From measurement to impact: How resource efficiency accounting strengthens corporate environmental performance and social responsibility

Abstract

Purpose

This study examines how five resource efficiency accounting (REA) tools—Material Flow Analysis (MFA), Life Cycle Assessment (LCA), Product-level Resource Accounting (PRA), Carbon Accounting (CA), and Natural Capital Accounting (NCA)—affect Corporate Environmental Performance (CEP) and Corporate Social Responsibility (CSR) in a developing economy. It fills a research gap by analyzing both direct effects and the mediating role of CEP, instead of studying each tool separately.

Methodology

Survey data were collected from manufacturing firms listed on Vietnam’s stock exchange. Structural Equation Modeling (SEM) was applied to test the relationships among REA tools, CEP, and CSR. Data quality was verified through screening, validity checks, and factor analysis before modeling.

Findings

PRA, MFA, and NCA are strongly linked to better environmental performance. PRA and CA also have a direct positive impact on CSR. CEP acts as a channel that transfers environmental practices into social outcomes. LCA shows the opposite effect or in some situations specific conditions must be met, depending on how results are used and communicated. Firms that adopt multiple REA tools in an integrated way achieve stronger and more consistent sustainability gains than those using a single tool.

Practical implications

The study shows the importance of a comprehensive resource efficiency strategy that combines different tools. For managers and policymakers in emerging markets, this highlights the need for training and policy support to promote integrated adoption.

Originality

This is one of the first empirical studies in an emerging economy to model the joint impact of several REA tools on CEP and CSR. It also provides new evidence on the role of CEP as a bridge between operational efficiency and social responsibility.