Recent Papers

AbstractThis paper aims to indicate the impact of the implementation of environmentally sustainable project management practices on the four main financial profitability ratios, namely Gross Margin (GM), Net income Margin (NIM), Operating Margin (OM), and Return on Invested Capital (ROIC) in Toyota Motor Corporation. The effect of the application of environmentally sustainable project management practices application on the core financial profitability ratios of Toyota Motor Corporation was examined. For the sake of the study, Financial Profitability Ratios (FPR) data: GM, OM, NIM, and ROIC, were obtained from Bloomberg and they were subjected to analysis using descriptive statistics with an Excel software package (version 2021). Results revealed that the average of Financial Profitability Ratios (FPR) in the post-sustainability period was higher (39.83%), while this average in the pre-sustainability period was lesser (26.65%), which demonstrates the company witnessed a significant improvement in the profitability ratios, hence the implementation of environmentally sustainable project management practices into its operating activities was determined. This significant rise (49.5%) shows that the key financial metrics of the corporation have been positively affected by the integration of environmentally sustainable project management practices during the post-sustainability period compared to the pre-sustainability period. In conclusion, the overall analysis across all the financial ratios consistently indicated a positive impact of sustainability practices on the company's profitability ratios that represent the financial performance of the corporation. The analysis suggests that the adoption of environmental sustainability initiatives has led to enhanced financial results, providing evidence of the benefits of sustainable business practices. However, for a better understanding and analysis of the relationship between environmentally sustainable project management practices and financial performance in general further investigation and consideration of other influencing factors are vital and advised.IntroductionSustainable project management is a practice of planning, monitoring and controlling of project in the organisational context, which considers the environmental, economic and social aspects of the life-cycle of the project and aims to generate benefits and values for stakeholders through transparent, ethical, and equitable manner (Silvius & Schipper, 2014). The implementation of sustainable project management practices on the operation system can minimise negative impacts of environmental, social, and economic aspects and as well as maximising positive results including improved organisations reputation, cost reduction, enhanced brand value, social responsibility, managing risk effectively, and environmental preservation (Gareis et al., 2013). Sustainable project management plays a key role in enhancing project success and has a significant impact on both sustainable project success and planning (Yu, Zhu and Yang, 2021). The global drive towards sustainability practices has influenced all aspects of society including the economy and in recent years, many businesses have committed to adopting sustainable project management practices in their operations (Gareis et al., 2013). Given the stakeholder demands towards resolving global environmental and social issues, organisations have been motivated to adopt sustainability project management initiatives into their business operations to show their commitments and address the current issues (Silvius and van den Brink, 2014). Implementation of sustainability principles into project management practices not only affects the environmental and social well-being but also plays a significant role in the financial health of organisations (Tharp, 2012). To justify investment in sustainability practices and initiatives, there is a need to demonstrate the positive impact of environmentally sustainable project management on financial performance which allows investors, stakeholders and organisations to obtain a comprehensive and deep insight. In addition, understanding the relationship between environmentally sustainable project management and financial performance is crucial to managing the risk effectively, and also for better decision-making in an organisation context. Since profitability ratios are the financial indicators that assess a company's financial health and performance, examining the connection between environmentally sustainable project management practices and profitability ratios can provide valuable insights into how organisations can enhance their financial performance by improving financial ratios by adopting sustainability practices (Kusuma & Koesrindartoto, 2014).

Copyright © 2025 Narjes Vahedi. This is an open access article distributed under the Creative Commons Attribution License.