SUSTAINABILITY AND

ROLE OF BUSINESS
SUSTAINABILITY
Sustainability refers to rational utilisation of
available resources in order to make the resources
available for the future generations.

Environment Conservation
It is an all-encompassing term which refers to the
rational utilisation of various biotic and abiotic
components of the environment.
Importance of Sustainability

• Eradication of Poverty and providing sustainable

livelihoods
• Equitable and fair availability and rational utilisation
and consumption of resources
• Balancing economic, social and environmental
systems to achieve development
• Use of eco-friendly technology to avoid depletion of
finite resources
• Participation of all stakeholders in the development
process
❖Conservation of water
❖Conservation of energy
❖Conservation of soil
❖Promotion of sustainable
agriculture
Environmental Clearance for
Establishing and Operating Industries
in India
•Identification of the location/site for the
industrial plant
•Conducting EIA (Environmental Impact
Assessment)
•Public Hearing
•Environmental Appraisal
•Issuing of clearance or rejection letter
ENVIRONMENT
IMPACT
ASSESSMENT
Environmental Impact Assessment
(EIA)
• EIA was introduced in India in 1978.
• EIA is an important management tool for ensuring
optimal use of natural resources for sustainable
development.
• EIA may be defined as a formal process used to predict
the environmental consequences of any development
project.
• EIA is an assessment of the possible positive or
negative impact that a proposed project may have on
the environment, considering natural, social and
economic aspects.
Environmental Impact
Assessment (EIA)

• Environmental Impact Assessment (EIA) is a process

of evaluating the likely environmental impacts of a
proposed project or development, taking into account
inter-related socio-economic, cultural and human-
health impacts, both beneficial and adverse.
 PURPOSE OF EIA
• It promotes environmental development by identifying
environmentally sound practice and mitigation measures for
developments.
• To ensure that environment consequences were taken into
account during planning, designing and decision making
process.
• To influence how it is subsequently managed during its
implementation.
• The adverse impacts could be avoided or reduced.
• It is a pointer to the environmental compatibility of the project
in terms of their location, suitability of technology, efficiency
of resource utilization, recycling and so on.
Based on the degree of environmental impact the
projects are divided into three categories as follows:

Category A: Projects with prominent adverse

environmental impact which require a full EIA.

Category B: Projects with adverse environmental

impact but of a lesser degree than category A impact.

Category C: Projects unlikely to have adverse

environmental impact or those that will improve the
environment. In this case EIA is not required.
About EIA
• Environmental Impact Assessment started as a mandatory
regulatory procedure originated in the early 1970’s with the
implementation of the National Environmental Policy act
(NEPA) 1969 in the US.

• EIA process took off after the mid 1980’s, after World Bank
adopted EIA for major development projects, in which
borrower country had to undertake the EIA under the
Bank’s supervision.

• Now EIA is a formal process in more than 100 countries.

Environmental Clearance from central government is
required for 32 categories of development projects – under
industrial sectors:
▪ Mining
▪ Thermal power plants
▪ River valley
▪ Infrastructure (road, highways, ports, harbors, and
airports)
▪ Industries including very small electroplating in foundry
units.
 EIA PROCEDURE
PROJECT PROPOSAL

SCREENING

SCOPING AND CONSIDERATION OF ALTERNATIVES

BASELINE DATA COLLECTION

IMPACT PREDICTION AND ASSESSMENT OF

ALTERNATIVES

EIA REPORT

PUBLIC HEARING

DECISION MAKING

MONITORING THE CLEARANCE CONDITIONS

1) SCREENING

• First stage of EIA, which determines whether the proposed

project requires an EIA and if it requires EIA, then the level
of assessment required.

• Screening criteria for determining the level of review

required are relatively well defined.

• Screening criteria are based upon:

✓Scales of investment
✓Type of development
✓Location of development Project
 Project Category ‘A’ :
• Projects in this category typically require an EIA. The project type, scale
and location determine this designation.
• The potentially significant environmental issues for these projects may
lead to changes in land- use, as well as changes to social, physical, and
biological environment.
Project Category ‘B’ :
• Only difference between projects in this category and those in Category
‘A’ is the scale. Larger Power plants fall under category ‘A’, Medium Sized
Power Plants projects are in category ‘B’.
• These projects are not located in environmentally sensitive area.
Mitigation measures for these projects are more easily prescribed.
Project Category ‘C’:
• This category is for projects that typically do not require an
environmental assessment.
• These projects are unlikely to have adverse environmental impacts.
2) SCOPING
• This stage identifies key issues and impact that should be further
investigated.
• This stage also defines the boundary and the time limit of the
study.
• It is done by consultant in consultation with the project proponent
and guidance by the agency.
• Quantifiable impacts are to be assessed on the basis of
magnitude, prevalence frequency and duration and non
quantifiable impact (aesthetic or recreational value).
• Significance is usually determined through the socio-economic
criteria.
• After the areas, where the project could have significant impact,
are identified, the Baseline status of these should be monitored
and then the likely changes in these on account of the
construction and operation of the proposed project should be
predicted.
3) BASELINE DATA COLLECTION
• Impact prediction is a way of ‘mapping’ the environmental
consequences of the significant aspects of the projects and its
alternatives.
• Environmental impact can never be predicted with absolute
certainty, and this is all the more reason to consider all possible
factors and take all possible precautions for reducing the degree of
uncertainty.

