The Government of India has expanded the scope of Corporate Social Responsibility (CSR) obligations for public limited companies to include climate resilience and adaptation projects as eligible CSR activities. The amendment, notified by the Ministry of Corporate Affairs (MCA) in consultation with the Ministry of Environment, Forest and Climate Change, came into effect on October 1, 2026, and reflects India’s increasing commitment to environmental sustainability under its national and international climate goals, including the Paris Agreement.

Under the revised Schedule VII of the Companies Act, 2013, public companies can now allocate their mandatory 2% CSR spending toward projects that enhance climate adaptation, disaster risk reduction, biodiversity conservation, sustainable agriculture, water resource management, coastal resilience, and renewable energy integration. These initiatives must be carried out in partnership with registered NGOs, local governments, or community-based organizations, and must include measurable impact metrics, such as reduction in greenhouse gas emissions, improved ecosystem health, or climate-risk mitigation outcomes.

Companies undertaking climate resilience projects must disclose these initiatives in their annual CSR reports, file detailed project progress and impact assessment reports in Form CSR-2, and publish them on their websites. Projects must be aligned with national programs like the National Action Plan on Climate Change (NAPCC) or state-level equivalents. Industry leaders and environmental experts have welcomed the move, stating it will redirect substantial corporate funds toward climate-resilient infrastructure and vulnerable communities, creating a synergy between business responsibility and sustainable development. The amendment is expected to mobilize large-scale private sector participation in India’s climate adaptation efforts, particularly in rural and high-risk geographies.