PurposeBased on self-determination theory, the paper investigates the link between environmentally specific transformational leadership (ETFL) and subjective well-being (SWB) of employees working in an energy intensive industry. The paper also aims to examine pro-environmental behavior (PEB) as a mediator mechanism between ETFL and SWB relationship.Design/methodology/approachAn empirical research design was used for the analysis. In total, 293 respondents working in different energy intensive Indian companies filled the questionnaire for the study. The data were analyzed using structural equation modeling SMART-PLS 3 software which is a graphical user interface for variance-based structural equation modeling using the partial least squares path modeling method. Two stages of analysis were conducted: the measurement model and the structural model.FindingsThe results indicate that (1) ETFL has a significant positive impact on PEB. (2) PEB is positively correlated to SWB. (3) ETFL has a significant impact on SWB. (4) The underlying mechanism process of ETFL and SWB relationship is explained by mediation of PEB.Practical implicationsOverall, the study insinuates that PEB act as underlying mechanism in environmental leadership and SWB of employees. The study further suggests that the management should promote green leaders for enhancing the overall SWB of the managements' employees especially in energy intensive sector. Doing so helps the managers to enhance managers' environmental conscious behavior for inducing SWB of employees.Originality/valueThe study contributes to novel findings in existing literature particularly to determine ETFL and PEB as predictors of SWB especially in energy intensive sector. The study also leads the ways for organizations by promoting green conscious leaders, which stimulates PEB among employees that ultimately contributes to SWB of employees. Furthermore, the research methodology can be used in other studies for variation of contextual variables such as size of the industry, developed or underdeveloped country and manufacturing or service industry.

Purpose Although decades of research on transformational leadership have resulted in a firm understanding of its consequences, the impact of environmental-conscious transformational leader on positive employee outcomes and underlying mechanism in environmental leadership–outcome relationship is not well examined. This study aims to examine a moderated mediation model of effects of environmental consciousness (EC) on the mediating role of perceived corporate social responsibility (PCSR) in transformational leadership (ETFL) and pro-environmental behavior (PEB) relationship in energy-intensive industries. Design/methodology/approach In total, 320 self- reported questionnaires were collected from employees working in different Indian organizations across different sectors. All measures used in this survey were adopted from well-established scales. To minimize the effects of common method variance arising, the survey questionnaires were administered to the participants in two stages (with a gap of 14 days), with antecedents separated from outcomes. Partial least squares (PLS) structural equation modeling and SPSS-process macro were applied for testing the hypothesized model. Findings The results revealed that ETFL positively correlated with PEB. The hypothesized moderated mediation condition was supported as the results suggest that PCSR mediated the ETFL–PEB relationship, and EC moderated this mediating pathway; i.e. indirect effects of ETFL on employee PEB via PCSR were stronger for employees with high EC. Practical implications In particular, this research provides implications for training and development of leaders. The study indicates the importance of environmental-conscious leaders in enhancing perceived PCSR and PEB of employees. Likewise, the finding found that PCSR mediates the ETFL and PEB relationship. Moreover, the indirect effect of ETFL on PEB through PCSR moderated by EC highlights the importance of managing and ensuring effective leader–employee relationship that facilitates ecofriendly initiatives. Originality/value The study is based on the data collected from energy-intensive industries. Thus, it provides insights into the role and importance of green leadership and green behavior in energy industries. It is one of the few studies in the energy-intensive industry in India that help the researcher to delve into future research on the same.