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Relationship of Environmental Disclosure of Renewable Energy, Carbon Emissions, Waste Management, Water Consumption, and Banks’ Financial Performance

Author

Listed:
  • Yinka Lydia Emmanuel

    (Department of Accounting and Finance, Bowen, University, Nigeria,)

  • Mishelle Doorasamy

    (School of Accounting, Economics and Finance, University of KwaZulu- Natal, Durban, South Africa,)

  • Jerry D. Kwarbai

    (Department of Accounting, Babcock University, Nigeria.)

  • Adegbola Olubukola Otekunrin

    (Department of Accounting and Finance, Bowen, University, Nigeria,)

  • Uche Abamba OSAKEDE

    (Department of Accounting and Finance, Bowen, University, Nigeria,)

Abstract

In recent years, sustainable banking principles have been employed in the daily operations of deposit money banks in Nigeria. This study examines the relationship between environmental sustainability and the financial performance of 14 deposit money banks listed on the Nigerian Exchange Group. It focuses on the impact of environmental disclosure of renewable energy, carbon emissions, waste management, and water consumption (i.e. proxies for environment sustainability) on the bank’s return on assets (ROA i.e. proxy for financial performance). The research spans an 8-year period from 2013 to 2021, using panel data and multiple regression analysis to analyze the data. The data is collected from the annual reports of the deposit money banks listed on the Nigerian Exchange Group. The research design is ex-post facto, utilizing secondary data collection methods. The findings suggest that there is a positive but insignificant association between environmental sustainability indicators (renewable energy, carbon emissions, waste management, and water consumption) and financial performance (ROA). In conclusion, the study finds no significant relationship between and financial performance (ROA).

Suggested Citation

  • Yinka Lydia Emmanuel & Mishelle Doorasamy & Jerry D. Kwarbai & Adegbola Olubukola Otekunrin & Uche Abamba OSAKEDE, 2024. "Relationship of Environmental Disclosure of Renewable Energy, Carbon Emissions, Waste Management, Water Consumption, and Banks’ Financial Performance," International Journal of Energy Economics and Policy, Econjournals, vol. 14(2), pages 584-593, March.
    • Handle: RePEc:eco:journ2:2024-02-58
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    References listed on IDEAS

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    More about this item

    Keywords

    Carbon Emission Disclosure; Financial Performance; Sustainable Banking;
    All these keywords.

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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