Bengaluru : According to the State of CSR Report 2024, there has been a 13% increase in Corporate Social Responsibility (CSR) spending, with total allocations reaching ₹29,000 crore for the fiscal year 2022-23. This annual report, launched by Sattva Consulting, outlines significant trends in CSR across India, coinciding with substantial profit growth for over 33,000 companies from 2020 to 2023. Notably, more than 56% of firms not only met the legally required 2% CSR expenditure but exceeded it, marking a shift towards sustainable, long-term projects rather than one-time donations.

Significant Growth Reflects Commitment to Social Initiatives

Since the CSR law was enacted nine years ago, over ₹1.84 lakh crore has been cumulatively spent by more than 30,000 companies, establishing CSR capital as a vital source of development financing. The report indicates that CSR spending has tripled over the past nine years, with the last five years alone accounting for more than two-thirds of total expenditures since the law’s introduction. This trend underscores a growing dedication among businesses to contribute meaningfully to social initiatives and tackle pressing societal challenges.

Challenges Amidst Progress in CSR Compliance

Despite these positive developments, the report also reveals that approximately 20% of companies, or around 4,860 firms, did not fulfill their CSR obligations this year. However, this unspent CSR trend may indicate a crucial shift in the landscape. Recent regulatory changes now allow companies to transfer unspent funds to ongoing projects and carry over funds for up to three years. As a result, many corporates are strategically reconsidering their approach, focusing more on larger, long-term programs that promise sustainable impacts rather than short-term donations.

Insights on the Evolving Role of CSR from Srikrishna Sridhar Murthy

Srikrishna Sridhar Murthy, Founder of Sattva Consulting, commented on the findings, stating, “The data illustrates a significant transformation in how businesses perceive their societal role. Over the past decade, CSR has evolved considerably; companies are now taking a problem-first approach that prioritizes enduring impact over mere programmatic funding. We have transitioned from compliance-driven obligations to strategic tools for systemic change, with over 56% of firms not just meeting, but surpassing their mandated 2% CSR expenditure. While there’s still progress to be made, this commitment signifies a powerful trend in leveraging CSR for real societal benefit.”

Key Trends and Insights from the 2024 State of CSR in India Report

Now in its fifth year, the 2024 edition of the State of CSR in India report highlights essential trends, including sector-wise and region-wise CSR investments, an analysis of top funders’ spending by geography, and expenditures on aspirational districts. It also provides a thorough examination of CSR’s role in promoting India’s Sustainable Development Goals (SDGs) and explores emerging focus areas like climate action and livelihood enhancement. These insights equip decision-makers with critical information to navigate the evolving CSR landscape and make informed, sustainable choices that drive measurable impact.

Collaborative Approach to Social and Environmental Impact

Sattva Consulting collaborates with a wide range of stakeholders—including governments, multilateral organizations, corporate CSR teams, foundations, non-profits, and social enterprises—to achieve social and environmental goals effectively. Their deep understanding of various sectors, coupled with collaboration across multiple stakeholders, enables them to create holistic solutions for addressing pressing societal challenges. Operating at the intersection of knowledge and practice, capital and impact, and global and local perspectives, Sattva Consulting is dedicated to uniting diverse stakeholders to co-create effective, inclusive, and sustainable models of change that enhance collective impact.

India Data Insights (IDI), an initiative of Sattva Consulting, empowers the development sector with actionable data insights, facilitating sharper decision-making and maximizing impact. The State of CSR Report 2024 is the fifth edition of their annual analysis of CSR funding in India.