[15 ] EXPLORATORY STUDY ON CHALLENGES FACED IN GREEN ACCOUNTING

ARTICLE INFO: Date of Submission: Feb 26, 2026, Revised: Mar 7, 2026, Accepted: Mar 9 , 2026, CrossRef D.O.I : https://doi.org/10.56815/ijmrr.v5i3.2026.161-171. How To Cite: Mruthula M Nair, S. B. Yadav (2026). Exploratory Study on Challenges Faced In Green Accounting. International Journal of Multidisciplinary Research & Reviews 5(3), 161-171.

Abstract

Green accounting practices entail recognition, quantification and reporting of environmental costs and impact in addition to financial data to assist in making sustainable decisions in organizations. The aim of these practices is to incorporate environmental considerations in the normal accounting systems instead of looking at them as distinct disclosures. The work is prompted by increasing significance of environmental responsibility and realistic challenges involved in utilizing green accounting by organizations. These challenges need to be known in order to provide effective adoption and significant incorporation of green accounting in the mainstream accounting practices. The purpose of conducting this study is to explore the challenges faced in Green Accounting. The technique used in this study is Text mining using the qualitative tool NVIVO 12. The findings of the study indicated The major challenges include the absence of clear rules, difficulty in measuring environmental costs, lack of reliable data, and high implementation costs. These issues indicate that green accounting suffers primarily from structural and methodological weaknesses, where unclear regulatory frameworks and data constraints make accurate measurement and reporting difficult, thereby discouraging organizations from adopting such practices. The moderate challenges relate more to organizational and human factors, such as lack of knowledge, non-supportive management, difficulty in integrating green accounting into existing accounting systems, and reliance on personal judgement in reporting. These suggest that even when frameworks exist, internal resistance, skill gaps, and system limitations hinder effective implementation. The minor challenges, including focus on short-term profit, fear of sharing information, false green claims, and changing government rules, reflect contextual and behavioural concerns that, while present, exert relatively less influence compared to structural and organizational barriers.