Green Accounting – Quantification and It’s Associated Challenges – Sept 2025

Author: Banerjee S.*, Thakur A. A.**
*Assistant Professor, **Assistant Professor & Vice Principal,
G. E. Society’s RNC Arts JDB Commerce and NSC Science College, Nashik
Savitribai Phule Pune University, Pune

Abstract:

Green accounting, is an essential framework for tracking the costs and benefits associated with environmental impacts. However, its adoption faces significant hurdles. This paper explores the key challenges faced by businesses, governments, and non- governmental organizations in implementing & quantifying green accounting, and discusses potential solutions to overcome these barriers.
Green accounting, also known as social accounting, plays a crucial role in promoting sustainable practices by integrating environmental costs and impacts into financial decision-making. However, despite its potential, several challenges hinder its widespread adoption and effectiveness. Key obstacles include the lack of standardized methodologies for quantifying environmental impacts, the complexity of measuring and valuing natural resources, and the absence of universally accepted accounting frameworks. Additionally, businesses often face resistance due to the perceived high costs and resource-intensive nature of implementing environmental accounting systems. The lack of awareness, technical expertise, and regulatory support further impedes the transition toward sustainable accounting practices. These challenges create significant barriers, limiting the potential for green accounting to drive meaningful environmental change. Addressing these obstacles requires a concerted effort from governments, businesses, and accounting professionals to establish clear guidelines, incentivize sustainability, and foster collaboration in overcoming the complexities associated with green accounting.

Keywords: Green Accounting, Environmental Change, Environmental Impacts, Sustainable Practices.CSR Report of Green Projects by Hyundai Motors India Limited, India.

DOI: 10.65282/sjrl.vo.1.issue.02.009