Green Practices in Business: A Systematic Review in Enhancing Environmental and Economic Sustainability

Sustainability and the implementation of green practices have become vital concerns for modern industries, driven by increasing environmental pressures, rising consumer expectations, and growing regulatory demands [1]. The mounting evidence of climate change impacts, such as rising carbon dioxide levels and increasing frequency of natural disasters, has prompted industries to adopt green practices as a strategy to mitigate their environmental footprint and contribute to sustainable development [2]. The shift toward green practices reflects a broader alignment with frameworks such as the Triple Bottom Line (TBL), which emphasizes economic, social, and environmental performance. This approach has transformed the traditional view of corporate success, advocating for balanced development that supports environmental integrity and social equity alongside economic gains [1]. Industries are increasingly recognizing that these practices not only fulfill social responsibility but also enhance operational efficiencies, reduce costs, and improve resilience in a volatile market. Moreover, consumer demand for environmentally responsible products has surged, creating a competitive incentive for businesses to adopt sustainable practices. Green innovation, which encompasses the development of eco-friendly products and the implementation of sustainable processes, has proven advantageous in meeting these market demands while ensuring regulatory compliance [2]. Consequently, industries that proactively engage in green practices position themselves as leaders in environmental stewardship, meeting the expectations of both consumers and regulatory bodies. In essence, green practices are not only crucial for addressing environmental degradation but also serve as a pathway to long-term business success, making sustainability an integral part of strategic decision-making [3].

Implementing green practices can lead to increased profits, cost savings, and competitive advantages [4]. Green practices enhance corporate performance by fostering sustainable performance and responsible environmental stewardship [5]. Green practices drive corporate innovation, particularly in the chemical manufacturing sector, where eco-friendly practices have been linked to increased innovation [6].

Implementing green practices is vital for sustainability, offering economic, environmental, and social benefits. Overcoming internal and external barriers through strategic frameworks and continuous improvement processes can enhance the adoption and effectiveness of these practices across different sectors.

Green practices enable companies to significantly reduce operational costs. Through green process innovation [7]. Companies can reduce energy and resource consumption during production. In addition, green product innovation can help reduce the use of hazardous materials and improve product efficiency, ultimately lowering production costs and increasing the company's profit margins. These efficiencies are particularly important for companies operating in industries that require intensive use of resources. While the green transition offers opportunities for growth, it also brings new social and economic challenges. These companies need to address these challenges in order to maximize the benefits of green practices [8]. Companies that implement green practices frequently gain a competitive edge, as consumers become more concerned about the environmental impact of the items they purchase [9]. This positive image gives the company an advantage in acquiring more customers who are willing to pay a premium for environmentally friendly products. Companies that employ green practices can help to achieve sustainable development, which benefits both the environment and society. This can help the company's reputation as a socially responsible institution, attracting new customers and investors [8]. Green business practices help to improve a company's financial performance [9]. Companies that use green production procedures can save money on materials and energy, increase production efficiency, and minimize waste. This not only improves profitability, but it also boosts the company's worth in the eyes of stakeholders such as investors and shareholders. Green practices are anticipated to improve the company's financial performance in a sustainable fashion by providing multiple financing options, improving energy efficiency, and increasing investment with an agenda aligned with the principles of Environment, Social, and Governance (ESG) [10].

One of the most significant benefits of green practices is their capacity to reduce greenhouse gas emissions, air pollution, and water use, study [11] demonstrated how green supply chain management can mitigate negative environmental impacts by assuring more resource-efficient and environmentally friendly industrial processes. This involves lowering emissions during the manufacturing process, utilizing recyclable materials, and minimizing hazardous waste. On the other hand, Green practices also encourage companies to manage resources more effectively, which encourage the use of technologies and practices that reduce the excessive use of ecological value to the environment but also bring positivity to the environment by reducing waste and optimally managing resources, companies can demonstrate their commitment to the environment, which in turn improves their environmental performance for the better [12]. Increasingly stringent environmental regulations in many countries encourage companies to adopt green practices to avoid legal sanctions. In many countries, governments provide tax breaks for businesses that invest in green technologies and use environmentally friendly manufacturing techniques [13]. These incentives not only save operating expenses but also improve organizations' global competitiveness. Companies that implement green practice systems typically have a positive reputation, which can boost stakeholders' and society's trust in the organization [14]. Green practices have a favorable impact on compliance with existing standards, and by implementing them intensively, businesses can not only decrease risk but also increase competitiveness and financial performance [15]. Green practices contribute directly to the achievement of the United Nations' SDGs [16]. Stressed the importance of environmental sustainability in the global framework, which includes reducing carbon emissions and maintaining biodiversity.

Green practices in business are increasingly essential due to rising environmental concerns and regulatory pressures [17]. These practices span various aspects of business operations, from human resource management to supply chain management, and offer numerous benefits.

