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MBA605_Business Environment and Regulatory Framework (1)

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Natural Environment - I 295 values. Agriculture is now a major contributor to greenhouse gases, accounting for 13.5 per cent of global greenhouse gas emissions. Increasing use of fossil fuels to meet the demands of fast increasing population is a major contributor to pollution, particularly air pollution. Needless to say, increase in economic and related/consequential activities are caused by population increase. Industrialisation It is with industrial revolution that environmental pollution and other ecological problems became serious. The technologies used in the early stages of large industrialisation were highly polluting, particularly by smoke. Although widespread use of electrical power enabled substantial reduction of smoke pollution by industries, the increasing scale of operations and widespread of industrialisation increased the general level and spread of pollution. The fast industrialisation has been making water, air, land and noise pollutions increasingly serious. As the Ministry of Environment and Forests (now Ministry of Environment, Forests and Climate Change), Government of India, observes, while industrial development has contributed significantly to economic growth in India, it has done so at considerable cost to the environment.1 The Ministry points out, air pollution and its resultant impacts can be attributed to emissions from vehicular, industrial and domestic activities. The air quality has been, therefore, an issue of social concern in the backdrop of various developmental activities. Although the industrial sector only accounts for three per cent of the annual water withdrawals in India, its contribution to water pollution, particularly in urban areas, is considerable. Huge quantities of wastewater generated in this sector are dumped directly into local rivers and streams without prior treatment. Water contamination from industrial areas is compounded usually due to the high concentration of industries over a small area. Increasing industrial development, coupled with inadequate zoning and emissions regulations, will only aggravate the problem in the coming years. CU IDOL SELF LEARNING MATERIAL (SLM)

296 Business Environment and Regulatory Framework The Central and State Pollution Control Boards have identified a very large number of ‘grossly polluting’ industries in India, although almost none of the industries comply with the emission standards. Waste water from industrial activities is often contaminated with highly toxic organic and inorganic substances, some of which are persistent pollutants and remain in the environment for many years. A very large part (estimated at over 50 per cent some years ago) of the urban organic load in some cities originates from industrial effluents. Further, heavy metal contamination from thermal power, tannery and mining activities has occurred in several locations. Agriculture Agricultural activities and practices cause serious ecological problems due to large-scale destruction of forests; soil erosion; use of fertilizers, pesticides, insecticides etc. Land and water pollution due to agriculture are becoming increasingly serious. Construction of dams and irrigation practices have serious ecological impacts. Fertilizers, pesticides, insecticides, herbicides and weed killers are usually washed away from the fields into water sources by rain and irrigation waters. A significant part of the oceans have been damaged due to industrialisation, agriculture, urbanisation, transportation and other human activities. A large part of all DDT produced is in the oceans. The rapid increase in agrochemical use in the past five decades has contributed significantly to the pollution of both surface and groundwater resources. Fertilizers and pesticides enter the water supply through run-offs and leaching into the groundwater table, and pose a hazard to human, animal and plant population. Some of these chemicals include several substances considered extremely hazardous by WHO and are banned or under strict control in developed countries. It was estimated that only 23 per cent of the applied fertilizer was consumed by plants, the remaining 77 per cent was either leached out beyond the root zone or lost by volatilisation. As a Ministry of Environment and Forests’ publication has pointed out, direct consequences of agricultural development on the environment arise from intensive farming activities, which contribute to soil erosion, land salination and loss of nutrients. The introduction of Green Revolution in the country has been accompanied by overexploitation of land and water resources, and excessive usage of fertilizers and pesticides. Shifting cultivation (or Jhum cultivation) has CU IDOL SELF LEARNING MATERIAL (SLM)

Natural Environment - I 297 also been a major factor responsible for land degradation in hilly areas. Leaching due to extensive use of pesticides and fertilizers is a major source of contamination of water bodies. The extent of agricultural intensification and extensification is characterised by an increase in cropping and irrigation intensity and the imbalanced use of chemical fertilizers, pesticides and insecticides. It has also led to land degradation, overexploitation of underground water resources and increased use of chemical fertilizers, leading to eutrophication and water pollution in some regions. Enhanced intensification and extensification also leads to salination, alkalisation and waterlogging in irrigated areas, along with eutrophication of water bodies and ill-health of oceans, leading to loss of biodiversity. For achieving and maintaining food security and sustainable forestry, controlling of land/soil erosion is extremely vital. Transportation Use of fossil fuels by transportation and other activities is a major source of air pollution. The worst pollutants of air are carbon monoxide, sulfur dioxide, nitrogen oxides, hydrocarbons and particulates. It is the discharge of these pollutants in large quantities by human activities and natural occurrences that cause air pollution. Energy conversion, especially where the use of fossil fuels such as coal and petroleum products is involved, is the single most important source of air pollution. When fossil fuels are burnt, the elemental sulfur contained in them also burns, and forms sulfur oxides which are among the worst pollutants. Automobiles, industries, electric power plants and households are the major sources of energy conversion. Transportation is a major source of noise pollution too. According to some estimates, vehicle emissions are responsible for about 70 per cent of the country’s air pollution. Infrastructure Development Large infrastructure developments projects like dams, irrigation systems, highways and railways (particularly through ecologically fragile areas), ports etc. cause a lot of ecological problems. In many cases, such projects displace very large number of people, rendering them homeless and depriving them of livelihood. Often, they are not properly rehabilitated. Sardar CU IDOL SELF LEARNING MATERIAL (SLM)

298 Business Environment and Regulatory Framework Sarovar dam project is a classic example. The Narmada Bachao Andolan movement lead by persons like Medha Patkar is well known. Urbanisation Rapid urbanisation is a very important contributor to the increasing pollution. The world population is more than half urban now, and by 2030, nearly 60 per cent and by 2050 about 70 per cent of the world’s population is projected to live in urban areas. Almost, the entire increase in urban population will be in developing countries which suffer from acute limitations, particularly of finance, to providing basic amenities in urban areas. There has been a tremendous increase in the number and size of mega cities, mostly in developing countries. These mega cities are centres of mega pollution. Indiscriminate urbanisation, by its very nature, is an important source of water, air, land and noise pollution. Water pollution caused by municipal sewage is serious problem across the world. This is particularly serious in developing countries because of the pitiable state of waste management. Indian cities do not have adequate modern water supply and sewage treatment facilities. All major rivers are heavily polluted by the sewage discharged from cities and towns. According to 2011Census, there were 7,935 cities and towns in India. Nine of them were very large cities each with a population of more than 50 lakhs. Although the level of India’s urbanisation is relatively low, India has one of the largest urban populations in the world (377 million according to the 2011 Census). Only China has a total population larger than this. The share of urban population in the total population of India increased from about 28 per cent in 2001 to 31 per cent in 2011. (More information on urbanisation is available in the next section 10.3). Mining and Quarrying Mining and quarrying, apart from being an important source of water pollution, contributes significantly to land pollution as well, for it upsets the ecology with acid wastes, silt and other contaminants. Severe ecological damage is an inevitable by-product of mining. Mining activity often leads to environmental problems like land degradation, particularly in open-cast mining and CU IDOL SELF LEARNING MATERIAL (SLM)

Natural Environment - I 299 land subsidence in underground mining. Open-cast mining in areas with forest cover causes deforestation. Pollution, due to mining reached alarming proportions, because of over-exploitation and mismanagement of natural resources. Households Households are an important source of waste production. A significant share of the urban pollution is the contribution of households. In countries like India, lack of awareness and social concern make the problem very serious. The widespread use of plastics and other biologically non-degradable materials by households and organisations of all types is a a serious environmental problem. A Ministry of Environment and Forests’ publication points out that the household sector is the second largest consumer of energy in India after the industrial sector. A considerable amount of air pollution results from burning of fossil fuels. Use of solid fuel (wood, animal dung, crop residue/grasses, coal, and charcoal) exposes people to high levels of toxic air pollutants, which result in serious health consequences. National Family Health Survey-3 (NFHS-3) found that 71 per cent of India’s households use solid fuels for cooking and that 91 per cent of rural households also do the same. According to National Family Health Survey-3, more than 60 per cent of Indian households depend on traditional sources of energy like fuelwood, dung and crop residue for meeting their cooking and heating needs. Burning of traditional fuels introduces large quantities of CO2 in the atmosphere, when the combustion is complete, but if there is an incomplete combustion followed by oxidation, then CO2 is produced, in addition to hydrocarbons. There is a great deal of variation in the prevalence of TB according to the type of cooking fuel the household uses. According to the statistics cited in SERI 2009, it ranges from a low of 217 per 100,000 residents (among households using electricity, liquid petroleum gas, natural gas, or biogas) to a high of 924 per 100,000 (among households using straw, shrubs, or grass for cooking). High TB prevalence is also seen amongst households using agricultural crop residue (703/100,000) or other fuels. CU IDOL SELF LEARNING MATERIAL (SLM)

300 Business Environment and Regulatory Framework Studies have found that besides TB, acute respiratory infections, chronic obstructive pulmonary disease, asthma, lung cancer, ischaemic heart disease and blindness can also be attributed to indoor air pollution. 10.3 Increasing Pollution Levels In the previous section which dealt with the causes of pollution, mostly past data were given, mostly taken from the State of Environment Report India 2009 (SERI 2009) brought out by the Ministry of Environment and Forests, Government of India. This section which deals with Increasing Pollution Levels as given in the syllabus, gives up-to-date data available. This section has relied upon the data statistics put together by Down To Earth magazine and made available in the State of India’s Environment Report 2019 (SoE 2019) brought out by the Centre for Science and Environment, New Delhi. The following observation highlights the alarmingly deteriorating precarious environmental conditions of India: “Unable to improve its air quality, protect its biodiversity, and cut its greenhouse gas emissions, India... stands today at the bottom of the Global Environment Performance Index (EPI) rankings. In 2016, the country had ranked 141 out of 180 countries. In 2018, according to the... State of India’s Environment (SoE) 2018 in Figures, it has slipped to the 177th position.” SoE 2019 points out that India scored 5.75 out of 100 in air quality. India’s disappointing performance and the gravity of the situation is further highlighted when compared with countries such as Switzerland and Japan which have scored over 90. The levels of almost all types of pollution are dangerously high and are increasing all around, particularly in large cities and industrial locations. Pollution caused by agrochemicals such as fertilizers, pesticides. insecticides, herbicides and weed killers is also very serious. Many reports and news have exposed the environmental danger and threat to humanity, and perhaps the virtual extinction of many species of vegetation, animals, birds and fishes. Several hundreds of unusual deaths have been reported from all over the world. Despite the tremendous progress of medical science, a number of serious diseases, including such pulmonary diseases as lung cancer, emphysema, tuberculosis, pneumonia, bronchitis, asthma and even the common cold, CU IDOL SELF LEARNING MATERIAL (SLM)

