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The purpose of this study is to assess the key determinants of green human resource management (GHRM) and investigate its impact on environmental performance (EP) and business performance (BP).

The research employed SmartPLS 3 and follows a cross-sectional research design. Data from 179 employees were collected using a convenience sampling technique from the firms that adopted GHRM practices.

The research found a significant relationship of GHRM with EP and also reported the significant relationship between EP and BP. Moreover, EP significantly mediates the relationship of GHRM with BP.

A relatively small sample size of employees was used that may suggest the need for a diverse and more representative sample. The paper is based on data collected from the Malaysian manufacturing industry – other economic sectors and Asian countries may offer different results.

The paper identifies the need for incorporating GHRM practices and culture at the workplace to encourage positive green behavior in employees which will increase the EP and BP of the firm.

This paper reported the initial empirical findings after the March 7th incident on EP of businesses in Malaysia, where businesses have initiated the adoption of GHRM practices.