INTRODUCTION
Corporate responsibility is one of the most vital roles played by corporations in building and gaining trust and goodwill from the people, increasing their customer base, and providing a helping hand to uplift the communities where they have established their operations. Corporate responsibility is needed for the development and growth of a company in the 21st century. This responsibility has shifted into an accountability for each corporation to contribute something to the fixation of society at large. This also includes protection of the environment that has been depleted for years now. This concept of protecting the environment by corporate companies has evolved into a new term of Corporate Environmental Responsibility (CER). It is a voluntary act done by corporations to look into the environmental issues rising across society and provide aid to rebuild and repair the environment and protect it for future use.[1]
ENVIRONMENTAL ISSUES AT LARGE
Environmental issues, at large, refer to concerns affecting all living creatures, not just a specific one. These issues usually include issues all across the world, not limited to a particular territory or geographical boundary. These problems faced by each creature due to the depletion and overuse of some natural resources can lead to this condition. It is a wide range of negative impacts on the Earth by human beings exploiting the resources for their self and own growth at a higher rate. This includes Climate Change, the most serious environmental issue occurring in the 21st century, loss of biodiversity, Pollution at large, Energy overuse, melting of ice caps, sea level rise, Global warming, food and water insecurity, soil degradation and cobalt mining.[2]
GLOBAL WARMING AND ITS EFFECTS
The effects of global warming are unimaginable, and it is going to reach a level of irreversible effects in the world and the environment. Everything around a living creature, from the temperature to the food’s quality is decided by the temperature that the environment usually holds. Emission of greenhouse gases, CFCs, carbon footprints and deforestation are the main causes for global warming. The world is now getting more warmer than any other times ever before in history. Global warming has now led to major environmental issues such as ozone depletion, melting of ice caps and glaciers, increased droughts, strong storms, hotter temperatures, loss of species, and not enough food.[3] It also affects the health of human beings, such as water-borne diseases, respiratory illness, malnutrition, heat-related illness, and injury and mortality due to high temperatures.[4]
ROLE OF CORPORATE HOUSES IN ENVIRONMENTAL ISSUES
Corporate houses play a vital role in promoting the UN’s SDG Goals and lending a great hand to sustainable development across the world. Corporate houses have become a part of environmental developers, from being the polluter of the environment through various activities such as green technology, carbon neutrality pledges, and resource efficiency.[5] Enterprises have now begun to concentrate on the ecological conditions, triggering them to follow and take steps to environmental protection activities, and actively assume their environmental responsibility. The corporate houses have increased their environmental protection investment by efficiently and completely fulfilling the responsibilities towards various sectors, such as energy conservation, emissions reduction, environmental protection, and providing funds for environmental pollution control.[6] It creates a place and responsibility for the corporate houses and other enterprises to actively participate in the protection of the environment. Corporate Social Responsibility and Accountability
CSR is a management concept which was built to integrate social and environmental concerns into business and enterprises and to have interactions and operations with their stakeholders in accordance with these concerns[7]. India is one of the first few countries to provide regulations on CSR. It was introduced under Section 135 of the Companies Act, 2013, following the paradigm reform. The regulation acts as a mechanism to measure various developmental issues faced. The CSR regulations in India provide broader rules and regulations and give a better direction to a sustainable future. According to the requirements of the act, a broad-level committee has been set up to oversee CSR, and it has helped in shaping CSR discussions and strategic responses, making it more active than philanthropy.[8] The corporate houses are held accountable on the basis of various regulations and SDG goals, where the goal number 9 (industry, innovation and infrastructure), 11(sustainable cities and communities), and 12 (responsible consumption and production) are directly applicable to the corporate houses, businesses and enterprises.
REGULATIONS HELPING WITH ENVIRONMENTAL ISSUES
Stockholm Declaration
The Stockholm Declaration introduced the first global set of principles for international environmental protection. It has created a new era of global cooperation between States to ensure the smooth execution of environmental laws against the impact of climate change.
