THE ROLE OF ENVIRONMENTAL ACCOUNTING IN ACHIEVING SUSTAINABLE AND GREENER BUSINESS PRACTICES IN INDIA

Environmental accounting serves as a critical tool in promoting sustainable business practices across India by systematically integrating environmental costs and impacts into corporate financial and operational decisions. This approach extends traditional accounting frameworks to include environmental factors such as pollution control, resource consumption, waste management, and ecosystem preservation, thereby offering a comprehensive view of business sustainability. In the face of rapid industrial growth and mounting ecological pressures, Indian businesses are increasingly adopting environmental accounting to align economic activities with national and global sustainability goals. The practice helps in enhancing transparency and accountability through rigorous environmental disclosure and supports compliance with evolving regulatory mandates like the Companies Act 2013 and SEBI’s ESG reporting requirements. Despite its advantages, environmental accounting faces challenges including lack of standardized metrics, limited expertise, and variable enforcement across industries. Addressing these requires coordinated efforts involving policy standardization, capacity building, stakeholder engagement, and robust monitoring mechanisms. Encouraging voluntary adoption alongside mandatory requirements can facilitate a smoother transition to sustainable practices. Ultimately, environmental accounting not only aids in risk management and regulatory compliance but also fosters innovation and long-term resilience, empowering Indian businesses to contribute meaningfully to sustainable development. It marks a strategic shift in viewing environmental stewardship as integral to economic success rather than a peripheral responsibility.