As climate change intensifies, the importance of environmental compliance for companies is more critical than ever. On occasions like World Environment Day, the spotlight often falls on corporate responsibility towards the environment. Despite growing awareness, India Inc’s actual efforts on environmental compliance reveal significant gaps that need addressing.
According to data from Prime Database, only 122 of the top 1,000 listed companies in India disclosed conducting environmental impact assessments (EIAs) for their projects in their FY23 business responsibility and sustainability reports. EIAs are crucial for projects involving industrial manufacturing, mining, infrastructure, power, waste management, water resources, and the handling of hazardous substances. They ensure potential environmental impacts are evaluated and mitigated before project approval and implementation.
Prominent companies like Adani Ports & SEZ, Ambuja Cements, Coal India, GMDC, Patel Engineering, Ramco Cements, Tata Steel, and Ultratech Cement have undertaken a significant number of EIAs in FY23. Typically, these companies engage external independent agencies to conduct the assessments.
In total, 124 companies disclosed having operations or offices in ecologically sensitive areas, such as national parks, wildlife sanctuaries, biosphere reserves, wetlands, biodiversity hotspots, forests, and coastal regulation zones. These companies have complied with the necessary environmental approval or clearance conditions for these areas.
However, the compliance landscape is marred by instances of non-compliance. In FY23, 51 out of the top 1,000 companies reported violations of specific environmental laws. Notable among these were ACC, Ambuja Cement, IOCL, and Sun Pharma, which reported specific non-compliance instances. Additionally, 34 companies were ordered to pay penalties. For example, Grasim Industries disclosed in its FY23 annual report a fine of Rs 2.07 crore paid to the Jharkhand State Pollution Control Board for alleged water pollution, settled without admitting liability.
Common violations include non-compliance with the Air (Prevention and Control of Pollution) Act, Water (Prevention and Control of Pollution) Act, Environment Protection Act, and Hazardous Waste Management and Handling Rules. Fines were typically imposed by the National Green Tribunal or state pollution control boards. Most companies reported taking remedial actions to rectify these violations and achieve compliance.
The current scenario underscores the need for India Inc to intensify its green compliance efforts. While there is a positive trend towards increased environmental awareness, substantial work remains to ensure consistent and thorough compliance across all sectors. The path to sustainable development requires robust adherence to environmental laws and proactive measures to mitigate ecological impacts.
Moving forward, corporate India must prioritise environmental compliance not just as a legal obligation but as a core component of their business strategy. This commitment will not only enhance their reputation but also contribute significantly to the broader goal of environmental sustainability and climate resilience.
