This study delves into the intricate landscape of environmental accounting disclosure practices in India, aiming to decipher the myriad factors that influence how businesses communicate their environmental performance. The theoretical foundation is laid by examining relevant accounting and disclosure theories, including agency theory, stakeholder theory, and legitimacy theory. These theories serve as lenses through which the motivations and considerations driving environmental reporting decisions are analysed. The current state of disclosure practices in India is explored, revealing a positive trend toward increased transparency and sustainability. Regulatory frameworks established by entities such as the Ministry of Corporate Affairs (MCA), Securities and Exchange Board of India (SEBI), and the Ministry of Environment, Forest and Climate Change (MoEFCC) play a pivotal role in shaping disclosure practices. The Business Responsibility and Sustainability Report (BRSR) introduced by SEBI and alignment with global reporting initiatives like the Global Reporting Initiative (GRI) underscore a commitment to standardized and comparable reporting. Influential factors are identified through a comprehensive analysis that includes the regulatory environment, industry characteristics, stakeholder pressures, global reporting initiatives, internal management systems, competitive dynamics, public perception, and financial considerations. These factors collectively contribute to the decision-making processes of businesses regarding environmental disclosure, highlighting the multifaceted nature of this strategic endeavour.
Shah et al. (2026) studied this question.