Do corporate really care about the environment? This is one of the common questions that you might get to hear when we talk about industrial growth along with the sustainable environment.

Large corporate and heavy industries are often considered as one of the main reasons for the growing negative impact on the environment. But at the same time, various CSR initiatives undertaken by these big bodies also show their realization for the impact made by them.

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As per the Ministry of Corporate Affairs, 14% of total CSR expenditure of Indian companies were made on activities focusing on environment conservation – third highest expenditure on a social impact issue after education and health and was greater than the amount spent on rural development. These numbers clearly show that industries today are becoming more conscious and responsible for making a clean, healthy and better environment to live in.

The various CSR programs conducted by them are not only limited to planting trees or creating awareness or saving resources. We came up with a brief analysis depicting how these big corporate bodies have played their role towards sustainable environment with the key components of CSR.

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Implementing sustainable projects with long term impact

There was a time when most of the CSR programs involved planting trees and pledging to save forests. Now, this has been taken to a next level where the companies itself are focusing on implementing sustainable projects with a long term impact such as water conservation projects, solar powered lighting installation, maximum usage of renewable energy and much more.

Defining CSR responsibilities strategically as well as profitably

Companies have started establishing CSR responsibilities in a strategic manner keeping both their profits and other social issues in mind.

Thus, for industries like FMCG that source raw materials from farmers, issues like sustaining and protecting the livelihoods of the farmers and their families along with local water regeneration and conservation have become extremely important. Similarly, industries that are responsible for air pollution and global warming, have started investing more in eco-friendly products and projects to makeup the loss as well as maintaining their reputation.

Growth of shared value sustainable projects

Environmental CSR initiatives maintain corporate sustainability within each industry sector while achieving growth and enhancing competitive advantages. Big corporations have adopted sustainability as a way of doing business. Several big known corporate names have a separate CSR committee that focuses on different kind of projects and investments to reduce the company’s carbon footprint on the environment.

Moreover, many of them have started working on shared value projects that aim at creating values for both the community as well as for the business. For instance, as per HUL’s Sustainable Living Plan 2015, they have a clear road map of sourcing 100% agricultural raw material sustainably by 2020 that serves two purposes, i.e. 2% criteria achievement (meaning unclear) and meeting their own business targets.

Can These CSR Programs Stimulate Economic Growth?

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This is a very important question to consider. Environmental CSR initiatives can be considered as growth initiatives for a number of large corporate bodies. These programs can be implemented for companies to remain competitive in industries that are becoming more aware of the impact these efforts can have on the bottom line.

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The trends visible in the CSR projects about the environment highlight a dichotomy in the way company approaches environment protection interventions in India. While some are thought leaders in the space and see sustainable development and environmental protection as an opportunity, for many others, the pressing need for acting on conserving natural resources hasn’t arrived yet. There is still a need for self-realization for these corporate to understand and carry out their social responsibilities towards the environment.

Authored by a Building Expert from Wienerberger India

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