Environmental Accounting Disclosures and Non-financial performance: Evidence from Nigeria

The growing emphasis on sustainability reporting has prompted renewed search into how environmental accounting disclosures influence organisational outcomes beyond financial performance. In this context, this study investigates the effect of environmental accounting disclosures on non-financial performance, focusing on employee performance among environmentally high impact firms listed on the Nigerian Exchange Group. Drawing on the dynamic capability theory and signaling theory, the study conceptualizes environmental disclosure as both an internal adaptive capability and an external signal of corporate accountability. The study use panel data from 35 firms across four sectors (oil and gas, consumer goods, industrial goods, and natural resources) covering the period of 2012-2023, using regression analysis to evaluate the relationship between environmental disclosure variables and employee performance. The findings reveal that environmental accounting disclosures exert positive but statistically insignificant effects on employee performance, suggesting limited mainstreaming of sustainability practices within corporate structures. The results imply that environmental disclosures in Nigeria remain largely compliance driven rather than strategic tools for enhancing human capital outcomes. The study recommends inclusion of environmental metrics into employee development programs and policy frameworks to strengthen sustainability reporting and organizational performance.