Natural Environment - I 301 persist with a lethally threatening magnitude. It has been reported that the breast milk of the mothers in Punjab contains DDT, the accumulation of which in the human body can affect the central nervous system and cause paralysis of the human body. The lakes, rivers, oceans and other water sources in India and parts of the world are loaded with thousands of contaminants like bacteria, viruses, pesticides and weed killers, phosphorous, nitrogen compounds, detergents, trace amounts of metals, acids and so on, making the water unfit for biological and industrial uses. Vegetation in a number of places across the world has been destroyed by hitherto unknown causes. A number of animals, birds and fishes are likewise dying out. Weather and climatic conditions have been dangerously changing. Carbon monoxide levels in excess of 8-14 ppm are considered dangerous to health. In several Western and in some Indian cities like Calcutta, carbon monoxide levels of 70, 80 or even 100 ppm are not uncommon for short periods. The dumping of nuclear and hazardous wastes in developing countries and the shifting of polluting industries to the developing countries impose heavy social costs on them. The exploitation of the natural resources of the developing countries to satisfy the global demand also often cause ecological problems. When the multinationals employ in the developing nations’ polluting technologies which are not allowed in the developed countries or do not care for the ecology as much as they do in the developed nations, it is essentially a question of ethics. Most of the big industrial clusters in India are health hazards such as air, water and land pollution levels are not fit for human habitants. Industrial Pollution Some indications of the main causes and enormity of the industrial pollution were given in the preceding section (10.2 ). The gravity of the industrial pollution has been severely aggravating. It is reported that there was a 56 per cent increase in the number of hazardous waste generating CU IDOL SELF LEARNING MATERIAL (SLM)

302 Business Environment and Regulatory Framework industries between 2009 and 2016-17. At the same time, most of these industries are not properly maintaining their waste inventory, as mandated by the law. According to SoE, between 2011 and 2018, there was a substantial increase (136 per cent) in the number of grossly polluting industries and they are causing severe water pollution. Soil Erosion and Pollution According to SERI 2009, soil pollution from heavy metals due to improper disposal of industrial effluents, along with the excessive use of pesticides and mismanagement of domestic and municipal wastes, is a major concern. It is believed that the problem is extensive and its effects are significant. Some commercial fertilizers also contain appreciable quantities of heavy metals, which have undesirable effects on the environment. The indiscriminate use of agrochemicals, such as fertilizers and pesticides, is often responsible for land degradation. Soil texture, infiltration and permeability characteristics are affected adversely to a considerable extent due to excessive grazing, fire and mismanagement of land under cultivation. Soil is a unique non-renewable natural resource that supports life on planet Earth. It is estimated that one-sixth of the world’s soil has already been degraded by water and wind erosion. According to the statistics cited in SERI 2009, in India, approximately 45 per cent of the total geographical area is affected by serious soil erosion through ravines and gullies, shifting cultivation, cultivated wastelands, sandy areas, deserts and waterlogging. Excessive soil erosion with consequent high rate of sedimentation in the reservoirs and decreased fertility has created serious environmental problems with disastrous economic consequences. Major rivers carry huge amounts of eroded soil in the form of heavy silt, which deposits as sediments on the river bed. While soil erosion by rain and river in hilly areas causes landslides and floods, deforestation, overgrazing, traditional agricultural practices, mining and incorrect siting of development projects in forested areas have resulted in exposing the green cover to severe soil erosion. It is estimated that in India, erosion rates range from 5 to 20 tonnes per hectare, sometimes going up to 100 tonnes per hectare. Nearly 93.68 million hectares are affected by water erosion CU IDOL SELF LEARNING MATERIAL (SLM)

Natural Environment - I 303 and another 9.48 million hectares are affected by wind erosion annually in India. Thus, erosion leads to impoverished soil on one hand, and silting up of reservoirs and water tanks on the other. Apart from checking soil erosion, the problem of conserving soil moisture is also of immense importance in the extensive regions of low and uncertain rainfall, forming parts of Punjab, Madhya Pradesh, Maharashtra, Andhra Pradesh and Karnataka. In India, very little area is free from the hazard of soil erosion. It is estimated that out of 305.9 million hectares of reported area, 146 million hectares (i.e., nearly half) is in dire need of conservation measures. It is essential to control soil erosion in order to attain and maintain food security, sustainable forestry, and agricultural and rural development. Agricultural and other activities of the past caused severe land degradation. Land degradation refers to a deterioration in environmental quality and losses in the “resource potential” and “productive capacity” of the land. Further, ground resources of flora and fauna, the soil plays a key role in the potential and capacity of land. The soil degradation is often caused by a combination of factors such as water erosion, wind erosion, soil fertility decline due to nutrient mining, waterlogging, salinisation (often caused by irrigation systems), lowering of the water table and overuse of chemical inputs causing soil pollution and the implications for society and ecosystems appear to be rather complex. Soil erosion mines soils and contributes to desertification and nutrient losses. Erosion results in a redistribution of nutrients. It affects nutrient cycling and results in a depreciation of land and soil quality. Some studies show that since 1990s, land degradation has intensified many parts of the world. Air Pollution The World Health Organisation estimates that about two million people die prematurely every year as a result of air pollution, while many more suffer from breathing ailments, heart disease, lung infections and even cancer. Fine particles or microscopic dust from coal or wood fires and unfiltered diesel engines are rated as one of the most lethal forms of air pollution caused by industry, transport, household heating, cooking and ageing coal or oil-fired power stations. CU IDOL SELF LEARNING MATERIAL (SLM)

304 Business Environment and Regulatory Framework SERI 2009 observed that, according to reports, India’s urban air quality ranked amongst the world’s worst. Of the three million premature deaths in the world that occurred each year due to outdoor and indoor air pollution, the highest numbers were assessed to occur in India. And what is the situation now? The State of India’s Environment Report 2019 (SoE 2019) brought out by the Centre for Science and Environment, New Delhi, states that air pollution is responsible for 12.5 per cent of all deaths in India. Its impact on children is equally worrying. Over 100,000 children below the age of five die due to bad air in the country. While India was one of the first countries to pledge the phasing out of non-electric vehicles, its national scheme to promote the sale of e-vehicles is yet to pick up. Against the target of 15-16 million e-vehicles by 2020, the county had 0.28 million vehicles till May 2019. Air quality levels in Delhi and a number of other cities show that they are in the dangerous grip of a multi-pollutant crisis, and are currently facing a severe health challenge. While in the summer months, Delhi had 65 per cent days when poor and very poor air quality was recorded, in winters, this percentage increased to 85. On only about 1 per cent of the monitored days in summer months was the air quality observed to be satisfactory in the city. In December 2019, the air pollution in Delhi was too horrible. Sanitation SoE 2019 points out that, although 72.1 million individual household toilets in rural India have been constructed under the Swachh Bharat Scheme, little has been done to popularise their use. In 2017-18, states have used just 1.3 per cent of the funds for carrying out IEC (Information, Education and Communication) activities to raise awareness in rural areas. The situation in urban areas is worse, according to CSE’s water and sanitation experts, with close to a million households waiting for over six months for toilets to be constructed. Urbanisation India is experiencing an urban explosion. How urbanisation causes pollution was described in the previous section. Figure 10.1 shows the pattern of urban growth, including projections to the future. CU IDOL SELF LEARNING MATERIAL (SLM)

Natural Environment - I 305 SoE 2019 observes that by 2050, India is projected to add 416 million urban dwellers to the world’s urban population and will be home to about 58 per cent of the total global population. Keeping this in mind, India in 2015-16 announced its ambitious plan of creating 100 smart cities. Four years later, only 21 per cent of the allocated funds for the smart cities have been spent. No. of cities with population size 1981 1991 2001 2011 2021 2031 2041 2051 No. of cities > 5 million 3 4 6 9 10 17 25 36 No. of cities > 1 million 12 23 35 50 68 85 108 129 No. of cities > 0.5 million 41 55 74 94 120 142 158 165 Fig. 10.1: Pattern of Urban Growth in India Most urban cities have a sizeable population living in slums, which are unfit for habitation. India has 2,613 towns with slums. Of them, 57 per cent are in Tamil Nadu, Madhya Pradesh, Uttar Pradesh, Karnataka and Maharashtra. Climate Change The fast economic growth causes several ecological problems as mentioned in a number of places in this Unit which can cause climatic changes. The rural population, in particular, depends on climate sensitive sectors (agriculture, forests and fisheries) and natural resources for their subsistence and livelihoods. Climate change is likely to impact all the natural ecosystems as well as socio-economic systems. According to SoE 2019, there has been a 22 per cent increase in India’s greenhouse gas (GHG) emissions between 2010 and 2014. This has been fuelled by the energy sector, which is responsible for 73 per cent of the total GHG emissions. Besides, India phased out ozone depleting substances such as chlorofluorocarbon by 2011, it shifted to substances such as hydrochlorofluorocarbon, which have high global warming potential. India continues to bear the brunt of extreme weather events. In 2018, 11 states recorded major extreme weather events that claimed 1,425 lives. Water Pollution As SERI 2009 pointed out that water pollution is a serious problem in India as almost 70 per cent of its surface water resources and a growing percentage of its groundwater reserves are CU IDOL SELF LEARNING MATERIAL (SLM)

