Asian Journal of Environmental Research
Vol. 2 No. 1 (2025): January-April

Green Accounting and Environmental Performance on Financial Performance: Strategic Insights from the Mining Industry in Indonesia

Aulia, Azwani (Unknown)
Siahaan, Magda (Unknown)
Siregar, Johannes Kristian (Unknown)



Article Info

Publish Date
21 Jan 2025

Abstract

The increasing degradation of the environment and growing demand for sustainability have shifted the paradigm in assessing corporate performance. Sustainability has three dimensions beyond profit, called the triple bottom line. The mining sector has critical strategic significance for economic growth, although entwined with high environmental hazards. Using EViews tool, this study explores green accounting and environmental performance's impact on financial performance of the business. Despite being based on data from financial statements, annual and corporate sustainability reports, the results are of paramount importance and read like this. These studies show that environmental performance has a strong and positive impact on financial performance, confirming the financial relevance of sustainability initiatives. In contrast, green accounting methods have no significant effects on financial results, indicating a disconnect between conventional accounting scopes and viable eco-initiatives. Collectively, these factors have a material impact on corporate performance. The research sectoral focus and sample confines its generalisability. Future studies need to explore intervening or moderating models and incorporate further variables in order to deepen understanding and broaden applicability. Our study adds to the existing literature debates about how environmental sustainability can be reconciled with corporate financial performance.

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Journal Info

Abbrev

ajer

Publisher

Subject

Chemical Engineering, Chemistry & Bioengineering Computer Science & IT Decision Sciences, Operations Research & Management Materials Science & Nanotechnology Medicine & Pharmacology

Description

Asian Journal of Environmental Research (AJER) is an International journal with a frequency of 3 (three) times a year, published by the Science Tech Group. Manuscripts submitted must be original Research Articles and Literature Reviews that aim to contribute to and disseminate sustainable updates. ...