Principles that were introduced during the declaration include:
- Principle 2: Natural resources must be safeguarded. It must be ensured that resources are available for future generations and are not exhausted. The current generation should properly plan the usage of resources, enhancing sustainable development.
- Principle 6: Pollution must not increase the capacity of the environment to clean itself. It is the responsibility of the citizens to protect the environment from harmful substances and chemicals that affect the wildlife, ecosystems, water bodies etc. The pollution should not exceed the environment’s capacity to heal itself.
- Principle 16: Government should formulate an appropriate population policy. Areas with excessive population lead to detrimental effects on their livelihood and environment. Thus, the government should implement policies that preserve fundamental human rights.[9]
UNFCCC
Adopted in 1992, it is the keystone of international climate law. It has established a framework for international cooperation to combat climate change and reduce GHG emissions. It has also paved the way for the formulation of various other treaties that have set binding and non-binding objectives to reduce emissions.[10]
Kyoto Protocol
Adopted in 1997, it is the first international treaty to set legally binding targets in emission reduction for developed countries. The Protocols introduced various mechanisms such as emissions trading, clean development mechanism, etc, to meet their targets through flexible means. It also has a keen monitoring, reviewing and verification system along with compliance with its structure to ensure accountability of parties.[11]
Paris Agreement
Adopted in 2015, it represents a significant advancement in international climate laws. Countries submit nationally determined contributions (NDC) to reduce emissions, thereby marking a shift to a bottom-up framework. The agreement also invites countries to formulate and submit long-term low greenhouse gas emission development strategies. The Agreement aims to limit the global temperature rise, promote transparency, accountability and support for developing countries in achieving climate goals.[12]
National Climate Policies and Legislation
India, as a signatory to international climate agreements, has implemented various climate policies and legislations addressing the impact of climate change to improve the overall balance of sustainable development.
International Courts and Tribunals
The International Court of Justice (ICJ) plays a key role in interpreting international climate laws, resolving disputes between states and ensuring compliance with international agreements.[13] Over the past two decades, the environment has grown into a major global issue, but its environmental litigation has not increased in the International Court of Justice. States have been reluctant to provide the ICJ with broader authority to deal with environmental cases, as it is difficult to categorize them.
Overall, the ICJ has contributed very little to the development of international environmental laws.[14]
CASE LAW IN INDIA
MC MEHTA VS. UNION OF INDIA (TAJ TRAPEZIUM CASE)
This is a landmark environmental case addressing the effect of pollution on taj mahal. It was found that the emissions from coal and coke using industries have damaged the monument’s white marble. Thus, the court banned these coal fuels in the Taj Trapezium zone and ordered 292 factories to either switch to natural gas or relocate.[15]
Case law across the world
UNITED STATES VS. BESTFOODS
The US Supreme Court held that a parent company is responsible for the damages created by a subsidiary company and can also be held liable under CERCLA for the environmental contamination caused.[16]
CONCLUSION
The companies are now adopting various practices such as re green, afforestation, using the resources in a sustainable way and many more, but these methods are not going to be helpful for environmental protection. As a big corporation, the houses have huge resources and also have huge responsibility to turn the environment into a better place for the future generation. These efforts can be enhanced by a few other methods where the companies can be transparent and show their plans, ideas and execution of how they have actually contributed to environmental protection and how much money they have spent on the same. There shall be stricter laws around the world to have a check on the CSR and CER of every company. There shall be a committee or a commission, or a statutory body formed for the cross verification of the resources used by the companies and aiding in environmental protection.
