Green Accounting: Bridging Sustainability and Financial Strategy

Abstract

Green accounting has emerged as a transformative tool that integrates environmental considerations into traditional financial decision-making frameworks. This research explores how green accounting practices are influencing environmental policy formulation,

Corporate sustainability strategies, and economic planning. The study aims to evaluate the current implementation levels of green accounting across public and private sectors, examine its impact on cost-benefit analyses of environmental projects, and suggest frameworks for standardized environmental disclosures.

The literature review draws from global and Indian perspectives on green GDP, carbon accounting, environmental reporting, and green budgeting. A mixed-methods approach has been employed—using both qualitative policy analysis and quantitative survey data from 50 Indian organizations practicing green accounting.

Hypotheses were developed to test the relationship between green accounting adoption and environmental performance, financial efficiency, and stakeholder trust. The methodology includes statistical tools such as regression analysis, hypothesis testing (t-test), and content analysis of sustainability reports. Data application and validation were conducted through triangulation using secondary data and field surveys.

Findings indicate that organizations with green accounting systems in place show statistically significant improvements in sustainability indicators, though adoption is limited by regulatory ambiguity and cost constraints. Suggestions include mandating environmental cost disclosures, integrating green accounting in national accounting systems, and fostering interdisciplinary training.

This research contributes to both policy and academic discourse, emphasizing that sustainable development is not a choice but a strategic necessity — and green accounting is a vital instrument in that journey.