Author name: Hardik Jharkharia, a law student from Lloyd Law College.
Abstract
In this article, we try to understand the ecosystem, how the corporation is harmful to the environment, and what is possible to protect it. We also conduct legal analyses of the framework of Indian law and its status. We mention the cases of Orissa Mining Corporation Ltd. vs. Ministry of Environment & Forest & Others, Vijay Singh Punia v. State of Rajasthan, and M.C. Mehta v. Union of India. We conduct a deep case study on the court’s stance on the matter of the environment and also mention the constitutional provisions that talk about the environment, as well as acts like the Environmental Protection Act. In the end, we also mention some solutions and the duties of corporations that they can follow to protect the environment regarding greenhouse emissions. This study serves educational purposes and enhances knowledge; this article contains criticism against the harm done to the environment
INTRODUCTION
Trees, forests, and wildlife have long been the fundamental source of sustainability. However, due to the growth of industrialization in the recent past, these ecosystem pillars have undergone significant changes. This gave rise to the need for the codification of laws related to the protection of the environment. The first considerable step on this behalf was the United Nations Conference on the Human Environment of 1972 in Stockholm. The Stockholm Declaration, which contained 26 broad principles marked the start of a dialogue in the international plane, on the link between economic growth and environmental protection. The Stockholm Declaration became the Grunt norm for navigating the interplay between corporate liability and environmental compliance in India.
In Subash Kumar v. State of Bihar, the Hon’ble Apex Court ruled that the Right to live in a pollution-free environment is an intrinsic part of ‘life’ which flows from Article 21 of the Constitution of India, 1950. The Corporate entities also have a right to carry on any business, profession, or occupation under Article 19(1)(g) of the Constitution. However, their rights are not absolute and can be reasonably restricted in the interest of the General Public under Article 19(1)(g) of the Constitution. Thus, the State has made certain laws to create a balance between the two rights so that economic development takes place without harming the ecosystem.
The protection of the Environment is also the need of the hour for protecting the other rights of the native and Indigenous who live in a long historical relationship with the trees and the wildlife. The ambit of the Right to live in a pollution-free environment also covers the basic means of livelihood who are dependent on the environment for their shelter and survival. Sometimes, it is also essential to protect the cultural rights of communities that worship sources of the environment as their deities.
In MC Mehta v. Union of India, the Hon’ble Supreme Court of India stated that a blanket ban on economic growth leads to irreparable industry losses. In contrast, the blanket ban on the environment leads to irreversible loss to the environment. To maintain a delicate balance between economic development and environmental protection, the State shall promote the principle of sustainable development. Thus, the government of India has passed certain notifications that are necessary to secure environmental clearance before setting up any industry in any area of the nation.
Green Responsibility: Exploring Corporate Liability in Environmental Law“
To understand corporate duties, we first have to understand the term “liability.” A liability is a legally enforceable obligation, whether it is voluntarily entered into as a contractual obligation or is imposed. To protect the environment from the activities of the corporate world, the Indian legal system has laws and statutes to put limitations on corporations. The Indian legal system follows a strict concept when it comes to environmental protection. For example, to construct any building or infrastructure, it is compulsory to pass a map of the project from the environmental department in your area, and there must be proper clearance from the department to build infrastructure. This creates discipline among corporations and businessmen regarding procedures concerning the environment. Under Indian law, a company can be liable for any act committed against the environment. As we see in the Environmental Protection Act 1986, Section 11 defines a person as “any Company, Association, or body of persons, whether incorporated or not,” as is customary in common law countries. “Company” refers to any legal entity, which includes a firm or other group of individuals, while “Director” refers to a partner in a firm.
The term “responsibility” is derived from a corporation’s duty to know its liabilities concerning the environment. The concept of Corporate Social Responsibility (CSR) is based on many liabilities and responsibilities that companies have to fulfil in order to establish their corporation. CSR encompasses energy efficiency, emission reduction, and biodiversity conservation, including innovative alternatives such as hybrid and electric vehicles made by companies like Honda, Nissan, and Tata to reduce pollution and help achieve net-zero carbon emissions. Many companies, such as IBM, Staples, and BP, are using Renewable Energy Credits (RECs) and solar energy to support clean energy projects. Companies such as Adani, IKEA, and The Body Shop are promoting biodiversity conservation, sustainable forestry initiatives, organic farming, and fair trade to balance the need for both business growth and the preservation of depleting natural resources.
