Institutionalising Corporate Environmental Responsibility (CER): A Legal Imperative for India’s Climate and Sustainability Agenda.

India’s Corporate Social Responsibility (CSR) framework, institutionalised through Section 135 of the Companies Act, 2013, marked a global milestone by mandating certain classes of companies to allocate at least 2% of their average net profits over the preceding three financial years toward socially beneficial activities. Over the past decade, this legal provision has enabled significant investment into health, education, rural development, and social welfare projects. 

However, as India faces the intensifying challenges of climate change, environmental degradation, and biodiversity loss, there is an urgent need to evolve from the traditional CSR paradigm toward a more focused, legally mandated framework for Corporate Environmental Responsibility (CER). The existing CSR obligations, while comprehensive, do not explicitly mandate corporate contributions to environmental restoration or climate mitigation. A legal and policy shift is therefore imperative.

CSR and CER: Distinct but Complementary

Although current CSR rules under Schedule VII of the Companies Act include provisions for "ensuring environmental sustainability" and "ecological balance," empirical data suggests environmental causes remain significantly under-prioritised.

According to the National CSR Portal (Ministry of Corporate Affairs), of the total ₹25,932 crore spent under CSR in the financial year 2021–22, only approximately ₹2,225 crore (9%) was allocated toward environment-related activities. This disproportion highlights the necessity for a distinct CER framework to ensure targeted and effective environmental action by the corporate sector.

The Climate Imperative for CER

India is among the most climate-vulnerable nations globally. According to the India Meteorological Department (IMD), there has been a 55% increase in extreme weather events in the last two decades. The Lancet Planetary Health Report (2020) attributes 1.67 million premature deaths annually in India to air pollution. In addition, the Reserve Bank of India (2022) has warned that climate change could result in a 2.5% annual decline in GDP by 2100 if not adequately addressed.

Despite India’s commitment under the Paris Agreement to reduce emissions intensity by 45% (from 2005 levels) by 2030 and achieve net-zero emissions by 2070, corporate participation in climate mitigation remains largely voluntary and unregulated beyond compliance mechanisms. Introducing CER as a formal legal obligation would bridge this critical gap.

Existing Legal Landscape: Gaps and Opportunities

India’s environmental governance is currently guided by several key legislations, including:

• The Environment (Protection) Act, 1986
• The Air (Prevention and Control of Pollution) Act, 1981
• The Water (Prevention and Control of Pollution) Act, 1974
• The Forest (Conservation) Act, 1980

These laws are primarily regulatory and compliance-focused. They impose penalties for violations but do not establish positive obligations for corporate entities to undertake environmental protection, restoration, or innovation initiatives beyond their statutory limits.

Moreover, guidelines such as the Business Responsibility and Sustainability Reporting (BRSR) framework, mandated by the Securities and Exchange Board of India (SEBI) for the top 1,000 listed companies, promote voluntary disclosures on environmental, social, and governance (ESG) parameters, but lack enforcement mechanisms.

Thus, the policy architecture lacks a dedicated, enforceable obligation for CER, leaving a critical void in the broader sustainability framework.

International Best Practices and Emerging Norms

Global precedents underscore the need for corporate environmental accountability:

• European Union: The Corporate Sustainability Reporting Directive (CSRD) mandates companies to report detailed environmental and climate-related impacts and risks.
• United States: The Securities and Exchange Commission (SEC) has proposed rules requiring climate-related disclosures, including Scope 1, 2, and 3 emissions.
• Southeast Asia: Countries such as Malaysia, Indonesia, and Singapore are adopting green taxonomies and sustainability-linked disclosures.

In light of these developments, India must align its corporate governance practices with international sustainability standards to remain globally competitive and environmentally resilient.

Policy Recommendations: Toward a Legal Mandate for CER

1. Incorporate CER within the Companies Act
   
   Amend the Companies Act, 2013 to introduce a distinct provision on CER, requiring corporates—particularly those with significant environmental footprints—to undertake dedicated environmental initiatives. This could be structured as an obligation separate from CSR or as an earmarked percentage (e.g., 30% of total CSR spend) for environmental causes.
2. Introduce a National CER Framework
   The Ministry of Environment, Forest and Climate Change (MoEF&CC), in coordination with the Ministry of Corporate Affairs, may develop a national policy or guidelines to define eligible CER activities, monitoring mechanisms, verification frameworks, and impact evaluation parameters.
3. Link CER Obligations to Environmental Impact
   
   CER responsibilities may be calibrated based on a company’s pollution load, carbon emissions, or environmental risk profile, assessed through Environmental Impact Assessments (EIA), carbon disclosure ratings, or other third-party tools.
4. Provide Incentives for CER Compliance
   
   Offer tax incentives, regulatory fast-tracking, or public recognition to companies undertaking credible CER initiatives—particularly in domains such as afforestation, carbon neutrality, waste management, and biodiversity conservation.
5. Ensure Public Disclosure and Accountability
   
   Mandate annual disclosures of CER initiatives through an online public portal, akin to the CSR portal, and introduce third-party audits to ensure transparency and accountability.

