Evaluating the compliance of environmental management systems: evidence from Moroccan banks

Purpose – Thepurposeofthestudyistoevaluatethecomplianceofenvironmentalriskmanagementsystems implemented by Moroccan banks with ISO 14001 certification or environmental charters. Design/methodology/approach – Data were collected through the distribution of an environmental risk managementquestionnairetoallMoroccanbanks ’ branches,businesscentersandvariouscentralentities.The study uses regression analysis to model the relationship between environmental management system (EMS) complianceandenvironmentalmanagementexplanatoryvariablestoidentifythemostrelevantindicatorsthatcanexplaintheeffectivenessandreliabilityofanEMS. Findings – Empirical evidence reveals that the evaluation of EMS compliance in Moroccan banks should consider two categories of variables: the first category is related to the culture of environmental risk management, and the second one is related to environmental management practices. Originality/value – The results show that the “ information ” variables play a key role in the overall design of an EMS and represent essential variables in the general definition of the environmental policy and in raising awareness and providing information on the bank ’ s commitment to a pro-environmental approach. The “ application ” variables confirm that environmental management practices need to be put in place to managethedifferentenvironmentalrisks.Thestudyraisessomemanagerialimplicationsandfurtherresearch directions.


Introduction
The last few decades have seen increasing scholarly attention paid to ecological concerns, brought to the forefront by civil society, major international organizations, governments, banks and companies in developed and developing countries alike.Even in Morocco, environmental concerns have increasingly become a strategic concern for many companies in all industries.The issue of their environmental and social responsibility has manifested itself through the implementation of sustainable development strategies, and particularly environmental risk management systems.The number of Moroccan companies that declare themselves to be socially responsible is growing, and those that are ISO 14001 certified number 41.Even though the interest of companies in the environmental management system (EMS) of the ISO 14001 type continues to grow, the implications of the implementation of this management system in Moroccan companies remain little explored.In this light, the question that arises is whether this is just a fad or a real social and economic awareness of the environmental issue.
From a research point of view, it is interesting to note that only a few studies have been conducted to understand how the requirements of ISO 14001 can be applied in reality (Boiral and Sala, 1998;Boiral, Guillaumie, Saizarbitoria, & Tene, 2018).However, although environmental risk management is undergoing a real revolution thanks to the requirements of sustainable development, the instruments for evaluating its effectiveness and making it an operational concept are still lacking (Louisot, 2005) and the findings are inconclusive (Boiral et al., 2018;Erauskin-Tolosa, Zubeltzu-Jaka, Heras-Saizarbitoria, & Boiral, 2019).From a practical point of view, the implementation of an environmental risk management system that meets the objectives of sustainable development is part of the overall management of the company and should enable the latter to know and control the environmental impact of its activities and, consequently, to ensure the continuous improvement of the performance obtained (Barthelemy, 2004).Companies may, therefore, decide to set-up an environmental management system, called an EMS, if they aim to increase their overall environmental performance (Musacchi, 2021).An EMS is represented by a set of processes and practices that allow the company to reduce its environmental impact and increase its operational efficiency (ISO 14001, 2015;Palamariu and Tulbure, 2021).According to Riedinger and Th evenot (2008), the EMS refers to the organization of all human, technical or financial resources aimed at the knowledge and control of the company's direct and indirect environmental impact.In the context of this paper, we assume that an EMS enables the company to facilitate compliance with regulations and even generate certain savings in terms of raw materials, waste management, etc. (Riedinger & Th evenot, 2008).However, the diffusion of the ISO 14001 standard in Morocco is still slow.In their analysis of the city of Marrakech's ISO 14001 certification, Daddi, Frey, Iraldo, and Nabil (2011) emphasized the factors that influence EMS adoption as well as its benefits and drawbacks.The authors conclude that ISO 14001 certification can increase the population's relevant sensitivity to a variety of environmental challenges.That being said, the first certification to the ISO 14001 environmental standard was only in 1999 in Morocco.Nowadays, there are 79 ISO 14001 certifications, mainly from large groups or subsidiaries of large international polluting groups or local processing companies (Mdehheb, Elkihel, Bouamama, Hammouti, & Delaunois, 2020).In brief, Morocco is still far behind developed countries and even similar countries in terms of the number of certified sites (ISO survey), so public support remains very modest.We found that some Moroccan banks are ISO 14001 certified, while others claim to be environmentally friendly without being certified.They consider that they have formalized internal procedures to apply environmentally friendly standards.This is commonly known as the "environmental charter." Correspondingly, the study addresses the following question: do banks that implement an EMS actually comply with the applicable standards?In other words, do these banks actually consider all potential impacts of their activities?Whatever the reasons that led Moroccan banks to integrate the environment into their strategies, and whatever the strategy adopted, it would be interesting to know whether the EMSs of Moroccan banks are effective.
The overarching purpose of this study is to assess the compliance of environmental risk management systems implemented by Moroccan banks with ISO 14001 certification or environmental charters by modeling the relationship between EMS compliance and environmental management explanatory variables.The purpose is to not only conduct a compliance audit but also specify the most relevant indicators that can explain the reliability and effectiveness of an EMS.To the best of our knowledge, no previous empirical studies have addressed this question in the Moroccan context.

