Abstract:
The manufacturing sector is generally seen as the greatest polluter, and as a result, there
is a growing concern about environmental problems caused by their manufacturing
processes. In spite of the global call for industries to engage in eco-efficient practices due
to the sector being rated the greatest contributor to environmental pollution,
manufacturing companies continue to emit carbon, consume water, energy, and available
natural resources excessively, causing a serious peril to the globe. Given that
manufacturing industries can benefit financially from eco-efficiency practices, this study
therefore examined the relationship between eco-efficiency and financial performance of
selected JSE listed food and beverage manufacturing companies. The study employed
the multiple linear regression analysis (MLRA) to analyse secondary data from annual
integrated reports and the ordinary least square (OLS) method to analyse quantitative
primary data from CFOs and EOs of the 14 food and beverage manufacturing companies
listed in the Johannesburg Stock Exchange (JSE) in South Africa for 10 years (2012-
2021). MLRA results showed a positive yet insignificant relationship between energy
conservation and financial performance variables and a positive yet insignificant
relationship between water conservation and financial performance variables. In addition,
OLS results showed a positive yet insignificant relationship between waste reduction and
financial performance variables. The study recommends future research on a broader
industrial study. The study further recommends future research on the effect of ecoefficiency variables on other corporate financial and non-financial success indicators. In
addition, future researchers can extend the panel years to a period more than 10 years
to check if the investments in eco-efficiency might significantly affect financial
performance. Lastly, the researcher recommends that the survey be extended to the
executive members and the company managers and that other analysis methods be used
as an extension to the analysis used in this study.