306 Business Environment and Regulatory Framework contaminated by biological, toxic, organic and inorganic pollutants. In many cases, these sources have been rendered unsafe for human consumption as well as for other activities such as irrigation and industrial needs. This illustrates that degraded water quality can contribute to water scarcity as it limits its availability for both human use and the ecosystem. Agricultural activities still dominate in terms of overall impact on water quality. Besides rapidly depleting groundwater table, the country faces another major problem on the water front — groundwater contamination — a problem which has affected as many as 19 states, including Delhi. The geogenic contaminants, including salinity, iron, fluoride and arsenic have affected groundwater in over 200 districts spread across 19 states. Studies have shown that long- term intake of fluoride can cause tooth decay and crippled bones. Arsenic can cause skin cancer and skin pigmentation. Statistics cited by SERI 2009 from various sources give some indication of the extent of water pollution in India. All of India’s fourteen major river systems are heavily polluted, mostly from the enormous quantities of untreated sewage discharged into them each year. The domestic sector is responsible for the majority of wastewater generation in India. Combined, the cities in the country produce huge quantities of domestic wastewater. Inadequate treatment of human and animal wastes also contributes to high incidence of water-related diseases in the country. Due to various factors, available water is deteriorating in quality. Tests indicate that the biological contamination of surface water sources, much of it due to untreated or partially treated sewage, exceeds permissible limits at many locations. Similarly, overexploitation of groundwater, besides other human activities has led to contamination of groundwater in many parts of the country. While salinity (dissolved salts in water) and iron make the taste of water and vegetables cooked in it unappealing, long-term usage of water with fluoride and arsenic can lead to several health hazards. Water pollution is on the increase. The SoE 2019 reports that both surface and groundwater in the country are under stress. 86 water bodies are critically polluted. The bulk of the polluted water bodies are in Karnataka, Telangana and Kerala. One of the reasons is the substantial increase (136 per cent) in the number of grossly polluting industries between 2011 and 2018. CU IDOL SELF LEARNING MATERIAL (SLM)

Natural Environment - I 307 Groundwater is also reeling under over exploitation, which is running 94.5 per cent of all minor irrigation schemes in the country. There has been an unsustainable increase in the number of deep tube wells that has gone up by 80 per cent between 2006-07 and 2013-14. SoE 2019 in Figures says that 70,736 rural habitats with a combined population of 47.4 million live on contaminated groundwater. Traces of new contaminants are now being reported in the country, suggesting a steady decline in the quality of groundwater. The water resources scenario is presented by Preamble to the National Water Policy brought out by the Ministry of Water Resources in 2012 which is reproduced below: A scarce natural resource, water is fundamental to life, livelihood, food security and sustainable development. India has more than 18% of the world’s population, but has only 4% of world’s renewable water resources and 2.4% of world’s land area. There are further limits on utilisable quantities of water owing to uneven distribution over time and space. In addition, there are challenges of frequent floods and droughts in one or the other part of the country. With a growing population and rising needs of a fast developing nation as well as the given indications of the impact of climate change, availability of utilisable water will be under further strain in future with the possibility of deepening water conflicts among different user groups. Growing pollution of water sources, especially through industrial effluents, is affecting the availability of safe water besides causing environmental and health hazards. In many parts of the country, large stretches of rivers are both heavily polluted and devoid of flows to support aquatic ecology, cultural needs and aesthetics. The Policy Statement remarks that access to water for sanitation and hygiene is an even more serious problem. Inadequate sanitation and lack of sewage treatment are polluting the water sources. Further, low consciousness about the overall scarcity and economic value of water results in its wastage and inefficient use. Acid Rain Incidences of acid rain have been on the increase. Acid rain is the direct consequence of air pollution caused by gaseous emissions (carbon monoxide, sulphur dioxide and nitrogen oxides) CU IDOL SELF LEARNING MATERIAL (SLM)

308 Business Environment and Regulatory Framework from industrial sources, burning of fuels (thermal plants, chimneys of brick-kilns or sugar mills.) and vehicular emissions. The most important effects of acid rain are damage to freshwater aquatic life, vegetation and damage to buildings and material. In India, the main threat of an acid rain disaster springs from our heavy dependence on coal as a major energy source. Even though Indian coal is relatively low in sulphur content, what threatens to cause acid rain in India is the concentrated quantity of consumption, which is expected to reach very high levels in some parts of the country by 2020 (SERI, 2009). Noise Pollution Noise has been recognised as a pollutant, not merely a nuisance. The Central Pollution Control Board (CPCB) notified the ambient noise standards, in 1987 under section 20 of the Air (Prevention and Control of Pollution) Act, 1981. Surveys have shown that for residential areas, average noise level exceeds the day as well as night time limit for major cities. The situation is worse in silence zone areas. Solid Waste Solid waste management is an enormously growing challenge. Plastics and other biologically non-degradable substances are piling up dangerously in and around cities and other places. According to SoE 2019, 79 major protests against unsanitary landfills and dump yards have been recorded in 22 states in the past three years. Maharashtra, which registered 16 major protests, leaves 43 per cent of its waste unprocessed. While India claims to process 96 per cent of its biomedical waste, eight states and UTs have defaulting hospitals. According to some estimates, nearly two decades ago, our cities and towns generated about 40 million tonnes of municipal solid waste (MSW) per year. The Energy Research Institute (TERI) estimated that this could well touch 260 million tonnes per year by 2047. (Municipal solid waste is solid waste generated by households, commercial establishments and offices and does not include the industrial or agricultural waste). CU IDOL SELF LEARNING MATERIAL (SLM)

Natural Environment - I 309 E-Waste The UNEP Report “Recycling – From E-Waste to Resources” was released on the Indonesian island of Bali on February 22, 2010 at the start of a week-long meeting of officials and environmentalists. According to some estimates, by 2020, e-waste in South Africa and China will have jumped by 200 per cent to 400 per cent from 2007 levels, and by 500 per cent in India. In India too, e-waste increase manifold and the problem is further increasing very fast. The unorganised recycling sector which fails to practice eco-friendly. E-waste recycling methods release large amount of toxic chemicals. The toxic gases and the large volume of electronic waste adds to environmental pollution in India. Health Problems Air quality is deteriorating especially in metropolitan cities, mainly due to vehicular emissions.. The toxicology of air pollution is very complex as there are different types of pollutants affecting the individual differently. The pollutants in air, namely – SO, NO and Suspended 2 × Particulate Matter (SPM) – damage the human respiratory and cardio-respiratory systems in various ways. The elderly, children, smokers and those with chronic respiratory diseases are the most vulnerable. It has been reported that high levels of pollution affect mental and emotional health too. Elevated levels of lead in children result in impaired neurological development, leading to lowered intelligence quotient, poor school performance and behavioural difficulties. SoE 2019 points out that the country shares the world’s largest absolute burden of at least 11 major neglected tropical diseases, which includes diseases like dengue. One of the tragedies is that not only that the health care system is inadequate but also it is deteriorating in some respects. The SoE observes that India’s rural health infrastructure is ailing. There is a 35 per cent shortfall in the number of 24 × 7 public health centres, where 26 per cent of the positions for medical officers are lying vacant. In fact, Kerala does not have a single 24 × 7 public health centre. Mining Pollution Mining, apart from being an important source of water pollution, contributes significantly to land pollution as well, for it upsets the ecology with acid wastes, silt and other contaminants. CU IDOL SELF LEARNING MATERIAL (SLM)

310 Business Environment and Regulatory Framework Severe ecological damage is an inevitable by-product of mining. Mining activity often leads to environmental problems like land degradation, particularly in open-cast mining and land subsidence in underground mining. Open-cast mining in areas with forest cover causes deforestation. Pollution due to mining reached alarming proportions, mainly due to over-exploitation and mismanagement of natural resources. India produces 88 minerals – 4 fuel-related minerals, 10 metallic minerals, 50 non-metallic minerals and 24 minor minerals. In 2014-15, India had 3025 operative mines – excluding mining areas for minor minerals, crude petroleum, natural gas and atomic minerals. Pollution in Developing Countries Although pollution has much to do with the level of economic activities, the problem of pollution in developing countries is as serious as, sometimes even more serious than, in the advanced countries because of the following reasons: 1. Use of obsolete production devices and processes in certain areas. 2. Reluctance on the part of industrialists and other offenders to employ pollution control devices. 3. Poor maintenance of automobiles. 4. Overcrowding and congestion in urban areas. 5. Lack of civic consciousness because of the absence of proper environmental education. 6. Absence of proper spatial and environmental planning in respect of the location of industries and power and irrigation projects, urban development and agricultural operations. 7. Use of improper inputs like low quality fuel, which causes more pollution. 8. Lack of effective legislative measures to control and prevent environmental destruction. 9. Inefficiency in the administration of existing safeguards. CU IDOL SELF LEARNING MATERIAL (SLM)