Author(s) Name: Janavi Nithiyanandan (Srm, School of Law, Kattangalathur)
References:
[1] ‘Unveiling Corporate Environmental Responsibility (CER): Nurturing a Sustainable Future’ (Give.do) <https://give.do/discover/news/unveiling-corporate-environmental-responsibility-cer-nurturing-a-sustainable-future/#:~:text=The%20ethical%20and%20moral%20duty,%2C%20and%20decision%2Dmaking%20procedures> accessed 03 September 2025
[2] Deena Robinson and Martina Igini, ‘15 Biggest Environmental Problems of 2025’ (Earth.Org, 09 January 2025) <https://earth.org/the-biggest-environmental-problems-of-our-lifetime/> accessed 03 September 2025
[3] United Nations, ‘Causes and Effects of Climate Change’ (Welcome to the United Nations) <https://www.un.org/en/climatechange/science/causes-effects-climate-change#:~:text=Destructive%20storms%20have%20become%20more,water%20on%20a%20regular%20basis> accessed 04 September 2025
[4] ‘Climate Change’ (WHO, 12 October 2023) <https://www.who.int/news-room/fact-sheets/detail/climate-change-and-health#:~:text=Climate%20change%20is%20directly%20contributing,diarrhoea%20and%20heat%20stress%20alone> accessed 04 September 2025
[5] Dr Sindhu K P, ’The Role Of Corporates In Promoting A Sustainable Environment’ (2024) 30(4) Educational Administration: Theory and Practice <https://doi.org/10.53555/kuey.v30i4.10097> accessed 08 September 2025
[6] Jie Zhou and Shanyue Jin, ‘Corporate Environmental Protection Behavior and Sustainable Development: The Moderating Role of Green Investors and Green Executive Cognition’ (2023) 20(5) International Journal of Environmental Research and Public Health <10.3390/ijerph20054179> accessed 10 September 2025
[7] ‘What is CSR?’ (United Nations Industrial Development Organization) <https://www.unido.org/our-focus/advancing-economic-competitiveness/competitive-trade-capacities-and-corporate-responsibility/corporate-social-responsibility-market-integration/what-csr#:~:text=Corporate%20Social%20Responsibility%20is%20a,and%20charity%2C%20sponsorships%20or%20philanthropy> accessed 13 September 2025
[8] KPMG, ‘Sustainable Development Goals (SDGs): Leveraging CSR to achieve SDGs’ (December 2017) <https://assets.kpmg.com/content/dam/kpmg/in/pdf/2017/12/SDG_New_Final_Web.pdf > accessed 13 September 2025 <-is this report citation correct?
[9] Mubarakzeb Khan, ‘stockholm declaration.pptx’ (SlideShare) <https://www.slideshare.net/slideshow/stockholm-declarationpptx/255002594#3> accessed 06 September 2025
[10] ‘United Nations Framework Convention on Climate Change’ (UNFCCC) <https://unfccc.int/process-and-meetings/united-nations-framework-convention-on-climate-change> accessed 07 September 2025
[11] ‘The Kyoto Protocol’ (UNFCCC) <https://unfccc.int/process-and-meetings/the-kyoto-protocol> accessed 07 September 2025
[12] ‘The Paris Agreement’ (UNFCCC) <https://unfccc.int/process-and-meetings/the-paris-agreement> accessed 07 September 2025
[13] Faizan Mustafa, ‘Legal Responses to Climate Change: A Review of Environmental Law Frameworks Across Jurisdictions’ (2024) 2(4) Indian Journal of Law 73 <https://doi.org/10.36676/ijl.v2.i4.44> accessed 01 September 2025
[14] Steinar Andresen, ‘The Role of International Courts and Tribunals in Global Environmental Governance’ (2016) 7(3) Air and Space Power Journal-Africa and Francophonie 68–81 <https://www.airuniversity.af.edu/Portals/10/ASPJ_French/journals_E/Volume-07_Issue-3/andresen_e.pdf> accessed 09 September 2025
[15] ‘MC Mehta vs Union of India – Cases’ (BYJU’S) <https://byjus.com/current-affairs/mc-mehta-vs-union-of-india/> accessed 30 October 2025
[16] United States of America v Bestfoods [1998] 524 US 51