AGJSR
The study sample covers the Moroccan banking sector.The data were collected through the administration of a questionnaire addressed to all branches, business centers and various central entities of some Moroccan banks (BMCE BANK, BMCI, Soci et e G en erale, Attijariwafa BANK, Banque Centrale Populaire and Cr edit Agricole).The choice of the banking sector is mainly justified for the following reasons.First, the banking sector's increasing recognition of its environmental and social responsibility is largely due to external pressures.Second, by combining internal management actions with the adoption of best practices such as the Equator Principles, banks have turned their sustainability strategy into a business tool and a source of performance.These banks see that they have much to gain by setting clear, understandable and reasonable standards, which are the best possible demonstration of the business case for sustainability.In the context of the banks' internal management, this translates into the implementation of an environmental and social management system.
Following the studies by Elkington and Hailes (1989), we consider that an EMS must include several variables of action.Thus, the questions are generally divided into two main categories: namely "application" and "information."The "information" variables reflect the culture of environmental risk management.The "application" variables highlight the combined practices of environmental management.
The main empirical findings show that EMS compliance in Moroccan banks depends on these two categories of variables.The "information" variables play an essential role in the overall design of an EMS, but the "application" variables should be put in place to manage the different environmental risks.
The remainder of the study is laid out as follows.The second section gives an overview of the relevant literature related to the adoption of EMSs and derives our hypotheses.The third section describes the methodology of research used in the field work and sample of Moroccan banks with EMSs.Our results overview leads into the discussion section, where we summarize and discuss the main findings.Finally, the study concludes with a summary of the main discussion, which shows the limitations of our research and sets up some further research paths.
The integration of environmental concerns has led to the emergence of a new management approach: environmental management.In this area, environmental management appears as a management tool that helps companies controlling and reducing the environmental impacts of their organizations (Gendron, 2004;Garc ıa Alcaraz et al., 2022).According to Allix-Desfautaux and Makany (2015), environmental management is considered as a management system that consists of evaluating and integrating the environmental impact of the company's actions and activities.

Evidence from
Moroccan banks 2019; Erauskin-Tolosa et al., 2019).They differ in their scope and approach to environmental management but are mostly based on the ISO 14001 and Eco-Management and Audit Scheme (EMAS) standards.Both standards are voluntary and aim primarily at improving environmental performance of organizations (Daddi, Todaro, Marrucci, & Iraldo, 2022;Marrucci & Daddi, 2022;Testa et al., 2014;Kolln and Prakash, 2002).In fact, since the adoption of the ISO 14001 standard by the International Organization for Standardization (ISO) in 1996, there has been a growing interest in environmental management.Since the 2000s, the significant improvement in the environmental performance of companies has been a major challenge (Gendron, 2004;Iraldo, Testa, & Frey, 2009;Testa et al., 2014).