1. Green Human Resource Management (GHRM)
   
   1. Practices: Building green competencies, enhancing motivation, and involving employees in eco-friendly initiatives [17]
   2. Benefits: Improved environmental performance and alignment of employee values with organizational goals [17]
2. Green Supply Chain Management (GSCM)
   
   1. Practices: Integration of green practices across supply chains, including green procurement, production, and logistics [18, 19]
   2. Benefits: Enhanced environmental performance, competitive advantage, and operational efficiency [19, 20]
3. Green Innovation
   
   1. Practices: Adoption of green technologies and innovations in products and processes [21-23]
   2. Benefits: Improved environmental performance, cost savings, and compliance with environmental regulations [21]
4. Sustainable Manufacturing
   
   1. Practices: Cleaner production, resource efficiency, and waste reduction [24]
   2. Benefits: Enhanced corporate sustainability performance and improved industry image [24, 25]
5. Green Logistics
   
   1. Practices: Implementation of eco-friendly logistics practices, such as energy-efficient transportation and waste management [26]
   2. Benefits: Reduced environmental impact and improved sustainability reporting [26]

As countries commit to climate targets under frameworks like the Paris Agreement, measuring and improving the operational efficiency of power plants becomes essential [27]. The implementation of green practices offers various benefits, including environmental advantages such as reduced pollution, waste, and resource consumption [17]. These reductions contribute significantly to preserving natural ecosystems and promoting long-term sustainability. Economic benefits include cost savings, improved efficiency, and competitive advantage [17]. By lowering operational costs and increasing resource efficiency, companies can strengthen their market position and profitability. Additionally, social benefits involve enhanced corporate reputation and increased customer satisfaction [18]. Companies adopting green practices are often perceived positively by consumers, leading to stronger brand loyalty and community trust [19]. Sustainable Energy Development Requires Integrated Technological and Policy Innovations [28].

In the broader sustainability discourse, green practices serve as a critical link between technical performance and environmental responsibility. By incorporating undesirable outputs into performance evaluations, energy producers are encouraged to adopt greener technologies and operational strategies that prioritize emissions reductions. This aligns with global calls for decarbonization and SDGs, particularly SDG 7 (affordable and clean energy) and SDG 13 (climate action) [27].

Adopting green practices in business is crucial for achieving sustainability and gaining a competitive edge. While challenges exist, the benefits of improved environmental performance, cost savings, and enhanced corporate reputation make green practices a valuable investment for businesses.

The research process is made more structured, transparent, and repeatable by combining the PRISMA Protocol, PICOS, and systematic literature review. PRISMA facilitates the open reporting and oversight of the literature selection process, whereas PICOS provides a framework to ensure that the selected studies are relevant to the research question. By combining these two methods, researchers can conduct a more comprehensive and perceptive literature review, ensuring that the conclusions are not only backed by credible studies but also cover a variety of relevant subjects. With this approach, the study might provide a comprehensive understanding of green practices and how they affect the overall sustainability of firms. PRISMA is a guideline designed to improve the transparency and quality of reports in systematic reviews and meta-analyses. With these guidelines, reviews not only ensure that the research process is systematic and replicable but also minimize the risk of bias that may arise from the design of an individual study or industry sponsorship. Therefore, the application of PRISMA in this review contributes to an unbiased and comprehensive synthetic presentation of evidence, ultimately supporting the methodological strength and reliability of the study results [29]. On the other hand, PICOS is a valuable platform for developing research topics [16]. PICOS has five components: population, intervention, comparison, outcome, and research design. Implementing all of these may definitely improve data collection and screening of relevant and high-quality research, boosting the validity and trustworthiness of the results acquired [30].

Table 2 outlines the PICOS framework used in this study to structure the research focus on green practices. It defines the target population, types of interventions, comparison groups, expected outcomes, and the study design to evaluate the long-term impact of sustainability initiatives across industries.

Table 2. PICOS element

To enhance transparency and reproducibility, each component of the PICOS framework was operationalized through defined inclusion and exclusion criteria, as applied during the systematic screening process:

• Population: Studies were included if they focused on companies operating in business sectors such as manufacturing, services, and retail. This reflects the dominant representation found in the eligible literature. Studies centered on public institutions, educational organizations, or individual consumers were excluded. For example, articles discussing green behavior in household energy use or sustainability education in schools were omitted.
• Intervention: Eligible studies explicitly investigated the implementation of green practices, such as green process innovation, green product development, supply chain greening, or sustainable waste management. Studies that addressed corporate social responsibility (CSR) or environmental awareness without a concrete implementation of green practices were excluded.
• Comparison: Preference was given to studies that compared firms adopting green practices with those that did not, or with their own performance before implementation. Studies lacking a clear comparison framework were reviewed case-by-case and excluded if they did not provide meaningful contrast.
• Outcomes: Only studies reporting tangible environmental (e.g., CO₂ reduction, resource efficiency) or economic (e.g., cost savings, profit margin improvement, brand image) outcomes were included. Conceptual papers or those lacking measurable indicators were excluded.
• Study Design: Empirical studies including case studies, cross-sectional surveys, and meta-analyses were retained. Editorials, theoretical frameworks without empirical validation, opinion pieces, and conference abstracts without full methodology were excluded to maintain methodological rigor.

