Prologue
Have you wondered why we learn history as a subject? Surely it has to do with something more than just merely what happened in the past, right?
And you are right - It trains us to gather evidence, and to find patterns and trends. You can apply information from the past to analyze and solve problems in the present.
Hence, knowing the historical failures and successes in ESG will help us to solve today’s problems. As put by the First Chancellor of the German Empire, Otto Van Bismarck –
“Only a fool learns from his own mistakes. The wise man learns from the mistakes of others”
With that, let’s start this chapter where I will explain the Bhopal Gas Tragedy and how the failure of the EHS and Governance pillar led to this disaster that still haunts many.
The Incident
It was a cold December night in Bhopal. Workers of a pesticide plant owned by Union Carbide India Limited (UCIL), a subsidiary of the American multinational Union Carbide Corporation (UCC) carrying on their business as usual. Everything seemed normal until an alarm went off. The water had entered a tank containing about 42 tons of methyl isocyanate (MIC), a key ingredient in producing Sevin (a brand name for carbaryl), which was widely used in agriculture. There was only one problem, this chemical was highly toxic and volatile.
As soon as the water entered the tank, a runaway chemical reaction was triggered, raising the temperature inside the tank and increasing the pressure. Due to this intense pressure, a large volume of MIC gas was released into the atmosphere.
The toxic cloud of gas spread rapidly over the densely populated shantytowns surrounding the plant, exposing hundreds of thousands of people to the deadly fumes. The gas caused severe respiratory distress, eye irritation, and skin burns. Thousands of people died within hours of exposure, while many others suffered long-term health complications such as blindness, respiratory issues, and chronic illnesses.
Immediate Aftermath
The exact death toll from the Bhopal Gas Tragedy remains disputed. Official figures estimate that around 3,000 people died immediately, but local organizations and activists believe the actual number is much higher, with some estimates suggesting over 15,000 deaths in the years following the incident due to the long-term effects of gas exposure. Additionally, more than half a million people were exposed to the gas, leading to a range of health issues and disabilities.
The Cause
The disaster was mainly due to human error, equipment failure, and inadequate safety protocols and can be narrowed down to four points:
Poor Maintenance: The plant's safety systems, including the MIC storage tank's refrigeration unit, had been turned off as a cost-cutting measure. This allowed the MIC to remain at a higher temperature, increasing the risk of a chemical reaction.
Inadequate Safety Systems: The plant's gas flare tower and scrubber, designed to neutralize escaping gases, were either malfunctioning or insufficiently effective. The flare tower, which was supposed to burn off the toxic gas, was out of service.
Lack of Emergency Response: There was no effective warning system in place to alert the local population about the gas leak. The plant’s siren was turned off after the gas release, preventing nearby residents from taking necessary precautions.
Insufficient Training: Workers were not adequately trained to handle such emergencies, and there was a general lack of awareness about the severity of MIC’s toxicity.
Long-term effects
The environmental and health impacts of the Bhopal Gas Tragedy persist to this day. The site of the plant remains contaminated with toxic chemicals, and the groundwater in the area is polluted. Many of the survivors continue to suffer from chronic health problems, and the lack of adequate healthcare and rehabilitation has compounded their suffering.
The tragedy also led to increased awareness and changes in industrial safety regulations globally. In India, it spurred the enactment of the Environment Protection Act (1986) and stricter regulations on hazardous industries. Internationally, the disaster underscored the need for rigorous safety standards and corporate accountability, especially in developing countries where regulatory oversight might be weaker.
What are the lessons with respect to ESG?
The Bhopal Gas Tragedy is a stark example of the catastrophic consequences that can result from ignoring environmental, social, and governance (ESG) factors:
Environmental Responsibility: The disaster highlights the critical importance of environmental stewardship and the need for companies to implement robust safety and environmental management systems. The failure to maintain proper safety protocols and the resulting environmental contamination had severe and lasting consequences.
Social Responsibility: The tragedy underscored the importance of corporate social responsibility, particularly the duty of care that companies owe to the communities in which they operate. The lack of an effective emergency response and the inadequate compensation for victims illustrate the consequences of failing to prioritize social welfare.
Governance and Accountability: The case exposed significant governance failures, including poor oversight, cost-cutting at the expense of safety, and a lack of accountability from corporate leadership. These governance lapses ultimately led to one of the worst industrial disasters in history.
See you in the next week with yet another interesting case study on ESG that cost a British company $65 billion!
Until then,
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