Environment: formula sheet

Key formulas

Components of environment

Environment = Abiotic (atmosphere + hydrosphere + lithosphere) + Biotic (biosphere)

Some texts add a human-made or social component. Mention it as an extension if the question asks for a wider view.

Four major issues

Climate change | Pollution | Biodiversity loss | Resource depletion

Use this as a ready list in any question on environmental issues.

Answer frame for each issue

Meaning → Causes → Business impact → Response

Applying the same four-part frame keeps long answers structured.

Paris temperature goal

Well below 2°C, pursue 1.5°C (above pre-industrial levels)

Applies to all parties through NDCs, not through a fixed binding target per country.

Treaty sequence

UNFCCC 1992 → Kyoto Protocol 1997 → Paris Agreement 2015

Adoption years. Kyoto came into force in 2005 and Paris in 2016.

Core principle

CBDR-RC = common but differentiated responsibilities and respective capabilities

Basis for treating developed and developing countries differently.

India's long-term target

Net zero emissions by 2070

Announced at COP26, Glasgow, 2021, along with 500 GW non-fossil capacity by 2030.

NDC cycle

NDC submitted and updated every 5 years

Each update should reflect the highest possible ambition.

Emissions from an activity

Emissions (tCO₂e) = Activity data × Emission factor

Activity data is units used, such as litres of diesel or kWh. The emission factor must match the unit and the fuel.

CO₂ equivalent of a gas

tCO₂e = Tonnes of gas × GWP of the gas

GWP of CO₂ is 1. Use the GWP value given in the question.

Total footprint

Total = Scope 1 + Scope 2 + Scope 3

Add in tCO₂e only after converting all gases and units.

Emission intensity

Intensity = Total tCO₂e ÷ Output measure (such as ₹ crore turnover or tonne of product)

Used to compare companies of different sizes and to set intensity targets.

Net emissions after offsets

Net emissions = Gross emissions − Credits retired

Carbon neutral when net emissions equal zero. One credit equals one tCO₂e.

Unit conversion

1 tonne = 1,000 kg

Convert kg to tonnes before reporting in tCO₂e.

Umbrella law

Environment (Protection) Act, 1986 = Central Government's power to protect and improve the environment

Standards, restrictions on industry, hazardous substance safeguards, directions. Enacted after the Bhopal gas tragedy.

Water and Air Acts

Water Act, 1974 and Air Act, 1981 → CPCB + SPCBs → consent to establish and consent to operate

Without the board's consent, an industry should not discharge effluents or emit pollutants beyond permitted standards.

EIA stages

Screening → Scoping → Public consultation → Appraisal → Environmental clearance

Under the EIA Notification, 2006, issued under the EPA. Listed projects need prior clearance before starting.

NGT jurisdiction

NGT Act, 2010: civil cases involving a substantial question relating to environment under the listed Acts

Listed Acts include the Water Act, Air Act, EPA, Forest (Conservation) Act, Biological Diversity Act and the Public Liability Insurance Act. Appeal lies to the Supreme Court.

Guiding principles

Sustainable development + Precautionary principle + Polluter pays

The NGT applies these when deciding cases and awarding compensation.

Waste hierarchy

Prevent → Reduce → Reuse → Recycle → Recover → Dispose

Prefer options from the left. Disposal in landfill is the last resort.

Extended producer responsibility (EPR)

Producer / importer / brand owner = responsible for post-consumer waste of its products

Met through collection, recycling or processing, usually with registered entities, and reported on the official portal.

Water intensity

Water intensity = Total water consumed ÷ Output (or revenue)

Use the same unit each year so that trends can be compared.

Water balance

Water consumed = Water withdrawn − Water discharged

A common way to find consumption. Check that the units match.

Recycling rate

Recycling rate (%) = (Waste recycled ÷ Total waste generated) × 100

Use the same period and the same unit for both figures.

Circular economy loop

Design → Use → Collect → Recycle / Remanufacture → Back to design

Contrast with the linear take-make-dispose model.

Energy intensity

Energy intensity = Total energy consumed ÷ Output (or turnover)

BRSR asks for energy intensity per rupee of turnover. A falling value shows better efficiency.

Share of renewable energy

Renewable share (%) = (Renewable energy consumed ÷ Total energy consumed) × 100

Use the same unit for both, such as GJ or kWh.

