Context:
The Supreme Court has emphasized environmental Corporate Social Responsibility (CSR), linking business operations with constitutional duties for ecological restoration.
Key Highlights:
- Legal & Constitutional Basis
- Court invoked Article 51A(g) → duty of citizens to protect and improve the environment.
- Linked right to business with responsibility to restore ecological damage.
- CSR Funding Imbalance
- Only 7–9% of CSR funds allocated to environment over 7 years.
- Majority goes to education and healthcare sectors.
- National Environmental Targets
- India aims to restore 26 million hectares of degraded land by 2030.
- So far, 9.8 million hectares restored, but private sector contribution only ~2%.
- Judicial Trigger
- Issue arose due to habitat destruction of the Great Indian Bustard by energy firms.
- Court mandated corporate accountability for ecological damage.
- Corporate Behaviour Patterns
- Preference for short-term, visible CSR projects over long-term ecological restoration.
- Environmental crises often viewed as low-priority or distant risks.
Relevant Prelims Points:
- Corporate Social Responsibility (CSR): Mandated under Companies Act, 2013 (Section 135).
- CSR applies to companies with:
- Net worth ≥ ₹500 crore
- Turnover ≥ ₹1000 crore
- Net profit ≥ ₹5 crore
- Article 51A(g): Fundamental Duty related to environmental protection.
- Great Indian Bustard: Critically endangered species; threatened by infrastructure projects.
- India’s Climate Goal: Net-zero emissions by 2070.
- Land Restoration Target: 26 million hectares by 2030 (aligned with global commitments like UNCCD).
Relevant Mains Points:
- Governance & Environmental Justice
- Expands CSR from charity-based model to accountability-based framework.
- Reinforces polluter pays principle and sustainable development.
- Gaps in CSR Implementation
- Urban bias in CSR projects.
- Lack of long-term ecological planning and monitoring.
- Weak policy incentives and coordination mechanisms.
- Corporate & Ethical Dimensions
- Need for ecosystem-centric business models.
- Ethical obligation of corporations toward intergenerational equity.
- Institutional Innovations Suggested
- Restoration trust / escrow funds for long-term financing.
- Shift from compliance auditing → ecological outcome assessment.
- Way Forward
- Mandate minimum environmental CSR allocation.
- Integrate CSR with national climate and biodiversity goals.
- Strengthen public-private partnerships for restoration.
- Promote scientific monitoring and accountability frameworks.
UPSC Relevance:
• GS 3: Environment – Climate action, biodiversity conservation
• GS 2: Governance – CSR regulation, judicial activism
• GS 4: Ethics – Corporate responsibility, sustainability