Environmental management system standards
At the managerial level, the integration of the environmental dimension is mainly reflected by the implementation of an EMS (Desmazes & Lafontaine, 2007;Phan & Baird, 2015;Feng & Wang, 2016;Salim et al., 2018;Cosmina, Hoogenberg, Fratostiteanu, & Azam Hashmi, 2020).Admittedly, the main objective of EMSs is to help companies manage their environmental impacts, improve their environmental performance (Daddi, Iraldo, Testa, & De Giacomo, 2019;Marrucci, Daddi, & Iraldo, 2019;Testa, Heras-Saizarbitoria, Daddi, Boiral, & Iraldo, 2016) and contribute, in their own way, to the protection of the environment and natural resources.Desmazes and Lafontaine (2007, p. 2) define the EMS as "a component of the overall management system whose objective is to implement, evaluate and improve the environmental policy."However, the primary purpose of this instrument, based on voluntary action, is distorted by the functioning of the economic system, seeking to transform the constraint that the environment represents into a strategic opportunity for companies.
Comparison between ISO 14001 and EMAS.There are two main EMSs currently recognized: ISO 14001 and the European Eco-Audit Regulation (EMAS).These two EMSs are the most widely used strategies for dealing with environmental issues (Daddi et al., 2022;Marrucci & Daddi, 2022).Indeed, organizations that adhere to environmental management can apply for certification under one of these two EMSs: EMAS or ISO 14001 (Musacchi, 2021).According to the European Commission, the EMAS regulation explicitly recognizes the ISO 14001 standard as a benchmark for the implementation of its EMS.More specifically, the Eco-Audit Regulation predates ISO 14001, and the latter is largely inspired by it, even if the two standards remain specific and distinct.The standards are similar in their requirements but differ in their application.ISO 14001 is internationally recognized, but EMAS is disseminated in the European Union (Iraldo et al., 2009;Testa et al., 2014;Erauskin-Tolosa et al., 2019).The two standards have gradually moved apart, but the systems remain competitive.However, there are some differences between the two schemes: EMAS focuses on providing transparency to stakeholders by requiring member organizations to publish an environmental statement once a year, which is later validated by an accredited verifier.The Table 1 shows a comparison between the two standards: ISO 14001 and EMAS.
In general, ISO 14001 certification is widely preferred to the "Eco-Audit" regulation, including in European countries.The spread of the standard has been rapid, and ISO 14001 certification is now an obligatory step for large companies in various sectors, as it demonstrates their managerial skills as well as their economic stability.A survey by the ISO found that the number of EMS (ISO 14001) certificates issued worldwide increased from 307,059 in 2018 to 348,473 in 2021, a 12% rate of increase due mainly to a significant increase in the number of EMS (ISO 14001) certificates in China (ISO, 2020).
The EMS process.ISO 14001 provides a structured framework based on the traditional management principles: policy definition, planning, implementation, operation, control and corrective action, management system review and continual improvement (Sanderson, 2016).The following Figure 1 gives an overview of the main elements of ISO 14001: AGJSR According to ISO 14001, the main task of an EMS is to implement an organization's environmental strategy and improve its environmental performance through a specific systematic framework such as measuring targets and regular review on the attainment (Salim et al., 2018).In this process of implementing an EMS, senior management plays an essential role.The text of the ISO 14001 standard insists, on several occasions, on the key role of the management.Several tasks are assigned to it such as defining the environmental policy, ensuring the availability of essential resources, providing information on the results of audits, etc.The responsibilities assigned to it are important, and its degree of involvement determines the success or otherwise of the approach.Nonetheless, it is noteworthy to underline that the implementation of an EMS does not guarantee that the company is Evidence from Moroccan banks complying with minimum legal environmental requirements or that it is continually enhancing its environmental performance (Berry & Rondinelli, 2000;Cosmina et al., 2020).

EMS compliance: a multi-dimensional concept
Research on EMS compliance is essential for improving environmental performance.In this field, Riedinger and Th evenot (2008) have identified eight empirical studies that have evaluated the effectiveness of EMSs.However, research studies that have been conducted on the matter have taken two directions.Some researchers, notably Dasgupta, Hettige, and Wheeler (2000), and Dahlstr€ om, Howes, Leinster, and Skea (2003), have verified the compliance of EMSs with environmental regulations, whether the company is certified.
Attesting to the compliance with environmental regulations of 173 Mexican establishments, Dasgupta et al. (2000) verified the significant effect of adopting the procedures required for the ISO 14001 standard.Based on the studies by Dasgupta et al. (2000) and Dahlstr€ om et al. (2003), the following EMS action variables can be identified: (1) Initial assessment of key environmental and social issues, impacts and risks (2) Global environmental and social policies that define the bank's approach (3) Annual action plans (4) Motivation of the organization and its staff (5) Environmental and social procedures and standards (6) Provision of documentation, including for audit purposes (7) External reporting, verification and consultation (8) EMS monitoring and corrective actions; management review and improvement, with feedback to annual action plans, etc.
Stevens, Batty, Longhurst, and Drew (2012) have carried out a categorization of organizations in order to better understand the factors that influence the implementation of EMS.This categorization will help to identify the specific motivations and barriers associated with EMS for the organizations concerned and enable more effective implementation and management of EMS resources.