Natural Environment - I 311 10. Above all, the authorities like municipal corporations, which are supposed to take effective steps for the protection of the environment, themselves have become major offenders. The above factors are very much true of India too. Some developing countries are also affected by the relocation of polluting industries from the developed to the developing ones. Similarly, several products which are banned in the developed nations are marketed in the underdeveloped world. The dumping of nuclear and hazardous wastes in developing countries, and the shifting of polluting industries to the developing countries impose heavy social costs on them. The exploitation of the natural resources of the developing countries to satisfy the global demand also often cause ecological problems. When the multinationals employ in the developing nations polluting technologies which are not allowed in the developed countries or do not care for the ecology as much as they do in the developed nations, it is essentially a question of ethics. 10.4 Changing Role of Government The dangerously increasing ecological problems demand the government to play a crucial role to preserve the ecological balance and to restore, to the extent possible, the lost balance. This implies that, today and in future, government shall play a much more extensive and active role than in the past in respect of ecology. In other words, the role of government in the economy is changing. Government has to formulate policies, plans and regulations for ecological protection and ensure their effective implementation. Business, and also citizens, confront with a more elaborate and strict environmental protection regime. Policies, plans and regulations governing land use, prevention of soil erosion, prevention of all types of pollution, location of industrial and other activities, production and consumption process, technology, inputs used and so on need to be put in place. CU IDOL SELF LEARNING MATERIAL (SLM)

312 Business Environment and Regulatory Framework Many of the problems which the governments need to address are embodied in the documents of international endeavours like the Stockholm Conference on Human Environment, Kyoto Protocol, Climate Change Conference etc. described elsewhere in this unit. Environmental pollution has become a serious threat to humanity. It is, therefore, necessary to take effective measures to control it. If effective steps are not taken to control environmental damage, economic growth may become self-defeating and not self-sustaining, for the seeds of destruction are present in the process of growth itself. Governments have therefore been taking a number of measures for environmental protection. Regulatory Reforms Revisiting the Policy and Legislative Framework The regulatory regimes for environmental conservation comprise a legislative framework, and a set of regulatory institutions. Inadequacies in each have resulted in accelerated environmental degradation on the one hand, and long delays and high transactions costs in development projects on the other. Apart from legislation which is categorically premised on environmental conservation, a host of sectoral and cross-sectoral laws and policies, including fiscal regimes, also impact environmental quality. Ministry of Environment and Forest and Climate Change Ministry of Environment and Forest and Climate Change (MoEF&C) is the nodal agency in the Central Government for overseeing the implementation of India’s environment and forest policies and programmes relating to conservation of the country’s natural resources including lakes and rivers, its biodiversity, forests and wildlife, ensuring the welfare of animals and prevention and abatement of pollution. While implementing these policies and programmes, the Ministry is guided by the principle of sustainable development. The broad objectives of the Ministry are:  Conservation and survey of flora, fauna, forests and wildlife  Prevention and control of pollution  Afforestation and regeneration of degraded areas CU IDOL SELF LEARNING MATERIAL (SLM)

Natural Environment - I 313  Protection of environment, and ensuring the welfare of animals These objectives are well supported by a set of legislative and regulatory measures, aimed at the preservation, conservation and protection of the environment. National Environment Policy Government has announced a National Environment Policy in 2006. The Policy is intended to be a guide to action; in regulatory reform, programmes and projects for environmental conservation; and review and enactment of legislation, by agencies of the Central, State and Local Governments. The Policy also seeks to stimulate partnerships of different stakeholders, i.e., public agencies, local communities, academic and scientific institutions, the investment community, and international development partners, in harnessing their respective resources and strengths for environmental management. The dominant theme of this policy is that while conservation of environmental resources is necessary to secure livelihoods and well-being of all, the most secure basis for conservation is to ensure that people dependent on particular resources obtain better livelihoods from the fact of conservation, than from degradation of the resources. Measures for Protection of Environment Several short-term and long-term measures have been suggested to combat pollution. Short-term Measures Three important short-term measures have been proposed to combat pollution. These are: Direct Regulation: Under direct regulation, the concerned authority passes laws and regulations specifying anyone or more of the following: 1. Maximum level of pollutants that may be legally discharged; 2. Types of pollutants that may be discharged; 3. The type of production process that may be employed; 4. The type and quality of inputs used; 5. The type of pollution control techniques or devices that should be employed; CU IDOL SELF LEARNING MATERIAL (SLM)

314 Business Environment and Regulatory Framework 6. Zoning regulations; and, 7. Ban on certain polluting activities. Subsidisation: Under this approach, the demand for pollution control devices is sought to be increased by lowering their prices through subsidies. Further, grants may be given to promote research in pollution control. Economic Incentives: Under this system, fees or charges are collected from the polluters. The amount of fees or charges may be equivalent to the damage caused by pollution. In this way, the polluter is made to pay for the damage he causes. This will induce the polluter to reduce pollution. Long-term Measures Since pollution has assumed very serious proportions, we have to take certain long-term measures to combat it. The important long-term measures are: 1. Control of Population: Pollution is a by-product of production and consumption activities. Population explosion necessitates large-scale production and consumption. Population control should therefore be regarded as an essential step towards environmental protection. 2. Development of New Technology: To a very large extent, the type and level of pollution depends on the nature of the technology employed. The present-day industrial and transport technologies are highly polluting in their nature. The development of pollution-free or low-pollution technology should therefore provide the primary corrective. Technological development in the field of pollution control are also essential. 3. Relocation of Economic Activities: Certain polluting activities have to be relocated in such a way that the environmental damage caused by them is reduced. 4. Decentralisation and Dispersal of Industrial Activities: The large size of the units and the concentration of industries in a limited area make the pollution problem very serious. When the pollutants discharged are in small quantities, nature or the environment will be capable of cleaning itself. Hence, decentralisation and wider dispersal of industrial activities are important. CU IDOL SELF LEARNING MATERIAL (SLM)

Natural Environment - I 315 5. Restructuring Tastes and Preferences: Lifestyles and preferences should be altered to restructure the consumption pattern so that the use of those goods and services, the production of which causes serious environmental problems, is reduced, wherever possible. 6. Legal Measures: Several legal measures are required to control pollution. In India, there are several laws to control pollution. Government of India also brought out a Policy Statement on Abatement of Pollution in 1992. One of the important laws, Environment Protection Act, 1986 was described in Unit 6. Given below is a very brief description of other important national laws and the Policy Statement on Abatement of Pollution in 1992. The Water (Prevention and Control of Pollution) Act, 1974: Following this Act, a Central Pollution Control Board (CPCB) at Central Government level and State Pollution Control Boards (SPCB) at the State Government level were established. The responsibilities of the Central Board in promoting pollution abatement included coordinating activities of State Boards and resolving dispute among them, providing technical assistance, conducting investigations, opening laboratories for analysis of samples, establishing fees for different types of sample testing, researching issues and problems, training personnel, conducting media and public awareness campaigns, collecting and disseminating data on water pollution and working with State Boards to set standards. The State Boards undertake plant-level inspections and monitoring, and advise the Central Board of problems and trends at the local level. Plants can be required to provide the State with information on their pollution control technologies, and the State may acquire effluent samples, which are admissible in court. The Central Pollution Control Board has instituted the Minimal National Standards (MINAS) for major industry sectors. Air (Prevention and Control of Pollution) Act, 1981: Under the provisions of this Act, which provides for the prevention and control of air pollution and preservation of air quality, the CU IDOL SELF LEARNING MATERIAL (SLM)

316 Business Environment and Regulatory Framework CPCB is authorised to develop national standards for quality of air and devise means to prevent, control and abate pollution. The State Pollution Control Board will advise the State Government with regard to the suitability of location for establishing any industry that is likely to cause pollution. Noise is also included in the list of air pollutants and provisions of the Act are made applicable for its control. The Central Pollution Control Board (CPCB) is the national apex body for assessment, monitoring and control of water and air pollution. The executive responsibilities for enforcement of the Acts for Prevention and Control of Pollution of Water (1974) and Air (1981) and also of the Water (Cess) Act, 1977 are carried out through the Board. The CPCB advises the Central Government in all matters concerning the prevention and control of air, water and noise pollution and provides technical services to the Ministry for implementing the provisions of the Environment (Protection) Act, 1986. Under this Act, effluent and emission standards in respect of 61 categories of industries have been notified. National Green Tribunal Act, 2010 and National Green Tribunal: An important step taken by Government of India for protection of environment was the enactment of the National Green Tribunal Act, 2010 and the establishment of the National Green Tribunal (NGT) on October 18, 2010 under this Act. Background of the Act: One may think that the National Green Tribunal Act, 2010 is belated awakening by Government of India. The introductory part of the Act states that the law was made as it was considered expedient to implement the decisions taken at two UN Conferences (in 1972 and 1992) and the judicial pronouncement in India construing the right to healthy environment as a part of the right to life under article 21 of the Constitution. India was a party to the decisions taken at the United Nations Conference on the Human Environment held at Stockholm in June, 1972, calling upon the nations to take appropriate steps for the protection and improvement of the human environment. Again, decisions were taken at the United Nations Conference on Environment and Development held at Rio de Janeiro in June, 1992, in which India participated, called upon the nations to provide effective access to judicial CU IDOL SELF LEARNING MATERIAL (SLM)

Natural Environment - I 317 and administrative proceedings, including redress and remedy and to develop national laws regarding liability and compensation for the victims of pollution and other environmental damage. National Green Tribunal (NGT): The NGT was established on October 18, 2010 under National Green Tribunal Act, 2010 for effective and expeditious disposal of cases relating to environmental protection and conservation of forests and other natural resources. The responsibility of the Tribunal also includes enforcement of any legal right relating to environment and giving relief and compensation for damages to persons and property and for matters connected therewith or incidental thereto. The NGT is a specialised body equipped with the necessary expertise to handle environmental disputes involving multidisciplinary issues. It is laid down that the Tribunal shall not be bound by the procedure laid down under the Code of Civil Procedure, 1908, but shall be guided by principles of natural justice. The Tribunal’s dedicated jurisdiction in environmental matters shall provide speedy environmental justice and help reduce the burden of litigation in the higher courts. The Tribunal is mandated to make and endeavour for disposal of applications or appeals finally within 6 months of filing of the same. Initially, the NGT is proposed to be set up at five places of sittings and will follow circuit procedure for making itself more accessible. New Delhi is the Principal Place of Sitting of the Tribunal and Bhopal, Pune, Kolkata and Chennai shall be the other four places of sitting of the Tribunal. The Chairperson of the NGT is a retired Judge of the Supreme Court, headquartered in New Delhi. Other judicial members are retired Judges of High Courts. Each bench of the NGT will comprise at least one Judicial Member and one Expert Member. Expert members should have a professional qualification and a minimum of 15 years’ experience in the field of environment/forest conservation and related subjects. CU IDOL SELF LEARNING MATERIAL (SLM)

