Do Green Practices Drive Firm Value In The Energy And Mining Sector

Abstract

The focus of this work is on the relationships between strategic environmental practices and firm value. It draws on stakeholder theory, legitimacy theory and the new prominence of sustainable corporate governance. It looks at how environmental performance, EMS and carbon emissions disclosure can be used to measure sustainability value and explain market valuation. Multiple regression analysis is employed to quantitatively test the hypothesized relationships. The results show that environmental performance does not contribute to firm value, although it has following domestic regulatory systems. Thus, it is not driven solely by outperformance in environmental outcomes. However, the existence of global EMS standards, such as ISO 14001, and the growing practice of carbon disclosure appear to positively affect market prices and investor perceptions. These results highlight the increasing global demand for measurable and accountable sustainability commitments. The study's pioneering nature lies in its juxtaposition of regulatory based with voluntary ESG initiatives from an international perspective, emphasize the strategy of international alignment to augment corporate valuation. This could have significant ramifications for corporations looking to gain sustainable and long-term economic and reputational benefits from their activities. The results also provide compelling evidence for policymakers and regulators to align national reporting frameworks with the emerging global ESG architecture. This will create a more robust, transparent, and investment-friendly business climate. Ultimately, this research promotes a sustainable economic model through cross sectoral environmental integration.