Environmental Accounting and Reporting Practices for Sustainable Wellbeing: Evidence from the Textile Industry of Bangladesh

This study investigates the environmental accounting and reporting practices of the listed textile companies of the Dhaka Stock Exchange (DSE) during 2023-2024 focusing their role in promoting sustainable wellbeing. This study developed a conceptual framework, Environmental Accounting and Reporting Practices Index for the Textile Industry, containing 72 items to evaluate the quality and extent environmental disclosures. Among 58 companies examined, only 18 out reported their environmental practice in the annual reports, indicating a low level of transparency and commitment to environmental accountability. To identify the determinants of the environmental reporting, the study applies the Ordinary Least Square (OLS) model. It finds that the firms’ performance, liquidity, leverage, firm size, CEO duality, profitability and the presence of environmental audits significantly influence the environmental reporting practice. Additionally, the study used Propensity Score Matching (PSM) to assess the financial impact of these practices. Result reveals that the firms engaged in environmental accounting and reporting experienced better financial performance-1.70 time’s higher return on equity and 1.41 times higher return on asset- than non-reporting firms. The findings highlight the need for mandatory environmental reporting regulation and implementation mechanisms to enhance corporate accountability, improve financial outcome and support broader goals of environmental sustainability and long-term well-being.