LEGAL EDUCATION IN MANAGEMENT SCHOOLS

8/10/2019 LEGAL EDUCATION IN MANAGEMENT SCHOOLS

1/32

1

Climate Change Law and Management

Education in Business Schools

Group -8

Mohit Agarwal PGP30145

Mwblib Basumatry PGP30147

Nadeem Natrajan PGP30148

Nakul Rethdhania PGP30149

Namita PGP30150


2/32

2

1. INTRODUCTION

We hear the words Global Warming and Climate Change a lot in the recent years.

Is it really such a huge problem? Should an average individual be bothered about it

in the way some organisations expect him/her to be? Will it eventually affect

everyones lives; even those who are not remotely responsible for the deterioration

of Planet Earth? The concerned person can see that there is a shift in the delicate

balance of the environment; be it in the direct climatic changes or in the intangible

occupational, lifestyle and cultural adaptations that have happened due to the

climate change. The problem is gigantic as it concerns the entire Earth, and it

requires the cooperation of everyone for a remedy.

Here in this project, Climate Change Law and Management Education in Business

Schools, we will try to analyse the problem from the specific angle of what a can

management education do to sensitize future managers to this issue.

We will broadly talk about the three aspects in the scope of this project

1. Climate Change

2. Industry

3. Management Education

These three issues are core to the entire discussion and their interplay is the topic of

research here.

Industry and Climate Change - How does industry effect climate change?

Management and Industry - How do managers manage industries?

Management education and climate change What is the ecological

sensitisation of managers created at the B schools?

1.1. The outline in a little more detail

1. Climate Change - Discussion on the realities of Climate change. Well be

dealing with questions like how have the global bodies reacted to climate

change? What restrictions and self-regulations have countries set up in order

to reduce their exposure to climate change?


3/32

3

2. Industry How big a role do the industry and businesses play in

aggravating climate change. How can key decision makers at the top of these

companies being about positive or negative change.

3. Management education Why should management education at all need

to bother about climate change? Why is it important to sensitise future

managers to the realities of climate change. What are the steps taken by

global B-Schools in introducing the same in their curriculum?

1.1.1 Effects of Climate Change

Global warming is due to the trapping of heat within Earths atmosphere by the

greenhouse gases like carbon dioxide, methane, nitrous oxide, etc. With the

industrial progress of human civilization, the demand for energy has been

continuously increasing. To meet this demand for energy, we have been letting out

excessive amounts of carbon dioxide into the atmosphere. Be it the power plants,

modes of travel and transportation, offices or homes all are a party to the

indiscriminate pumping of carbon dioxide into the air.

1.1.2 The receding apple belts of Manali

The apple belt in Himachal Pradesh is slowly shifting upwards. Earlier there were

apple orchards even in the Kulu valley. As temperatures are rising, previously cold

regions, have been rendered un-fit for cultivation of apples. Prodding the local

people will reveal that they are flabbergasted as to why, apples which had been

thriving on their land since centuries, have so suddenly betrayed them? A region

which was once rich in apple production can now feel that even their local climate is

gradually becoming less and less conducive to the cultivation of the fruit.

1.1.3 Environmental Refugees of Sunderbans

Another instance is the Sunderban delta in West Bengal, where there is a new

phenomenon in the making The environmental refugees. Islands in Sunderbans

are slowly disappearing, due to the rising sea levels. Natives have no option but

keep on relocating. This has uprooted them from their native land of generations and

made them wander around the delta as nomads, for apparently no fault of their own.


4/32

4

The rising water level has become an enemy that cannot be fought, one can only

move to a safer location. Just a few years ago in 2010, New Moore Island in the

Sunderbans got completely submerged (India and Bangladesh have debated over

control of this island in the Bay of Bengal, since last 30 years. Ironically, the rising

sea levels have ended the dispute for them- the island is gone.)

1.2. International Efforts towards Climate Change

1.2.1 Treaties The global centre of international efforts to tackle climate change is

the United Nations Framework Convention on Climate Change (UNFCCC) and

Kyoto Protocol. The two treaties are a representative of the international response so

far to the evidence of climate change, compiled and confirmed by the

Intergovernmental Panel on Climate Change, that climate change is a reality, and is

caused mainly due to human activities.

1.2.2 UNFCCC On 9th of May 1992, countries came to a consensus on the

Convention, and it became a reality on 21st of March, 1994. Governments were

aware that its provisions will not be sufficient to adequately address climate change,

as they were still not sufficiently empowered to mitigate climate change. In early

1995, during the first Conference held in Berlin, a new round of talks was launched

to discuss firmer, more detailed commitments.

1.2.3 Kyoto Protocol After 2.5 years and post numerous rounds of negotiations,

a substantial addition to the Convention was adopted in Kyoto, Japan in December

1997. This Kyoto Protocol demarcated legally binding emissions targets for

industrialized countries. The protocol also defined and created mechanisms to assist

meeting these targets by the signatory countries. After ratification from 55 Parties to

the Convention, the Kyoto Protocol entered into force on 18 November 2004. The

member nations included enough industrialized countries, who had specific targets.

Kyoto Protocol is what operationalizes the Convention. Itlays down rules for

industrialized countries to cut down on greenhouse gas emissions based on the

principles of the Convention. The Convention itself only encourages countries to do

move in this direction. In its first commitment period, it sets binding emission

reduction targets for 37 industrialized countries and the European community. These


5/32

5

targets total up to an average 5% reduction in emissions compared to 1990 levels

over the five-year period 2008 to 2012 (the first commitment period).

An overall framework UNFCC states that its final objective is to stabilize

concentrations of greenhouse gases in the atmosphere at a level that would prevent

harm to the climate system. It sets an overall framework for international efforts to

tackle the challenge of climate change. The Convention has a near universal

membership and more than 190 countries have ratified it. These countries are

referred to as Parties to the Convention.

Reporting Parties to the Convention agreed on a number of steps to mitigate

climate change. All Parties must periodically submit special reports called national

communications.These national communications must contain information on the

greenhouse gas emissions of that Party and outline the steps it has taken and plans

to take to implement the Convention.

National level programmes

Implementation - all Parties to implement national programmes and measures to

control greenhouse gas emissions and to adapt to the impacts of climate change.

