Maharashtra’s forest minister Sudhir Mungantiwar suggested that companies should set aside 25% of CSR funds for environmental causes
MUMBAI: India needs societies that are liveable, workable, and sustainable while finding an equilibrium between ecological concerns and developmental needs. Maharashtra’s forest minister Sudhir Mungantiwar on Thursday pitched for making it compulsory for companies to set aside a fourth of the mandated corporate social responsibility funds for environmental causes.
Proposal for Amendment to Companies Act, 2013
Mungantiwar said the concept of CER or Corporate Environmental Responsibility needs to take root in the country because businesses often desist from giving back to the environment after exploiting natural resources. “I’ve decided today to write to the Prime Minister for a slight amendment to the Companies Act, 2013 to ensure that a fourth of the CSR funds get reserved for CER,” he told a gathering here.
CSR Mandate Under the Companies Act, 2013
Under the Act, a certain class of profitable companies is required to spend at least two percent of their three-year annual average net profit towards Corporate Social Responsibility (CSR) activities in a financial year.
Corporate Environmental Responsibility
Corporate Environmental Responsibility (SER) is an important concept that businesses must take into consideration in order to ensure the sustainability of our planet. Companies have a responsibility to reduce their environmental impact and promote sustainable practices. This includes reducing emissions, conserving resources, and minimizing waste. It also involves educating employees about the importance of environmental responsibility and encouraging them to adopt eco-friendly habits. By taking these steps, companies can help protect our planet for future generations.
1. Implement a company-wide recycling program to reduce waste and promote sustainable practices.
2. Invest in renewable energy sources such as solar or wind power to reduce reliance on fossil fuels.
3. Develop a carbon offset program to balance out the company’s carbon emissions.
4. Use environmentally friendly materials and products in manufacturing and packaging.
5. Encouraging employees to use public transportation, carpool, or bike to work.
6. Partner with local environmental organizations to support conservation efforts and volunteer opportunities.
7. Conduct regular environmental audits to assess the company’s impact on the environment.
8. Offering incentives for customers to recycle or return products for reuse.
9. Incorporate eco-friendly practices into the company’s supply chain management.
10. Supporte research and development of new environmentally sustainable technologies.
Importance of Environmental Causes
Mungantiwar said humans are the most selfish of the species, and the last two centuries since the onset of the Industrial Revolution in the 19th century have taken a massive toll on the environment. He, however, said the ‘Sanatan Dharma’ always understood the importance of the environment and cited Hindu practices like a woman praying for her husband around a tree to support his claim.
Support from Union Roads Minister
At the event, Union roads minister Nitin Gadkari said that many works carried out by his ministry have suffered because of weather events, and the same has impacted timely delivery of projects as well. Exuding confidence that India will be able to meet the climate goals, Gadkari said ”We need societies which are liveable, workable and sustainable, and we need to find an equilibrium between ecological concerns and developmental needs”.
Also Read: What is CSR – Corporate Social Responsibility?
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