Take the example of the TATA Group, which carries out various CSR projects, most of which aim to improve the community and reduce poverty. The last company we will discuss is UltraTech Cement, which is also a significant player in corporate social work; it organizes water conservation programs, industrial training, and organic farming initiatives. In the case of Orissa Mining Corporation Ltd. vs Ministry of Environment & Forests & Others, the court stated the liability of the company or association in detail. The court observed the law and expressed pride in following the law alongside the corporation. The court stated that it demands compensatory afforestation in a campus or infrastructure of a building under the Indian Forest Act of 1927. If there is any land that comes under the forest area, it shall be monitored by the State Forest Department. Additionally, it commands the State Government that the State Government shall charge Net Present Value (NPV) from the User Agency for the entire diverted forest land, as directed by the Hon’ble Supreme Court and as per the guidelines issued by the Ministry of Environment and Forests.
The court commanded the company to compensate the local community for their welfare with an amount of 12 crore to help manage the wildlife around the Chandigarh bauxite mine. The State Government shall deposit all the funds with the Ad-hoc Body of Compensatory Afforestation. The court gives power to the State Government to impose measures from time to time for the protection and improvement of flora and fauna in the forest area, which shall also be applicable. It is clearly stated that no land shall be taken without clearance from the Forest Department. The company, Vedanta Alumina Limited, has already proceeded with construction activities for its enormous expansion project that would increase its capacity six-fold from 1 Mtpa to 6 Mtpa without obtaining environmental clearance as per the provisions of the EIA Notification, 2006 under the EPA.
This amounts to a serious violation of the provisions of the Environment (Protection) Act. This expansion, with its extensive scale and advanced nature, is in complete violation of the EPA and is an expression of the contempt with which this company treats the laws of the land. The project has not established piezometers for monitoring groundwater quality around red mud and ash disposal ponds; thus, condition no. 5 of the Specific Condition of the clearance letter is being violated. All these violations, coupled with the resulting impact on the ecology and biodiversity of the surrounding area, further condemn the actions of the project proponent. Not only are these violations of a repeating nature, but they are also instances of willful concealment of information by the project proponent.. In the case of Vijay Singh Punia v. State of Rajasthan, the court states that 15% of the turnover of the dyeing and printing industries was imposed as damages for causing water pollution.
Also, in the Constitution, we have the 42nd Amendment, which imposes a duty on the State and its citizens to protect and improve the environment by adding Article 48A to the Directive Principles of State Policy and Article 51A(g) as a Fundamental Duty. These insertions to the Constitution acted as a boost towards environmental jurisprudence in the country. Furthermore, the Companies Act imposed the idea of CSR. In the case of M.C. Mehta v. Union of India (1987), the court laid down the doctrine of absolute liability for the harm caused by hazardous and inherently dangerous industries by interpreting the scope of Article 32 to issue directions and orders, respectively. The liabilities imposed on the company for harming the environment can take any form, including compensation, remediation, fines and penalties, compliance, punitive damages, and damages for natural resources. Corporations are a severe threat to the environment. The corporation tries to adopt the method of sustainable development in which the company must balance economic development and environmental protection. They also have to adopt the concept of development. Instances of growth promote the company to create and expand their businesses; however, on their side, development is the stable way in which a company makes a profit, not to extend their infrastructure
Conclusion
The government has to work on policymaking to create a stricter legal framework to protect the environment. Also, companies adopt many changes; buildings consist of AC, WIFI, GENERATORS, SOUND SYSTEMS, computers, printers, and photocopiers, all of which consume a lot of electricity in office buildings. Even when no one is working, the equipment can be left on 24 hours a day, seven days a week. Therefore, companies can avoid some of the things in their daily work, which is helpful for the environment and reduces rush-hour traffic congestion in towns and cities. The global risks of large environmental damage are not a myth; the judicial system has to take some steps because even if the government does its part, there are still some loopholes in the law.
