Priyanshi Purohit
2nd year Law Student at Dharmashastra National Law University, Jabalpur
Adherence to strict environmental standards is crucial for corporate operations in many nations. By ensuring that businesses follow current environmental standards and keep up with new ones, CER lowers the possibility of legal problems. Companies are increasing their environmental efforts in reaction to regulatory pressure.
INTRODUCTION:
The term "corporate environmental responsibility" (CER) describes a company's pledge to run its activities in a way that is sustainable for the environment. This idea encompasses proactive measures to avoid waste, preserve resources, support biodiversity, and lower carbon footprints in addition to simple adherence to environmental rules and regulations. It indicates a recognition of the fact that business operations have a big influence on the environment and a need to lessen adverse consequences.
A company's commitment to reducing its negative environmental effect and supporting sustainable practices is known as CER[1]. It goes beyond following environmental regulations and aims to proactively solve environmental challenges related to the business's activities. CER is frequently seen as an ecologically focused subset of Corporate Social Responsibility[2].The understanding that companies must make a constructive contribution to environmental sustainability is the driving force behind CER. Businesses may lessen their ecological footprint, improve their reputation, draw in eco-aware customers, and support international efforts to solve environmental issues by implementing environmentally responsible practices.
EVOLUTION
The concept of "sustainable development" gained prominence in the latter half of the 20th century, exhorting companies to strike a balance between environmental preservation and economic expansion. The "triple bottom line" method was developed at this time, which emphasizes that businesses should assess their performance not just on financial outcomes but also on social and environmental factors.
IMPORTANCE
1. Preservation of the Environment
The preservation and protection of the natural environment depend heavily on CER. Companies may help conserve biodiversity, ecosystems, and natural resources by implementing responsible practices. Businesses frequently leave large ecological footprints. A growing number of businesses are establishing aggressive goals to achieve carbon neutrality. For instance, Amazon plans to achieve net-zero carbon emissions ten years before the Paris Agreement's deadline of 2040. Furthermore, according to The World Economic Forum, adopting sustainable supply chain practices may boost a business's brand value by up to 30% and profitability by up to 16%.
2. Adapting to Climate Change
Businesses have a major impact on climate change and greenhouse gas emissions. Businesses may actively seek to lower their carbon footprint, switch to renewable energy sources, and assist global efforts to address climate change by adopting CER. More than 300 significant businesses have joined the worldwide corporate renewable energy movement, RE100, which aims to provide 100% renewable electricity.
3. Adherence to Regulations
Adherence to strict environmental standards is crucial for corporate operations in many nations. By ensuring that businesses follow current environmental standards and keep up with new ones, CER lowers the possibility of legal problems. Companies are increasing their environmental efforts in reaction to regulatory pressure.
LEGAL AND REGULATORY FRAMEWORK
Legislation and Rules Protecting the Environment:
1] The Environment (Protection) Act, 1986[3] Gives the federal government the authority to take the required actions to safeguard and enhance the environment, laying the groundwork for environmental governance in India. The Water (Prevention and Control of Pollution) Act of 1974[4] creates boards for the prevention and control of water pollution and regulates the pollution of water.
2] The Air (Prevention and Control of Pollution) Act of 1981 establishes guidelines for industry emissions and deals with air pollution.The regulations that oversee the handling and management of hazardous wastes are found in The Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016.
By limiting actions that might endanger animals, the animals Protection Act of 1972 seeks to safeguard both the species and its ecosystems.
3] The National Green Tribunal[5] was created to handle matters pertaining to environmental conservation and preservation under the National Green Tribunal Act of 2010[6].
4] Reporting on Corporate Social Responsibility (CSR): A part of a company's income must be allocated to corporate social responsibility (CSR) activities, which may include projects promoting environmental sustainability, according to Section 135 of the Companies Act of 2013. Businesses must provide information about their CSR initiatives in their yearly reports.
5] Environmental Impact Assessments[7] 2007[8] (as modified) EIA Notification: mandates that projects and industries belonging under particular categories go through an environmental impact assessment prior to starting.
6] State Pollution Control Boards: Within their individual states, State Pollution Control Boards oversee and control waste management practices, pollution levels, and emission limits.
CASE STUDIES
Patagonia: Known for its strong commitment to the environment, Patagonia promotes environmental concerns, invests in sustainable materials, and advises its consumers to fix and recycle their items rather than purchasing new ones.Unilever: The company wants to separate its growth from its influence on the environment through its Sustainable Living Plan. Throughout its supply chain, the corporation has significantly reduced waste, water usage, and greenhouse gas emissions.Tesla: With its electric cars and renewable energy options, Tesla is transforming the automotive sector. Its goal of quickening the global switch to sustainable energy is indicative of a strong belief in CER.
CHALLENGES
Cost Implications: Small and medium-sized businesses (SMEs) may find it particularly costly to adopt sustainable practices. Nevertheless, the early expenses are frequently surpassed by long-term savings and prospective income development.
Complex supplier systems: It might be difficult to uphold environmental responsibility via intricate, international supplier systems. For companies to guarantee that sustainable practices are maintained all the way up the value chain, strong collaboration with suppliers is essential.Companies need to figure out how to strike a balance between their environmental duties and their economic ambitions. This frequently calls for creative problem-solving and a dedication to long-term sustainability over immediate profits.
CONCLUSION
Corporate environmental responsibility is becoming a key component of contemporary company strategy, not just a side issue. Businesses that practice CER set themselves up for long-term profitability in addition to making a positive impact on the environment. Businesses may set the standard for a more sustainable and successful future by incorporating environmental responsibility into their fundamental activities.CER aims to create a legacy of environmental innovation and care, not just compliance. Businesses that recognize and fulfill their obligations to society and the environment will prosper as we move forward.
REFERENCES
[1] Corporate environment responsibility
[2] CSR
[5] NGT
[6] https://www.drishtiias.com/important-institutions/drishti-specials-important-institutions-national-institutions/national-green-tribunal-ngt
[7] EIA
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