Corporate Environment Responsibility (CER) refers to the duty of the company not to indulge in activities that may damage the natural environment in any manner.
This concept comes under the aegis of Corporate Social Responsibility. According to the European Union, CSR (Corporate Social Responsibility) is the process whereby enterprises integrate social, environmental, ethical and human rights concerns into their core.
However, it is equally important to learn the difference between the two. CSR spending by a company is linked to the profits earned by it. CER spending is related to the cost of the project. Hence the commitment in the latter is regardless of profit or loss endured by the company.
Elements of CER -h2
- Adopting sustainability models that ensure the availability of resources for the future generations
- Optimal use of natural resources for productivity enhancement
- Elimination or zero wastage and reduction of pollution
Some of the activities which can be carried out in CER are infrastructure creation for drinking water supply, sanitisation, health, education, skill development, roads, cross drains, electrification including solar power, solid waste management facilities, scientific support and awareness to local farmers to increase the yield of crop and fodder, rainwater harvesting, soil moisture conservation works, avenue plantation, the plantation in community areas, etc.
Driving forces of CER – h3
The driving forces of CER are policies of the government along with rules and regulations in this regard. Effective implementation of tariffs and taxes provide a hassle-free solution for the implementation of CER.
- The introduction of CER as a corporate culture would inculcate in them the essentials of sustainability. This in turn would motivate them to reduce their carbon footprint and regulate emissions.
- Though the concept is new, it has gradually carved a niche for itself in a world that is already battling with the climate crisis. Now the companies are realizing that it is better to implement sustainable solutions before they become law. Moreover, companies working with green ethics have now started attracting more consumers. In their bid to beat the competition, they have also begun to come out in support of environmental legislation rather than protesting against them.
Challenges in implementation of CER – h5
The need for the implementation of an effective CER has been felt by many companies. However, small corporate houses fail to do so due to high regulation costs and their inability to predict economic gains. Technology for green solutions is more often than not pretty expensive which makes it difficult for small and medium enterprises to afford them. Another challenge faced by corporates is conflicting legislations.
States differ on various aspects making compliance difficult for the companies. Since the main drivers of implementation of CER are government policies, they must align with each other for ease of compliance and effective implementation. (h4)
To let CER be the driving force of companies in reducing their carbon footprint, it has now become important to differentiate it from CSR. CER should now be liberally interpreted as a standalone concept and should be given importance equal to that of CSR. CER should not be constrained to a project-based approach but should work as a mandate for the companies.
The Green Way Ahead – h5
One way to achieve environmental friendly solutions through corporates is by forming internal committees committed to the implementation of CER. A periodic evaluation may be done by the committees by conducting audits and reviews.
Challenges in implementation of CER – h5
The need for the implementation of an effective CER has been felt by many companies. However, small corporate houses fail to do so due to high regulation costs and their inability to predict economic gains. Technology for green solutions is more often than not pretty expensive which makes it difficult for small and medium enterprises to afford them. Another challenge faced by corporates is conflicting legislations.
States differ on various aspects making compliance difficult for the companies. Since the main drivers of implementation of CER are government policies, they must align with each other for ease of compliance and effective implementation.