Development - Parties also agree to promote the development and use of climate-

friendly technologies; education and public awareness of climate change and its

impacts;

Sustainability - sustainable management of forests and other ecosystems that can

remove greenhouse gas from the atmosphere, and to cooperate with other Parties in

these matters.

Industrialized country commitments Annex I Parties, i.e. industrializedcountries of the Convention, have extra duties. These Parties initially agreed to

implement policies and programs with the aim of returning their greenhouse gas

emissions to 1990 levels by 2000. Annex I Parties must also provide yearly reports

on their overall greenhouse gas emissions and must also publish more frequent

national communications.

Technology Transfer Annex II Parties, i.e. the developed countries, must also

promote and expedite technology-transfer for climate friendly technologies to


6/32

6

countries with lesser R&D budgets. Provision kept for financial assistance to help

developing countries implement their climate change goals through the Global

Environment Facility, which is the Conventions financing division.

Greenhouse gases Kyoto Protocols ultimate aim is to stabilize atmospheric

concentrations of the harmful gases at a level that will prevent risk to the current

climate system. The Protocol builds upon and enhances many of the commitments

already in place under the Convention. Only Parties to the Convention can become

Parties to the Protocol.

Specific targets for Annex I members although all Parties have agreed in

principle to the implementation of their existing commitments under the Convention,

only Annex I Parties took on new targets under the Protocol. Specifically, these

Parties have agreed to binding emission targets over the 2008-2012 timeframe.

New framework to reduce emissions To help assist industrialized countries in

meeting their binding targets, and to promote sustainable development in developing

countries, the Kyoto Protocol adopted three innovative mechanisms--the clean

development mechanism, joint implementation, and emissions trading.

Monitoring compliance to support the implementation of these mechanisms,and promote compliance of Annex I Parties with their emission targets, the Kyoto

Protocol strengthened the Conventions reporting and review procedures and

created a system of electronic databases, called national registries, to monitor

transactions under the Kyoto mechanism. It also established a compliance

committee, which has the authority to determine and apply consequences for non-

compliance.

Carbon TradingThe buying and selling of credits between nations so as add a

monetary value to environmentally friendly practises. The carbon trade allows

countries having emissions of carbon dioxide to buy the rights to release more

carbon dioxide into the atmosphere from countries that have lower carbon

emissions. The carbon trade concept started with the 1997 Kyoto Protocol and is

supposed to reduce total carbon dioxide emissions to 5% below 1990 levels.

2. EFFECTS OF CLIMATE CHANGE


7/32

7

The most significant event to indicate climate change is the melting of the

polar ice caps. The area of sea covered by the Arctic ice at the North Pole has

shrunk by 10% in recent decades, and the thickness of the ice above the water has

decreased by about 40%. On the other side of the world, the ice sheet above the

Antarctic continent has become unstable. Glaciers are retreating all around the

world. Since 1979, glaciers in the European Alps have lost about one-fifth of their

volume, and the loss rate has clearly accelerated since the 1980s.

The huge Greenland ice sheet has started to melt. It is losing at least 100

billion tonnes of ice a year and this is pushing up sea levels. If the ice sheet melted

completely, which would probably take many hundreds of years, sea levels could

rise by as much as 7 metres. Climate change is expected to increase the intensityand/or frequency of extreme weather events, such as storms, floods, droughts and

heat waves. About 90% of all natural disasters in Europe since 1980 have been

directly caused by climate. The average number of weather and climate-related

disasters per year in Europe increased by about 65% between 1998 and 2007

compared with the average for the 1980s. These disasters not only create a lot of

damage, they also drive up the costs of insuring homes and other property.

Even after all the facts and arguments stated time and again, one might still argue, is

global warming real? And itsnot only just a hunch or a wannabe scientist trying to

pull some gimmick for attention. There are numerous debates on the issue. Both for

it and against it. But, take a look at the data collected over years. Look at the

pictures that are real. And a little more in depth research will prove that the

pessimistic views are driven by a very ill informed point of view. Moreover, it will also

reveal that the debate actually centres on the role of human civilizations' hand in the

process of warming.

Taking into considerations all the proofs n data, its time that we stopped

being innocent and ignorant about the threats. It calls for an act today for tomorrow.

And like Albert Einstein said, The problems that we create demand a higher degree

of thought to solve than that we created them. Itstime we acted on it.

2.1. Challenges in Combating Climate Change


8/32

8

There are over 500 regional and international agreements, treaties, deals and

memorandums that cover a multitude of areas concerning the environment

protection and climate change issues. And, yet there is consensus that there is no

adequate laws being implemented worldwide for the proper delivery of a cleaner and

healthier world and despite the presence of national laws too it is considered a

lackadaisical effort from the fraternity of law to curb climate change. There is a

bigger doubt at the same time about the implementation and enforcement of laws for

a phenomenon that is evidently affecting millions of people around the globe. We are

aware that something that happens in one part of the world has a rippling effect on

other parts of the world when it comes to climate be it the greenhouse gas effects

of the depletion of the ozone layer.

In the national context in India, there have been similar efforts as with the world

outside to address the growing concerns of climate change. The foremost was the

Environment Act of 1986. The most was the recent effort was the amendment of the

Climate Change Law in 2012.

2.1.1 The Environment (Protection) Act, 1986

The foremost and most significant catalytic event was that of the Bhopal Gastragedy, which prompted the Government of India to enact the Environment Act,

1986 (EPA) under article 253 of the constitution. The Act was designed to provide a

framework for central government to enable the co-ordination of the activities of

various central and state authorities established under prevalent laws viz. Water Act

& Air Act. The scope of the Act was broad, with a holistic definition of "environment"

that include water, air and land and the inter-relationships existing among water, air

and land, and human beings and other living creatures, plants, micro-organisms and

property.

However, the Delhi Pollution Control Committee that was vested with the powers

under the provisions of Section 5 the Central Government may exercise its powers

and performance of its function under this act. It could also issue directions in writing

to any person, officer or any authority and such person, officer or authority shall be

bound to comply with such directions which includes (a) the closure, prohibition or


9/32

9

regulation of any industry, operation or process; or (b) stoppage or regulation of the

supply of electricity or water or any other service to be verified.