Impact of EMS effectiveness on environmental performance
Empirical studies dealing with the effectiveness of EMS most often conclude that environmental management has a beneficial influence.Thus, Anton, Deltas, and Khanna (2004) considered that the adoption of an EMS leads to an improvement in environmental performance, in that it allows a reduction in polluting and toxic discharges (Anton et al., 2004).
Their study applied to 167 American companies in 1994 and 1995 highlights the role of environmental research and development as a determining factor.The study by Russo and Harrison (2005) on 169 American establishments in the electronics sector in 2000 leads to the same result, even for EMSs not certified ISO 14001.Another consequence of the adoption of an EMS was studied by Johnstone, Glachant, Serravalle, Riedinger, and Scapecchi (2007) in 4000 establishments in 7 OECD countries.Effective EMSs have a significant effect on waste emissions and air and water discharges (Johnstone et al., 2007).This conclusion was rejected by Barla in 2007 who found no significant impact of ISO 14001 on biological oxygen demand (Johnstone et al., 2007).The sample observed by Barla is composed of 37 Quebec paper mills, which is smaller than that of Johnstone et al. (2007).Nevertheless, the result remains interesting insofar as he found that the observed companies make an effort to obtain AGJSR certification but then relax them.Riedinger and Th evenot (2008) suggest that certified establishments reduce not only their environmental impacts (carbon dioxide emissions) but also their production costs (energy consumption).Relatedly, Daddi, Magistrelli, Frey, and Iraldo (2011) conducted a survey of 64 Italian companies belonging to 6 different industrial sectors that had obtained EMAS registration.Using data reported by the registered companies in their EMAS environmental statements, such as water consumption, waste generation and energy consumption, the authors showed that EMAS leads to a real improvement in environmental performance, even in the short term.Similarly, the study by Garc ıa Alcaraz et al. (2022) shows that investments in EMSs ensure a reduction in energy consumption and lead to significant improvements in environmental cost savings.
Recent studies have attempted to examine the impact results of the two main standards, namely ISO 14001 (Boiral et al., 2018;Sartor et al., 2019) and EMAS (Heras-Saizarbitoria et al., 2014;Tourais and Videira, 2016).More precisely, some researchers have found a positive relationship between ISO 14001 adoption and environmental performance (Boiral et al., 2018;Sartor et al., 2019;Fagioli, Paolotti, & Boggia, 2022).In the same vein, other researchers have found the same result for the case of EMAS (Heras-Saizarbitoria et al., 2014;Tourais and Videira, 2016).Nevertheless, while many empirical studies have demonstrated how the adoption of an international standard guarantees improved environmental performance for the company and increased transparency toward stakeholders (Fagioli et al., 2022), other studies have revealed an unclear relationship and have come up with contradictory results (Testa et al., 2014;Boiral et al., 2018;Erauskin-Tolosa et al., 2019).While some studies have examined the effect of adopting an EMS based on certifiable standards, including the European EMAS and ISO 14001 standards, on environmental performance, others have examined the impact of public incentives on the adoption of these environmental management tools.Testa et al. (2016) show that incentives and regulatory measures can influence the adoption of certified EMSs by reducing the administrative burden on organizations and enhancing their environmental commitment.The study by Tessitore, Testa, Iraldo, and Daddi (2019) attempted to assess the degree of EMS implementation in 242 EMAS-registered European companies.The authors found that companies may obtain EMAS only to meet institutional or consumer expectations, but they do not have the resources or skills to implement it.
Other researchers have focused on the factors that drive companies to adopt environmental strategies.Based on the results of a survey of 242 European EMASregistered organizations, Daddi, Testa, Frey, and Iraldo (2016) highlighted that normative and mimetic pressures have a more favorable impact than coercive ones.Marrucci et al. (2019) highlight the role of EMS and eco-design in increasing the circularity of organizations, which has become an effective pathway to sustainable development.
Other research has sought to assess the influence of EMS commitment on the internalization of EMS within an organization and how this internalization leads to improved organizational performance and stakeholder appreciation (Daddi et al., 2022).In the same vein, some empirical studies have focused on the role of capabilities in EMS internalization (Daddi, Heras-Saizarbitoria, Marrucci, Rizzi, & Testa, 2021;Marrucci, Daddi, & Iraldo, 2022;Marcucci et al., 2021).Marrcucci, Daddi, and Iraldo (2022) show that the development of absorptive capacity significantly facilitates the internalization of an EMS, the improvement of the environmental performance of organizations and the implementation of a circular economy.Daddi et al. (2021) conducted a survey of over 400 European EMASregistered companies and showed the positive influence of green supply chain management capacity on performance through the mediating role of internalization of the EMS.In turn, Marrucci, Daddi, and Iraldo (2022) show that dynamic capabilities contribute to the internalization of the EMS, which improves overall organizational performance and the adoption of the circular economy.Furthermore, while dynamic capabilities directly influence

Evidence from
Moroccan banks the circular economy and environmental performance of an organization, the internalization of EMAS is crucial for improving economic performance and environmental reputation.
Other empirical studies have highlighted the role of environmental managers satisfaction in EMS internalization and environmental performance achievement.Using data from a survey of 438 EMAS-registered organizations, Daddi et al. (2022) showed that manager satisfaction positively influences environmental reputation and competitiveness, regardless of the mediating role of internalization.Nonetheless, while many researchers point to the positive effects of EMS implementation on environmental performance, other researchers have found no correlation between the environmental and economic performance of organizations.In fact, Marrucci and Daddi (2022) found that about 60% of organizations do not fully comply with the requirements of the standards related to environmental claims, which calls into question the positive impact of the implementation of EMS on environmental performance.

