GreenTech Manufacturing Ltd., engaged in production of electronic appliances, has been facing criticism from environmental activists and local…

CA Final · Advanced Auditing, Assurance and Professional Ethics · RTP · January 2026
GreenTech Manufacturing Ltd., engaged in production of electronic appliances, has been facing criticism from environmental activists and local communities for its high energy consumption, discharge of untreated industrial waste and dependence on non-renewable resources. Considering the same, the company's management now wants to strengthen its environmental responsibility practices and align them with national and international commitments such as Paris Agreement and National Action Plan on Climate Change. Identify the principle which is being referred to in this case. Also, state the core elements associated with this principle.

Suggested Answer and Working Notes:

Principle 6 Protection and Restoration of Environment is being referred to in the given case. The sixth principle looks at the environmental responsibility as a basic requirement for economic prosperity and sustainability. The core elements associated with the principle are: (i) The entities should have policies, procedures, and practices in place to assess and rectify impacts to the environment. This should cover the whole life cycle of the product. (ii) The entities have to make use of natural and manmade resources in an optimum manner to ensure their sustainability by taking feedback from the stakeholders. (iii) The entities have to measure their performance relating to the prevention of pollution, destruction of forests, waste generation, energy use, land use, etc. (iv) The entities have to contribute towards climate change resilience in line with India's commitment to various international mechanisms such as, Paris Agreement and National Action Plans for Climate Change. (v) The entities should explore the comparison of its activities with industry best practices to reduce, reuse and recycle/ recover materials, resources. (vi) The companies have to look out for avenues by which they can improve their performance towards various environmental responsibilities.

Topics: Emerging Areas: Sustainable Development Goals (SDG) & Environment, Social and Governance (ESG) Assurance

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