The Impact of Green Accounting on Environmental Performance: Mediating Effects of Energy Efficiency

Abstract

Abstract This study aims to investigate the relationship between green accounting and energy efficiency and environmental performance in the context of Bangladeshi pharmaceutical and chemical companies. The study also explores the mediating role of energy efficiency in the relationship between green accounting and environmental performance. A total of 326 responses were collected using a simple random sampling technique from pharmaceutical and chemical companies in Bangladesh. The study employed Partial Least Squares Structural Equation Modeling (PLS-SEM) to analyze the data. The results indicate that green accounting has a significant positive impact on both energy efficiency and environmental performance. Moreover, energy efficiency partially mediates the relationship between green accounting and environmental performance. The study also found that economic, environmental, and social practices of green accounting have a positive impact on both energy efficiency and environmental performance, with environmental practices having the highest impact. The findings of this study provide important insights for managers and policymakers of pharmaceutical and chemical companies in Bangladesh, highlighting the need for green accounting practices that promote environmental sustainability. The study suggests that the integration of green accounting practices can lead to better energy efficiency and environmental performance, which can enhance the reputation and competitive advantage of these companies. This study identifies the mediating role of energy efficiency in the relationship between green accounting and environmental performance, providing a unique perspective on the mechanism behind the relationship.