Harnessing CSR for Powering Environmental Stewardship in India

Effective April 1, 2014, a significant change was introduced for companies in India through Section 135 of the Companies Act, 2013 – Corporate Social Responsibility (CSR).

The legal change has made CSR spending mandatory for certain companies, requiring them to allocate at least 2% of their average net profits towards social causes.

This regulation has transformed corporate philanthropy from sporadic donations to structured investments in not only social well-being, but also in ecological, environmental, and nature-related work. It has emerged as a powerful tool for driving India’s achievement of its Sustainable Development Goals.

India’s CSR spending has grown significantly over the last five years, reaching new highs each year. FY 2023-24 marked a record ₹34,909 crore spent on CSR. 

From FY 2019-20 to FY 2023-24, Indian companies collectively spent around ₹144,000 crore (~ US$17 billion) on CSR, almost doubling from the previous five-year period. 

Education and healthcare have remained the largest recipients, accounting for more than half of total CSR expenditure. However, over the years, the proportion of CSR funds allocated to environmental sustainability has increased notably.

These resources support a wide range of initiatives, including water resource restoration, afforestation, biodiversity conservation, waste management, and the development of clean energy.

The shift toward environmental CSR is influenced by regulatory pressure, climate-related risks, and growing stakeholder demand for responsible business practices.

This article examines various examples of CSR-funded environmental initiatives in India.

CSR Work for Environmental Conservation

DCM Shriram

DCM Shriram, a diversified Indian conglomerate with roots tracing back to the late 19th century, has emerged as a key contributor to environmental sustainability through its CSR initiatives, particularly in water conservation and afforestation.

Since 2017, the company has implemented community-driven projects to address water scarcity in Rajasthan, Gujarat, and Uttar Pradesh. 

In 2021, DCM Shriram partnered with the environmental NGO Tarun Bharat Sangh to launch an integrated watershed management program in Ladpura (Rajasthan), renovating 13 rainwater harvesting structures to provide water security for 5,000 people. This effort is estimated to increase annual surface water capacity by 1.8 billion litres.

In parallel, DCM Shriram is enhancing green cover through extensive plantation drives, including Miyawaki forests, around its manufacturing sites—demonstrating a deep commitment to ecological balance and long-term growth.

HCL

HCL Technologies drives socio-economic development, undertakes CSR-funded environmental initiatives in India, and promotes sustainable initiatives through its CSR arm, the HCL Foundation.

HCL Foundation’s environmental initiative, Harit – The Green Initiative, focuses on conserving, restoring, and enhancing indigenous environmental systems through community engagement.

Harit addresses climate change, environmental degradation, and biodiversity loss by developing sustainable climate action measures that involve active community participation and stewardship. 

Amongst its several initiatives, it has planted approximately 400,000 saplings across 150 acres, rejuvenated more than 60 water bodies, and developed environment education modules to raise awareness and promote sustainable practices among communities. 

ITC

India’s leading business conglomerate with significant agri-business interests, ITC, is actively advancing a future-ready, climate-positive agenda through its comprehensive Climate Action Plan.

With operations across climate-vulnerable regions of India, the company recognises the urgent need for resilience, particularly given its reliance on agri- and forestry-based value chains.

ITC uses advanced AI-enabled climate risk modelling to assess vulnerabilities across its operations through 2100 under various climate scenarios. This enables site-specific, hazard-focused adaptation plans that incorporate physical measures (including engineering and nature-based solutions), early warning systems, and best practices for managing extreme weather events.

To combat the packaging challenges in its FMCG segment, which accounts for more than 13% of ITC’s total revenue, the company integrates innovation, materials science, and business collaboration to reduce plastic waste and promote a circular economy.

Its initiative, WOW (Wellbeing Out of Waste), creates scalable waste management models tailored for cities and towns, promotes source segregation and recycling, improves the livelihoods of waste handlers, and fosters social entrepreneurship.

