Environmental Accounting Practices and Perceived Firm Performance: Evidence from Renewable Energy Companies in the Philippines

This study explored the relationship between environmental accounting practices and perceived firm performance among renewable energy companies in the Philippines. Drawing from stakeholder, legitimacy, and institutional theories, it examined whether environmental accounting contributes to both financial and non-financial outcomes in an emerging market context. A quantitative, cross-sectional design was employed using a validated survey administered to accountants, finance managers, and sustainability officers across various renewable energy subsectors such as solar, wind, hydro, geothermal, and biomass. The data were analyzed through descriptive statistics, correlation, and regression techniques to determine the extent of association between environmental accounting and firm performance. Findings revealed that while environmental accounting practices were increasingly recognized, their implementation remained moderate and largely compliance-oriented rather than strategically integrated into performance management systems. The analysis indicated only a marginal association between environmental accounting and perceived performance, suggesting that the transition toward a sustainability-driven accounting culture is still developing. Nevertheless, the growing awareness of environmental reporting reflected a positive institutional shift toward transparency, accountability, and long-term environmental responsibility. The study concluded that stronger regulatory guidance, capacity development, and organizational commitment are essential to enhance the effectiveness of environmental accounting in promoting sustainable growth within the Philippine renewable energy sector.