EMS in Moroccan banks
In Morocco, the banking sector is one of the most active sectors in the country in terms of the diversity of its offer and its role in financing businesses and creating jobs.In recent years, several Moroccan banks have displayed their commitment to environmental protection (Mrhari and Dinar, 2019;Mdehheb et al., 2020) and social responsibility (Rouggani and Bouayad, 2014;Reynaud and Walas, 2015;Mrhari and Dinar, 2019;Tani & Bari, 2021).Despite the interest in environmental issues, there are still very few empirical studies on the banking sector or financial systems compared to the number of studies on EMS in companies.For a long time, it was thought that banking activity had no direct impact on the environment.Like the industrial sector, the banking sector has been forced to pay increasing attention to the impact of its activities on society and the environment.The lack of EMS studies on Moroccan banks provides the motivation for this research.
Like all companies concerned about environmental issues, Moroccan banks are increasingly integrating EMS into their management systems, either by applying the ISO 14001 standard or by putting in place procedures and charters of good environmental conduct largely inspired by the standard.So far, only one Moroccan bank has adhered to the Equator Principles on social and environmental risk assessment in project finance and is ISO 14001 certified for the environment.The other banks have a charter of good conduct.
However, taking environmental issues into account implies taking into account a specific approach in the way it grants loans, invests funds, finances associations such as microcredit or advises its clients (Tani & Bari, 2021).In a nutshell, the Moroccan banker's interest in environmental issues is primarily motivated by his apprehension over taking on the credit risk of funding a project that might have a negative impact on the environment.But beyond the economic damage, a loss of reputation of the client and therefore by transfer to the banker can occur following an environmental crisis.It may even happen that civil society or the public authorities turn to the banker, in the absence of other identifiable actors in the project set-up, to assume the environmental consequences.The second concern of the Moroccan banker that interests us in the context of this work is that of ensuring the growth of the bank's activities in a socially and environmentally responsible manner, while satisfying the legitimate interests of its various stakeholders.This is the societal involvement of the bank, under which Moroccan banks seek to ensure their responsibilities and design EMS as the roadmap that will guide them in their evolution toward sustainable development to be among the major financial institutions in terms of environmental compliance.In what follows, we present the methodology used, highlighting the research area and data, methods of data analysis employed and the main empirical findings.

Methodology research Scope and aim of the study
The methodology of the study provides the background to the ISO survey and describes the research methods used in the research.Some previous studies on the effectiveness of EMS adoption have measured environmental performance using self-reported data collected by questionnaire (Comoglio & Bolta, 2012;Testa et al., 2014).Others studies have used both qualitative and quantitative methods while complying with environmental regulations (Turki et al., 2015).The methodology in this research consists of evaluating the compliance and effectiveness of environmental risk management systems implemented by Moroccan banks that are ISO 14001 certified or have environmental charters.The data were collected through the administration of a questionnaire addressed to all branches, business centers and various central entities of some Moroccan banks (BMCE BANK, BMCI, Soci et e G en erale, Attijariwafa BANK, Banque Centrale Populaire and Cr edit Agricole) (see Table A1).To assess the compliance of the EMS with the applicable standards, we use a regression method to model the relationship between EMS compliance and the explanatory variables of environmental management.The dependent variable in our model is the conformity of the EMS noted C-SME (EMS compliance).The explanatory variables of environmental management retained in the various studies on EMS compliance are derived from the ISO 14001 standard's procedures.We have classified these variables into two categories: information variables and application variables.The information variables are essential in the general definition of the environmental policy and in raising awareness and providing information on the bank's commitment to a proenvironmental approach.The "application" variables reflect the means and procedures put in place to manage the various environmental risks within the banks.The variables are presented in Table 2: We initially assumed that all variables were relevant to explain EMS compliance.The proposed model is as follows:

Evidence from Moroccan banks
Three measurement scales were introduced to measure the information variables: "Never heard of," "Informed but insufficient understanding" and "Well understood at the bank branch level."Four measurement scales were introduced to measure the application variables: "Never heard of," "No application," "Insufficient application" and "Systematic application."

Data collection and sampling
Our sample covers the Moroccan banking sector.The banks involved in the study are BMCE BANK, BMCI, Soci et e G en erale, Attijariwafa BANK, Banque Centrale Populaire and Cr edit Agricole.For the sake of confidentiality, the names of the banks will be represented by a coding from "A" to "F."The data collection was done through the administration of 400 questionnaires to all branches, business centers and various central entities of the banks in question.The objective is to determine the degree of understanding, deployment and application of the EMS in the banking network.The questionnaire is composed of 18 axes, which represent the variables to be modeled later.Each axis contains a set of questions that tend toward the same endpoint.The questions are generally divided into two main categories, namely "application" and "information."Information reflects the culture of environmental risk management.Application highlights the combined practices for environmental management.
The number of responses received is 230, which represents a response rate of 57.5%.The responses by bank are distributed as follows.Figure A1 presents the distribution of the responses received.Thirty percent of the responses came from Bank A's network, which reflects the degree of its willingness to share its environmental culture with the public, being the only ISO 14001 certified bank.The other banks with an environmental charter responded as follows: Bank B (18%), Bank C (15%), Bank D and E (13%), and Bank F (10%).
The measurement of compliance levels (see Figure A1) shows that only 7.4% of the observed population achieved 100% compliance and about 44% achieved 76% compliance.
These initial results suggest two hypotheses: H1. Lack of information and awareness among bank staff about the importance of environmental policy impacts negatively the degree of compliance of an EMS.
H2. Lack of application of environmental risk management practices impacts negatively the degree of compliance of an EMS.

