Environmental Management Reporting – An Aid to Sustainable Business Practice

Authors

  • Adeoye Ebunoluwa Tokunbo Adeleke University
  • Isinkaye Temitope Peter Obafemi Awolowo University
  • Omilegan Paul Oladunmomi Federal University Oye-Ekiti

Abstract

The economy of the whole world is transitioning into a new period, one in which environmental and social
concerns will play a more important role in all actions carried out by business groups. The purpose of this research is
to investigate the level of environmental management reporting in relation to the achievement of sustainable business
practice, with specific reference to a number of non-financial businesses in Nigeria. In order to choose fifty nonfinancial
companies that are listed on the main board of the Nigerian Stock Exchange, a method called purposeful
sampling was utilized. The selection was based on the availability of the companies' annual reports from 2014 to 2021.
The data that was sourced included both quantitative and qualitative information. The gathered information was
evaluated with the assistance of descriptive statistics like ratio, percentage, and graph. The study found that existing
policies in place to encourage environmental management for existing policies in place to encourage environmental
management for 2014, 2015, 2016, 2017, 2018, 2019, 2020 and 2021 is 9.1%, 10%, 11.9%, 12.1%, 13%, 13.1%, 13.2%
and 13.3% respectively; also 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019 and 2020 is 8.1%, 8.8%, 9.1%, 10.0%,
11.9% and 12.1% respectively; also environmental impact assessment during implementation phase of project for 2014,
2015, 2016, 2017, 2018, 2019, 2020 and 2021 is 1.5%, 1.8%, 2.2%, 2.9%, 3%, 3.1%, 3.3% and 3.4%; company
compliance with environmental laws by relevant authority for 2014, 2015, 2016, 2017, 2018, 2019, 2020 and 2021 is
2%, 2.1%, 2.7%, 3%, 3%, 3.1% and 3.2%; and the aggregate percentage of change in the overall environmental index
for 2014, 2015, 2016, 2017, 2018, 2019, 2020 and 2021 is 20.9%, 23.6%, 28.3%, 31.2%, 32.6%, 33.1%, 33.9% and
34.5% respectively, indicating that the overall extent of environmental management reporting is low (below 50%) in
Nigeria. The study recommended that business should be environmentally responsible and emphasize sustainable
business practice.

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Published

2022-08-12

Issue

Section

Performance and Risks in the European Economy