Energy saving

Saving (%) = (Old consumption − New consumption) ÷ Old consumption × 100

Use it to show the effect of an efficiency measure.

Unit conversion

1 kWh = 3.6 MJ

Needed when a question mixes kWh and joules.

Green hydrogen

Green hydrogen = hydrogen produced by electrolysis of water using renewable electricity

Hydrogen from fossil fuels is not green.

TCFD four pillars

Governance + Strategy + Risk management + Metrics and targets

Use this to structure any answer on climate-related financial disclosure. IFRS S2 follows the same core structure.

GHG scopes

Total emissions = Scope 1 + Scope 2 + Scope 3

Scope 1 is direct emissions, Scope 2 is purchased energy, Scope 3 is other value chain emissions. In BRSR Principle 6, Scope 1 and 2 are reported, Scope 3 is voluntary.

Emission intensity

Intensity = Total emissions ÷ Output measure (for example turnover in ₹ or tonnes produced)

BRSR asks for intensity per rupee of turnover, so you can compare companies of different sizes.

Materiality lenses

Double materiality = Impact materiality + Financial materiality

GRI is impact-focused; ISSB is investor and financial focused.

Water balance

Water consumed = Water withdrawn − Water discharged

Use as a quick check when reading Principle 6 water data.

Quick revision

• Environmental issues include pollution, resource depletion, waste and loss of biodiversity.
• Climate change responses work at global, national and company level; know which is which.
• Learn the names and purpose of the main global climate frameworks.
• Emissions accounting means measuring and reporting greenhouse gas output so it can be managed and reduced.
• For each Indian environmental law, remember its purpose, the enforcing authority and key duties.
• Waste, water and resource management questions usually test legal duty plus a practical action.
• Renewable energy and energy efficiency are the main tools for cutting a company's emissions.
• Environmental disclosure should be accurate, comparable and linked to the company's real activities.
• This chapter connects to risk management and sustainability reporting in the same paper.
• In answers, state the rule, apply it to the facts, then conclude.

Common mistakes

• Treating environment as only nature and ignoring human-made and social surroundings. Fix: Add one line that environment also includes human-made and social surroundings, then list the natural components.
• Mixing up abiotic and biotic components. Fix: Remember abiotic means non-living (air, water, soil) and biotic means living (plants, animals, humans).
• Saying the Kyoto Protocol binds all countries. Fix: Remember: Kyoto bound only developed (Annex I) countries; Paris involves all through NDCs.
• Calling Paris targets legally binding in size. Fix: Write that the procedural duties (submit NDCs, report, review) bind parties, while the level of each target is set nationally.
• Calling purchased electricity a Scope 1 emission. Fix: The emission occurs at the power plant, not on your site. Purchased energy is always Scope 2.
• Treating a company-owned vehicle fleet as Scope 3. Fix: Ask who owns or controls it. Owned vehicles burning fuel are Scope 1. Hired third-party transport is Scope 3.
• Treating the EPA, Water Act and Air Act as the same law. Fix: Remember: Water Act for water, Air Act for air, EPA as the umbrella law with wider central powers.
• Saying the NGT hears every environmental dispute. Fix: Say it hears civil cases involving a substantial environmental question under the listed Acts. Criminal prosecution under those laws goes to regular courts.
• Treating EPR as a duty of the consumer or municipality only. Fix: Write that EPR places responsibility on the producer, importer or brand owner for post-use waste.
• Quoting rule years, targets or percentages from memory. Fix: State the obligation in words. Give a number only if you are certain of it.

Exam tips

• Open every answer with a crisp definition; examiners reward it and it anchors the rest.
• Always connect an environmental issue to a business consequence, because the paper is ESG focused.
• In case questions, quote facts from the case and tag each to an issue before advising.
• Use bullet points under the Meaning, Causes, Impact, Response frame to keep long answers readable.
• Do not memorise statistics; clear concepts and examples earn marks without risk of error.
• Learn the three-treaty timeline cold. Distinction questions are the most common form of this topic.
• Always add one line on CBDR-RC when comparing developed and developing countries.
• Use India's net zero 2070 and 500 GW by 2030 in every answer on India, and say 'as per the latest NDC' for other figures.