Furthermore, through significant investments in renewable energy, sustainable sourcing, and ecosystem restoration, ITC integrates environmental stewardship across its businesses. Its CSR and operational strategies together reflect a deep commitment to ecological balance and inclusive, climate-resilient development.

Bajaj Group

India’s automobile giant, the Bajaj Group, has focused its CSR-funded environmental initiatives in India on water conservation projects in nearly 150 villages in Maharashtra, covering approximately 1 lakh Hectares.

It brings together six NGOs, including Jankidevi Bajaj Gram Vikas Sanstha, which works on water conservation and strengthening community water stewardship. The community also contributes 10% of the intervention costs and is responsible for the care and maintenance of the structures.

According to the company, it has contributed over Rs. 1,300 crores since the CSR rules were first announced in 2014, across education, health, livelihoods, and the environment. 

HDFC Bank

India’s private-sector bank, HDFC, through its flagship CSR program, Parivartan, is pioneering clean energy access across India’s rural and semi-urban landscapes.

By 2025, the HDFC aims to empower over 1,000 villages with solar-powered infrastructure—improving livelihoods, public safety, water access, and farming systems.

With over 61,000 solar streetlights installed in 22 states, and innovative projects such as solar pumps, energy carts, and passive greenhouses, HDFC Bank demonstrates how renewable energy can transform lives. Its Solar Shiksha awareness campaign bridges knowledge gaps, ensuring community-driven adoption.

This integrated approach reflects HDFC Bank’s deep commitment to sustainability and climate resilience at the grassroots level.

Rallis India

Rallis India, a subsidiary of Tata Chemicals, has undertaken a significant environmental initiative as part of its climate action commitment within its CSR program.

The company planted 5,000 new trees and maintained 14,000 previously planted ones across deforested lands in Maharashtra and Gujarat. It implemented this project through a rural development Trust to expand green cover and restore ecological balance in areas. 

Infosys

Technology company Infosys has several environmental initiatives funded through its CSR activities, primarily implemented via the Infosys Foundation. 

Infosys Foundation is actively engaged in environmental sustainability projects focused on long-term community impact, particularly addressing water resource challenges exacerbated by climate change.

Key initiatives include the rejuvenation of historic stepwells and traditional water systems in Telangana in partnership with SAHE, aimed at preserving architectural heritage while building water resilience.

Additionally, the Foundation has revitalised five lakes in and around Bengaluru, highlighting its commitment to preserving and restoring water bodies. 

Wrapping Up – Amplifying Impact

The roots of CSR in India can be traced back to ancient traditions such as “dharma” and practices across various religions, in which a portion of earnings was shared with the poor. The institutionalisation under the Companies Act, 2013, marks a pivotal transformation in corporate engagement with social development. 

Companies now report CSR expenditures annually, often via structured programs, foundations, or partnerships with registered NGOs, ensuring transparency and accountability.

Year after year, CSR-funded environmental initiatives in India have continued to deliver tangible outcomes—improving biodiversity, enhancing rural livelihoods, and building climate resilience. However, the journey is not without challenges.

The sustainability and ecological appropriateness of interventions, limited geographic reach, gaps in transparency, and inadequate community engagement often limit their enduring impact.

To truly unlock the transformative potential of environmental CSR, efforts must go beyond tree planting or infrastructure. There is a need for integrated ecological planning, wider geographic collaboration, robust impact measurement frameworks, and deeper community inclusion, especially involving women and youth.

Successful models, such as Miyawaki forests, watershed restoration, and solar-led rural development, should be scaled up with adaptation to local contexts. Leveraging technology and aligning CSR efforts with national and global climate goals can further enhance impact.

As the country navigates its development path amid growing environmental challenges, CSR-funded environmental initiatives in India can play a pivotal role in creating a better tomorrow. The ecological dimension of CSR is not just an obligation; it is an opportunity to strengthen both communities and ecosystems.