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Because of the increasing level of industrial contamination the demand for sustainable products and raw materials aligned with the ecological pollution has been on the rise in this horizon. This study theoretically explores the impact of sustainable environmental practices on financial performance of Ready-made Garment (RMG) companies of Bangladesh following the growing literature linking corporate sustainable environmental performance with revenue development and profitability. Various sustainable environmental practices have diverse effects on firm’s performance, as the literature review suggests. From literature review this paper reports four key areas (community, employee, environment and governance) of sustainable practices for sustainable financial performance that would provide a useful and practical perspective on how companies can explore the sustainable agenda. Finally this paper concludes that companies should integrate environmental, social and governance issues to capture value in terms of revenue development and profitability for the companies. We recommend that the theoretical model that we have derived from literature review needs to validated and tested by future research.

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Originally published in the International Journal of Business Quantitative Economics and Applied Management Research, 3(7), 85-94. Licensed under CC BY 4.0. The original material can be found here.