Abstract

This paper explores the evolving landscape of green accounting in India and its critical role in promoting sustainable economic development. Green accounting—also known as environmental accounting—integrates environmental costs, natural resource depletion, and ecosystem services into conventional accounting systems to support informed decision-making and long-term sustainability. Drawing on secondary data from corporate sustainability reports, SEBI’s Business Responsibility and Sustainability Reporting (BRSR) framework, UN-SEEA guidelines, and policy documents from 2022–2024, the study provides a comprehensive analysis of emerging practices, technological advancements, and policy frameworks influencing green accounting adoption in India. The research identifies major trends such as the growing influence of ESG-based disclosures, the integration of artificial intelligence (AI) and blockchain for data accuracy and traceability, and the expansion of green finance mechanisms such as sustainability-linked loans and green bonds. Through case studies of leading Indian firms—Tata Group, Infosys, Hindustan Unilever, Wipro, Adani Renewables, and ITC—the paper highlights how corporate initiatives are aligning business strategies with India’s net-zero commitments and the Sustainable Development Goals (SDGs). Findings reveal that green accounting enhances transparency, investor confidence, and operational efficiency while facilitating better policy design and financial innovation. However, key challenges persist, including the absence of standardized valuation metrics, high implementation costs for small and medium enterprises (SMEs), and limited assurance mechanisms. The study proposes actionable policy measures focused on standardization, capacity building, technological infrastructure, financial incentives, and regulatory enforcement.