From Environmental Compliance to Health Protection: Corporate Responsibility and ESG Regulation

Abstract

The present era, which is characterised by accelerating climate change, rapid industrial expansion, and increasing public health vulnerabilities, has fundamentally altered the relationship between environmental regulation and health protection. In recent times, corporate activities have generated complex risks that affect not only ecological well-being but also human health, societal welfare, and intergenerational equity. In this context, the traditional approach to environmental compliance which primarily focuses on the pollution control and regulatory adherence has proved to be  increasingly inadequate. To meet this criteria, it requires a structured integrated approach for corporate responsibility and environmental regulation through Environmental, Social, and Governance (ESG) regulation.

This study seeks to examine the shift from a traditional focus on environmental compliance to a broader approach that integrates environmental governance and health protection within corporate governance. It is being scholarly documented  that ESG regulation is now emerging as a source of legal regulation, which includes environmental regulation and health protection.

At the international levels, the paper outlines some of the most relevant instruments, such as the OECD Guidelines for Multinational Enterprises, the UN Guiding Principles on Business and Human Rights, ILO standards, and the European Union’s ESG disclosure and due diligence standards. Moreover, the study also compares best practices across different jurisdictions, with particular emphasis on the integration of ESG principles into corporate, securities, and environmental governance, especially in addressing health risks arising from climate change and toxic substances.

The judicial perspectives and the role is also analysed, mainly emphasising on the application of constitutional environmental rights, different doctrines such as polluter pays etc., and health-based adjudication in the expansion of corporate obligations. Lastly, the article ends with a series of recommendations for the greater inclusion of environmental and health considerations in ESG standards, the role of the judiciary, and the harmonization of international standards.