Please use this identifier to cite or link to this item: https://hdl.handle.net/10321/4656
Title: The impact of environmental costs on financial performance : an explorative analysis of two plastic companies
Authors: Aliamutu, Kansilembo Freddy 
Bhana, Anrusha 
Suknunan, Sachin 
Keywords: Financial reporting;Financial sustainability;Environmental Costs;Financial performance;Content Analysis
Issue Date: Mar-2023
Publisher: LLC “Consulting Publishing Company “Business Perspectives"
Source: Aliamutu, K.F., Bhana, A. and Suknunan, S. 2023. The impact of environmental costs on financial performance: an explorative analysis of two plastic companies. Environmental Economics, 14(1), 13-23. doi:10.21511/ee.14(1).2023.02
Journal: Environmental Economics ; Volume 14, 2023 
Abstract: 
There is little research on the impact of environmental costs on plastic manufacturing
companies’ financial performance and sustainability. This paper aims to explore
the relationship between environmental costs and financial performance of two large
national plastic manufacturing companies, namely Bowler Metcalf Limited (BML) and
Nampak Ltd, between 2018 and 2019 since research allows for five year old information.
Further, the study used pre-Covid-19 data to conceptualize. It adopted a qualitative
method of inquiry using content analysis to analyze the financial statements and
reports of the two companies (secondary data analysis) available in the public domain.
The interpretative analysis further supported the analysis and interpretation of the two
variables of environmental costs and financial performance. The results showed a positive
relationship between environmental costs and profits in the financial statements
of these two companies during 2018 and 2019. BML had a decrease in plastic penalties
from R 23.171 million in 2018 to R 14.596 million in 2019, which supported a reduction
in spending on legal and constructive obligation items. Nampak also decreased
stakeholders’ equity from R 10,140.3 million in 2018 to R 8,932.33 million in 2019,
which meant that the stakeholders’ equity funds were reduced, possibly due to reduced
spending on environmental costs during that period. It can be concluded and established
that when these two plastic companies spend more on environmental costs, this
positively affects overall financial performance and improves financial sustainability. It
is recommended to allocate more resources/funding to support environmental costs to
increase the profitability of the two plastic manufacturing companies.
URI: https://hdl.handle.net/10321/4656
ISSN: 1998-6041
1998-605X
DOI: http://dx.doi.org/10.21511/ee.14(1).2023.02
Appears in Collections:Research Publications (Accounting and Informatics)

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