IMPLEMENTATION OF GREEN ACCOUNTING IN INDIA WITH RESPECT TO LEGAL FRAMEWORK

Abstract

Green accounting, first widely used in the 1980s by economist Peter Wood, refers to the process of accounting for environmental and natural resource costs. Also known as environmental accounting, resource accounting, or integrated accounting, it incorporates environmental impacts into financial and national accounting systems. This study reviews existing literature on green accounting and examines its internal and external dimensions, various forms such as corporate environmental accounts and eco-balance, the Environmental National Accounting System, and key techniques.
It also discusses the limitations and current status of green accounting in India. Green accounting measures the financial impact of using renewable and non-renewable resources and helps organizations understand the environmental costs of their operations. It supports sustainable development by integrating environmental losses into economic decision-making. Although awareness of environmental responsibility is increasing, green accounting practices in India are still at an early stage, both at corporate and national levels. The study further explores environmental reporting practices of Indian companies and highlights the growing importance of environmental performance as part of social responsibility.