Abstract: Environmental issues are relevant to study along with the development of industrial activities, especially in Indonesia. Indonesia as a part of Southeast Asian countries will be the destination of industrial activities because this region is claimed to be low-cost industrial area (Rao, 2004), where 70% of industrial activity will be focused on South-East Asia. Industrial activities will cause environmental problems, such as pollutions of air, land, noise, and water, as the impacts of poor environment. This phenomenon is very essential to study, especially on the aspects of environmental management. The first objective of the study is designed to investigate the relationship between environment initiative, employee involvement, and supplier integration to the environmental performance. The second objective of the study is designed to investigate the relationship between environmental and company performances. This study also aims to investigate the impacts of independent variable on the dependent variable that are mediated by intervening variable of environment performance. This investigation uses trimmed model as the ending model of path analysis. The participant of this study consisted of 85 companies where operations at Semarang municipality. All of the variables were measured with four indicators. The data were collected from primary and secondary data. The primary data were obtained from respondent interviews and focus group discussions. The secondary data were obtained from statistics center bureau, journals, text books, and precedence research. The data analysis used path analysis followed by multiple regressions. The results of the study showed that, first: the independent variables of environmental initiative and employee involvement had significant influence to the environmental performance. Second, supplier integration had the influence to the company performance. Third, environmental management had significant influence to the company performance. At last, the results of trimmed model showed that environmental performance was as the mediating variables of the relationship between environment initiative, employee involvement and company performance. Keywords: Environment Initiative, Employee Involvement, Supplier Integration, Environmental Performance, and Company Performance