The following impacts of the projects should be assessed:

AIR:
✓Changes in the ambient level and the ground level concentrations
due to emissions from point, line and area source.
✓Effects on soils, materials, vegetations and human health.
NOISE:
✓Changes in the ambient level due to noise generated from
equipment and movement of vehicles.
✓Effects on fauna and human health.
WATER
✓ Availability to competing users
✓Changes in the quality
✓Sediment transport
✓Ingress of saline water

LAND
✓Changes in the land-use and drainage pattern
✓Changes in land quality including effects of waste
disposal
✓Changes in shoreline/riverbank and their stability.
BIOLOGICAL
✓Deforestation and shrinkage of animal habitat
✓Impact on flora and fauna due to
contaminants/pollutants.
✓Impact on rare and endangered species, endemic species
and migratory path of animals including birds.
✓Impact on breeding and nesting grounds

SOCIO-ECONOMIC
✓Impact on the local community including demographic
changes
✓Impact on economic status
✓Impact on human health
✓ Impact of increased traffic.
4) Impact Prediction and Assessment
of Alternatives
▪ For every project possible alternative should be identified
and environmental attributes compared.
▪ Alternatives for project location & process technologies
Alternative of ‘no project’ should also be considered.
▪ Based on the best environmental option for optimum
economic benefits to the community at large, alternatives
should be ranked.
▪ Mitigation plan for the selected option have to be drawn,
and is supplemented with the Environmental Management
Plan (EMP) to guide towards, Environmental Improvement.
▪ EMP is critical for monitoring the clearance conditions, and
henceforth details of monitoring should be included.
5) EIA REPORT

Thus the EIA Report prepared should provide the decision

maker with the information on different environmental
scenarios like:

• With the project

• Without the project
• With project alternatives
• Uncertainties should also be reflected in the EIA report.
6) PUBLIC HEARING

After EIA report is made, public must be informed and

consulted on the proposed development.

Summary of the EIA report have to be provided to the people

affected due to the proposed project:
• Bonafied local resident
• Local associations
• Environmental groups active in the area
• Any other person located at the project site/sites of
displacement
7) DECISION MAKING

• Consultation between the project proponent (assisted

by a consultant) and the impact assessment authority
(assisted by an expert group if necessary).

• The decision on environmental clearance is arrived at

through a number of steps including evaluation of EIA &
EMP
8) MONITORING THE CLEARANCE
CONDITIONS

• Monitoring should be done during both construction and

operation phase of a project.
• This ensure that the commitments made are compiled
and the if the prediction made in the EIA report are
correct.
• Corrective actions should be taken if the impact exceeds
the predicted levels.
ENVIRONMENTAL
AUDIT
ENVIRONMENT AUDIT

• An Environmental Audit is an independent assessment

performed to ensure that businesses and organizations
are complying with environmental policies.
• An environmental audit is a type of evaluation intended
to identify environmental compliance and management
system implementation gaps, along with related
corrective actions.
• An Environmental Audit is an independent assessment
performed to ensure that businesses and organizations
are complying with environmental policies.
Types of Environmental Audit
• Environmental Management Audit
• Environmental Compliance/Performance Audit
• Environmental Assessment Audit
• Waste Audit
• Environmental due Diligence Audit
• Supplier Audit
• Site Audit
• Issue Audit
• Environmental Financial Audit
WHAT IS ISO 14001?

• It is an Environmental Management System (EMS)

that uses a continual improvement approach in
achieving and demonstrating sound environmental
performance.
• The goal is for organizations to control the impacts
that their activities, products and services have on
the environment.
• ISO 14000 is the standard and ISO 14001 is the
document containing the requirements.
ISO 14001

• ISO 14001 consists of

• General requirements
• Environmental policy
• Planning
• Implementation and operation
• Checking and corrective action
• Management review
• ISO 14001 is a certificate given for up keeping of good
environment.
• Demonstrates company’s commitment to improving the
environment.
• Production cost will be reduced & increased profit.
• Can reduce insurance cover costs.
• Can increase employee engagement in the knowledge
that they are working in an environmentally friendly
organization.
Sample Certificate
ENVIRONMENT ACT
The Water ( Prevention and Control
of Pollution)Act,1974

• The act aims to prevent and control water pollution and to

maintain/ restore wholesomeness of water by establishing
central an state pollution control board to monitor and
enforce the regulations.
Objectives
1. Prevention and control of water pollution.
2. Maintaining or restoring the wholesomeness of water.
3. Establishment of boards for the prevention and control
of water pollution.