Apart from the section 5 there are subsequent sections that deal with the

environmental issues. Sections 6 through 11 also address all matters related to the

new act. It covers the provision to make rules by the central government by

notification. A government agent empowered by the central government for the

inspection of any facilities regarding pollution was to be entertained at all reasonable

times. Implications of non-compliance to such procedures were to be penalized

suitably as per the provisions made for the same in the act.

2.1.2 Proposed Climate Change Amendment Bill 2012

The Indian Parliament made a sincere effort to amend the Climate Change Law in

2012 following the initiative of Kalikesh Narayan Singh Deo, former parliamentarian.

Deo was a member of the Climate Parliament Group - a network of Parliamentarians

who work towards accelerating the transition to a low climate change economy and a

country-by-country transition to a low-carbon economy by shifting the world from

fossil fuels to renewable energy sources like solar and wind power, has been

regularly raising his concerns on environmental issues and has pushed forward a bill

for the amendment of the prevalent law on Climate Change. The bill proposed

changes in the existing provisions by seeking that the central government ensured a

target on Net Carbon Account for year 2050. It also advocated for simultaneous

effort for a baseline for absolute reduction for each year.

The proposed Climate Change Bill combines the institutional and conceptual issues

of greenhouse gas emissions reductions, while addressing steps towards adopting a

different approach to achieve a greater sensitivity towards climate change.

There is an increased sensitization in the government as of today and more

proactive steps are being taken towards addressing it. The voice towards a better

workability is being given greater weight from both the government and relevant

agencies responsible for keeping a check on issues regarding pollution and changes

in the climate. As such there have been numerous policies and drafts formulated and

India sure is keen on being climate responsible from the looks of it. The Indian bill


10/32

10

tries to address numerous issues both immediate and long term while keeping the

economic sustainability in mind.

2.1.3 Salient Features of the Proposed Climate Change Bill 2012

1. The Indian Government should ensure a target on Net Carbon Account for

the year 2050.

2. A baseline is set for absolute reduction for each year.

3. An Energy Intensity Index of GDP (the quantity of energy used per unit of

GDP) be created, and a target for the same be set.

4. The Indian Government should set a cap on the amount of green house

gas emissions (Carbon budget) for five-year periods, starting from 2012-

17.

5. The Carbon budget for a period must be set up with a view to meeting

2050 target.

6. A Committee on Climate Change shall be established for the purpose of

advising the government on all matters related to Climate Change in

general, and Climate Change Act in particular.

7. The Government shall launch a Carbon Trading Scheme within a year.

8. A Carbon Trading Authority (CTA) should be established.

2.2. Climate Change and Business

Climate change exposes businesses to a multitude of risks and opportunities. Some

of them are common across numerous business sectors, while others are

organization specific and geography specific. Many of the risks and opportunities

already exist, including the opening up of new markets and services, emergence of

new legislation and the occurrence of climate-related impacts. However, the risks

and opportunities related to climate change is hard to quantify and to say the least -

predictable, making them difficult to include in formal business strategy planning and

modeling forecasts.


11/32

11

2.2.1 Communication Climate Change and Creating Awareness

Communicating a companys climate change engagement programs risks

minimization, opportunities exploited and solutions developedis a crucial feature of

creation of awareness. Communicating its approach to climate change helps

distinguish a company from its competitors and offers opportunities to gain

competition advantage. For instance, construction companies find that pre-

qualifications and tenders increasingly include criteria on how to handle

environmental concerns along with other aspects of sustainability such as embodied

energy and carbon footprints.

Many companies thus engage third party sustainability ratings schemes as a way of

reporting progress and benchmarking themselves against peers as a business

strategy to gain a better outlook. However, these schemes frequently rely on the

information submitted rather than actual evidence and performance. Hence, clear

communication of businesses views and strategies on climate change, and evidence

that they have engaged with and understand the concerns and priorities of their

stakeholders, can be the most important factor in determining companies final

scores and positions.

Given the certainty that there are risks and opportunities associated with climate

change and uncertainty about the nature on its impact, scope and timing, engaging

the relevant communities or stakeholders is often considered as key to success.

Stakeholders of businesses bring different perspectives expectations and values that

can help a business better understand the nature and scope of climate risks and

opportunities, and how best to approach the issues at hand. Ensuring a broader

range of perspectives increases the likely acceptability, as well as effectiveness of

proposed actions. Consequently, stakeholder engagement and communication

become a critical element of how businesses approach climate change.

2.2.2 Engagement and Communication in Practice

There exist, a numerous ways on how to engage with climate issues. Some of them

are as listed:


12/32

12

(i) Awareness-raising This could comprise of creating awareness amongst the

various employees and stake holders of a company or a business entity and even

the various business units within a company.

(ii) News News and media could play a great role in creating further awareness

and they usually have the greatest audiences. Classification and specific targeting of

listeners and viewers is possible for the same. There could even be specific online

news systems for the spread of word on climate change.

(iii) Good practice examples Proper and honest reporting of CSR practices and

educating both external and internal stakeholders through newsletters and case files.

Demonstrations and events regarding the practices of a companys climate policy.

(iv) Risks and opportunities The risks and opportunities presented by climate

change and its anticipation could play an important part of business planning. Which

risks and opportunities are considered significant or important varies considerably

from business to business, making it crucial to engage staff, management and

external stakeholders.

(v) Behavioral changePerhaps the ultimate goal for any company who want to take

a real lead on climate change issues is to become established as thought leader thatcan effect wider behavior change.

3. COMPANIES/INDUSTRIES WHICH AGGRAVATED CLIMATE CHANGE

Human activities have always impacted the climate, but since the Industrial

Revolution these impacts have been rapidly growing. Conversely, climate change

also impacts human life, since humanity must adapt to these changes. Variations in

precipitation patterns, duration of droughts and an increase in extreme events, for

instance, have created a new set of threats. These factors enhance the dialectic

relationship between human activities and climate change.

Certain companies focus more on their revenues rather than climate change and its

adverse effects.

According to a study conducted, the climate crisis of the 21st century is caused

largely by just 90 companies, which produced nearly two-thirds of the greenhouse

gas emissions generated since the industrial revolution. Half of the estimatedemissions were produced just in the past 25 years, well past the realisation by


13/32

13

governments and corporations that rising greenhouse gas emissions from the

burning of coal and oil causes dangerous climate change. Most of these companies

are also sitting on significant reserves of fossil fuel which, if burned, puts the world at

a much greater risk.

