Analysis of the Relationship between Environmental Management Accounting and Long-Term Financial Performance

Abstract

In recent decades, the application of Environmental Management Accounting (EMA) has received more and more attention as a sustainable business strategy. EMA not only serves as a tool for measuring and managing environmental costs, but also plays a role in improving operational efficiency and profitability of companies in the long term. This study aims to analyze the relationship between the application of EMA and long-term financial performance, by exploring its impact on cost efficiency, corporate competitiveness, and financial stability. The method used in this study is a literature study with a systematic literature review (SLR) approach to explore, analyze, and compare various scientific findings related to the impact of EMA on the company's financial performance. Data sources are obtained from national and international journals indexed in reputable academic databases, such as Scopus, ScienceDirect, Springer, and Emerald Insight. The analysis was carried out with a thematic approach, where the results of the research were categorized based on key aspects related to profitability, environmental cost management, and company competitiveness. The results show that the implementation of EMA contributes positively to long-term financial performance, especially through improved operational efficiency, reduced environmental risks, and increased attractiveness for institutional investors. However, there are challenges in the implementation of EMA, such as high initial costs, lack of uniform regulatory standards, and internal resistance within the organization. Therefore, a more comprehensive strategy, including regulatory incentives and strengthening sustainability policies, is needed so that the benefits of EMAs can be optimized in the long term.