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How Can Clean Energy Contribute in the Efficient Use of CSR Budget?

In August 2013, the President of India gave assent to the new Companies Bill passed by Lok Sabha thus replacing the old Companies bill of 1956. The new Bill mandates large companies to spend at least two percent of at their average net profits made during the three immediately preceding financial years on Corporate Social Responsibility (CSR). Companies need to earmark this amount in their budgets for the financial year.

Environmental Sustainability is one of the options for investing the CSR budget mandated by the new Companies Bill. This category aims to address the adverse social impact of wasteful energy use and carbon emissions. For companies with identified CSR budgets, Renewable energy provides a combination of cost saving and demonstrable positive impact on environment.

Is Renewable Energy Viable?

India is dependent on thermal power for most of its electricity requirements. The availability and cost of thermal power depends on supply of conventional fuels (coal, gas).

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Comment by SHAILESH ISHWARRAO TELANG on October 14, 2013 at 10:03am: Hi, Currently, I've very little information it. However, I am writing a detail article on it. Please wait for some time. I will post the same soon.

Comment by Sunil Sood on October 14, 2013 at 9:55am: Shailesh,

1.What type of projects can be taken up under 'Social Business'

2.Are any performance indicators specified in the amended Act?

best wishes,

Sunil Sood

Comment by SHAILESH ISHWARRAO TELANG on October 14, 2013 at 9:08am: In addition, please go through this article for getting information on the performance indicators of sustainability projects (Note: These indicators are on old guidelines) http://greencleanguide.com/2013/06/06/performance-indicator-for-sus.../

Comment by SHAILESH ISHWARRAO TELANG on October 14, 2013 at 9:05am: Hi,

I hope the information mentioned in the image above will help you.

Comment by Hemant B. Bherwani on October 14, 2013 at 8:00am: Hi Shailesh,

I had gone through the Companies Bill and it indeed has Environmental Sustainability as the parameter. But I am unable to find any details on all the ten categories. Have they issued any guidelines which indicate all the activities which can be considered in all 10 parameters. If you have, can you please send it across. I will be highly obliged. My email id is hemantbbherwani@gmail.com

I have serious doubts that all the environmental activities will be going under CSR. If this is the case an expenditure for building an ETP (which might be a mandate due to pollution laws) will go into CSR???

It would be great if you can update me on this

Thanks and Regards

Hemant Bherwani

Comment by SHAILESH ISHWARRAO TELANG on October 13, 2013 at 11:18pm: Thanks for your opinion. Please send more information (If any) at shailesh(at)greencleanguide(dot)com.

Comment by Sunil Sood on October 13, 2013 at 11:14pm: Dear Mr Telang,

We have developed the 'Energy Pyramid' approach which is three layered i.e.at the bottom is conservation with efficiency at the middle and renewable at the top. We should lay the foundation with conservation and then move over.Please visit the web site www.kaunbanegaconnservepati.com

I agree that EE and RE can go together

best regards,

(Sunil Sood)

Comment by SHAILESH ISHWARRAO TELANG on October 13, 2013 at 11:02pm: Yeah...it is always better to add efforts to improve what we currently have instead of showing interest in new things. However, energy efficiency have its own limitations unlike RE. Beyond certain point companies can not bring any energy savings at all (Considering increasing production trends). Indeed, investment in RE and EE together can work better.

Comment by Sunil Sood on October 13, 2013 at 10:51pm: Energy Efficiency is more economically and environmentally viable than renewable energy.It would be serve the economic purpose as well.

Unfortunately those who drafted the amendment in the Companies Act made a blunder.Instead of including the broader concept of Sustainable Development it covers only CSR with Environmental Sustainability thrown in. I am afraid that the CSR lobbies will succeed in spending all the funds in other activities and hardly any fund will be spent on environmental sustainability.

Sunil Sood,
Former President, IAEMP & Chairman,
IAEMP Committee on Home Energy & Resources Management
Mobile: 07739802112
E-mail: sunilsolar@yahoo.co.in

4D,C Block, Jaishree Green City,

Pundag Raod, Argora,

Ranchi-834002,Jharkhad, India, Earth

www.iaemp.in

www.sunilsood.com

www.kaunbanegaconservepati.com