318 Business Environment and Regulatory Framework Some Other Measures To facilitate industries in preparing environmental statements, sector-specific environmental audit manuals have been prepared. A software package, Paravaran, along with a user manual has been prepared for analysis of information submitted in these environmental statements and distributed to all the State Pollution Control Boards. Training programmes are also being organised for officials of CPCB and SPCB to enable them to use the software. An Indian Centre for the Promotion of Cleaner Technologies (ICPC) with a network of institutions including industries, academic institutions and other user agencies is being set up. The Centre will provide evaluated and ranked technology options to entrepreneurs. A number of categories of heavily polluting industries have been identified. They are: cement, thermal power plant, distilleries, sugar, fertilizer, integrated iron and steel, oil refineries, pulp and paper, petrochemicals, pesticides, tanneries, basic drugs and pharmaceuticals, dye and dye intermediates, caustic soda, zinc smelter, copper smelter and aluminium smelter. A large number of the units identified under these have installed adequate facilities for pollution control and a number of units have been closed down. The Central Pollution Control Board, in consultation with State Pollution Control Boards, has identified critically polluted areas in the country which need special attention for control of pollution. The CPCB in collaboration with the SPCBs monitors the quality of fresh water resources of the country through a network of 480 monitoring stations located all over the country. Based on such monitoring, 13 heavily polluted and 26 medium-polluted river stretches have been identified. Under the National Ambient Air Quality Monitoring programme, there are a large number of stations covering many towns/cities across the country monitor the ambient air quality of the country. CU IDOL SELF LEARNING MATERIAL (SLM)

Natural Environment - I 319 10.5 Impact of Environmental Regulations on Business The growing concern (by the citizens, governments and judiciary) about the environmental degradation and the increasing regulations and judicial interventions are important factors affecting business – both established and future ones. As we have seen in the preceding section (Section 10.4), there are a number of laws and regulatory measures based on them which are binding on the business. There was tendency on the part of many businessmen to circumvent the regulations using the influences of men in the government (ministers and legislators), other politicians, bureaucrats, influential persons etc. However, things are becoming difficult for such people, thanks to growing environmentalism, other public protests and judicial intervention. In the last several decades, the Pollution Control Boards have ordered closure of a large number of industrial units. Many have been ordered to take effective pollution control measures. Business units will not be able to function in future unless they abide by environment protection norms. Firms shall strive to use technologies with no or least technology. Environmental Impact Assessment shall be an essential component of project evaluation. Further, companies shall also put in place a proper Environmental Audit System. To reduce the environmental impacts, firms shall adopt the 4Rs (Reduce, Reuse, Recycle and Regenerate) strategy described in Unit 11. There are many companies which have seriously endeavoured to become environment-friendly by the 4Rs approach. For example, when environmentally damaging packaging and waste produced by McDonald’s restaurants in USA became a public concern, it started a joint project with Friends of the Earth to eliminate the use of polystyrene containers and to reduce the amount of waste produced. Companies will have to be socially responsible and environment friendly to survive in future. Companies which are not may go out of business, either because of public agitation or judicial action CU IDOL SELF LEARNING MATERIAL (SLM)

320 Business Environment and Regulatory Framework The Hindustan Coca-Cola Beverages Private Limited (HCBPL, a subsidiary of the multinational Coca-Cola Company) is an illustrative case in point. The Plachimada agitation against the multinational beverages giant Coca-Cola is a case of what started as a local agitation (spearheaded by a local adivasi woman) gaining national and international attention, in due course, of the deleterious impacts of the company’s operations which eventually led to the formal closure of the company’s operations more than 16 years after its commissioning in 2000 and 15 years since the beginning of the protests against the company. Plachimada is a sparsely populated hamlet in Palakkad district where the company’s plant was located. Within a short period of starting its operations, the Coca-Cola factory at Plachimada created a host of severe social, economic, ecological and health problems, cutting across different sectors. Because of the mounting agitations and regulatory interventions, the factory which commenced operations in 2000 had to remain virtually defunct since 2005, and in July 2017, HCBPL informed the Supreme Court that it decided to wind operations of its Plachimada plant. There were many regulatory violations and dubious actions by the company since the very beginning and even as the deleterious impacts of its operations and hardships caused to the people became very obvious, the company appeared to be very unmindful of them and chose to proceed fighting legal battles, making Plachimada a notorious case of utterly irresponsible social behaviour of a multinational in a backward region of a developing country. This case also exposes the absence of a clear and comprehensive Federal legal framework to deal with such matters as pollution, food safety/contamination and related problems, confusion regarding the jurisdiction and powers of different levels of governments and other administrative organs, and consequences of hasty decisions without proper assessment of the situation and/or influenced by political overtones/populism. Plachimada is an excellent lesson for those MNCs and others who think that the laws can be scoffed of. As against cases such as those mentioned above, companies with proper environment management are likely to enjoy some competitive advantage because it provides social acceptance, long-term efficiency and sustainability; frees the company from social agitations, punitive actions by authorities, including developments which may lead to cessation of business; ‘greening’ helps a company to get the favour of consumers, particularly of those who are CU IDOL SELF LEARNING MATERIAL (SLM)

Natural Environment - I 321 concerned with the ecological damages of economic activities; and, commitment to sustainable development may lead to innovations that can enhance the competitiveness of the company. 10.6 Summary The air, water and land are heavily polluted due to industrialisation, infrastructural development, agricultural activities, transportation, mining and quarrying, household activities etc. Noise pollution is beyond limits of tolerance in many places, particularly in urban and industrial areas. Pollution is closely associated with the pattern, pace, process and level of economic development. However, the problem is very serious in many developing countries, including India, because of the obsolete and polluting technologies in use and acute lack of concern about pollution. At the same time, the modern technology, with inherent pollution potential, applied in all fields to accelerate economic growth and enhance comforts of life has been leading to widespread ecological destruction. Over the years, the problem of ecological destruction/pollution has grown alarmingly. The population explosion and the influx of ‘development’ activities will further aggravate the problem. If effective measures are not taken to check and reverse the trend of growing ecological damages, the earth and all the inhabitants will be heading towards big disasters after disasters. Governments in India have taken a number of measures to combat pollution. There are a number of short-term and long-term measures for environmental protection. Several laws have been passed and administrative mechanisms have been established for their implementation. The judiciary is playing an important role in environmental protection. The establishment of the National Green Tribunal in 2010 under the National Green Tribunal Act 2010 was a landmark development. The Tribunal is intended for effective and expeditious disposal of cases relating to environmental protection and conservation of forests and other natural resources. Environmental protection measures have important implications for business. A large number of polluting units were ordered closure. Many have been ordered to take measures to control pollution. CU IDOL SELF LEARNING MATERIAL (SLM)

322 Business Environment and Regulatory Framework The growing concern (by the citizens, governments and judiciary) about the environmental degradation, and the increasing regulations and judicial interventions are important factors affecting business – both established and future ones. Business units will not be able to function in future unless they abide by environment protection norms. Companies with proper environment management are likely to enjoy some competitive advantage because it provides social acceptance, long-term efficiency and sustainability; frees the company from social agitations, punitive actions by authorities, including developments which may lead to cessation of business; ‘greening’ helps a company to get the favour of consumers, particularly of those who are concerned with the ecological damages of economic activities; and, commitment to sustainable development may lead to innovations that can enhance the competitiveness of the company. Companies with proper environment management are likely to enjoy some competitive advantage because:  It provides social acceptance, long-term efficiency and sustainability.  It frees the company from social agitations, punitive actions by authorities, including developments which may lead to cessation of business.  ‘Greening’ helps a company to get the favour of consumers, particularly of those who are concerned with the ecological damages of economic activities.  Commitment to sustainable development may lead to innovations that can enhance the competitiveness of the company. 10.7 Key Words/Abbreviations 1. CPCB: Central Pollution Control Board 2. SPCB: Central Government level and State Pollution Control Boards 3. Acid Rain: Acid rain is the direct consequence of air pollution caused by gaseous emissions (carbon monoxide, sulphur dioxide and nitrogen oxides) from industrial CU IDOL SELF LEARNING MATERIAL (SLM)

Natural Environment - I 323 sources, burning of fuels (thermal plants, chimneys of brick-kilns or sugar mills.) and vehicular emissions. 4. NGT: National Green Tribunal. 5. Economic Incentives: Under this system, fees or charges are collected from the polluters. The amount of fees or charges may be equivalent to the damage caused by pollution. 6. MoEF&C: Ministry of Environment and Forest and Climate Change. 7. Municipal Solid Waste: Municipal solid waste is solid waste generated by households, commercial establishments and offices and does not include the industrial or agricultural waste. 8. MINAS: Minimal National Standards. 10.8 Learning Activity 1. Examine the pollution control regulations applicable to any medium-scale or large-scale industrial establishment. ----------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- 2. Read Annual Reports of Ministry of Environment, Forests and Climatic Change. ----------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------- 10.9 Unit End Questions (MCQs and Descriptive) A. Descriptive Type Questions (i) Long Answer Questions 1. Give a brief account of the causes of pollution. 2. “Economic growth and ecological damages are closely associated.” Elucidate. 3. Discuss the impact of pollution on economic growth, ecology and humanity. CU IDOL SELF LEARNING MATERIAL (SLM)

