TEL  Vol.7 No.7 , December 2017
Environmental Management Systems and Financial Performance: The Case of Listed Companies in Mauritius

The objective of this paper is to examine the relationship between environmental management practices adopted by listed firms on the Stock exchange of Mauritius and their impact, if any, on their financial performance. A content analysis of annual reports of the listed companies over the period 2011 to 2014 to determine the level of environmental management systems (EMS) is implemented by the local firms. For the purpose of this research, the environmental management practices were classified into 6 categories namely pollution control, waste reduction, recycling, cutting use of energy, cutting paper consumption and carbon footprint reduction based on extant literature. The study reveals that there is an insignificant relationship between environmental management practices and financial performance except for cutting use of energy which generated a significant relationship. The results are in line with studies by [1] who found that companies tend to be more environmentally conscious due to compliance rather than a voluntary basis or to reap corporate benefits. In addition, [2] states that since the reduction of waste water, air emission and other pollution cannot be detected and measured, it is difficult to assess the relationship between these two variables.

Cite this paper
Neeveditah, P. , Karishma, A. and Nitoosheeka Devi, R. (2017) Environmental Management Systems and Financial Performance: The Case of Listed Companies in Mauritius. Theoretical Economics Letters, 7, 2054-2069. doi: 10.4236/tel.2017.77139.
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