• An act to provide for the levy and collection of a cess on

water consumed by persons carrying on certain industries
and by local authorities, with a view to augment the
resources of the central board and the state boards for the
prevention and control of water pollution constituted under
the water (prevention and control of pollution) act, 1974.
The Air ( Prevention and Control
of Pollution)Act,1981
• An act to provide for the prevention, control and abatement
of air pollution, for the establishment with a view to carrying
out the aforesaid purposes, of boards, for conferring on and
assigning to such boards powers and functions relating
thereto and for matters connected therewith.
Objectives
• The act was passed for the “prevention, control and
abatement of sir pollution”.
• This law defined an air pollutant as “ any solid, liquid or
gaseous substance present in the atmosphere in such
concentration as may be or tend to be injurious to human
beings or living creatures, plants or property or
environment”.
• In this act, power to declare air pollution, control areas has
been given to the state government after consulting the
State Board. By this it may control or even prohibit burning
of certain materials in those specific areas.
• This act requires approval prior to operating any industrial
plant.
Function of the Central Board (At
National Level)
• Advice the Central Government on any matter concerning
prevention and control of water and air pollution.
• Plan and execute nation-wide Pollution Control
programmes.
• Coordinate the activities of State Boards and Pollution
Control Committees.
• Provide technical assistance and guidance to the State
Boards.
• Carryout an sponsor investigation and research related to
pollution control.
• Plan and organize training programmes.
• Organize mass awareness programmes.
• Collect, compile and publish technical and statistical data
relating to water and air pollution.
• Prepare manuals, codes and guidelines relating to
treatment and disposal of wastes.
• Disseminate information in respect of matters relating to
water and air pollution.
• Lay down, modify and annual water and air quality
standards and
• Perform such other functions as and when prescribed by
the Government of India.
Wild Life Protection Act, 1972
• The Wild Life Protection Act, 1972,is an Act of the
Parliament of India enacted on 9th Sept, 1972.
• It provides for protection of wild animals, birds and plants;
and for matters connected therewith or ancillary or
incidental thereto.
• It extends to whole of India, except Jammu and Kashmir.
• It has six schedules which give varying degrees of
protection.
• This act passed it 1972, deals with the declaration of
National Parks and Wildlife Sanctuaries and their
notification. It establishes the structure of the State’s
Wildlife Management and the posts designated for Wildlife
Management.
Objectives of Wild Life Protection Act,
1972
• The main objectives of the Act are as follows:
• It defined the Wildlife related terminology.
• It provides for the appointment of Wildlife Advisory Board,
Wildlife Warden, their powers and duties.
• The Act provides for the setting up of National Park,
Wildlife Sanctuaries etc.
• Listing of endangered species has been done and special
projects such as project tiger, lion crocodile were started.
• It provide legal powers to officers and punishment to
offender.
• The Act imposes a ban on the trade or commerce in
scheduled animal.
Salient Features of the Wildlife
Protection Act, 1972

• Schedule I, II, III & IV list different protected species, the

killing or trade of which is prohibited.
• Schedule V lists vermin which may be killed.
• Schedule VI lists protected plants.
• A Schedule I offence can earn a repeat offender 6 years in
prison and a fine of ₹ 25,000.
• Rules of a protected area.
KYOTO PROTOCOL
The Kyoto Protocol
• The Kyoto Protoc0l is an international agreement to reduce
the green house gas emissions.
• It was negotiated under the UNFCCC during a meeting held
at Kyoto, Japan in 1997.
• The Protocol came into existence in 2005.
• The Kyoto Protocol is a legally binding agreement under
which industrialized countries will reduce their collective
emissions of green house gases by 5.2 percent compared to
the year 1990.
• the goal is to lower overall emissions from six green house
gases.
GHG Emissions Related to Climate
Change
• Six gaseous compounds have been found to be significant
relative to their capability to capture thermal radiation in
the upper atmosphere:
1. Carbon Dioxide (CO2) – 60 % of GHG thermal capture
2. Methane (CH4)
3. Nitrous Oxide (N2O)
4. Chloro-, Hydro- , Hydrochloro- (CFCs/HFCs/HCFCs), and
Perfluorocarbons (PFCs)
5. Sulfur Hexafluoride (SF6)
6. Water Vapor (H2O)
Kyoto Protocol GHG Emissions
Reduction Targets
• The reduction targets for CO2 range from -8% to +10% of
the country’s individual 1990 emissions levels “with a view
to reducing their overall emissions of such gases by at lease
5% below existing 1990 levels in the commitment period
2008 to 2012.