324 Business Environment and Regulatory Framework 4. Explain the role of government in environment protection. 5. “The environmental problems are growing alarmingly in India.” Discuss. (ii) Short Answer Questions 1. Write a note on National Green Tribunal Act, 2010 and the National Green Tribunal. 2. Describe briefly the implications of environment protection measures on business. 3. Define pollution. Why the problem pollution is very serious in developing countries? 4. Examine how population growth increases pollution. 5. Describe the relationship between industrialisation and pollution. B. Multiple Choice/Objective Type Questions 1. Urban population of India is larger than the total population of: (a) All countries except China (b) All countries except USA (c) All countries except USA and China (d) All countries except USA, USSR and China 2. The national body established in 2010 for effective and expeditious disposal of cases relating to environmental protection is: (a) Central Pollution Control Board (b) Central Pollution Control Council (c) National Green Tribunal (d) National Pollution Control Court 3. Which one of the following is not linked to the enactment of National Green Tribunal Act, 2010? (a) U N Conference on the Human Environment, 1972. (b) U N Conference on Environment and Development, 1992 CU IDOL SELF LEARNING MATERIAL (SLM)

Natural Environment - I 325 (c) Judicial Pronouncement Related to Article 21 of the Constitution (d) Medha Patkar’s Agitation 4. According to the 2011 Census, the share of urban population in the total population of India was about: (a) 31 per cent (b) 23 per cent (c) 45 per cent (d) 17 per cent 5. The nodal agency for overseeing the implementation of India’s environment related policies and programmes is: (a) Ministry of Environment and Forest and Climate Change (b) Ministry of Environment and Forest (c) Ministry of Environment and Natural Resources (d) Ministry of Environment Answers: 1. (a), 2. (c), 3. (d), 4. (a), 5. (a). 10.10 References Text Reference 1. Ministry of Environment and Forests, Government of India, State Environment Report India, 2009. Suggested Readings 1. Down to Earth Magazine (A Fortnightly on Politics of Development and Environment Aided by the Centre for Science and Environment and Published from New Delhi, India). 2. Government of India, Economic Survey (Annual). 3. Centre for Science and Environment (CSE), State of India’s Environment Report. CU IDOL SELF LEARNING MATERIAL (SLM)

326 Business Environment and Regulatory Framework 4. Annual Report of Ministry of Environment, Forests and Climate Change. 5. Thomas L. Friedman, Hot, Flat, and Crowded. Web Resources 1. www. ifrc.org/ifrc/world-disaster-report 2. www.india.gov.in/national-environment-policy-2006 3. https://www.india.gov.in/official-website-ministry-environment-and-forests  CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT 11 NATURAL ENVIRONMENT - II Structure: 11.0 Learning Objectives 11.1 Introduction 11.2 Green Marketing 11.3 Environmental Technology 11.4 Ecological Implications of Technology 11.5 Sustainable Development 11.6 Summary 11.7 Key Words/Abbreviations 11.8 Learning Activities 11.9 Unit End Questions (MCQs and Descriptive) 11.10 References 11.0 Learning Objectives After studying this unit, you will be able to:  To get an idea of the meaning and dimensions of green marketing  Discuss the relevance and growth of environmental technology  Elaborate the ecological implications of technology  Explain the meaning, principles and elements of sustainable development. CU IDOL SELF LEARNING MATERIAL (SLM)

328 Business Environment and Regulatory Framework 11.1 Introduction In the previous Unit, we have seen the deleterious effects of the indiscriminate economic development efforts. Many species have become extinct or are endangered, pollution of all sorts have become highly unbearable in many parts, resources are fast depleting, physical environment of living is miserable for millions, climate changes have become a matter of serious concern, a large section of the population don’t get safe drinking water or air – there are many more items in the list of highly alarming developments. In other words, we have been meeting our needs (often greed) at the expense of the needs of the future generations. In this concluding Unit of this course, we take a look at the beneficial deleterious effects of technologies and explore ways and means to protect the environment. The move towards environmental protection will require concerted efforts to combat the adverse ecological degradation and to develop eco-friendly production and consumption culture. Of prime importance is development of eco-friendly technology, i.e., technology which reduces or is free from different types of pollution or such technology that uses less power or other inputs, substitutes biologically degradable materials for non-degradables, non-conventional energy etc. A comprehensive and long-term approach to ecological protection is sustainable development. In this context, this unit discusses green marketing which seeks to reform production technologies and processes and consumer preferences; technological possibilities to combat ecological degradation; ecological implications of technology and the sustainable development strategies. 11.2 Green Marketing Green marketing (also known by other terms such as Environmental Marketing, Ecological Marketing, Eco-Marketing and Sustainable Marketing) has received increasing attention in the last three decades or so. There is considerable appreciation of the fact that environmental factors should receive due attention in the project formulation and the functioning of an enterprise. CU IDOL SELF LEARNING MATERIAL (SLM)

Natural Environment - II 329 Meaning According to the American Marketing Association, green marketing is the marketing of products that are presumed to be environmentally safe. Thus, green marketing incorporates a broad range of activities, including product modification, changes to the production process, packaging changes, as well as modifying advertising. Green marketing began in Europe in the early 1980s when certain products were found to be harmful to the earth’s atmosphere. Consequently, new types of products were created, called “green” products, that would cause less damage to the environment. The movement quickly caught on in the United States and has been growing steadily eversince. The development of ecologically safer products, recyclable and biodegradable packaging, energy-efficient operations and better pollution controls are all aspects of green marketing. Green marketing has produced advances such as packages using recycled paper, phosphate-free detergents, refill containers for cleaning products, and bottles using less plastic (Marketing Dictionary). Green marketing addresses the concern of the consumers/society about the different dimensions of the ecological impacts of a product. The major thrust in green marketing is projecting environmental superiority over competing products so that the potential consumer perceives it as a green product which does not have (or minimal possible) harmful effects on his health and the environment. Organic farm products (i.e., products in the production of which chemical fertilizers, pesticides, insecticides etc. are not used) are good example of green/eco- friendly product. Superiority claimed for green products include non-toxicity, energy efficiency, environment friendly manufacturing practices, non-polluting and biodegradable packaging, etc. Although there is hardly any product which has a zero impact on the environment, the terms “green product” and “environmental product” refer to such products which strive to minimise the ecological damages vis-à-vis resources used and production, marketing and consumption processes, besides the safety aspects of the product. For example, recycled paper is generally considered a green product. Although it is produced by recycling old paper, thereby reducing and reusing waste without depleting natural resources for raw material, it is not entirely green because the recycling process has environmental impacts. CU IDOL SELF LEARNING MATERIAL (SLM)

330 Business Environment and Regulatory Framework Green marketing is based on following three assumptions:  Consumers are aware of green products.  Consumers perceive a societal and personal benefit in green products.  Consumers are willing to pay a premium price for the ‘greenness’. Growth Green marketing has been growing in popularity since around 1990 as a response to the ecological damages caused by the indiscriminate and clandestine production and consumption process pursued globally. The exploitation of the favour for green products has been mind boggling that one study has found that in several developed countries green advertising has increased almost tenfold in the 20 years until 2006 and nearly tripled since 2006 to 2009 and continues to grow by leaps and bounds. Over the years, green marketing has shifted from niche marketing to mainstream marketing. Important reasons for this include the following: 1. It is but one reflection of the growing environment friendliness of the society triggered by the realisation of dreadful consequences of the increasing ecological problems. 2. Willingness of a section of consumers to pay a premium price for green products. 3. Eagerness of firms to take advantage of a growing green market. 4. Government regulations that compel companies to take care of the ecological balance. 5. Growing social orientation and good governance of companies. 6. An image building strategy in a competitive environment. Role of Consumers Environmentally-conscious behaviour of consumers is required for success of green marketing. One type of environmentally-conscious behaviour is environmental consumerism (green buying), i.e., purchasing and consuming products that are benign towards the environment. Some examples of these products are household items manufactured with post-consumption plastics or paper, recyclable or reusable packaging, energy-efficient light bulbs, and detergents CU IDOL SELF LEARNING MATERIAL (SLM)

Natural Environment - II 331 containing ingredients that are biodegradable, non-polluting and free of synthetic dyes or perfumes. These types of ecologically-safe products are just a few of the many currently available items that can facilitate the long-term goal of protecting and preserving our natural habitat. According to Linden et al., consumers have a vital role in sustainable development in at least three respects: (1) consumers’ preferences and demands are in a key position when producers consider whether it is worthwhile investing in environment-friendly products and production, (2) moreover, consumers’ own choices and lifestyles have a direct impact on the environment, and (3) consumers’ attitudes are also taken as an important incitement of necessary political changes that give more weight to the environment as compared with other social tasks. Therefore, green marketers need to understand the consumers in terms of their preferences, choices, lifestyle and attitudes in relation to the environment. Keys to Successful Green Marketing Susan Ward suggests the following three keys to successful green marketing: Being genuine: Being genuine means that: (a) the marketer is actually doing what it claims to be doing in its green marketing campaign and (b) that the rest of the firm’s business policies are consistent with whatever it is doing that’s environmentally friendly. Both these conditions have to be met for the firm’s business to establish the kind of environmental credentials that will allow a green marketing campaign to succeed. Educating the customers: Green marketing is not just a matter of letting the consumers know the firm is doing whatever it is doing to protect the environment, but also a matter of letting them know why it matters. Otherwise, for a significant portion of the target market, it is a case of “So what?” and the green marketing campaign goes nowhere. Giving the customers an opportunity to participate: This means personalising the benefits of the firm’s environmentally friendly actions, normally through letting the customer take part in positive environmental action. CU IDOL SELF LEARNING MATERIAL (SLM)