These criteria ensured that the final pool of 58 articles provided a robust and relevant evidence base to examine the intersection of green practices and sustainability performance in business contexts.

Based on the PICOS method described above, the Boolean Keywords String search in Scopus as follows:

("green practices" OR "green business" OR "environmentally friendly practices" OR "sustainable business practices") AND ("environmental sustainability" OR "economic sustainability" OR "environmental impact" OR "carbon reduction" OR "resource efficiency") AND ("business performance" OR "financial performance" OR "corporate sustainability" OR "economic impact") AND ("green supply chain" OR "green innovation" OR "green product" OR "green process")

Furthermore, using the PRISMA protocol in systematic literature review (SLR) which consists of four main steps to select relevant articles. Here is the method described in this article:

1. Identification: The first stage is to search and identify articles through databases. In this case, they used the Scopus database as the main source to find articles relevant to the search terms as listed on the Boolean Keywords String. The initial search netted 3,529 articles. The database search was conducted on September 10, 2024, using the Scopus database. The search was limited to articles published between 2019 and 2024, to capture recent developments and ensure relevance to current sustainability practices.
2. Screening: After identification, the screening stage was performed by removing articles that did not fit the inclusion criteria. The inclusion criteria include several aspects as presented in elimination criteria method.

Based on the PRISMA framework, the inclusion and exclusion criteria were as follows:

• Year of Publication: Only studies published between 2019 and 2024 were considered, to ensure recency and relevance.
• Subject Relevance: Articles had to relate directly to sustainability, green practices in business, or environmental and economic performance. Studies from unrelated fields, such as pure chemistry or unrelated medical research, were excluded.
• Document Type: Only peer-reviewed journal articles, reviews, and full conference papers were included. Editorials, opinion pieces, book chapters, and incomplete abstracts were excluded.
• Publication Stage: Only fully published (final stage) documents were retained.
• Keywords: Articles needed to mention terms such as “green practices,” “sustainability,” “environmental performance,” or “systematic review.”
• Source Type: The study included documents published in journals and conference proceedings indexed in Scopus.
• Language: Only English-language publications were included to ensure accessibility and consistency in analysis.
• Open Access: All open access articles were included for transparency and reproducibility.

As part of the article selection process for the systematic literature review, specific elimination criteria were applied to ensure the relevance and quality of the sources. These criteria include publication year, subject area, document type, publication stage, keywords, source type, language, and open access status. A summary of the applied criteria is presented in Table 3.

Table 3. Elimination criteria method (PRISMA protocol)

3. Eligibility:

• Process: At this stage, the authors checked the eligibility of the remaining articles based on methodology and relevance to the research.
• Evaluation: The authors evaluated the methodology of each article, including population, sample, study design, analysis techniques, and clarity of methods.
• Articles with unclear methodology or lacking strong justification were removed. "Strong justification" was operationalized based on a set of methodological quality indicators. These included: (1) the clarity and appropriateness of research objectives, (2) sufficient description of sample characteristics and sampling method, (3) transparency of data collection procedures, and (4) rigor in data analysis techniques (e.g., use of statistical validation or triangulation). Articles that did not report at least three of these elements clearly were considered methodologically weak and excluded from the final review.

4. Inclusion:

• Process: This is the last stage of the selection process. The remaining articles were further evaluated to ensure their relevance to the overall research objectives.
• Criteria:
  
  • The authors decide whether the article is relevant overall to the research topic and has sufficient integrity.
  • Articles that have ambiguity or vagueness, despite being eligible at the previous stage, may be removed at this stage.

5. Final results: Following this method and Prisma Protocol, 58 articles were chosen for study in the systematic literature review. The next step is to download the 58 articles and synthesis the literature by classifying it into different domains to obtain comprehensive literature results and answer the previously mentioned research questions.

The article selection process follows the PRISMA (Preferred Reporting Items for Systematic Reviews and Meta-Analyses) guidelines to ensure transparency and rigor. Figure 1 presents the PRISMA flow diagram, showing the number of records identified, screened, excluded, and finally included in this systematic review. From an initial 3,529 documents identified through Scopus, a total of 58 relevant studies were included after applying exclusion criteria.

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Figure 1. PRISMA protocol

•  Comprehensive Analysis: This study looks into the benefits of green practices for economic and environmental sustainability in a variety of businesses. This study enables businesses to measure the financial and operational benefits of implementing green practices, such as increased energy efficiency, reduced waste, and a lower carbon footprint.
• Policy recommendations: This paper proposes policy recommendations to make it simpler for businesses in all industries to adopt green practices and technology. More progressive policies and strong government support may help to create a corporate environment that stimulates the adoption of green practices, decreases cost barriers, and improves innovation opportunities for businesses that embrace sustainability.
• Cross-Sector Collaboration Opportunities: Identify potential cross-sector collaborations that can facilitate more effective adoption of green practices. These collaborations will create synergies between the public and private sectors, potentially resulting in environmentally sustainable solutions and maximizing benefits for all parties involved.