Looking at the current global warming and the alarming weather conditions, it seems that people have become more environment conscious and thus, more concerted effort towards environmental sustainability, shows a report by the Ministry of Corporate Affairs (MCA). According to the official records, the funding for Environmental Sustainability has grown by almost 130 percent in the financial year (FY) 2021-22 vis-à-vis FY 2020-21. In 2020-21 where the funding for the sector stood at Rs1030.16 crore, it soared to Rs 2366.15 in 2021-22, which is Rs 1336 more than the previous financial year.
Amongst the biggest development sectors, while Health Care has seen a marginal growth (4.23%) in funding, Education sector has recorded a dip of nearly 5% in the fiscal year 2021-22 over the previous financial year.
This shows that efforts have been increased multifold for Environmental Sustainability, however, compared with the funding for sectors like Education and Health Care in the last five years, the sector’s share is still four and five times lesser. From 2017-18 to 2021-22, while Education and Health Care sectors received a funding of Rs 32115 crores and Rs 26262, respectively, a meagre Rs 7537.1 crores fell into Environmental Sustainability’s kitty.
The sector has still a long way to catch up with Education and Health Care when it comes to funding.
Sectors with positive funding in 2021-22
Furthermore, the other sectors that gained positive funding over the previous fiscal year include Poverty, Eradicating Hunger, Malnutrition, Training to Promote Sports, Women Empowerment, Conservation of Natural Resources, Clean Ganga Fund, and Agro Forestry. Out of the development sectors with better contribution than the last year, with a funding increase of over 300 percent Clean Ganga topped the charts followed by Conservation of Natural resources whose financial contribution increased by 295 percent in 2021-22.
Though these sectors witnessed nearly 300 percent increased funds, in terms of the amount it translated into just a few crores. The Clean Ganga Fund got Rs 54.31 crores in 2021-22 as compared to Rs 13.39 crores in 2020-21, while Conservation of Natural Resources reported a total of Rs 271.95 crores in 2021-22 in comparison to Rs 95 crores in the preceding financial year.
Agro Forestry, Poverty, Eradicating Hunger, Malnutrition, Women Empowerment and Training to Promote Sports registered an increased funding of60, 33, 22 and 18 percent respectively.
Increased CSR funds for sectors associated with Environmental Sustainability
Studying the data closely also reflects that not only Environmental Sustainability, but sectors that are directly associated with or impact the environment have also seen better CSR funds in the financial year 2021-22. Starting with 2017-18, Environmental Sustainability, Conservation of Natural Resources, Clean Ganga Fund and Agro Forestry registered a funding of Rs 1630.85 crore, the funding for the sector in 2018-19 dipped to Rs 1614.68 crore and grew a little (Rs 1705.14 crore) in 2019-20. The funding for these four development sectors further took a plunge with recording an overall funding of Rs 1156.45 crore in 2020-21.
However, 2021-22 reported an overall highest ever funding for these sectors – Rs2725.54 crore.
Education, Swachh Bharat Kosh, Safe Drinking Water record a dip in CSR funds
On the flipside, development sectors that recorded negative funding in comparison with 2020-21 are Education, Prime Minister's National Relief Fund, Rural Development Projects, Livelihood Enhancement Projects, Swachh Bharat Kosh, Sanitation, Art and Culture, Safe Drinking Water.
Swachh Bharat Kosh has been quite unstable in terms of financial contribution with the sector just reporting a funding of Rs 32.92 crore in 2021-22 over Rs 161.35 crore in 2020-21 which translates into a dip in funding of nearly 490 percent. This sector is followed by Art and Culture and Prime Minister's National Relief Fund that saw a funding dip of 105 and 42.6 percent.
Art and Culture gained Rs 241.24 crores in 2021-22 in comparison with Rs 493.13 crores in the previous fiscal year, while finances for PM’s National Relief Fund tumbled by Rs 507.52 crores. In 2020-21, the development sector received a funding of Rs 1698.38, while in 2021-22 the sector saw a funding of Rs 1190.86 crores.
Safe Drinking Water, Sanitation, Livelihood Enhancement Projects and Rural Development Projects recorded lesser funding - 15.4, 12.5, 14.23 and 2.7 percent respectively.
Environmental Sustainability isn’t the biggest sector yet - comparative analysisof last 5 years
Among the sectors with a CSR funding of Rs 1000 crores or more, though Environmental Sustainability has seen a 130 percent increase in CSR funding (2021-22 Vs 2020-21), in the last 5 years the sector hasn’t matched the CSR funding of sectors like Health Care, Education and Rural Development Projects.
