Corporate Environmental Management Accounting Practicing and Reporting in Bangladesh

TL;DR

This study assesses the implementation of Environmental Management Accounting (EMA) in Bangladeshi industries, revealing generally poor compliance levels and analyzing factors influencing EMA practices.

Contribution

It develops a compliance framework for EMA and evaluates environmental reporting practices in selected industries in Bangladesh.

Findings

EMA compliance ranges from 20% to 67% among industries.

Board size does not significantly influence EMA practices.

Environmental management accounting is generally at a poor level in surveyed companies.

Abstract

In the management of environment the Environmental Management Accounting (EMA) is essential for corporate or companies because corporate sectors are the main parties of environmental humiliation as they are existed in the environment and for protecting environment a branch of accounting is emerged which is called environmental management accounting. The objective of the study is to develop a compliance framework for EMA and appraise the ER practices in selected industries in Bangladesh. In conducting the study, 50 environmental sensitive industries were selected from DSE. A compliance checklist was developed on 75 aspects of EMA and ER under 13 groups. In developing the compliance index binary method is used i.e. 1= if ER practices; 0= if not practices. Further the level of EMR/ER practices have been evaluated in terms of selected independent variables of the company viz. total assets, total sales, return on equity and size of board. The study found that the environmental management accounting in the manufacturing companies is in poor level. The maximum compliance is 67% and the lowest is 20%. The TA, TS BS and SP have been considered to find out the explanatory variables. In most of the cases board size does not play significant role in the practice of EMA in the sampled firms.