Relevant for Exams
Call for increased CSR allocation towards India's wildlife and biodiversity, aligning with SDG 15.
Summary
The article highlights the critical need for Indian corporations to allocate a greater share of their Corporate Social Responsibility (CSR) funds towards wildlife and biodiversity conservation. It emphasizes that integrating biodiversity into strategic CSR policies, aligning with Sustainable Development Goal (SDG) 15 (Life on Land), can significantly contribute to environmental sustainability. This shift is crucial for India's rich biodiversity and offers a significant area for competitive exam questions on CSR, environmental policy, and SDGs.
Key Points
- 1India's wildlife and biodiversity require a greater share in Corporate Social Responsibility (CSR) allocations from corporations.
- 2Integrating biodiversity into strategic CSR policies aligns directly with Sustainable Development Goal (SDG) 15, which focuses on 'Life on Land'.
- 3Corporate Social Responsibility (CSR) in India is mandated under Section 135 of the Companies Act, 2013.
- 4Companies meeting specific criteria are required to spend at least 2% of their average net profits of the preceding three financial years on CSR activities.
- 5Enhanced corporate engagement in biodiversity conservation through CSR can significantly boost India's environmental protection efforts.
In-Depth Analysis
India, a megadiverse country, is home to a significant portion of the world's biodiversity, including four of the 36 global biodiversity hotspots. However, this rich natural heritage faces unprecedented threats from habitat loss, pollution, climate change, and unsustainable resource extraction. While government efforts and conservation organizations play a crucial role, the scale of the challenge necessitates broader participation. This is where Corporate Social Responsibility (CSR) comes into play, a powerful mechanism often underutilized for biodiversity conservation.
Historically, CSR in India evolved from traditional philanthropy, where businesses voluntarily engaged in charitable activities, often driven by cultural and religious values. Over time, as global awareness of corporate accountability grew, and with increasing environmental and social challenges, the concept transformed. A landmark shift occurred with the enactment of the Companies Act, 2013, which made CSR spending mandatory for qualifying companies. Specifically, Section 135 of the Companies Act mandates that companies meeting certain criteria (net worth of Rs. 500 crore or more, or turnover of Rs. 1000 crore or more, or net profit of Rs. 5 crore or more during any financial year) must spend at least 2% of their average net profits of the preceding three financial years on CSR activities. Schedule VII of the Act lists the areas where CSR funds can be utilized, including eradicating hunger, poverty and malnutrition, promoting education, promoting gender equality, ensuring environmental sustainability, and protection of national heritage.
While 'ensuring environmental sustainability' is explicitly mentioned in Schedule VII, a closer look at CSR spending trends reveals that a disproportionately smaller share has been allocated to wildlife and biodiversity conservation compared to other areas like education, health, and sanitation. This trend highlights a critical gap: despite the legal mandate, strategic integration of biodiversity into corporate CSR policies has been lacking. The article underscores this need, advocating for a more deliberate alignment with Sustainable Development Goal (SDG) 15, 'Life on Land,' which aims to protect, restore, and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, halt and reverse land degradation, and halt biodiversity loss.
Key stakeholders in this paradigm shift include the **Corporations** themselves, which are the primary sources of CSR funds. Their boards and management are responsible for formulating and implementing CSR policies. The **Government of India**, particularly the Ministry of Corporate Affairs (which oversees the Companies Act) and the Ministry of Environment, Forest and Climate Change (which sets environmental policy), plays a dual role as regulator and facilitator. **Non-governmental Organizations (NGOs)** and **Conservation Organizations** are vital implementers, possessing the expertise and on-ground presence to execute effective biodiversity projects. **Local Communities**, especially indigenous populations, are also crucial stakeholders, often serving as custodians of traditional knowledge and directly impacted by both biodiversity loss and conservation initiatives. Finally, **International Bodies** like the United Nations provide the overarching framework through SDGs and conventions like the Convention on Biological Diversity (CBD).
For India, enhancing corporate engagement in biodiversity conservation through CSR is paramount. Environmentally, it means safeguarding critical ecosystems, protecting endangered species, and bolstering climate resilience. Economically, healthy ecosystems provide essential services like clean water, air, pollination, and contribute to sectors like ecotourism and sustainable agriculture, creating livelihoods. Socially, it impacts the well-being of communities dependent on natural resources and upholds the rights of indigenous people. Furthermore, it strengthens India's global standing as a responsible nation committed to its international environmental obligations, including the Aichi Biodiversity Targets and the broader SDG agenda.
Constitutional provisions also underpin this imperative. **Article 48A** of the Directive Principles of State Policy mandates that "The State shall endeavour to protect and improve the environment and to safeguard the forests and wild life of the country." Complementing this, **Article 51A(g)**, a Fundamental Duty, states that it shall be the duty of every citizen of India "to protect and improve the natural environment including forests, lakes, rivers and wild life, and to have compassion for living creatures." These articles provide a constitutional bedrock for both state and citizen action in environmental protection, extending implicitly to corporate responsibility.
The future implications of increased CSR allocation to biodiversity are significant. It could lead to innovative conservation models, scaled-up habitat restoration projects, enhanced scientific research, and greater community involvement in conservation. It also fosters a culture of environmental stewardship within the corporate sector, potentially driving sustainable business practices beyond mere compliance. Challenges, however, remain in ensuring transparency, effective monitoring of funds, capacity building for implementing agencies, and preventing 'greenwashing'. A concerted effort to integrate biodiversity goals into strategic CSR planning, coupled with robust regulatory oversight and collaborative partnerships, can unlock a substantial financial and intellectual resource for India's critical environmental needs, paving the way for a more sustainable and biodiverse future.
Exam Tips
This topic falls under GS Paper II (Governance, Social Justice – particularly CSR, Companies Act) and GS Paper III (Environment & Ecology, Economy – Sustainable Development, SDGs) for UPSC Civil Services Exam. For other exams, it relates to General Awareness (Economy, Environment).
Study the provisions of Section 135 and Schedule VII of the Companies Act, 2013, thoroughly. Understand the difference between mandatory CSR and voluntary philanthropy. Connect it with other environmental laws like the Wildlife (Protection) Act, 1972, and the Biological Diversity Act, 2002.
Be prepared for analytical questions on the effectiveness of CSR in India, challenges in its implementation, and its role in achieving Sustainable Development Goals. Questions may also involve case studies or scenarios where you need to apply CSR principles to environmental issues.
Memorize key constitutional articles like 48A (DPSP) and 51A(g) (Fundamental Duty) related to environmental protection, as they provide the foundational context for CSR's role in this domain.
Understand the 'why' behind SDG 15 (Life on Land) and how corporate contributions are crucial for its achievement, linking national policy to international commitments.
Related Topics to Study
Full Article
By integrating biodiversity into strategic CSR policies which align with SDG 15, corporations can make a wonderful difference

