Rapid industrialization and economic development have significantly increased pressure on natural resources and the environment. Traditional accounting systems mainly focus on financial performance and often ignore environmental costs such as pollution, resource depletion, and biodiversity loss. In this context, Green Accounting has emerged as an important approach that integrates environmental considerations into economic and financial decision-making. The present study aims to examine the concept of Green Accounting and analyze its relevance in the Indian context.
This study is primarily based on a review of existing literature related to Green Accounting in India. Various research papers and secondary sources have been analyzed to understand the development, implementation, and challenges associated with environmental accounting practices. The study also explores the role of regulatory frameworks such as the Companies Act, 2013 and sustainability disclosure requirements introduced by SEBI.
The findings indicate that although awareness regarding environmental sustainability has increased in India, the practical implementation of Green Accounting is still at a developing stage. Major challenges include the absence of standardized measurement techniques, high implementation costs, and limited professional expertise. The study suggests that stronger regulatory support, standardized reporting frameworks, professional training, and technological integration can significantly improve the adoption of Green Accounting practices. Overall, the effective implementation of Green Accounting can contribute to sustainable economic development by balancing economic growth with environmental protection.