The United Nations climate change panel, the IPCC, warned in September that at

current rates the world stood within 30 years of exhausting its "carbon budget" the

amount of carbon dioxide it could emit without going into the danger zone above 2C

warming. The former US vice-president and environmental champion, Al Gore, said

the new carbon accounting could re-set the debate about allocating blame for the

climate crisis.

Leaders in various UN climate talks have clashed repeatedly over which countries

bore the burden for solving the climate crisis, emitters like America or Europe or the

developing economies of India and China.

According to the research, the 90 companies on the list of top emitters produced

63% of the cumulative global emissions of industrial carbon dioxide and methane

between 1751-2010, amounting to about 914 gigatonne of CO2 emissions. All but

seven, which were cement companies, were energy companies producing oil, gas

and coal.

The list of 90 companies included mainly widely recognised oil companies like

Chevron, Exxon, BP, and Royal Dutch Shell and coal producers such as British Coal

Corp, Peabody Energy and BHP Billiton.

Some 31 of the companies were Saudi Arabias State owned firms like Saudi

Aramco, Russia's Gazprom and Norway's Statoil. Some were government run

industries, which produce coal in countries like China, North Korea, Soviet Union and

Poland.

Most of these top companies which were on the list had funded the climate denial

movement. Analysts and researchers are not very sure that a more comprehensive

accounting of the sources of greenhouse gas emissions would make it easier to

achieve the emissions reductions needed to avoid catastrophic climate change.


14/32

14

Investor-owned companies, large in size, were responsible for were responsible for

major emissions share. According to researches, a third of the emissions were

produced by just top 20 companies.

In the former Soviet Union Government-run coal and oil companies produced more

greenhouse gas emissions than any other company, just under 8.9% of the total

produced over time. China was the second company whose government run firms

accounted for 8.6% of total global emissions.

The leading emitter was ChevronTexaco among investor-owned companies, causing

3.5% of greenhouse gas emissions to date, with Exxon as the second company

emitting 3.2%, followed by BP causing 2.5% of global emissions till date.

Data from public records and from the US department of energy's Carbon Dioxide

Information and Analysis Centre was used to record emissions and took account of

emissions all along the supply chain.

The centre has put global industrial emissions at 1,450 gigatonnes since 1751.

3.1.1 Coca-Colas change in perception towards climate change

Coca cola has always been more focussed in its economic bottom-line. Things

began to change when the company lost a lucrative operating license in India

because of a serious water shortage there in 2004. After a decade of increasing

damage to Cokes balance sheet as global droughts dried up the water needed to

produce its soda, the company has finally embraced the idea of climate change as

an economically damaging force.

3.2. Industries which are helping reduce climate change effect/global warming

3.2.1 Coal & Climate Change

The coal industry is committed to minimising its emissions and it is actively taking

actions in number of areas. One important step being increasing coal combustion

efficiency. If larger and more efficient plants are used in place of older coal-fired

power stations, there will be a significant decrease in global emissions, as found out

by International Energy Agency (IEA).

To further reduce carbon dioxide emissions to the atmosphere from coal-fired powerstations, another technique known as Carbon capture. The only available solution as


15/32

15

of now is to capture the emitted carbon dioxide from the use of coal and other fossil

fuels and injecting it for storage in deep geological formations. This will enable a

deep decline in greenhouse gas emissions whilst maintaining the energy

infrastructure needed for growth and economy.

Coal industry is also working towards reducing the emissions by reducing the

amount of methane which is released during coal mining. Methane is 23 time more

potential in creating greenhouse effect than carbon dioxide, which means that for the

same amount of methane given as carbon dioxide the greenhouse effect will be 23

time stronger for over hundred years. Methane remains in atmosphere for

approximately 12 years after emission whereas carbon dioxide remains for about 50

years, but the effect is way stronger. Coal mining has so far remained an importantsource of methane emission, although human activities and agriculture account for

by far the largest proportion of methane. Total global methane emissions are caused

by coal mining activities like transport, extraction and storage. Many companies has

come up with various solutions to mitigate climate change. For example, beverage

producer company Coke is now using water-conservation technologies and Nike is

using more synthetic material that is less dependent on weather conditions. Some

companies at Davos and in global capitals are also lobbying governments to enact

environmentally friendly policies.

In China and India, where coal-powered energy is cheap is lifting the economies and

helping to raise millions of people out of poverty. Even in Europe, officials have

begun to balk at the cost of environmental policies. The European Union scaled back

its climate change and renewable energy commitments, as high energy costs,

declining industrial competitiveness and a recognition that the economy is unlikely to

revive soon caused European policy makers to question the short-term economictrade-offs of climate policy.

3.2.2 ICT Industry tackles global warming

With usage of Information and Communications Technologies (ICT) networks

booming, significant gains in energy efficiency will have little impact on the industrys

overall carbon footprint. However, rethinking the fundamentals of how networks are

designed, built and used can make dramatic reductions in greenhouse gas


16/32

16

emissions across broad sectors of human activity, including the most energy-

intensive industries.

The worlds focus on the urgency of reducing greenhouse gas emissions, has

increased by the Copenhagen meeting stepped. Copenhagen has provided an

opportunity to reshape the broad range of programs and projects undertaken by

companies to tackle climate change outside of any firm political leadership on the

issue. Companies in the Information and Communications Technology (ICT) sector,

like their counterparts in the energy, transportation and other industries, have

launched various initiatives to reduce energy consumption and achieve a more

sustainable development.

3.2.3 Less energy consumption by ICT, but increasing usage

According to the International Telecommunications Union (ITU), the ICT industry is

responsible for a relatively small portion of global greenhouse gas emissions, about

2-3% as compared to other sectors. That includes energy consumption by ICT

equipment and emissions by ICT companies directly as well as. Fixed-line

telecommunications account for about 15% of the total, whereas mobile

telecommunications contribute an additional 9% followed by LAN and office

telecommunications which is about 7%.


17/32

17

ICT companies are taking steps both to provide more and to reduce their own energy

consumption. ICT equipment energy reductions are currently running at 10-20%

annually, thanks to new techniques and technologies. For example, the amplifiers

and base stations which are used in mobile networks are now designed to consume

less power. Mobile networks are making greater use of renewable solar and wind

energy sources. Fibre optic cables are cutting energy consumption in fixed networks.

