• Talat Soudagar

This study investigates the impact of environmental accounting on corporate financial performance through a comparative analysis of five BSE-listed companies: Tata Steel, Reliance Industries, Infosys, ITC Limited, and Mahindra & Mahindra, over the period from 2015 to 2024. Environmental accounting, which involves the tracking and reporting of environmental costs and benefits, has become increasingly relevant as companies face growing pressure to adopt sustainable practices. The research aims to determine how environmental expenditures influence key financial performance metrics, including net profit, return on assets (ROA), return on equity (ROE), earnings per share (EPS), and stock prices. Data analysis reveals that for Tata Steel and Infosys, there is a strong positive relationship between environmental expenditure and all financial performance metrics. Tata Steel's results indicate that higher environmental investments lead to significant increases in net profit, ROA, ROE, EPS, and stock prices, suggesting that sustainability efforts enhance overall financial performance. Infosys exhibits a similar trend, with very strong correlations indicating that their robust environmental strategies contribute substantially to financial success. Reliance Industries and ITC Limited show moderate positive impacts, particularly on net profit and EPS, though the effects on ROA and ROE are not statistically significant. This suggests that while environmental accounting benefits these companies, other factors may play a more dominant role in determining their financial outcomes. Mahindra & Mahindra demonstrates a positive impact across all financial metrics, indicating that environmental expenditures enhance financial performance, aligning with the results for Tata Steel and Infosys. However, the degree of impact varies, highlighting the unique dynamics within each company's operations and market environment. Overall, the study underscores the importance of integrating environmental accounting into corporate strategies, showing that sustainable practices can lead to improved financial performance. The findings suggest that companies can achieve a competitive advantage and foster long-term growth by adopting comprehensive environmental accounting measures. This research contributes to the growing body of evidence supporting the financial benefits of sustainability in the corporate sector.

Environmental Accounting, Corporate Financial Performance, Sustainable Practices, Net Profit, Return on Assets (ROA), Return on Equity (ROE), Earnings Per Share (EPS), Stock Prices.

"The Impact of Environmental Accounting on Corporate Financial Performance : A Comparative Analysis", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.11, Issue 8, page no.f149-f166, August-2024, Available :http://www.jetir.org/papers/JETIR2408516.pdf

"The Impact of Environmental Accounting on Corporate Financial Performance : A Comparative Analysis", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.11, Issue 8, page no. ppf149-f166, August-2024, Available at : http://www.jetir.org/papers/JETIR2408516.pdf