An Evaluation of Green Accounting of FinTech Companies in India

Description

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Madhuri O. Vartale (Department of Computer Science, Dr. D. Y. Patil ACS College Pimpri, Pune, Maharashtra)

Green accounting, also known as environmental accounting, integrates environmental costs into financial decision-making, allowing firms to assess their ecological impact. In India’s rapidly growing FinTech sector, where digital infrastructure and energy-intensive operations are integral, the need for sustainable financial practices is more critical than ever. This study examines the adoption of green accounting principles in Indian FinTech companies, evaluates existing sustainability initiatives, identifies key challenges, and explores potential solutions for fostering a sustainable financial ecosystem. FinTech will align with global green finance standards, enhancing internal credibility and investment. Findings suggest that while leading FinTech firms e.g., Paytm, Razorpay, Zerodha, and Bajaj Finserv) have adopted green initiatives such as paperless transactions, ESG investments, and digital lending solutions, significant regulatory gaps, high energy consumption, and inconsistent sustainability disclosures hinder industry-wide progress. The study recommends mandatory ESG reporting, investment in renewable-powered data centers, AI-driven carbon tracking, blockchain-based carbon credit trading, and green financial products to accelerate the adoption of sustainable finance practices. Strengthening regulatory frameworks and incentivizing green innovation can help Indian FinTech firms set a global benchmark for sustainable digital finance. It will need to adopt standardized green accounting frameworks.16