ICT equipment are widely using Energy-efficient cooling systems.

3.2.4 Daikins Role in Reducing Global warming effect

There as several example of companies which have stepped forward in analysis the

gravity of the situation and finding out innovative ways to reduce the effect of global

warming.

The Daikin Group emits two kinds of greenhouse gases- carbon dioxide from energy

use, and fluorocarbons handled in the production processes.

Diakin has set reduction targets for each of the fluorocarbons. Daikin Industries have

set a goal of decreasing carbon dioxide emissions per sales from transportation by4% in last two fiscals as compared to fiscal 2010 by switching from trucks to trains

and ferries. To ensure the shortest possible transportation route, they have

increased the use of direct shipping from overseas production sites to Japan. As a

result of efforts including using more freight train routes, they have reduced carbon

dioxide emissions during transportation by over 3% in the last fiscal.

Also, Daikin Europe N.V. have worked to reduce emissions during procurement by

eliminating and consolidating warehouses and reducing inventory, which is a part of

efforts by Daikin overseas bases to reduce environmental impact from transportation

activities.

They reduced PFC emissions in fluoro-chemical production processes and

succeeded in lowering emissions by 200,000 tons of carbon dioxide over the

previous year. As a result emissions of the HFC and PFC covered by the Kyoto

Protocol were 142 tons (760,000 tons carbon dioxide equivalent), about a three-

fourth reduction over the last 4 years.


18/32

18

In order to raise production efficiency, the company has lowered the lead time during

the air conditioner manufacturing process by the maximum possible amount. In the

fluorochemical production process, a production revamping project has helped them

to boost efficiency and reduce energy losses. It also continued last fiscal year's

efforts to achieve energy efficiency in any little way possible in all daily duties. As a

result of these efforts, last 4 years energy-induced carbon dioxide was 580,000

carbon dioxide emissions per production output were down by about 30%

Many energy suppliers in various countries worldwide have options to purchase part

or pure green energy. For example, the wind energy produced in Denmark, provides

about 20 percent of the country's total electricity needs. These methods of energy

production emit no greenhouse gases once they are up and running.

3.3. Leaders who helped eradicate global warming:

Climate scientist James E. Hansen issued the clearest warning of the 20th century

about the dangers of global warming. Dr. Hansen made predictions that were a bit

ahead of the evidence and rest of the scientific community.

Bipartisan group of business leaders and former politicians, including President

George W. Bush's treasury secretary, Henry Paulson Jr., issued a sharp warningabout disastrous economic consequences if manmade global warming is not

addressed in the near future. According to a new report new report, it was found that

by 2030, extreme heat and sea level rise will threaten human health and will damage

to a lot of property, with even more severe and expensive impacts to come after that.

In a speech at the U.S. Military Academy at West Point, Obama said the only way to

have credibility abroad is to take significant steps on climate change at home.

He described climate change as a military issue, given the potential for extreme

weather and climate events to destabilize countries and involve the U.S. in

humanitarian and other missions. Climate change according to Obama is a creeping

national security crisis that will help shape our time in uniform, as we are called on to

respond to refugee flows and natural disasters and conflicts over water and food,

which is why next year he will make sure America is out front in putting together a

global framework to preserve our planet.


19/32

19

The report's findings were based in part on climate science and economic research

findings from the Rhodium Group, a consulting firm for the financial industry, and

also drew from other recent scientific analyses

In the United States, the rich can afford to weigh in. The California hedge-fund

billionaire Thomas F. Steyer, who has used millions from his own fortune to support

political candidates who favour climate policy, is working with Michael R. Bloomberg,

the former New York mayor, and Henry M. Paulson Jr., a former Treasury secretary

in the George W. Bush administration, to commission an economic study on the

financial risks associated with climate change. The study, titled -Risky Business,

aims to assess the potential impacts of climate change by region and by sector

across the American economy.

In India also many leaders as struggling and conceptualising strategies to tackle the

effects of global warming so as to attain a sustainable growth.

India has been striving to fight this problem and reduce emissions and one of its

states, Gujarat, has emerged as a role model for the remaining states in India.

Managing climate change is a major challenge for humanity. India has developed a

National Action Plan on climate change which outlines a number of steps to

simultaneously advance on Indias development and climate change adaptation and

mitigation objectives to fight the problem. Gujarat has established a separate

Department for Climate Change to tackle global warming .This Initiative by the

Gujarat Government is a trendsetter not only for India but for the whole of Asia as it

is the First local government in Asia with a Department for Climate Change. Also,

Gujarat is the 4th local province in the world to have a department for climate

change. The Department is headed by Chief Minister Narendra Modi in charge of

handling issues related to climate change. The initiative was carried out to give a

human face to environmental issues. Under this new department, Energy and

petrochemicals ,including thirty-nine clean energy initiatives, urban transportation,

forest and environment, rural development, the industrial sector and mines fall.

4. MANAGEMENT EDUCATIONAN INSIGHT

Management - the spine of organisation and administration is the basis of anycountrys economy in todays cut throat competitive world. Today globalisation has


20/32

20

led to the intermingling of cultures, races and economies which has further led to a

gamut of radical changes in the society.

In the pre-world-war era, rapid amalgamation of economies in terms of trade, capital,

and migration of people from one nation to the other took place.Communication and development further bolstered led globalisation and made

management one of the important aspects of the world. Rapid integration of

economies took place in context of trade, capital flow and technology. Post-

independence, the zeal to increase integration, growth in capital, transfer of

resources took place.

The amalgamation of the domestic market and the international market took placeand with this, exchange of ideas also underwent changes. Globalisation had made

its impact on education and with free and open market philosophy exchange of

faculties and students started to take place.

Going into the background of the origin of management, it can be noted that the

concept is centuries old and has developed with the gradual rise of civilisations of

the world. Management education is primarily the invention of the 20

th

century. Thisperiod saw the biggest quantum jump in organised economic activities in the human

age.

Management education has a vital role to play in today's dynamic business

environment, where everything changes so rapidly that it makes it quite difficult for

organisations to survive in the growing competition. This has led to the need for

business schools in developing nations to impart relevant education to students,which reflects the changes in society.

