Enhancing Environmental Performance through EMA and Accountability in Pakistan

Abstract

 The paper explores the relationship between Environmental Management Accounting (EMA) and the Environmental Performance (EP) in the manufacturing industry of Pakistan with the dimensions of accountability (answerability, responsibility and transparency) serving as mediators. The analysis of the data was conducted with the help of Partial Least Squares Structural Equation Modeling (PLS-SEM) through Smart PLS 4. The Measurement model proved to be reliable and valid whereas structural model proved important hypothesized relationships. The Findings showed that EMA directly and significantly impacts EP and high strengths of effect on answerability, responsibility, and transparency. Moreover, the dimensions of accountability were identified to improve EP and mediate between the relationship between EMA and EP, which shows that the impact of EMA on the sustainability outcomes is both direct and indirect. These findings concur with the stakeholder and accountability theories, which emphasize that stronger sustainability results are attained when EMA practices are coupled with accountability mechanisms. The study contributes to the limited empirical literature from developing countries by highlighting how accountability amplifies EMA’s role in achieving sustainability. Practical implications recommend that managers and policymakers should not only focus on adopting EMA but also cultivate accountability practices to optimize sustainability performance. This study also addresses limitations and directions for future research.