Environmental Management Accounting and Circular Economy on Organizational Performance

Abstract

This study investigates the impact of Environmental Management Accounting (EMA) and Circular Economy (CE) practices on organizational performance, focusing on financial, operational, and environmental metrics. Employing a quantitative approach, data were analyzed using Structural Equation Modeling (SEM) to quantify the relationships between these sustainability practices and performance outcomes. The findings reveal that both EMA and CE practices significantly enhance financial performance through improved cost management and operational efficiency, while also positively impacting environmental outcomes through waste reduction and resource optimization. The study underscores the synergistic potential of integrating EMA and CE strategies, contributing to a holistic understanding of their benefits for organizations aiming for sustainable growth. These results offer practical implications for managers and policymakers, promoting sustainable business practices as a pathway to both economic and environmental success.