332 Business Environment and Regulatory Framework Green Washing As green marketing has grown in popularity, green washing too has grown as a byproduct of it. The term green washing refers to misleading marketing about the environmental benefits of a product. It is “disinformation disseminated by an organisation so as to present an environmentally responsible public image.” “Green washing is the unjustified appropriation of environmental virtue by a company, an industry, a government, a politician or even a non-government organisation to create a pro-environmental image, sell a product or a policy, or to try and rehabilitate their standing with the public and decision-makers after being embroiled in controversy.” The term green sheen has similarly been used to describe organisations that attempt to show that they are adopting practices beneficial to the environment. Some people also describe it as green white washing. Risks of Green washing TerraChoice, a prominent North American environmental marketing firm, points out that, if left unchecked, green washing creates the following significant risks:  Well-intentioned consumers will be misled into purchases that do not deliver on their environmental promise. When this happens, the consumer’s trust is misplaced and the potential environmental benefit of his or her purchase is wasted.  Competitive pressure from illegitimate environmental claims will take market share away from products that offer legitimate benefits, thereby slowing the spread of real environmental innovation in the marketplace.  Green washing will lead to cynicism and doubt about all environmental claims. Consumers will give up on marketers and manufacturers, and give up on the hope that their spending might be put to good use.  The sustainability movement will lose the power of the market to accelerate progress towards sustainability. CU IDOL SELF LEARNING MATERIAL (SLM)

Natural Environment - II 333 Countering Green Washing and Establishing Credibility of Green Marketing As credibility is the foundation of effective green marketing, green products must meet or exceed consumer expectations by delivering their promised consumer value and providing substantive environmental benefits. Often, consumers do not have the expertise or ability to verify green products’ environmental and consumer values, creating misperceptions and skepticism. Evidence indicates that successful green products have avoided green marketing myopia by establishing the credibility of product claims apart from positioning consumer value and calibration of consumer knowledge. It is pointed out that credibility of ‘green’ claims can be established by:  Employing environmental product and consumer benefit claims that are specific, meaningful, unpretentious and qualified (i.e., compared with comparable alternatives or likely usage scenarios).  Procuring product endorsements or eco-certifications from trustworthy third parties, and educating consumers about the meaning behind those endorsements and eco- certifications. Encouraging consumer evangelism via consumers’ online social networks with compelling, interesting, and/or entertaining information about environmental products. The legal implications of marketing claims call for caution. Misleading or overstated claims can lead to regulatory or civil challenges. The increasing deception caused by green washing has made consumer organisations and statutory authorities alert. For example, in the US, the Federal Trade Commission has given out elaborate guidelines in respect of green marketing. Norway’s consumer ombudsman has targeted automakers who claim that their cars are “green”, “clean” or “environmentally friendly” with some of the world’s strictest advertising guidelines. 11.3 Environmental Technology As environmental protection has become inevitable, substantial efforts have been made to develop technology to abate pollution. Technologies have been developed to treat effluent water and other wastes from industries. Similarly, municipal wastes can be treated. The more happy CU IDOL SELF LEARNING MATERIAL (SLM)

334 Business Environment and Regulatory Framework news is that in several cases the waste can be converted into wealth (e.g., manure from waste). There is considerable scope for recycling waste into useful products, like recycling waste paper into useful products. Recycling will also reduce the exploitation of natural resources and help protection of ecology. Indeed, the environmental technologies, products and services is a big and fast growing business. We need to constantly endeavour to develop environmental friendly technologies. Popularity of green market should be a stimulus to eco-friendly agricultural and industrial activities. The terms ‘green product’ and ‘environmental product’ are used commonly to describe those that strive to protect or enhance the natural environment by conserving energy and/or resources and reducing or eliminating use of toxic agents, pollution and waste. Use of CNG, instead of petrol/diesel, in vehicles will reduce pollution by automobiles. In 2002, Supreme Court of India gave a directive to adopt CNG in all public transport systems in the capital city of India to curb pollution. Substitution electric power for petrol/diesel will reduce pollution caused by automobiles. Substitution of organic manures for chemical fertilizers has been advocated to maintain/improve the soil quality and to prevent soil degradation and other harmful effects. The concept of organic farming is gaining popularity. The demand for organic products is also growing. The business of what are known as environmental technologies, products and services have grown impressively in the last three decades – the business is indeed big and growing fast. It is often described as environmental services business. According to the Organisation for Economic Co-operation and Development (OECD), “the environmental industry consists of activities which produce goods and services to measure, prevent, limit and minimise or correct environmental damage to water, air and soil, as well as problems related to waste, noise, and ecosystems”. This sector deals with waste management, air pollution, water and waste, along with environmental services and equipment. But the structure of the industry is rapidly growing and changing, and it suffers from a lack of clear identity and poor representation as a sector in its own right. CU IDOL SELF LEARNING MATERIAL (SLM)

Natural Environment - II 335 Although the environmental services business market was dominated by developed countries in North America, Western Europe and Japan, it has been growing rapidly in the developing and emerging markets in Asia and Latin America as protection of the environment has become a higher priority. Factors Driving Growth There are several factors driving the growth of the environmental services business. The important factors are the following: Statutory requirements: A compelling factor driving the growth of the environmental technology business is the statutory requirements. Environmental regulations have grown in countries where such regulations were inadequate, particularly in developing countries, including India. Public pressure: There has been growing public awareness of the compelling need for environmental protection across the world, including developing countries where environmental concerns were not strong. Environmentalists and other publics have been increasing there voice against abuse and fouling of the environment. The public pressure compels governments, including local bodies, to take a strong stand on environmental matters. Business firms are also affected by public pressure. Judicial interventions: Growing judicial interventions is a force necessitating governments to formulate regulations and implement them. Law breakers will be compelled to pay the price for their wrong actions, as pointed out in the previous unit. As indicated in Unit 10, a judicial proclamation referring to Article 21 of the Indian Constitution was one of the factors which prompted the Government to enact the National Green Tribunal Act and establishment of the National Green Tribunal in 2010. International endeavours: There have been several global endeavours to address the ecological problems. The UN Conference on the Human Environment held at Stockholm in June, 1972 and UN Conference on Environment and Development held at Rio de Janeiro in June 1992, called upon the nations to provide effective access to judicial and administrative proceedings, including redress and remedy, and to develop national laws regarding liability and compensation CU IDOL SELF LEARNING MATERIAL (SLM)

336 Business Environment and Regulatory Framework for the victims of pollution and other environmental damage. Decisions of these two Conferences have prompted Government of India to establish the National Green Tribunal. The UN efforts in addressing climate change originated in 1992 with the adoption of the Framework Convention on Climate Change. The UNFCCC established a long-term objective, general principles, common and differentiated commitments, and a basic governance structure, including an annual Conference of the Parties (COP). In the years since, the regime has evolved in different directions. It is heartening to note that the conscience and concerted efforts of many businessmen are engaged in formulating a perspective framework for promoting sustainable development. An important endeavour is the World Business Council for Sustainable Development (WBCSD) founded on the eve of the 1992 Rio Earth Summit to involve business in sustainability issues and give it a voice in the forum. Obviously, implementation of the environmental policies and regulations give a boost to the environmental services industry. Economic development of developing countries: Economic development requirements of developing countries are going to enormously expand the market for environmental services. The population explosion and the massive investment demands for environment related developments and the implementation of the UN’s Sustainable Development Goals 2015-30 greatly propel the massive expansion of this market. Human resource limitations: Manpower availability for many of the environment caring services is falling, calling for more mechanisation/automation. It may be noted here that a startup by some engineering students in Kerala developed a robot for cleaning drainages. Environmental service is an area with enormous scope for innovation. Growing awareness of corporate responsibility: Companies in various industrial sectors are adopting Corporate Environmental Reporting. They range across wide spectrum of industries and service sectors. CU IDOL SELF LEARNING MATERIAL (SLM)

Natural Environment - II 337 In July 2011, the Ministry of Corporate Affairs, Government of India, brought out a set of National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business to be adopted by all categories of enterprises, including SMEs. The Principles and Core elements laid down in the Guidelines are required to be integrated in the business policies, strategies and business processes emanating from the core business purpose of an enterprise. The Guidelines have been articulated in the form of nine Principles with the Core Elements to actualise each of the principles. Of these nine principles, the following three are particularly important from the ecological perspective:  Businesses should conduct and govern themselves with Ethics, Transparency and Accountability.  Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle.  Business should respect, protect, and make efforts to restore the environment. Companies are required to disclose their compliance to these principles. The growing popularity of Triple Bottom Line (TBL) vis-à-vis Corporate Social Responsibility (CSR) is a reflection of an increasing acceptance of the corporate sector of the ecological responsibilities. The concept of TBL, consisting of the triple Ps – people, planet, profit – is that protection of the planet is as important as profit and protection of interests of employees and other people. The connotation of the TBL is that companies should be preparing three different (and quite separate) bottom lines:  The traditional bottom line of the profit and loss account.  The bottom line of a company’s people account — a measure in some shape or form of how socially responsible the organisation has been in its operations.  The bottom line of the company’s planet account — a measure of how environmentally responsible it has been. CU IDOL SELF LEARNING MATERIAL (SLM)

338 Business Environment and Regulatory Framework Future Scenario In 1998, OECD produced a report on “The Global Environmental Goods and Services Industry” listing the factors likely to influence future competitiveness. These factors continue to be relevant today.  Technological innovation: A substantial share of the environmental goods that will be in use in future do not currently exist.  Quality and service performance: The ability to adapt to clients’ needs and to produce effective and easily managed products.  Marketing and export strategies: These will need to respond to increasing globalisation and new market opportunities.  Flexibility in production: As regulatory requirements are modified, rapid and low-cost changes in products will be required. Conventional economies of scale and cost are less important as factors. Large firms with wide competence are increasingly necessary. Tailor-made solutions dependent on performance and innovation can be more important than price. These are indicative of the fact that environmental considerations are becoming increasingly critical in determining competitiveness. 11.4 Ecological Implications of Technology Technology has very substantial and diverse ecological implications – both negative and positive. The amazing technological revolution which we have been experiencing is swiftly advancing with increasing depth, width and ramifications. The impact of this is stupendous, breaking many barriers of progress, making numerous impossible things possible and enormously enhancing the convenience, comforts and standards of human life. At the same time, technology has dreadful impacts on the ecology and human life. CU IDOL SELF LEARNING MATERIAL (SLM)

