Innovative Financial Planning Tools and Environmental Sustainability of Manufacturing Firms in Nigeria

Abstract

The study examined the effect of innovative financial planning on environmental sustainability of manufacturing firms in Nigeria. The study employed the ex-post facto research design with a population of 53 firms comprising listed manufacturing firms on the Nigerian Exchange Group (NGX) as at 31^st Dec. 2024. OLS regression was used to validate the hypotheses. The model was fine-tuned and improved using Generalized Least Square (GLS) regression technique with robust panel. The study found that there is a significant positive effect of ICT & technology risk disclosure on carbon emission disclosure of manufacturing firms in Nigeria (coef = 0.961; p < 0.0);there is a positive but insignificant effect of research and development (R&D) on carbon emission disclosure of manufacturing firms in Nigeria (coef = 0.005; p > 0.673); Software use or development disclosure has a positive but insignificant effect on carbon emission disclosure of manufacturing firms in Nigeria (coef = 0.263; p > 0.319). The study recommended amongst others that manufacturing firms should be encouraged to adopt and disclose ICT and technology risk management systems, as these have been shown to significantly enhance both carbon emission disclosure. Industry associations and regulators can support this through capacity-building programs and incentives for digital adoption.