🗞️ Why in News The Supreme Court, in the Great Indian Bustard conservation case, ruled that Corporate Social Responsibility (CSR) must inherently include environmental responsibility, invoking Article 51A(g) to reframe green spending as a constitutional duty, not discretionary charity.
The Editorial Argument
The Hindu argues that the Supreme Court’s ruling represents a paradigm shift in how India conceptualises the relationship between corporate activity and environmental protection. By linking CSR to Article 51A(g) — the fundamental duty to protect the natural environment — the judiciary has elevated environmental spending from a voluntary corporate choice to a constitutional obligation.
The CSR Spending Imbalance
| CSR Category | Share of Total CSR Spending |
|---|---|
| Education | ~38% |
| Healthcare | ~22% |
| Rural development | ~10% |
| Environmental sustainability | 7-9% |
| Others | ~20% |
Despite the climate crisis and India’s own vulnerability to environmental degradation, corporations have overwhelmingly favoured human-centric sectors. Environmental initiatives receive less than one-tenth of total CSR spending.
The Supreme Court’s Constitutional Framing
A bench of Justices PS Narasimha and AS Chandurkar passed sweeping directions to protect the Great Indian Bustard (GIB), which faces extinction from overhead power lines and solar infrastructure in Rajasthan and Gujarat.
Key directives:
- Revised Priority Conservation Areas: 14,013 sq km in Rajasthan + 740 sq km in Gujarat
- Blanket prohibition on solar projects above 2 MW capacity in conservation zones
- Ban on new overhead transmission lines within designated areas
- Environmental CSR spending declared a constitutional mandate under Article 51A(g)
Article 51A(g) — The Fundamental Duty
Article 51A(g) states: “It shall be the duty of every citizen of India to protect and improve the natural environment including forests, lakes, rivers and wildlife, and to have compassion for living creatures.”
The Court held that corporations, as legal persons and citizens, cannot claim to be “socially responsible” while ignoring the environment. CSR funds are the “tangible expression” of this constitutional duty.
Great Indian Bustard — Conservation Crisis
| Parameter | Data |
|---|---|
| IUCN Status | Critically Endangered |
| Population | ~150 individuals (2025 estimate) |
| Primary habitat | Thar Desert (Rajasthan), Kutch (Gujarat) |
| Major threat | Overhead power lines (collision and electrocution) |
| Secondary threats | Habitat loss, hunting, wind energy infrastructure |
| Conservation plan | undergrounding of power lines in priority areas |
The GIB has declined from an estimated 1,260 individuals in 1969 to approximately 150 today — an 88% decline in five decades.
Policy Implications
The editorial argues this ruling should catalyse three reforms:
- Mandatory environmental allocation: Amend Schedule VII of the Companies Act to mandate minimum 15-20% of CSR spending on environment
- Corporate biodiversity offsets: Companies operating near ecologically sensitive areas should fund conservation as a condition of environmental clearance
- CSR impact assessment: Move from output-based reporting (amount spent) to outcome-based assessment (ecological recovery metrics)
CSR Framework in India
| Parameter | Detail |
|---|---|
| Legal basis | Section 135, Companies Act, 2013 |
| Applicability | Companies with net worth Rs 500 crore+ OR turnover Rs 1,000 crore+ OR net profit Rs 5 crore+ |
| Spending mandate | 2% of average net profits of preceding 3 years |
| Schedule VII | Lists eligible CSR activities (environment is listed but not mandated) |
| Total CSR spending (FY2024) | ~Rs 30,000 crore |
UPSC Relevance
Prelims: Article 51A(g), CSR under Section 135 Companies Act, Great Indian Bustard IUCN status, Schedule VII
Mains GS-2: Judicial activism in environmental protection; fundamental duties and their enforceability
Mains GS-3: Corporate environmental responsibility; biodiversity conservation; renewable energy vs wildlife conflict
📌 Facts Corner — Knowledgepedia
Supreme Court CSR-Environment Ruling:
- Bench: Justices PS Narasimha and AS Chandurkar
- Case: Great Indian Bustard conservation
- Key holding: Environmental CSR is constitutional duty under Article 51A(g)
- Conservation zones: 14,013 sq km (Rajasthan) + 740 sq km (Gujarat)
- Solar project ban: above 2 MW in conservation zones
CSR in India:
- Section 135, Companies Act, 2013
- 2% of average net profits (preceding 3 years)
- Total CSR spending FY2024: ~Rs 30,000 crore
- Education: 38%, Healthcare: 22%, Environment: 7-9%
Great Indian Bustard:
- IUCN: Critically Endangered
- Population: ~150 (down from 1,260 in 1969)
- Habitat: Thar Desert (Rajasthan), Kutch (Gujarat)
- Primary threat: overhead power line collisions
- Wildlife Protection Act, 1972: Schedule I
Other Relevant Facts:
- Article 48A (DPSP): State shall protect environment and wildlife
- Article 51A(g): Fundamental duty to protect natural environment
- National Wildlife Action Plan 2017-2031
- Desert National Park (Rajasthan): key GIB habitat
Sources: The Hindu, LiveLaw, CSR Universe