Corporate India’s environmental Corporate Social Responsibility (CSR) spending has grown significantly over the past decade, crossing ₹17,000 crore and emerging as a key pillar of sustainability efforts. However, a new report has highlighted that while investments are increasing, they are not always reaching the regions most vulnerable to climate change.
According to ‘A Decade of Green Spending: What ₹17,000 Crores of Environmental CSR Reveals About Corporate India’, published by Sattva Consulting and India Data Insights, environmental CSR now accounts for 8.4% of total CSR spending, nearly doubling from its pandemic-era low after a strong post-COVID recovery.
Environmental CSR Gains Momentum
The report notes that sustainability has evolved from being a niche CSR theme to a mainstream corporate priority.
Over the last ten years, companies have significantly expanded investments in environmental initiatives, reflecting increasing awareness of climate change, biodiversity conservation, renewable energy, water conservation and ecosystem restoration.
However, despite the growth in funding, the geographical distribution of environmental CSR remains uneven.
Climate Vulnerability and CSR Spending Do Not Always Align
The study found that nearly 43% of environmental CSR funding is directed towards pan-India or multi-state programmes, while another 22% is concentrated in Tier-I cities.
Although such programmes offer operational efficiency, scalability and easier implementation, the report argues that climate risks are highly localised and require region-specific interventions.
States including Jharkhand, Bihar, West Bengal, Mizoram and Arunachal Pradesh, identified among India’s most climate-vulnerable regions, receive relatively low per-capita environmental CSR funding.
At the district level, the findings are even more striking. The report states that 30 of India’s 50 most climate-vulnerable districts received only around 1% of total environmental CSR spending over the past three years, highlighting a significant gap between climate risk and CSR investment.
Rethinking the CSR Geography
The report suggests that corporate decision-making has traditionally prioritised locations where companies have manufacturing facilities, long-standing NGO partnerships or easier implementation mechanisms.
While these considerations remain important, the authors argue that future environmental CSR strategies should increasingly incorporate climate vulnerability assessments when selecting project locations.
Rather than focusing solely on the nature of environmental projects, companies could also evaluate which regions face the greatest environmental stress and climate-related risks.
Industrial Regions Face Growing Environmental Challenges
The report also reflects on industrial regions such as Bokaro in Jharkhand, where decades of industrial development have contributed significantly to India’s economic growth but have also increased environmental pressures on surrounding communities.
Issues including deteriorating air quality, coal dust, declining green cover and concerns over water pollution have become increasingly visible in such regions, underscoring the need for targeted environmental restoration and climate resilience initiatives.
The authors note that while CSR was not originally designed around climate vulnerability, the increasing frequency of climate-related challenges presents an opportunity for companies to align future environmental investments more closely with the areas that need them the most.
By integrating climate-risk assessments into CSR planning, corporate India could enhance the long-term impact of its sustainability initiatives while contributing more effectively to India’s environmental resilience and inclusive development.
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