Nanotechnology Adoption, Green Innovation and ESG Performance: The Mediating Role of Environmental Accounting in Sustainable Business

The growing need to reconcile technological advancement with environmental responsibility has increased attention to sustainable business practices in emerging economies such as Bangladesh. This study examines the relationships among nanotechnology adoption, green innovation, environmental accounting, and Environmental, Social, and Governance (ESG) performance, with particular emphasis on the mediating role of environmental accounting. Drawing on a quantitative, cross-sectional research design, data were collected from 300 managerial and professional respondents representing technology-intensive pharmaceutical, chemical, and electronics and electrical manufacturing firms in Bangladesh. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) through SmartPLS 4.0, including measurement model assessment, structural path analysis, and bootstrapped mediation testing. The findings demonstrate that nanotechnology adoption, green innovation, and environmental accounting are positively and significantly associated with ESG performance. Environmental accounting exhibits the strongest direct relationship with ESG performance (? = 0.352, p < 0.001), while nanotechnology adoption (? = 0.280, p < 0.001) and green innovation (? = 0.191, p < 0.001) also show significant positive effects. Importantly, environmental accounting significantly mediates the relationships between nanotechnology adoption and ESG performance (? = 0.188, p < 0.001) and between green innovation and ESG performance (? = 0.201, p < 0.001). The model explains 37.3% of the variance in ESG performance and demonstrates predictive relevance. These findings highlight environmental accounting as a critical organizational mechanism for translating technology and innovation into measurable sustainability outcomes, offering practical implications for Bangladeshi firms seeking to strengthen ESG performance through responsible technological and environmental management.