Observations

India stands at a critical juncture in its development trajectory, where economic growth must be reconciled with environmental stewardship. While CSR has enabled meaningful contributions to social welfare, it has not adequately addressed the environmental exigencies confronting the nation.

Mandating Corporate Environmental Responsibility (CER) through appropriate legal and policy frameworks is essential not only to support India's climate commitments but also to safeguard long-term economic and ecological resilience. The transition toward a green economy requires collective action, and the corporate sector must play a central, legally mandated role in this transformation.

Sources: Ministry of Corporate Affairs, National CSR Portal, MoEF&CC Reports, IMD, Lancet Planetary Health, RBI Climate Risk Report 2022, SEBI BRSR Guidelines, European Commission CSRD

Diwali's Dark Side: A Year-by-Year Look at Air Pollution in Northern India

        Diwali, the Festival of Lights, is celebrated with great enthusiasm across India. However, the joy of this occasion often comes at a significant cost to the environment. The burning of countless firecrackers during Diwali leads to a sharp increase in air pollution levels, particularly in the northern regions of the country. This blog post will examine the trends in air pollution in northern India before and after Diwali over the past few years, providing insights into the impact of this festive tradition.

        To understand the impact of Diwali on air quality in northern India, it is essential to analyze the levels of particulate matter (PM) in the air before, during, and after the festival. PM is a significant contributor to air pollution and can have severe health consequences.

• PM2.5: This refers to particulate matter smaller than 2.5 micrometers in diameter. These tiny particles can penetrate deep into the lungs and cause respiratory problems.
• PM10: This refers to particulate matter smaller than 10 micrometers in diameter. While not as harmful as PM2.5, PM10 can still contribute to respiratory issues.

Consistent Spike: PM2.5 levels consistently increase after Diwali in all three years.

• Consistent Spike in Pollution: Every year, air pollution levels in northern India experience a significant spike during and after Diwali. The concentration of PM2.5 and PM10 often reaches hazardous levels, posing a serious health risk to the population.
• Regional Variations: While the impact of Diwali on air quality is most pronounced in major cities like Delhi, other regions in northern India also experience a noticeable increase in pollution levels during this time.
• Health Implications: The high levels of air pollution during and after Diwali can lead to various health problems, including respiratory infections, asthma attacks, heart disease, and even premature death.

To mitigate the adverse effects of Diwali on air quality, several measures can be implemented:

• Reducing Firecracker Use: Promoting the use of eco-friendly crackers or encouraging people to refrain from using firecrackers altogether can significantly reduce pollution levels.
• Government Regulations: Imposing stricter regulations on the sale and use of firecrackers can help control pollution.
• Public Awareness Campaigns: Raising awareness about the health hazards of air pollution and encouraging people to adopt sustainable practices can make a significant difference.
• Alternative Celebrations: Promoting alternative ways to celebrate Diwali, such as focusing on the cultural and spiritual aspects of the festival without relying heavily on firecrackers.

        While Diwali is a joyous occasion, its impact on air quality in northern India is a serious concern. By understanding the trends in air pollution and taking proactive measures to address the issue, we can ensure that this festival continues to be celebrated in a manner that is both festive and environmentally responsible.

The Chilling Rise of AI: How Call Center Jobs in India Are Disappearing

India's back-office industry, encompassing IT and customer service, is an economic powerhouse, making up 8% of GDP and employing 3.1 million. Notably, voice-based call centers alone account for 1.1-1.3 million workers, placing India second globally after the Philippines. However, a hidden threat looms. Artificial intelligence is automating tasks swiftly, potentially displacing a significant portion of this workforce. This isn't science fiction; it's unfolding now, with potentially serious ramifications for the Indian job market.

AI: A Trojan Horse of Efficiency

On the surface, AI's pitch to call centers is irresistible. Companies are promised a land of milk and honey: "increased efficiency" and "reduced costs." These buzzwords translate to dollar signs, leading them to embrace AI with open arms.

But here's the rub: this efficiency comes at a human cost. AI foot soldiers, in the form of chatbots and virtual assistants, are silently infiltrating call centers. These tireless digital workers are taking over the bread-and-butter tasks - answering routine questions, troubleshooting common problems. What were once the staple duties of call center agents are being steadily automated.

The narrative being spun is that human agents will be freed up to handle more complex issues. This may hold true for a select few, but for the majority, it translates to redundancy. The very tasks that provided them with a livelihood are becoming obsolete, leaving them vulnerable and exposed.