• These limits call for significant reduction in currently

projected emissions.

• Future emissions mandatory targets are expected to be

established for “commitment periods” after 2012 and will be
negotiated well in advance of the periods concerned.
Kyoto Protocol Commitments for
GHG Emission Reductions
Commitments under the Protocol vary:
• An overall 5% target for developed countries is to be met through cuts
(from 1990 levels)
• European Union – 8% (member states vary from 28% reduction by
Luxembourg to 27% increase by Portugal)
• Switzerland – 8%
• Most Central and East European states – 8%
• Canada – 6
• United States – 7% (US has since withdrawn its support)
• Hungray – 6%
• Japan – 6%
• Poland – 6%
• New Zeland, Russia, and Ukraine – stabilize (0%)
• Norway – Increase by 1%
• Australia – Increase by up to 8% (Australia has since withdrawn its
support)
• Iceland – Increase by 10%
Mechanisms for Carbon Trading
under the Kyoto Protocol
• ThreeMechanisms were established for Carbon
Trading under the Kyoto Protocol:

• 1. International Emissions Trading (IET)

• 2.
Clean Development Mechanism (CDM) (credits
earned by sponsoring greenhouse-gas-reducing
projects in developing countries).

• 3. Joint Implementation Projects (JI)

International Emissions Trading
(IET)
• Article 17 of the Kyoto Protocol.

• Countrieswith commitments under the Kyoto Protocol

can acquire emission units from other countries with
commitments under the Protocol and use them
towards meeting a part of their targets.

• Aninternational transaction log, a software-based

accounting system, ensures secure transfer of
emission reduction units between countries.
Clean Development Mechanism
(CDM)
• Article 12 of the Kyoto Protocol.
• Because the atmosphere is equally damaged by greenhouse-
gas emissions wherever they occur and equally helped by
emissions cuts wherever they are made, the Protocol
includes an arrangement for reductions to be “sponsored” in
countries not bound by emissions targets.
• Emission-reduction (or emission removal) projects in
developing countries are allowed to earn certified emission
reduction (CER) credits, each equivalent to one tonne of CO 2
.
• These CERs can be traded and sold, and used by
industrialized countries to meet a part of their emission
reduction targets under the Kyoto Protocol.
Joint Implementation (JI)
• Article 6 of the Kyoto Protocol.

• A country with an emission-reduction limitation

commitment under the Kyoto Protocol may take part in an
emission reduction (or emission removal) projects in any
other country with a commitment under the Protocol, and
count the resulting emission units towards meeting its
Kyoto target.

• It allows industrialized countries to meet part of their

required cuts in greenhouse-gas emissions by paying for
projects that reduce emissions in other industrialized
countries.
Carbon Credits Under the Kyoto
Protocol

• Under the Kyoto Protocol agreement, countries have

flexibility in how they will meet the targets (i.e., they may
increase “sinks” such as forests at home or abroad or pay
for foreign projects that result in carbon emission
reductions or greenhouse gas cuts.)

• It is assumed that greenhouse-gas emissions damage the

atmosphere equally wherever they occur, and emission
cuts help equally wherever they are made.
Carbon Credits Under the Kyoto
Protocol
• Countries will get credit for reducing greenhouse–gas
totals by planting or expanding forests (“removal units”);
for carrying out “joint implementation projects” with
other developed countries, usually countries with
“transition economies”; and for projects under the
Protocol’s Clean Development Mechanism, which involves
funding activities to reduce emission by developing
nations.
• Credits earned this way may be bought and sold in the
emissions market or “banked” for future use.
Carbon Banking

• The Clean Development Mechanism (CDM) of Kyoto

Protocol allows (permits) trading in carbon credits.
• For this a number of exchanges have been established.
• Banks too have entered this attractive market.
• Such banks are known as Carbon Banks.
• The term carbon credit is the name given to the exchange
of emission permits.
• Such kind of exchange may take place within economy or
may take the form of international transactions.
• Carbon credits give a way to reduce green house
emission on the industrial scale by capping total amount
of emissions and permitting the market to assign a
monetary value to any shortfall through trading.
• Credits can be exchanged between businesses or
brought and sold in international market at the current
market place.
• Credits can be used to finance carbon reduction schemes
(projects) between the trading partners.