Indian companies spent ₹17,377 crore on environmental corporate social responsibility (CSR) activities over the past decade, accounting for 8.4% of total CSR spending. However, the funding remains concentrated among a small group of large companies and falls far short of the investment needed to address the country’s climate challenges, according to a new report by Sattva Consulting.
Indian companies invested ₹17,377 crore in environmental initiatives over the last ten years, according to A Decade of Green Spending, a report released by Bengaluru-based Sattva Consulting on Monday. The report highlights the growing role of corporate funding in environmental protection but warns that spending remains limited compared with India’s climate financing needs.
Environmental CSR spending has recovered from its pandemic low, when it accounted for just 4.4% of total CSR expenditure. Despite this improvement, environmental projects continue to receive less funding than health and education initiatives.
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The report said India would need an estimated $10 trillion investment in climate solutions to achieve its vision of a climate-resilient and inclusive economy under Viksit Bharat 2047 and meet its Net Zero target by 2070.
“Environmental CSR spending currently stands at ₹17,377 crore, a small share of the estimated $2.5 trillion required to meet India’s nationally determined contributions by 2030,” the report said.An analysis of projects worth more than ₹50 lakh in 2023–24 found that companies mainly directed their environmental funding towards water management, renewable energy and biodiversity. These three areas together received 38% of the funding for high-value projects.
Water management accounted for 15%, renewable energy received 12%, and biodiversity attracted 11%. In comparison, air quality received only ₹14 crore, representing 5% of the high-value project funding pool.
The report also found that only 22% of companies direct their CSR spending towards environmental initiatives. Participation rises significantly among larger companies, with 68 firms accounting for more than 40% of total environmental CSR expenditure.European-headquartered multinational companies showed greater participation in environmental CSR, at around two-thirds, compared with 54% among Indian firms.
The report noted that growing interest in renewable energy, electric vehicles, water efficiency, climate-resilient agriculture and disaster preparedness has supported the recovery in green spending. It called attention to the gap between funding patterns and areas facing the greatest climate risks. Greater investment in large-scale, location-specific solutions could help India make better use of corporate funds to support its environmental goals.
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