Corporate Environmental ResponsibilityEnvironmental responsibility refers to our responsibility to use natural resources carefully, minimize damage, and ensure these resources will be available for future generations. In other words, we need to carry out our activities with sustainability in mind; not only environmental sustainability, but also economic and social sustainability, all of which are interrelated. Corporate Environmental Responsibility (CER) refers to a company’s duties to abstain from damaging natural environments. In the traditional business model, environmental protection is considered only in relation to the “public interest”. Hitherto, governments had maintained principal responsibility for ensuring environmental management and conservation. The public sector has been focused on the development of regulations and the imposition of sanctions as a means to facilitating environmental protection. Recently, the private sector has adopted the approach of co-responsibility towards the prevention and alleviation of environmental damage. The sectors and their roles have been changing, with the private sector becoming more active in the protection of the environment. Many governments, corporations, and big companies are now providing strategies for environmental protection and economic growth. The World Commission on Environment published the Brundtland Report in 1987 to address sustainable development. Since then, managers, scholars, and business owners have tried to determine why and how big corporations should incorporate environmental aspects into their own policies. In recent years, an increasing number of companies have pledged to protect natural environments.CER is strictly about the consideration of environmental implications and protection within corporate strategy. These cover the environmental implications of a company’s operations:

• Eliminate waste and emissions
• Maximize the efficient use of resources and productivity
• Minimize activities that might impair the enjoyment of resources by future generations.
• Drivers and challenges

Among the main drivers for CER are government policies and regulations. Many states provide their own legislation, regulations and policies, which are important in creating a positive environmental attitude within companies. Subsidies, tariffs and taxes play a vital role in the implementation of these policies. Another significant factor is the competitive environment among companies generated by media, public, shareholder and NGO awareness, which are also major drivers of CER. Challenges include the cost of regulation and difficulties in predicting economic gains, which could become problematic for a company’s management. Additionally, new technologies are frequently too expensive for a lot of companies. Another challenge is the lack of harmonization of regulations among different states—often there is a mosaic of propositions, leading to unclear strategies for environmental behavior, especially in multinational corporations. The environmental aspects of security have increasingly become a major issue being considered by states. The process of securitization has had a big impact in creating a new understanding of security. Globalization also plays a key role in the adoption of new environmental strategies as a multi-faceted process influencing modern societies, and creating interconnected and multidimensional environments. CER is used by multinational corporations as well as small, local organizations. It is highlighted and more institutionalized because of stakeholders’ awareness of the huge impacts of business activities on the environment. In sum, the global environmental sustainability initiatives enacted by businesses generally focus on two main areas: limiting pollution and reducing greenhouse gases. As the awareness of environmental issues grows, businesses that take steps to reduce air, land and water pollution can increase their standing as good corporate citizens while also benefiting society as a whole. For example, Cisco Systems, a multinational technology company, has taken a variety of steps to reduce its carbon footprint, including the installation of photovoltaic systems at production facilities and developing platforms that allow employees to work from remote locations rather than commuting to the office.

In India, the Ministry of Environment and Forests & Climate Change (MoEF & CC) has firmed up Guidelines that will require every corporate seeking green clearance to set aside up to 2% of its capital investment for Corporate Environmental Responsibility (CER). The Guidelines make it mandatory for companies to set aside funds for CER over and above what is required for executing the environment management plan in a project affected area. While brownfield (expansion) projects would be required to earmark 0.125% to 1% of additional capital investment for CER purposes, the slab for greenfield projects ranges from 0.25% to 2% of the capital investment. The exact quantum will be decided for every project by the Expert Appraisal Committee when it comes up for green clearance. Environment clearance given to a project may involve a situation where the concerned company is yet to make any net profit or is not covered under the Companies Act.  CER activities will include measures like pollution control, wildlife and forest conservation, compensatory afforestation and rehabilitation and resettlement of displaced persons. Funds can be used for creating drinking water supply infrastructure, sanitation, health, education and skill development, among other.CER issues have been well recognized internationally and in Indian context the environmental responsibility of corporates has been addressed in the Companies Act, 2013 and in the National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business, 2011. These provisions will help reduce the environmental challenges owing to corporate action. The administrative approach for clarification regarding the Term of References (TORs) of the enterprises to know the undertaking details of EIA is also a preventive tool to promote CER. Thus, CER in the course of evolution from CSR, is emerging as a constructive instrument to attain corporate strategy to achieve responsible business. It also embraces stakeholders’ cravings, improves environmental health and accomplishes business sustainability.