Management education not just aims to instil managerial an organisational skills in

the students, but it aims to develop leaders of tomorrow who will pave the way for

sustainable growth of the world economy.

4.1. Business and Environment Ethics


21/32

21

The social responsibility of businesses is to produce goods and services and to

make profit for its shareholders. These rules including those to protect the

environment are set by the government of a given nation.

Corporations possess special knowledge, expertise and resources which are

valuable in dealing with the environment crisis. Society needs the ethical vision and

cooperation of all its players to solve the most urgent problemsespecially the one

that involves survival of our planet itself. A business should lobby in favour of good

environmental legislation and turn its back against bad legislation, rather than

isolating itself from the legislative process.

Businesses must thrive to develop and demonstrate moral leadership.

Taking into account 2 examples from the past:

In the area of environmental moral leadership one can cite DuPonts

discontinuing its Freon products, a $750 million business because of its

negative impact on the ozone layer.

Proctor & Gambles manufacture of concentrated fabric softener and

detergents which require less packaging

The above citations stand witness to the fact how big organisations pay utmost

attention and are sensitive towards environmental issues. Likewise, many

businesses have taken the lead on this objective by promoting green practices and

encouraging customers to do the same.

4.2. Role of a manager in environment protection

Managers in organisations should take a step forward in learning about

environmental protection obligations that a company must adhere to. A manager

must have a good level of understanding of a company's environmental obligations.

He or she must ensure that the company has a licence to carry out a business, the

conditions of pursuing business enlisted in that licence, the type of materials which


22/32

22

can be used or activities authorised under the licence and, if relevant, when a

termination or suspension of a licence takes effect.

The manager must ensure that theres no scope of negligence and callousness

when it comes to a business obligations towards the environment.

A manager needs to take responsibility for ensuring the company complies with its

own environmental policy.

A manager needs to perform the following functions to be able to argue that he or

she exercised all necessary measures to prevent the company's contravention of its

environmental obligations:

Implement an environment friendly policy

Reinforce the policy through staff training programs to ensure that staff are

aware of the company's environmental program and understand the

environmental risks associated with activities carried out on or off site

Regularly monitor the policy; and regularly review the policy to ensure that it is

operating effectively.

Improving it wherever and whenever necessary to address the increasing

standards and to ensure that environmental issues are brought to the

attention of the concerned authorities in the company

4.3. Role of management institutions in environment protection

Business schools should strive towards integrating corporate social responsibility

and sustainability with their business strategies and curriculum.

Business and environmentalism are two facets of the same coin; they can peacefully

go hand in hand. To enforce the above mentality, many management schools are

offering green MBA degrees to reinforce the environmental obligation that lies with

each and every corporate or government body, by incorporating environment

sensitivity among the MBA students.

With the high level of attention that corporate are giving to the enforcement of

environment protection laws and guidelines in the rapidly growing economic


23/32

23

environment, the stress on flourishing a sustainable and green economy is the need

of the hour.

B-schools today have a course or several courses that are about sustainable

business, but the question is whether they are integrating these sort of issues and

potential solutions and strategies into their core offerings or not.

Integration is the key, whether for corporate or business schools.

In a world full of economic predicaments as well as environmental problems, from

the scarcity of natural resources to climate change, sustainability represents one of

the few potential spots in an otherwise murky recruiting environment.

Programs and schools that will be training the next generations of leaders have

taken into account the prime necessity of sustainable development, and made

alterations and additions to the courseware and pedagogy accordingly.

With the aim of teaching sustainability in business, many green and sustainable MBA

programs have been incorporated in the management colleges in different nations

including some of the most prestigious schools of the world.

Specialist courses offer the traditional MBA along with a crystal clear view of the

environment friendly future. Green MBA is the amalgamation of the usual

management subjects along with subjects for managing environment and social

sustainability.

Some of the top B Schools of the world offering the sustainable MBA program are:

Stanford Business School

The Stanford Business School, offers a strong MBA program with fair amount of

inclination towards the green aspect of MBA. The program covers a range of issues

related to sustainable business, and explores what it means to turn sustainable

business practices into competitive advantage.

The University of Michigan


24/32

24

The University of Michigan has taken the concept of green in both its curriculum

and building architecture. It considers itself one of the world leaders in research and

academic programming relating to sustainable enterprise, and uses its building as a

demonstration of their commitment to the field.

Yale University School of Management

This B-school has been incorporating the green cult in its MBA program since a long

time. The program aspires to teach students to view business in a broader context -

one that includes, among other things, the environment and its long term protection

and sustainability.

5. CLIMATE CHANGE LAW AND EDUCATION IN INDIA

5.1. A general perspective on legal education

Legal education can be defined as the education undertaken by individuals to

become legal practitioners and professionals. There are few things which differs

legal education from other types of education such as medicine and engineering.

There are no set patterns. It is both professional as well as liberal. Legal education is

aimed at promoting justice and understanding the laws of the society. It is multi -

disciplinary in character and in order to study law, social realities must always be

kept in mind.

Law is made by man. Salmond defines law as a body of principles recognized and

applied by the state in the administration of justice. Law provides the rules and

principles to regulate human behavior in the society. The objective of law is two-fold:

To protect and promote the rights of people and individuals at large the

most famous statement by Roman lawyer Cicero that Peoples good is the

highest law best reflects this objective

To administer justice according to the procedures that has been set by law

Law, as a profession provides intelligence, power and profound money. These are

the things which constitute a successful career. For example, lawyers can be


25/32

25

considered social engineers. They are the backbone of the society. Thus, law and

legal education play an important role in protecting the rule of law.

Law as a discipline must be studied together with other subjects such as

Management, Medicine and Engineering and individuals must try to excel in law.

India is a common law country and thus has similar legal system prevalent in many

other parts of the world. Therefore, when one studies law in India, he/she also

becomes knowledgeable in the rules and regulations followed in other parts of the

world and thus is able to adapt himself better. In current job scenarios where one

has to deal with professionals and firms from multiple geographies, this is beneficial.

5.2. Legal education in management

The business law studies are very important, as it helps the budding management

professionals in realizing the business ethics, he or she must follow, in order to run a

proper and authenticated business. This must be in accordance with the laws and

regulations prevailing in the society. Business law studies are important for every

management graduate whether he wants to setup his own business or willing to join

a service as a manager.

