By Paras Singh and Manavi Bhardwaj
India could soon be experiencing heat waves beyond the limit of human survivability; a World Bank report has found. As the 7th most vulnerable country to climate change, nearly 75% of India’s districts are categorized as hotspots for extreme climate events. Undoubtedly, equitable climate action is urgent, looming, and an unavoidable priority, and there needs to be greater recognition that climate change is a threat multiplier that affects and impacts almost every development issue. Greater solidarity on climate action will also greatly assist the achievement of India’s SDGs. For India to achieve net-zero emissions by 2070, supporting the adaptation and resilience of communities against climate change needs to be supplemented with the management and mitigation of greenhouse gas emissions (GHG) at the source. Hence, an impactful and holistic climate solution will be one which builds adaptation and resilience of people and/or mitigates GHG emissions while also contributing to development co-benefits.
In addition to essential business-related climate commitments, there is latent potential for climate action to be leveraged through CSR. India Inc.’s efforts have long funded sectors such as health, education, and livelihoods. Now there is greater recognition that these are intrinsically linked to climate. Additionally, they also view entry points into climate action through the sectors they have traditionally funded. However, barriers – such as low visibility on relevant and investable climate projects, limited geographic engagement and reach, and gaps in climate impact measurement – need to be dissolved to unleash this potential. Significant opportunities exist for CSR funding to be directed to climate solutions that intersect with health, gender, or livelihood.
Consider the case of the Mahila Housing Trust (MHT), which provides sustainable living solutions for the urban poor. MHT trains local women to conduct energy audits to assess household energy needs and recommend ways to reduce energy consumption in their communities. MHT has also piloted different types of low-carbon, low-cost, cool roofs and building materials for local communities to use to build climate-resilient housing. Additionally, local women act as a conduit between users and technology suppliers by selling renewable energy-powered products (such as solar lanterns, lighting systems, and geysers) at the doorstep and offering after-sales servicing and repairs, with MHT providing support for such women-led enterprises to become self-sustainable through tailored financing tools. This comprehensive approach has led to not only nearly 10% savings in energy costs for the urban poor but also a 2-5 °C reduction in indoor temperature and an increase in productivity of the urban poor by approximately 4 hours/day. The solution also helps improve indoor air quality, reduces drudgery, and builds the capacity of local, marginalized women.
This is an important climate solution that addresses both mitigation and adaptation, as well as contributes to other development priorities. With its scope for replication and scale across a variety of geographies, such a climate solution provides CSR funders an opportunity to contribute to large-scale climate action at a systems level.
Funding impactful climate solutions
In line with the same, to ensure a comprehensive and holistic approach to implementing a climate solution, CSR initiatives must—
Examine causality to and impact on climate
A climate solution must address either the causes, the impacts of climate change, or both, to be considered valid. However, such contribution claims on climate action must be backed by relevant impact indicators. Additionally, funders must also assess how their current CSR initiatives (that may either be contributing to or getting impacted by climate change) can be climate proofed. For instance, supplying solar pumps in water-stressed and drought-prone areas promotes over-extraction of an already scarce resource.However, when integrated with efforts to restore groundwater and build resilience to droughts, it helps communities access water in a sustainable way.
Ensure contextual relevance and inclusivity
When a solution is co-designed with and implemented by relevant stakeholders in a particular geography, it is more likely to be successful as it integrates local knowledge and context and builds local ownership beyond the initial phase of project funding. The involvement of local communities must be inclusive in nature, involving a diverse range of stakeholders including marginalized and underserved groups who may be disproportionately affected by climate change to ensure that the solution is fair and equitable.
Focus on outcomes and impacts, not just outputs
Funders must expand their gaze beyond immediate project outputs, towards outcomes and impacts of climate solutions that span over a longer time horizon in order to see tangible results at the systems level. Additionally, climate solutions must be integrated into larger socio-economic and ecological systems to bring lasting change, as the success of such solutions is dependent on the ownership and buy-in of local stakeholders, including communities, governments, and supply chain actors. A longer-term horizon, therefore, allows for contextual relevance to be tested and improved upon and systemic relationships to be built.
Expand geographic focus beyond area of operations
Typically, CSR initiatives are focused in and around the areas of operation of a corporate entity. However, the impacts of climate change extend beyond borders. Some of the most vulnerable regions in India do not receive the substantial funding they need to address the climate impacts they often face. Therefore, there is a need to expand the geographic focus of CSR projects as well as support the capacity building of implementing organizations that operate in far-flung areas. One way to achieve this is by partnering with larger implementing organizations that can engage and empower localized grassroots NGOs in such areas to implement climate solutions that are tailored to the region’s specific context and needs.
Avoid and mitigate unintended consequences
Unintended consequences are outcomes separate from a particular solution’s intended or expected results and can occur when a solution is implemented without fully considering its potential impacts and consequences on local communities and ecosystems. For example, the installation of solar panels or windmills on productive lands can adversely impact farmer livelihoods and even lead to the displacement of local communities from their habitats. Unintended consequences can be avoided by ensuring stakeholder engagements and consultations are undertaken to inform solution design, and implementation, as well as its contextual relevance. Additionally, it is important to monitor and evaluate the impacts of a climate solution over time, make adjustments as needed, and minimize unintended consequences that might currently be unknown but may arise in the future.
Support M&E and communications through grant budgets
Beyond direct project deliverables, funders must consider supporting implementing organizations in building their internal capacity to undertake the monitoring & evaluation (M&E) and communication aspects of climate projects. This additional support, which can be built into grant budgets themselves, could enable such organizations to measure not only the climate impact and co-benefits, but also the effectiveness of their projects, identify areas for improvement, and demonstrate the value of their efforts and best practices to a wider audience, which could potentially help leverage additional funds to scale the project as well.
About Authors:
Paras Singh is an Associate at the India Climate Collaborative, currently building initiatives to unlock climate finance in India. She holds a bachelor’s degree in Geology from the University of Delhi and a Master’s degree in Climate Change from King’s College London.
Manavi Bhardwaj is an interdisciplinary sustainability and climate action professional whose work cuts across sectors and diverse stakeholder groups, including grassroots organisations, think tanks, policymakers, philanthropy and corporate.
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