The concept of Corporate Environment Responsibility (CER) has emerged as one of the crucial aspects of sustainable development in recent years. CER simply means the concept that emphasizes duties of corporations to contribute towards the society’s economic, social and environmental development to create a positive impact on the society as a whole. The concept of CER, is inextricably linked to Corporate Social Responsibility, and is considered as a mandate under the CSR. It is a part of corporate social behavior that relates to pollution prevention and cleaner production.¹ The shift of focus of scholars from the broad subjects of CSR towards a narrow subject of CER signifies the acknowledgment of the environmental aspect in corporate governance frameworks. 

Scholars like Klassen and McLaughlin argue that environmental responsibility is a due obligation for companies, i.e. the companies must give back to society when they use natural resources for economic benefits in order to achieve long term corporate development. ²

Enderle opines that Corporate Environmental Responsibility consists of two aspects; energy saving and reduction of emissions.³ The former one focuses on reducing the demand on the environment, while the latter one emphasizes on reducing the discharge of waste in the environment. 

The integration of both practices i.e. corporate social behavior and environmentally responsible behavior in the corporate governance framework is a crucial step in achieving environmental sustainability. The mandate of CER is needed to implement the corrective and preventive measures that are to be followed by corporations in their governance. 

The 1980s and 1990s witnessed a growth in proactive awareness about environmental responsibility beyond the previously existing regulatory frameworks. This led to the integration of environmental considerations into corporate strategy rather than treating them as isolated regulatory obligations.⁴ The  introduction  of  voluntary environmental  management  systems  (EMS),  such  as  ISO  14001, reflected  a  shift  towards  more comprehensive  environmental  stewardship.

John Elkington also introduced the concept of Triple Bottom Line (TBL) ⁵, which is a sustainability framework that revolves around three P’s: People, Planet and Profit (social, environmental and economic frameworks). Gradually, the concept of Environmental, Social and Governance (ESG) framework developed so as to assess and manage the impacts of corporations on the Environment. ⁶

In the present context, the CER framework has shifted beyond the regulatory compliances, and extends to the acceptance of proactive environmental governance by corporations for reducing their environmental footprints. Contrary to popular beliefs, CER doesn’t hinder the corporations pursuit of profit and economic benefits. Rather, it aims to foster long-term resilience, improve brand value, promote sustainability in both environmental usage and in economic developments. 

In the global context, many multinational corporations have undertaken commitments towards sustainable practices in their governance systems, for instance, Unilever’s  Sustainable  Living  Plan,  launched  in  2010, integrated environmental and social goals into its core business strategy.⁷  Patagonia, an outdoor apparel company, has incorporated environmental responsibility into its business model through initiatives such as using recycled materials, reducing car born emissions, and supporting environmental activism. ⁸

Similarly, in Nepal, various corporations have also followed CER mandates with due regard, for instance;
1.    Ring road green belt project: In partnership with the Department of Forest and Soil Conservation (DoFSC), Ncell facilitated a 10.2 KM section of the Ring Road, extending from Koteshwor to Kalanki, through tree planting and landscaping, thereby creating a green corridor along both sides of the highway. ⁹
2.    In 2022, Surya Nepal supported the ‘Mountain Cleanup Program’ led by the Nepal Army, to protect the Himalayas and restore their pristine beauty. Building upon the success of this initiative, Surya Nepal Prakriti continued the joint efforts for ‘Clean Mountain Campaign 2023’ by once again collaborating with Nepal Army. ¹⁰

The policies of CER in Nepal have also been shaped by the major Multilateral Environmental Agreements. Montreal Protocol on Substances the Deplete the Ozone Layer 1987¹¹  expressly bans the ozone-depleting substances in refrigeration, air conditioning and manufacturing, among other provisions. Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal, 1989 ¹²  mandates the industries in manufacturing and medical sectors to adhere to hazardous waste management protocols. The United Nations Framework Convention on Climate Change (UNFCCC) 1992 provides for mandatory provision of submission of reports on national emissions, and also to promote climate-resilient development. ¹³
In regards to national legislation in Nepal concerning Environmental Responsibility, the Constitution of Nepal, under Article 30 guarantees the right to a clean and healthy environment as a fundamental right, also, under the Directive Principles and State Policies, it mandates the state to adopt sustainable development practices and environmental conservation.¹⁴ Under the Environment Protection Act, 2076, it sets out the requirement of Environmental Impact Assessment and Initial Environmental Examination before the commencement of any development projects.¹⁵  Similarly, the Environmental Protection Rules 2077 provides further guidance on the standards of EIA and IEE as set out by the Act.¹⁶ The Industrial Enterprises Act 2076 provides for the deduction of expenses (upto 50% of the adjustable taxable income) for investing in systems and equipment that prevent or control pollution, technologies that minimize environmental impact by recycling or reusing waste materials. ¹⁷

Besides the roles of Legislature in enactment of Statutes and other frameworks to incorporate CER practices under corporate governance, the judiciary of Nepal has also pronounced several notable judgments in regards to this. 
1.    Surya Prasad Dhungel v. Godawari Marble Pvt. Ltd. et. al. ¹⁸¸ is a leading case in the preservation of the environment and the establishment of the right to environment as an essential aspect of the right to life. 
2.    In Rajendra Parajuli et. al. v. Shree Distillery Pvt. Ltd. et. al.,¹⁹ The court ruled that industrial processes should be run in a way that does not harm the environment. 
3.    Similarly, the need for environment protection in the process of industrial development and processes have been highlighted in other notable cases decided by the Supreme Court, for instance, Thaneshwor Acharya et. al. v. Bhrikuti Pulp and Paper Ltd.,²⁰  also in Yogi Narahari Nath et. al. v. Prime Minister Girija Prasad Koirala et. al. ²¹

Although various efforts have been made at national and regional levels in enforcement of CER through national and regional levels, as well as through judicial activism, it is essential to engage local communities and people in the planning and initiatives since they are the primary beneficiaries. Inclusive planning allows for both legitimacy and the sustainability of the corporate initiatives. It is necessary to implement clear environmental goals and policies that align with business strategy for a meaningful outcome. 

Conclusion
The Corporate Environmental Responsibility (CER) has evolved from a regulatory obligation to a strategic imperative for businesses worldwide, including in Nepal. Businesses must go beyond compliance and integrate CER into their core strategies for long-term sustainability. By aligning economic growth with ecological preservation, Nepal can foster an environment where businesses thrive while safeguarding the environment for future generations. Ultimately, CER is not just a legal duty but a moral and economic necessity for sustainable development.