The increasing global attention on sustainable finance has underscored the need for innovative approaches to address environmental risks in the banking sector. This study examines peace accounting as a predictor of environmental risk management in Nigerian banks, using a quantitative research design with secondary data drawn from the annual reports and sustainability disclosures of selected Nigerian commercial banks between 2018 and 2023. The data were analyzed using regression analysis to establish the relationship between peace accounting indicators (social responsibility spending, green financing, and environmental reporting practices) and environmental risk management outcomes. The findings reveal that peace accounting significantly predicts environmental risk management in Nigerian banks (β = 0.67, R² = 0.58, p < 0.01), indicating that institutions with stronger peace accounting frameworks were more effective in mitigating ecological risks, aligning their operations with environmental sustainability, and improving stakeholder trust. Specifically, banks with higher investments in sustainability-related disclosures and green financing projects demonstrated stronger compliance with environmental risk regulations compared to those with weaker peace accounting structures. These results suggest that peace accounting goes beyond conventional financial accountability by integrating ethical, social, and ecological considerations into decision-making, thereby strengthening environmental resilience in the Nigerian banking sector. The study contributes to existing scholarship by linking peace-oriented accounting practices to environmental risk mitigation and offers practical insights for regulators, policymakers, and financial institutions.