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Purpose The purpose of this paper is to integrate drivers of economic performance with environmental management aspects and core managerial functions of the Indian coal mining industry. Design/methodology/approach For this research paper, primary and secondary data have been used. The primary data were collected through a questionnaire survey which was distributed in the four subsidiaries of Coal India Limited. The validity and reliability of the questionnaire were tested by appropriate statistical techniques. Further, one-sample t-test and multiple linear regression analysis have been used for data analysis. Findings Testing of hypotheses reveals that there is a high level of integration of environmental management aspects with the seven core managerial functions, namely, production process, distribution process, beneficiation process, quality issues, stakeholders’ interest, health and safety and corporate strategy. Further, the paper identified that there is a positive association between integration of environmental aspects with core functions and the four drivers of economic performance and it is strongly associated with societal-related and risk-related drivers of economic performance. But it is less strongly associated with image-related and efficiency-related drivers of economic performance. Research limitations/implications This paper focuses on integrating the environmental management and core functions with key drivers of economic performance in coal mining industry which is one of the most polluting industries of the world. The limitation of the paper is that it is very specific and limited to the coal mining industry. Originality/value The paper contributes to the existing work by designing a framework which identifies the key drivers of economic performance and integrating it with the environmental management system of the organisation.

This paper provides an insight of the relationship between economic performance and environmental management which is necessary for sustainable development and economic prosperity. The present paper uses factor analysis methodology for identifying the major factors relating to economic performance which also enhances environmental management in mining industry.The survey has been conducted in four subsidiaries of Coal India Limited (CIL) which are Bharat Coking Coal Limited (BCCL), Dhanbad, Central Coalfield Limited (CCL), Ranchi, Coal Mines Planning and Design Institute India Limited (CMPDIL), Dhanbad and Eastern Coalfield Limited (ECL), Asansol. This study identifies four factors, namely risk related driver, image related driver, societal related driver and efficiency related driver of economic performance which should be integrated with corporate strategy of the company for sustainable growth and development.