ALP Chemicals and Paints Ltd., a manufacturing company listed on the stock exchange, has committed to improving its Environmental, Social and…
CA Final · Advanced Auditing, Assurance and Professional Ethics · MTP · January 2026
ALP Chemicals and Paints Ltd., a manufacturing company listed on the stock exchange, has committed to improving its Environmental, Social and Governance (ESG) transparency. Sustainability reporting plays a crucial role in enhancing accountability for the entity's ESG performance. The company has been discharging untreated chemical water into a nearby river, adversely affecting aquatic life. Management now plans to install an effluent treatment plant. What should be addressed in the pillar envisaged above? Highlight the various key elements included in this Pillar.
Suggested Answer and Working Notes:
Environment Pillar: The ESG pillar highlighted here is the “Environment” pillar which stands for corporate climate policies, energy use, waste, pollution, natural resource conservation, and treatment of animals. It includes the natural resources that every entity absorbs for its functioning like that of coal, electricity, water and so on. Processing this energy into products / services which will leave behind certain wastes like that of carbon emissions, water discharges, e-wastes and so on. Thus, one is dependent on the environment for carrying out its operations. The Environment pillar includes the following elements as under: Climate Change:Carbon EmissionsProduct Carbon FootPrintsFinancing Environmental ImpactClimate Change VulnerabilityNatural Resources:Water StressBio-diversity & land useRaw Material sourcingPollution & Waste:Toxic emission and wastePacking Material and wasteE- WasteEnvironment Opportunity:Clean TechGreen BuildingRenewable Energy
Topics: Emerging Areas: Sustainable Development Goals (SDG) & Environment, Social and Governance (ESG) Assurance
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