A student must understand that doing a proper business with an authenticated

business license and registration gives confidence. This makes business case laws

studies very important. It has been proven that most clients are comfortable in doing

business when their counterparts have a government license in hand and an

approval stamp for their business. It gives immense confidence in handling day to

day business activities knowing that you know the legal aspects of business and

have followed every rule and regulation.

5.3. Climate change law in b-schools

As we have discussed before that countries around the globe are taking important

domestic actions to help tackle the issue of climate change. And all the major

practitioners feel that education in this field is a must for a student of management.Today, the firm which takes care of its Corporate Social Responsibility the best, is


26/32

26

liked by the customers more. When people feel that a firm is also taking care of the

environment, it projects a positive image of the brand in the minds of people. Also,

with increasing regulations being placed on the operations of the firm with respect to

the care of environment such as The rule of absolute liability, it has become more

important to know the rules and regulations and abide by them. Not taking care of

this can have disastrous impact on the brand equity as well as the revenues of the

firm. As a future manager, it is most essential for a student pursuing management

that he knows where can things go wrong legally and take preventive and

precautionary actions against it.

If we go about searching for specific examples in b-schools where climate change

law has been made an important part of the curriculum, the search would not return

good results as the field has been relatively new and only recently has the

awareness of environment reached a sufficient level. The b-schools have been a bit

late in identifying the pressing need of the hour. However, every reputed school

across the world is now incorporating law education in their curriculum in the form of

elective courses so that interested individuals can learn the basics at least.

Climate change law is not being studied in many management schools. However, we

find many examples where law schools around the globe have acknowledged the

importance of this subject and have specially designed full term courses to teach it.

Some of them are discussed below:

1. University of London

Course name: Climate change law and policy

This course is offered by university of London to provide a broad analytical

view to the climate change problem and the law associated with it. The course

also examines a number of problems arising in the context of the law and

policy response to climate change which include a) human rights implications,

b) agriculture and climate change, c) land-use, d) forests and biodiversity and

e) climate change, energy and transport.

2. Harvard Law School


27/32

27

Program name: Environment law and policy program

This program covers a wide range of topics such as a) electricity sector

regulation, b) natural gas, c) nuclear power, and renewable energy, d) oil and

gas regulation offshore and onshore, e) transportation sector policies, f)

energy security, and hot topics such as the North American boom in

unconventionals, g) the Keystone XL pipeline, and h) geo-engineering.

3. Columbia Law School

Department Name: Center for Climate Change Law

Columbia Law School has a separate department which develops legal

techniques to fight climate change, trains students and lawyers in their use,

and provides up-to-date resources on key topics in climate law and regulation.

5.4. Incorporating climate change law into Indian curriculum

The need to have a dedicated course on climate change is prominent. As the

majority of the students pursuing the discipline of management are from various

backgrounds and are not trained in law, it is essential to bridge the gap between the

existing laws and the untrained individuals. The need for upgrading legal education

has been felt for long. There are numerous independent entities which aim to

transform the managers into leaders with expertise in law. There has been a

mushroom growth of management schools in India, with hardly any regard to the

quality of legal education. As a result, the managers coming out of these are more

prone to making mistakes as a consequence of negligent behavior of themselves aswell as their schools.

5.5. Steps to improve Indian legal education

1. Existing B-schools who wish to generate legally aware individuals must

collaborate with law professionals and law departments of law schools who

are learned in climate change law to ensure faster addition of this course into

their curriculum. There is a great scope for innovation in the design of course,


28/32

28

development of appropriate teaching modules, and formulation of research

agenda including undertaking of research projects.

2. The course must be kept independent and the professor or law professional

must be provided with institutional autonomy. Moreover, the university system

in which these b-schools operate must match their priorities to the corporate

requirements. This will also increase the ability to attract talented students

with a passionate commitment to study all the aspects of management

including law. There is no doubt that the schools with a more aware

curriculum will succeed in delivering talented individuals to corporate sector.

3. The schools might face significant challenges in attracting faculty members

who are top researchers in the field of climate change law and can combine

sound teaching methods with established track records of research and

experience. The lack of researchers in this field can lead to the absence of an

intellectually vibrant environment. However, this can be improved with greater

emphasis on research by faculty as well as by students even in B-schools. If

one were to look at the faculty profile of the world's top law schools, one will

find that there is great emphasis on research and publications among

academics. Besides teaching, they also contribute in significant ways by

initiating research projects in cutting edge areas, by professional contributions

to international organizations, law firms and corporations, and by playing an

important role in government policy formulation and promoting civil society

activism. The same has to be adopted by the faculties who come to teach this

subject in these top b-schools.

It is understandable that this saying these things is way easier than actually

implementing them. However, these are only directions in which the efforts

must be directed to obtain individuals with a holistic understanding of law.

5.6. Proposed change in curriculum

1. In general, the emphasis from conventional law subjects which are currently

taught in b-schools must be shifted to current topics which are of major

concern which in our case is climate change.


29/32

29

2. The students must be taught that the conventional role of a manager is not

only limited to handling day-to-day operations of the company but must also

include the responsibilities of a legal policy planner, business advisor and a

mediator between the objectives of law and operations of the firm.

3. The managers must be learned enough to understand what all is being

suggested to him by the lawyers. He must be able to assess the damages

and the subsequent penalties the operations of the firm might cause to

already deteriorating climatic conditions.

4. He must be able to interact knowledgeably with the legal professionals and

must know and understand the rules of engagement with law.

5. The law curriculum for the future must be designed in such a way as to

provide an integrated legal knowledge of modern climate change laws along

with other related subjects. It is only after that the unmet legal need of society

can be addressed and the students will be equipped to contribute to the

society when they leave their institutes.

5.7. Role of teachers in imparting the right information

Teachers play the most crucial role in producing talented students. Hence, the

responsibility of contributing lies more with them given the diverse background

people coming to management schools have. Most of the law teachers join the

teaching profession after completing their LLB, LLM, or Ph.D. Sometimes, they are

not exposed to the practical aspect of law and the courts. Such teachers may be

more successful in imparting theoretical knowledge but may be less successful in

imparting the practical aspects and the result may be that the teacher is not able to

follow a comprehensive approach to teaching. Therefore, the teacher must visit law

courts and study modern cases related to climate change as this would not only

enable him to have some idea regarding the real-time scenarios and will also help

him to meaningfully equip the students who wish to gain a comprehensive

understanding of climate change laws.