The Pink Slip Tsunami: Who Will Drown?

The wave of job losses triggered by AI won't be a gentle ripple; it will be a full-blown tsunami. The impact will be most catastrophic at the entry-level and mid-level positions in call centers. These roles, often the first stepping stone for fresh graduates and those with limited experience, will be the first to be swept away.

Imagine a young graduate, brimming with hope, entering the workforce through a call center job. This industry has traditionally been a launchpad, especially for women, offering a path into the formal economy. Now, AI threatens to slam the door shut on this very opportunity.

The vulnerability doesn't stop there. Many mid-level agents, who may have spent years honing their customer service skills, could find themselves obsolete overnight. Their experience in handling routine inquiries becomes irrelevant as AI takes over. The future they envisioned, one of growth and advancement within the industry, suddenly evaporates.

Beyond Job Losses: The Ripple Effect

The fallout from AI's takeover of call centers won't be contained within the industry itself. It will trigger a chain reaction, an economic earthquake with tremors felt far and wide.

The call center industry is a powerhouse contributor to the Indian economy. It employs millions and generates significant revenue. But with AI displacing workers, disposable income will take a nosedive. Millions who once had a steady paycheck will now have less to spend. This translates to a decline in consumption, impacting retail businesses, restaurants, and the transportation sector that relies on call center workers as customers.

Imagine the domino effect: a call center agent loses their job, their spending power diminishes, a clothing store frequented by them sees a drop in sales, leading to potential layoffs there too. This ripples outwards, affecting transportation as fewer people need to commute to work, and so on. The economic impact of AI in call centers can be a slow, silent erosion, weakening the very foundations of the economy.

A Skills Gap Widens: Are We Prepared?

India's education system, often criticized for its traditional, one-size-fits-all approach, finds itself woefully unprepared for the AI revolution. The rigid curriculum, focused on rote learning and exams, does little to equip students with the skills needed to thrive in an AI-powered future.

A paradigm shift is urgently needed. The focus must move towards imparting future-proof skills like data analysis, machine learning, and critical thinking. These are the tools that will allow Indian youth to not only survive but flourish in an AI-driven job market.

Equipping students with the ability to analyze data, understand complex algorithms, and think critically will be paramount. These skills are not restricted to purely technical fields; they are essential for success in a world where AI will permeate every aspect of work.

The current education system is like trying to fight a high-tech war with outdated weaponry. Investing in revamping the curriculum and creating a more dynamic learning environment is not just an option, it's a necessity. Only then can India bridge the widening skills gap and ensure its workforce is equipped to not only survive but thrive in the age of AI.

The Call to Action: Reskilling and Rethinking

The specter of AI-driven job losses in call centers demands a multi-pronged approach from the Indian government and industry leaders. Reskilling the workforce is the first line of defense. Investment in programs that equip current call center agents with in-demand skills like data analysis, project management, and human-AI collaboration is crucial. This will allow them to transition into new roles within the evolving industry.

Fostering a culture of innovation is equally important. Encouraging research and development in domestic AI can turn the tide. By creating a thriving domestic AI industry, India won't just be at the receiving end of job displacement; it can become a job creator. New opportunities will emerge in areas like AI development, data management, and the crucial field of human-AI collaboration – ensuring humans and AI work together seamlessly.

This synergy is the key. Reskilling the workforce and fostering innovation are not mutually exclusive. By upskilling existing talent and investing in domestic AI development, India can mitigate the negative impacts of AI while unlocking its positive potential. This collaborative approach will ensure that Indian workers are not just passengers on the AI train, but active participants shaping its destination.

The Future We Can Still Shape

The rise of AI in call centers is a harsh but necessary wake-up call. It serves as a stark reminder that the landscape of work is in perpetual flux. The good news? We still have the power to shape this future.

By embracing a three-pronged approach, we can ensure AI complements, rather than consumes, Indian jobs. Firstly, reskilling the existing workforce is paramount. Equipping call center agents with the skills of tomorrow – data analysis, critical thinking, and human-AI collaboration – will empower them to navigate the changing landscape.

Secondly, fostering innovation is key. By nurturing a vibrant domestic AI industry, India can become a pioneer in this revolutionary technology. This creates a wealth of new job opportunities in areas like AI development and data management.

Most importantly, we must prioritize human-centric AI. This means developing AI that augments human capabilities, not replaces them. Imagine AI handling routine tasks while skilled agents focus on complex problem-solving and building genuine customer relationships. This synergy is the heart of a future where AI elevates the human experience, not diminishes it.

The future of Indian jobs in the face of AI is not predetermined. By embracing reskilling, fostering innovation, and prioritizing human-centric AI, we can transform this challenge into an opportunity. This will usher in an era where AI acts as a partner in progress, ensuring Indian workers remain at the forefront of the global workforce.