Results
In order to evaluate the effectiveness of the environmental risk management systems set-up by Moroccan banks that are ISO 14001 certified or have environmental charters, we test the correlation between EMS compliance and the explanatory variables (Table 3).The variation of the correlation coefficient between C_SME and the explanatory variables (Figure A2) shows a variation between 0.6 and 0.8.These coefficients are positive and most of them tend toward 1 with a probability of significance of 0.000.This explains the existence of a positive linear relationship between the variable to be explained (C_SME) and the explanatory variables (Im_Ev, P_Ev, OPM, OF, GAPE, Bat_Cht, At_SME, PS, NC_ACP, GRE_Ev, GD, R_SME, SU, CEEP, DPCh, Achat, CCS, T_CO 2 ).Thus, the EMS is well explained by the variables considered.It remains to determine the explanatory power of each variable as well as its weight in the model that we will estimate later.
The result is that the variables are almost uncorrelated with a probability of significance >5%, in most cases >0.05.The variables with a probability of <0.05 are correlated, resulting in the appearance of a relationship between them, but this is weakly significant (Table 3).3.

Evidence from Moroccan banks
Variables with a probability of <0.05 are correlated, resulting in the appearance of a relationship between them, but the latter is weakly significant (Table 3).The Kolmogorov-Smirnov test (Table 4) shows that the significance level is 0.035 (<0.05), which does not allow us to keep the null hypothesis.The normal Q-Q diagram of C_SME (Figure 2) is not far from this hypothesis, where we notice a distribution close to a normal distribution because the points are rather well aligned.
The interest of the illustrated test remains important in the choice of the model.The distribution of the variable to be explained follows a normal distribution, which allows us to consider that the most adequate model in our case is that of multiple linear regression.
The R 2 or coefficient of determination, which measures the goodness of fit of the estimates of the regression equation, gives us an overall idea of the fit of the model.It is interpreted as the proportion of the variance of the variable Y explained by the regression.It varies between 0 and 1 and is often expressed as a percentage.The R 2 obtained, according to Table 5, shows the contribution of all the estimated variables to the explanation of the variable to be explained.The coefficient obtained is close to 1, which means that the variation of the independent variable is well explained by the explanatory variables.The higher the value of R 2 , the smaller the value of the unexplained variation.Eighty-one percent of C_SME is explained by the explanatory variables constituting the estimated model, while the remaining 19% is unexplained random noise.
In our modeling case, we are based on the top-down method.It is worth noting that all methods proposed (input, bottom-up and top-down) have the same performance.We have eliminated the following two variables: P_Ev and Im_Ev.
The results of the estimation of the coefficients obtained (Table 6) show that all the variables introduced are not significant at the 5% level.The final model will only keep the variables that have an explanatory force (significance >5%) of the variable to be explained.This regression method, used for the estimation of the parameters, allowed us to eliminate in each step the least significant variable without affecting the reliability and relevance of the model.The assumptions of the significance test retained are as follows: H 0 : βi 5 0. We can remove variable X from the model without deteriorating its explanatory power.
H 1 : βi≠0.We must keep variable X since it is significant and therefore explanatory.
In our case, the validation is done based on the calculated "t" statistic and the "t" theoretical.Thus, the decision rule is the following: We reject Ho if "t" calculated > "t" theoretical and we accept Ho or the case where "t" calculated < "t" theoretical.The test performed gives the following results (Table 6): Table 7 shows a Fisher's test value of 58.76 with a significance level <0.05, which leads us to consider that all the coefficients are generally significant and that each variable has its weight in terms of explaining the variability of C_SME.In summary, the model is globally significant with an error term of 5%.

Evidence from Moroccan banks
Table 8 reflects the estimation of the collinearities of the residuals.The aim of this test is to find an upper tolerance of 0.3 and a Variance Inflation Factor (VIF) value <3.3 or tending toward 1.We notice that all the observed values of VIF are <3.3 except for a few; nevertheless, the tolerances are >0.3.Based on this reading of the data, we see that there is probably no collinearity between the residuals.The correlation between the predictor variables is too low.This result reinforces the reliability of the model and its explanatory variables.By examining the histogram of the distribution of residual values (Figure 3), we see that the premise of normality of the distribution of errors is respected at a certain level, with the presence of a pronounced peak as well as values far from the curve.It would, therefore, be wise to remove these extreme values from the analysis or to eliminate their effects.
Based on the foregoing findings, the model is globally significant at the minimum five percent level.Then, we can legally use it to build our indicator.We also eliminated non-significant variables from our estimates for our entire sample in order to obtain a reduced model that is relatively robust for our estimates.The results are in line with our expectations and remain consistent with previous research on the topic (Dasgupta et al., 2000;Dahlstr€ om et al., 2003).

