Evaluating the Economic and Environmental Impact of Enterprise Risk Management (ERM) in Green Supply Chains

As modern industrial networks adapt to global decarbonization mandates and stricter ecological oversight, commercial enterprises encounter severe operational, financial, and regulatory exposures. Enterprise Risk Management (ERM) has emerged as an essential strategic governance structure; however, its operational alignment with Green Supply Chain Management (GSCM) remains under-explored in empirical literature. This paper provides a quantitative evaluation examining how ERM adoption influences economic indicators alongside environmental metrics across global supply chain networks. Drawing upon longitudinal panel data collected from 185 international manufacturing and logistics corporations over a five-year period (2015–2020), we estimate fixed-effects econometric regression models. The empirical findings demonstrate that embedding structured ERM practices within green supply chains generates a statistically significant reduction in operational disruption losses (p < 0.01) while driving a 14.2% improvement in overall eco-efficiency performance. Organizations maintaining mature risk governance display greater resilience against regulatory transitions and material cost volatility. This study confirms that risk management acts as a strategic capability enabler, reconciling ecological compliance costs with corporate financial performance. We conclude with practical frameworks for executive leadership and policy considerations for regulatory institutions.