The teacher must give up traditional methodologies and rules of teaching and must

also stimulate following basic skills in the students such as:

1. Critical thinking2. Presentation skills


30/32


31/32

31

we will be more accountable as a highly skilled professional from a reputed school

because the stakes are high not only for the firm or the corporate entity we work for

but also for the society.

References:

1. http://www.mastersportal.eu/studies/16210/global-environment-and-climate-

change-law.html

2. http://select75.org/02.html

3. https://www.soas.ac.uk/courseunits/15PLAC154.html

4. https://www.soas.ac.uk/courseunits/15PLAC154.html

5. Management Education

http://timesofindia.indiatimes.com/home/education/news/Business-education-

scenario-in-India-is-equally-challenging-

Dekreytnn/articleshow/14226528.cms?referral=PM

6. Management Education: A Long-Term View by V. A. Pai Panandiker -

Economic and Political Weekly | Vol. 26, No. 48 (Nov. 30, 1991) (pp. M131-

M132) | Page Count: 2

7. International Conference on History, Literature and Management

(ICHLM'2012) Oct. 6-7, 2012 Dubai (UAE)Mrs. Tanuja Kumari

8. http://www.huffingtonpost.com/karin-kloosterman/the-top-green-mba-

program_b_779325.html

9. http://www.indiacsr.in/en/b-schools-must-integrate-csr-in-core-courses-john-elkington/

10.www.ucsusa.org

11.www.diakin.com

12.www.thegaurdian.com

13. United Nation Environment Program Handbook
http://www.mastersportal.eu/studies/16210/global-environment-and-climate-change-law.htmlhttp://www.mastersportal.eu/studies/16210/global-environment-and-climate-change-law.htmlhttp://www.mastersportal.eu/studies/16210/global-environment-and-climate-change-law.htmlhttp://www.mastersportal.eu/studies/16210/global-environment-and-climate-change-law.htmlhttp://select75.org/02.htmlhttp://select75.org/02.htmlhttps://www.soas.ac.uk/courseunits/15PLAC154.htmlhttps://www.soas.ac.uk/courseunits/15PLAC154.htmlhttps://www.soas.ac.uk/courseunits/15PLAC154.htmlhttps://www.soas.ac.uk/courseunits/15PLAC154.htmlhttp://timesofindia.indiatimes.com/home/education/news/Business-education-scenario-in-India-is-equally-challenging-Dekreytnn/articleshow/14226528.cms?referral=PMhttp://timesofindia.indiatimes.com/home/education/news/Business-education-scenario-in-India-is-equally-challenging-Dekreytnn/articleshow/14226528.cms?referral=PMhttp://timesofindia.indiatimes.com/home/education/news/Business-education-scenario-in-India-is-equally-challenging-Dekreytnn/articleshow/14226528.cms?referral=PMhttp://timesofindia.indiatimes.com/home/education/news/Business-education-scenario-in-India-is-equally-challenging-Dekreytnn/articleshow/14226528.cms?referral=PMhttp://www.jstor.org/action/showPublication?journalCode=econpoliweekhttp://www.jstor.org/action/showPublication?journalCode=econpoliweekhttp://www.huffingtonpost.com/karin-kloosterman/the-top-green-mba-program_b_779325.htmlhttp://www.huffingtonpost.com/karin-kloosterman/the-top-green-mba-program_b_779325.htmlhttp://www.huffingtonpost.com/karin-kloosterman/the-top-green-mba-program_b_779325.htmlhttp://www.huffingtonpost.com/karin-kloosterman/the-top-green-mba-program_b_779325.htmlhttp://www.indiacsr.in/en/b-schools-must-integrate-csr-in-core-courses-john-elkington/http://www.indiacsr.in/en/b-schools-must-integrate-csr-in-core-courses-john-elkington/http://www.indiacsr.in/en/b-schools-must-integrate-csr-in-core-courses-john-elkington/http://www.indiacsr.in/en/b-schools-must-integrate-csr-in-core-courses-john-elkington/http://www.ucsusa.org/http://www.ucsusa.org/http://www.ucsusa.org/http://www.diakin.com/http://www.diakin.com/http://www.diakin.com/http://www.thegaurdian.com/http://www.thegaurdian.com/http://www.thegaurdian.com/http://www.thegaurdian.com/http://www.diakin.com/http://www.ucsusa.org/http://www.indiacsr.in/en/b-schools-must-integrate-csr-in-core-courses-john-elkington/http://www.indiacsr.in/en/b-schools-must-integrate-csr-in-core-courses-john-elkington/http://www.huffingtonpost.com/karin-kloosterman/the-top-green-mba-program_b_779325.htmlhttp://www.huffingtonpost.com/karin-kloosterman/the-top-green-mba-program_b_779325.htmlhttp://www.jstor.org/action/showPublication?journalCode=econpoliweekhttp://timesofindia.indiatimes.com/home/education/news/Business-education-scenario-in-India-is-equally-challenging-Dekreytnn/articleshow/14226528.cms?referral=PMhttp://timesofindia.indiatimes.com/home/education/news/Business-education-scenario-in-India-is-equally-challenging-Dekreytnn/articleshow/14226528.cms?referral=PMhttp://timesofindia.indiatimes.com/home/education/news/Business-education-scenario-in-India-is-equally-challenging-Dekreytnn/articleshow/14226528.cms?referral=PMhttps://www.soas.ac.uk/courseunits/15PLAC154.htmlhttps://www.soas.ac.uk/courseunits/15PLAC154.htmlhttp://select75.org/02.htmlhttp://www.mastersportal.eu/studies/16210/global-environment-and-climate-change-law.htmlhttp://www.mastersportal.eu/studies/16210/global-environment-and-climate-change-law.html


32/32

14. Kyoto Protocol Guidelines

LEGAL EDUCATION IN MANAGEMENT SCHOOLS

Documents

Transcript of LEGAL EDUCATION IN MANAGEMENT SCHOOLS