Discussion
According to all the tests we have performed, we conclude that our model is significant, and that the seventh model is the one that explains in a relevant way the variability of the explanatory variable (C_SME).The equation of the model is as follows: The results of the model show the contribution of each variable in explaining the compliance of the EMS.The weight of each variable reflects its importance in the definition of an EMS, and therefore, management should take this weight into consideration as a guiding factor in strengthening the EMS.Based on the results of the model, the variables Objectives and Management Program (OPM), Functional Organization (OF), Audits (AT_ SME), Monitoring Plan (PS), Non-Compliance-Corrective and Preventive Action (NC_SME), Waste and Chemicals (DPCh), Skills, Communication and Awareness (CCS) and Transport and CO 2 ( T_CO 2 ) represent an explanatory force.For the banking sector, an EMS model

Evidence from
Moroccan banks that defines the set of relevant variables, either "information" or "application," that the bank needs to strengthen by improving its environmental policy.Moreover, it seems that the variables in the "application" category are present since there are 8 of them compared to 4 in the "information" category.The "information" variables, which represent the essential variables in the general definition of the environmental policy and in raising awareness and providing information on the bank's commitment to a pro-environmental approach, are the following: OPM, Functional Organization (FO), (AT_SME), Monitoring Plan (SP) and (NC_ SME.We can also point out that in the category of information variables, the OPM variable related to the objectives and management program presents a weight of 4.517, which means that the higher the score of the variable, the more the EMS simultaneously achieves an increase in advanced compliance.These findings are quite consistent with the study by Iraldo et al. (2009), which points out that EMS adoption is most effective when all the elements of an EMS are integrated into the management dynamics of the company.The empirical findings are also consistent with the study by Testa et al. (2014), which points out that the top management must take into account that the internal commitment at all levels of the organizational hierarchy is crucial for an effective EMS.
Henceforth, Moroccan banks need to define clear objectives and management programs in order to reduce the risk of environmental impacts occurring.Corrective and preventive actions can also have an impact on the environment.Based on the above developments, we can deduce some managerial implications.Financial institutions should take corrective and adequate measures and measure the effectiveness of the action plans conducted by the responsible entity and the audit team hired to accomplish this mission.
The "application" variables that reflect the means and procedures put in place to manage the various environmental risks in the Moroccan banks are mainly: Waste and Chemicals (HPCD), CCS and T_CO 2 .It should be mentioned that in the category of enforcement variables, CCS and T_CO 2 , represent the variables with strong explanatory power.The application variable CCS presents a weight of 3.1374, which means that when the score of the variable increases, the EMS obtains at the same time an increase in advanced compliance.In other words, the increase/decrease of the CCS variable by one point generates an increase/decrease of 3.1374 units, with an effect that will be positive or negative on the compliance of the EMS.This result can be interpreted by the fact that the Moroccan banks must establish processes for communication to improve their compliance.Communication concerns individuals having a responsibility under the action plan and may extend to groups or organizations that have been identified as having a key role in the bank's ongoing EMS program.As well, skills or training processes help banks ensuring that all responsible parties are familiar with the ongoing EMS and have the skills required to execute their roles.The overarching aim of EMS communication and training is to raise EMS awareness among the bank staff.For the variable "T_CO 2 ", the increase/decrease of one point in the variable T_CO 2 generates an increase/decrease of 4,102 units with an effect that will be positive or negative on the conformity of the EMS.T_CO 2 is a second most significant variable in the model.It concerns the preservation of the environment through procedures that reduce CO 2 emissions.For these reasons, compliance is extremely sensitive to changes in any of these variables.Concerning the T_CO 2 variable, it is recognized by international standards that banks should be allocated a portion of the CO2 emissions of the investment projects or financing they support.Moroccan banks, therefore, have a social and environmental responsibility and a crucial role to play in reducing environmental impacts, as their financing and investments contribute to greenhouse gas emissions.Moroccan banks must become aware of the environmental impact of their logistics activities and implement concrete solutions to reduce their transport CO2 emissions and limit the consequences.These empirical findings are quite consistent with statements in the literature (Johnstone et al., 2007;Riedinger & Th evenot, 2008) that the introduction of AGJSR ISO 14001 reduces the environmental impacts (CO2 emissions) and their production costs (energy consumption).These results are also in line with the previous study by Garc ıa Alcaraz et al. (2022), which found that EMS investments ensure a reduction in energy consumption and waste management costs.
In sum, it should be noted that only Bank A is ISO 14001 certified, the other Moroccan banks only use environmental charters.The study attempted to determine the main factors that explain the compliance of existing practices with regulations to prevent and control negative environmental impacts.The empirical findings provide some answers to the questions raised above as to whether Moroccan banks implementing an EMS really comply with the applicable standards and what are the explanatory factors of the compliance of Moroccan banks' EMS with the regulations.Overall, the empirical findings confirm our two hypotheses that the degree of compliance of an EMS depends on the dissemination of information and awareness-raising efforts of the bank's staff, as well as on the application of environmental risk management practices.On these grounds, it can be deduced that the compliance of an EMS in Moroccan banks depends on two categories of variables.First, EMS compliance is linked to a set of "information" variables that play a particularly important role in the overall design of an EMS.Second, EMS compliance is linked to another set of applications put in place to manage the various probable environmental risks.On the basis of the foregoing results, the most relevant information variables that explain the EMS compliance in Moroccan banks are awareness of the environmental objectives and management program (action plans), awareness of the functional organization (the management representative responsible for the EMS), the bank's activities covered by the EMS, environmental performance improvement groups (EPIG) and the environmental audit system (internal audits and certification audits performed).
Among the most relevant application variables that explain the EMS compliance in Moroccan banks, we first mention the Monitoring Plan (consumption of electricity, water and paper, evaluation of waste management services, waste disposal control measures, environmental incident reporting, and preventive maintenance and repairs take into account environmental and energy aspects in the acceptance process).Second, the nonconformity and corrective and preventive action (by reporting incidents to the relevant central entities, taking corrective and preventive actions following the reporting of incidents), the provision of an emergency facility at the agency and the training of staff in emergency situations.Other equally important variables relating to consumption include water, electricity, paper, compliance with the waste management procedure, the environmental approach of the entity in charge of purchasing, as well as competence, communication and awareness, and implementation of solutions in order to reduce their transport CO 2 emissions.