Natural Environment - II 339 Harmful Effects of Agricultural Technologies When technology accelerates economic growth by breaking barriers to progress and making impossibles possible the process is, often, inherently destructive. Technology, in many instances, is a double-edged weapon which cuts open growth with one edge and at the same time chops off future potential and cuts open streams of destruction. For example, fertilizer, pesticides, insecticides etc. used in agriculture reduces potential productivity of land causes land and water pollution, kills many living creatures, weeds upsetting the natural ecology and contaminates food with pesticides. It was reported that when DDT was widely used, the breast milk of women in many parts of the world was found to contain DDT. The health of people engaged in agriculture using these inputs is affected by chemical pollution. Even people who are not involved in the agricultural activities may become victims, particularly when the chemical is sprayed aerially. Ferocious impact of the endosulfan pesticide on a large number of people in Kasaragod district of Kerala is a case in point. Many parts of the world have fallen prey to endosulfan that has affected a lot of humans, animals and the environment. The health effects of the chemical include neurotoxicity, late sexual maturity, physical deformities, poisoning, among others. People, especially newborns, have suffered deformaties, health complications and loss of family members due to exposure to the agrochemical. Endosulfan pesticide was used widely on crops like cashew, cotton, tea, paddy, fruits and others until 2011, when the Supreme Court banned its production and distribution. Over 20 years of aerial spraying of it on cashew plantations in Kerala by the Plantation Corporation of Kerala rendered thousands of people victims of such diseases as mentioned above. The Supreme Court directed the Kerala government to pay ` 500 crores as compensation to over 5,000 victims. Tubewells are depleting the ground water levels at alarming pace. Dams, particularly, large ones, cause may destruction of ecosystems (including that of the human population of the area) and may even cause problems like earthquakes, landslides etc. An ecosystem may be defined as “a natural system consisting of all plants, animals and microorganisms (biotic factors) in an area functioning together with all the non-living physical (abiotic) factors of the environment.” The health of people engaged in agriculture using these inputs is affected by chemical pollution. CU IDOL SELF LEARNING MATERIAL (SLM)

340 Business Environment and Regulatory Framework Many species have become extinct or are endangered. Pollution of all sorts have become highly unbearable in many parts, resources are fast depleting, physical environment of living is miserable for millions, climate changes have become a matter of serious concern, a large section of the population don’t get safe drinking water or air – there are many more items in the list of highly alarming developments. In other words, we have been meeting our needs (often greed) at the expense of the needs of the future generations. Ecological Implications of ICT The exciting developments in the field of information and communication technologies, and the rapid growth of its widespread usage have substantial positive and negative impacts on the ecology. First, the negative effects. The trend mentioned above causes a surge in the demand for energy and generation of e-waste. According to the International Energy Agency (IEA), around 4% of the world’s energy consumption in 2008 was due to the mass use of ICT and this figure would to rise to an incredible 40 per cent by the time the year 2030. It is pointed out that by this time, the demands on the world’s electricity sources will have also doubled and companies will need to have a viable solution to prevent computer technologies from being a major drain on the world’s energy resources. Computerisation is rampant and offices which run their computer systems on a mainframe server usually run the server 24 hours a day and is rarely shut down. To keep these servers from overheating, fans are installed within the hard drives. With the combined energy of the fans and the operation of the servers, the amount of energy being consumed is huge and results in a very high thermal count. Use of laptops, tabs, smartphones and the like is growing exponentially. The rapid obsolescence of products due to technological advances leads to replacement of the old ones with new ones increasing solid wastes including hazardous e-wastes. ICT has commendable favourable ecological implications too. The proliferation of ICT usage can substantially reduce paper consumption, reducing the impact of deforestation, pollution caused by the manufacturing and distribution process of paper, pollution caused by dust and microorganisms due to huge piling up of files and documents and raw paper etc. CU IDOL SELF LEARNING MATERIAL (SLM)

Natural Environment - II 341 Commendable efforts are also on to develop technologies which are less polluting. For example, numerous ICT companies have been designing “greener technology” to combat the detrimental effect that computers and their accompanying technology have on the environment. For example, the Green Grid, an organization of IT companies and professionals from around the world, is devising ways to improve the way energy is consumed by IT-oriented businesses and their offices. Ecological Impact of Energy Source and Consumption Energy source (i.e., type of energy) and level of consumption impacts ecology. The switch from coal to diesel and electricity has reduced pollution. Gone are the days when chimneys and smoky skies were indications of industrial growth. But thermal and nuclear power generations have ecological impacts. One of the largest contributors to gases in the atmosphere is the gases produced by the combustion process used to produce energy. In the United States, the lion’s share of energy comes from a combustion process. The combustion process produces harmful gases which can have a devastating impact on the ozone layer and contribute to what is known as the “Greenhouse Effect”. Hydel power, solar power and wind power need to get more importance. The Cochin International Airport (CIAL) in Kerala is the first airport in the world which generates its entire power requirement from solar. This is something which a variety of categories of enterprises can emulate. The CIAL experiment has received international accolade. Switch to LPG and electricity for cooking has substantially reduced air pollution from households, restaurants etc. The progress of use of CNC as fuel in automobiles is tardy. While India was one of the first countries to pledge the phasing out of non-electric vehicles, its national scheme to promote the sale of e-vehicles is yet to pick up. Against the target of 15-16 million e-vehicles by 2020, the county had 0.28 million vehicles till May 2019. Household Gadgets Besides the equipments and gadgets for commercial enterprises, technology negatively impacts the ecology by the large array of household gadgets designed to make life easier and CU IDOL SELF LEARNING MATERIAL (SLM)

342 Business Environment and Regulatory Framework more comfortable. Apart from the large demand for electricity/gas, they use large quantities of resource for their production and also contribute to solid waste, when old ones are discarded for new ones. Travel and Tourism The increase in travel has adverse impact on environment because of the different types pollution travel causes and in many cases consumption patterns which are not environment. Throwaway Society Plastics and other biologically non-degradable packaging materials etc. cause serious damages to the environment. Low Carbon Technology Low carbon technology, which aims at offsetting the amount of emissions polluting the air by using renewable fossil fuels, can help reduce ecological damage. China has been in the forefront of developing low carbon technology. Sustainable Development and Green Management A redeeming thing is the growing popularity of sustainable development and green management, as explained in following section (11.5). Technology is making advances in producing low energy products, products which economise resource use that will reduce the damage to the environment as explained in the section on Green Marketing (11.2). 11.5 Sustainable Development The growing emphasis on sustainable development by international organisations like the United Nations, World Bank, World Council for Sustainable Development, NGOs, leaders of countries, the public and so on is a reaction to the highly unsustainable pattern and process of development that the world has been following for a long time. No wonder, the heads of nations, supported by thousands of representatives of civil society organisations, rallied under the auspices of the United Nations have brought out an agenda called Sustainable Development Goals to be carried out during 2015-30, carrying further forward the Millennium Development Goals set for 2000-15. CU IDOL SELF LEARNING MATERIAL (SLM)

Natural Environment - II 343 Thanks to the initiative of global and national leaders, international organisations like the UN, FAO, International Agency for Energy (IAE), World Bank, IMF etc. and civil society activism sustainability is built into development policies and position at global level in respect of development of various sectors such as energy, land use, agriculture, forestry, mining, fisheries and so on. Definition, Meaning and Dimensions The UN’s World Commission on Environment and Development (WCED) defines sustainable development as development that meets the needs of the present without compromising the ability of future generations to meet their own needs. It is stated that this definition contains within it two key concepts:  The concept of ‘needs’, in particular, the essential needs of the world’s poor, to which overriding priority should be given; and  The idea of limitations imposed by the state of technology and social organization on the environment’s ability to meet present and future needs. The WCED observes that the goals of economic and social development must be defined in terms of sustainability in all countries – developed or developing, market-oriented or centrally planned. Interpretations will vary, but must share certain general features and must flow from a consensus on the basic concept of sustainable development and on a broad strategic framework for achieving it. Development involves a progressive transformation of economy and society. A development path that is sustainable in a physical sense could theoretically be pursued even in a rigid social and political setting. But physical sustainability cannot be secured unless development policies pay attention to such considerations as changes in access to resources and in the distribution of costs and benefits. Even the narrow notion of physical sustainability implies a concern for social equity between generations, a concern that must logically be extended to equity within each generation. In essence, sustainable development is a process of change in which the exploitation of resources, the direction of investments, the orientation of technological development, and CU IDOL SELF LEARNING MATERIAL (SLM)

344 Business Environment and Regulatory Framework institutional change are all in harmony and enhance both current and future potential to meet human needs and aspirations. Dimensions of Sustainable Development: Francis Cherunilam has pointed out in some of his books that there are three important dimensions of sustainable development:  Economic dimension  Ecological or physical dimension  Social dimension Physical dimension or ecological dimension refers to the physical aspects, i.e., to the planet. The physical aspect implies that development activities should take care of the sustainability of the planet, i.e., the ecosystem. It means that the strategy, technology, methods etc. used for development shall ensure the wholesomeness of the plant. Social dimension refers to the humanitarian aspects of development, particularly which aim at taking care of the basic human needs of the poor and the socially underprivileged. The sustainable development agenda of the United Nations, like the Millennium Development Goals (MDG) set out for the period 2000-2015 and the Sustainable Development Goals (SDGs) which follows the MDG from 2015-2030 and of the Government of India combine the physical and social dimensions of sustainable development. Economic and Ecological Dimensions: The economic growth process, consumption pattern and social human behaviour taking place all around the world have been, by and large, very indiscriminate and irresponsible. The harmful impact of the present indiscriminate production system is depicted in Figure 11.1. CU IDOL SELF LEARNING MATERIAL (SLM)


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