Exploring The Impact of Environmental Accounting onCorporate Financial Performance: An Indian Power Sector Perspective

Environmental accounting is an important component of environmental, social, and ‎governance reporting since it encompasses the systematic tracking of expenses associated ‎with protecting natural resources. It offers both quantitative and qualitative insights that aid ‎organizations in making informed decisions regarding environmental management. This study ‎explores the connection between environmental cost and key financial parameters, namely ‎return on assets, return on equity, and return on capital employed, which are considered as ‎dependent factors, whereas environmental cost is treated as the independent factor for this ‎study. The sample size is selected from the top ten Indian power sector companies listed on ‎the BSE from 2019-20 to 2023-24 in terms of market capitalization. Data are analyzed by ‎using panel regression in SPSS version 26. The results indicate that environmental costs have ‎an insignificant impact on firm performance. Based on these findings, it is recommended that ‎companies develop effective strategies for managing environmental expenditures, which ‎could help enhance their public image and support long-term sustainability‎.