Factors Influencing Legal Framework of Environmental Accounting in Indian Industries-Overview and Theoretical Framework

Indian industries in the context of environmental protection do not have clear policies at the national or industrial level in order to ensure compliance to environmental norms. Thus, there is a growing concern for Indian industry to comply with the environmental reporting with regard to environmental protection. To address this gap, this paper proposes a framework which can be very effective to develop strategies for Indian industries environmental legal framework with regard to environmental protection. Researchers have understood the linkage based on extant literature review which is supported through ISM and MICMAC joined with the inter-relationship between the varied elements. Our study is unique and innovative as we have focused on exploring the different effects of the relationship between environmental accounting, industry and sustainability. The framework proposed in this paper can be utilized to develop strategies towards sustainable development which are focused, practical and effective. The primary challenge of environmental accounting legal framework is the absence of standards in identifying all that needs to be measured and deciding how it is to be measured. The conclusion drawn from the ISM hierarchy shows a high interrelationship and interconnectivity between GRI and CERES for sustainability reporting. Environmental awareness and environmental accounting leads to sustainable reporting.