Green financial accounting in India's mining sector: a path to sustainable development

Abstract

Purpose This study investigates the role of green financial accounting (GFA), a framework that integrates environmental sustainability into financial reporting in shaping sustainable outcomes in India's mining sector from 2000 to 2024. It evaluates how governance, foreign investment, innovation and economic growth interact with resource extraction, emphasizing the need for sustainability-centric financial practices. Design/methodology/approach The research uses panel data econometric techniques to analyze macro-level variables, including the Corruption Perceptions Index (CPI), foreign direct investment (FDI), patent registrations and gross domestic product growth. Regression models assess how these factors correlate with short- and long-term mineral extraction volumes. Findings The analysis reveals that stronger governance (higher CPI) is associated with increased transparency in resource management, contributing to a 0.09% rise in short-term and a 0.18% rise in long-term extraction efficiency. FDI emerges as a key driver of mining performance by facilitating technological and managerial innovation. Research limitations/implications While insightful at the macroeconomic level, the study does not capture firm-level GFA implementation or localized policy dynamics, which may further influence sustainable outcomes. Practical implications Findings advocate for embedding GFA principles into national accounting standards, enhancing green literacy, enforcing transparent governance and developing institutional mechanisms for sustainable financing in the extractive industries. Originality/value Unlike traditional financial reporting, GFA explicitly accounts for environmental costs and long-term ecological risks. This study distinguishes itself by operationalizing GFA as a measurable construction in the mining sector and empirically linking it to sustainability indicators.