aims to fill this gap by examining the direct and moderating effects of EMA practices—namely Eco-Efficiency Improvement (EEI), Environmental Cost Tracking (ECT), Life Cycle Assessment Integration (LCAI), and Environmental Reporting Transparency (ERT)—on ESG performance, as well as the role of Carbon Emission Management (CEM) in influencing these relationships. Using a sample of 238 manufacturing firms, the study employs Partial Least Squares Structural Equation Modeling (PLS-SEM) for measurement and structural modeling, along with fsQCA to assess necessity conditions and perform configurational analysis. The findings reveal that EMA practices significantly impact ESG performance, with direct positive effects from EEI, ECT, LCAI, and ERT. CEM also has a direct positive effect on ESG performance and moderates the relationship between EMA practices and ESG outcomes. Additionally, fsQCA analysis identifies synergistic effects of EMA and CEM, revealing configurations that contribute to high ESG performance. The study highlights the importance of integrating EMA practices into corporate strategies for enhancing ESG outcomes. For policymakers, the results provide valuable insights into designing regulations that encourage firms to adopt and strengthen EMA practices, ultimately promoting sustainable business practices. The study suggests that policymakers should focus on creating frameworks that incentivize the adoption of comprehensive EMA strategies and support the integration of CEM, facilitating the transition to more sustainable and responsible business practices within the manufacturing sector.
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spelling doaj-art-7177fc52845c4491b9bee403a65f9a282025-08-20T04:01:53ZengSpringer NatureHumanities & Social Sciences Communications2662-99922025-07-0112111510.1057/s41599-025-05465-9Nexus of environmental management accounting, and carbon emission management on environmental, social, and governance performance: evidence from symmetrical and asymmetrical approachLiu Xia0Nazneen Fatema1Md. Mominur Rahman2Arman Hossain3Department of Finance, School of Business, Zhengzhou UniversityDepartment of Finance, School of Business, Zhengzhou UniversityBangladesh Institute of Governance and Management (BGM)Faculty of Economics, University of Medical Sciences & TechnologyAbstract In the face of increasing global pressure for sustainable business practices, the adoption of Environmental Management Accounting (EMA) has emerged as a critical tool for enhancing Environmental Social Governance (ESG) performance. However, there remains a research gap in understanding the specific impact of EMA practices on ESG outcomes, particularly in the context of Bangladesh’s manufacturing sector. This study aims to fill this gap by examining the direct and moderating effects of EMA practices—namely Eco-Efficiency Improvement (EEI), Environmental Cost Tracking (ECT), Life Cycle Assessment Integration (LCAI), and Environmental Reporting Transparency (ERT)—on ESG performance, as well as the role of Carbon Emission Management (CEM) in influencing these relationships. Using a sample of 238 manufacturing firms, the study employs Partial Least Squares Structural Equation Modeling (PLS-SEM) for measurement and structural modeling, along with fsQCA to assess necessity conditions and perform configurational analysis. The findings reveal that EMA practices significantly impact ESG performance, with direct positive effects from EEI, ECT, LCAI, and ERT. CEM also has a direct positive effect on ESG performance and moderates the relationship between EMA practices and ESG outcomes. Additionally, fsQCA analysis identifies synergistic effects of EMA and CEM, revealing configurations that contribute to high ESG performance. The study highlights the importance of integrating EMA practices into corporate strategies for enhancing ESG outcomes. For policymakers, the results provide valuable insights into designing regulations that encourage firms to adopt and strengthen EMA practices, ultimately promoting sustainable business practices. The study suggests that policymakers should focus on creating frameworks that incentivize the adoption of comprehensive EMA strategies and support the integration of CEM, facilitating the transition to more sustainable and responsible business practices within the manufacturing sector.https://doi.org/10.1057/s41599-025-05465-9
spellingShingle Liu Xia
Nazneen Fatema
Md. Mominur Rahman
Arman Hossain
Nexus of environmental management accounting, and carbon emission management on environmental, social, and governance performance: evidence from symmetrical and asymmetrical approach
Humanities & Social Sciences Communications
title Nexus of environmental management accounting, and carbon emission management on environmental, social, and governance performance: evidence from symmetrical and asymmetrical approach
title_full Nexus of environmental management accounting, and carbon emission management on environmental, social, and governance performance: evidence from symmetrical and asymmetrical approach
title_fullStr Nexus of environmental management accounting, and carbon emission management on environmental, social, and governance performance: evidence from symmetrical and asymmetrical approach
title_full_unstemmed Nexus of environmental management accounting, and carbon emission management on environmental, social, and governance performance: evidence from symmetrical and asymmetrical approach
title_short Nexus of environmental management accounting, and carbon emission management on environmental, social, and governance performance: evidence from symmetrical and asymmetrical approach
title_sort nexus of environmental management accounting and carbon emission management on environmental social and governance performance evidence from symmetrical and asymmetrical approach
url https://doi.org/10.1057/s41599-025-05465-9
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AT mdmominurrahman nexusofenvironmentalmanagementaccountingandcarbonemissionmanagementonenvironmentalsocialandgovernanceperformanceevidencefromsymmetricalandasymmetricalapproach
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