As the financial year ends, companies can use their CSR funds for eco-friendly projects like afforestation. Tree-planting initiatives help firms meet compliance requirements while benefiting the environment.
Under Section 135 of the Companies Act, companies must spend at least 2% of their average net profits from the last three years on CSR. Those failing to do so must transfer the unspent amount to a designated fund within six months.
Tree plantation projects offer multiple advantages. With the March 31 deadline approaching, businesses can invest in afforestation projects to ensure CSR compliance. They help in carbon reduction, groundwater recharge, biodiversity conservation, and job creation for rural communities. Afforestation aligns with UN Sustainable Development Goals (SDGs) and enhances a company’s Environmental, Social, and Governance (ESG) profile.
According to Pradip Shah, co-founder of Grow-Trees.com, investing in afforestation ensures compliance, environmental impact, and social benefits. Companies can also obtain a fund utilisation certificate for regulatory adherence.
Green CSR projects strengthen corporate reputations while making a real difference in climate action and community welfare.