Conclusion, limitations and further research directions
Nowadays, environmental risk management is as necessary as risk management in both banks and companies.However, environmental issues in banking and transactions have been given little attention so far in the literature.Admittedly, it is clear that environmental risk management is a key element of strategic management in the field of financial institutions, a perspective that must become a complete reality and not a make-up to embellish the brand image.The main purpose of this study was to evaluate the EMS effectiveness of Moroccan banks that are ISO 14001-certified or have environmental charters.To specify the most relevant indicators that can explain the effectiveness of the EMS, the empirical study used a regression method to model the relationship between EMS compliance and a set of explanatory variables related to environmental management.The study defined two categories of variables: "information" variables related to the overall design of an EMS and Evidence from Moroccan banks "application" variables related to environmental risk management.Overall, the study intends to contribute to the design of a framework for the sustainability of banking activities through the implementation of an EMS in terms of environmental management.Empirical findings in this study reveal interesting insights.The study shows that the compliance of an EMS is based on the establishment and implementation of an EMS whose variables are well defined in accordance with the standards in force dictated by the dedicated authorities.The first category of variables shows that Moroccan banks need to define clear objectives and management programs and, above all, take corrective and preventive actions to reduce the risk of environmental impacts.The second category shows that Moroccan banks not only need to establish communication and training processes to raise awareness and improve compliance among bank staff but also, and above all, to implement concrete solutions to reduce their transport CO 2 emissions and limit the consequences.In short, Moroccan banks must promote the environment and foster responsibility toward society to be involved in sustainable activities.Herein, ISO-certified banks could set an example for other banks not yet certified.This study has some limitations that can be considered in further empirical studies.The main limitation is the lack of information on the environmental improvements achieved by Moroccan banks.In the present study, we focused on assessing the compliance of EMSs in Moroccan banks.Although this study considered variables related to environmental management, future studies should investigate the degree of change due to EMS adoption.The magnitude of the stakes requires the entire financial sector to mobilize in order to significantly contribute to the improvement of environmental management.This approach must not only preserve natural resources but also evolve toward the limitation and prevention of nuisances and pollution.Furthermore, with the emergence of new environmental and social regulations and standards, further empirical research could investigate the effect of EMS internalization on the environmental performance of Moroccan banks based on managerial and operational indicators.It would be of great interest to conduct an empirical study on how the implementation of an EMS affects financial performance in Moroccan banks.

N
Source(s): Authors' calculationsTable Figure A1.Measurement of compliance levels

Table 1 .
Comparison between ISO 14001 and EMAS Specified frequency and methodology of internal audits No derogations foreseen Derogations for Small and medium-sized enterprises (SMEs) Certification according to ISO-standards An accredited or licensed environmental verifier validates the environmental statement and verifies the implementation of the management system No official register Publicly accessible register records each organisation with an individual registration number No logo Uniform EMAS logo Source(s): https://www.emas.de

Table 5 .
Result of the model fit test

Table 7 .
Significance test of the estimates AGJSR

Table 8 .
Residual correlation test