Navigating the complex landscape of carbon offsetting and Corporate Social Responsibility (CSR) can be a daunting task, given the multitude of opinions, policies, and changes proposed by various entities. In India, recent adjustments to CSR laws by the RBI emphasize the need for corporates to invest CSR funds in climate-friendly technologies, particularly in industries with challenging emissions.

This prompts a crucial conversation about optimizing the use of CSR funds. In my blog, I aim to simplify this process for corporations facing the immediate challenge of channelizing CSR funds towards impactful climate change actions.

Key Recommendations:

• Preserve Existing Initiatives:
  Do not earmark your current CSR funds exclusively for climate change efforts. Continue supporting your ongoing initiatives.
• Leverage Carbon Credits:
  Enhance the impact of your CSR funds by incorporating carbon credits. Use these credits to supplement your CSR funds and direct the combined resources towards climate change projects.

This strategic approach ensures that organizations don’t divert their existing CSR funds from their ongoing commitments. Simultaneously, the inclusion of carbon credits¹ allows for a more effective and controlled allocation of resources. This way, your organization can strategically manage and report on the utilization of these funds in your CSR reports.

By adopting this two-step method, corporations can strike a balance between maintaining their current CSR initiatives and actively contributing to meaningful climate change projects. It’s about utilizing resources wisely and making a lasting impact on both your business and the environment.