CSR biggies cross Rs 7,500 cr in Covid-19 spend: Crisil Foundation report

Some of the largest spenders on corporate social responsibility (CSR) projects have allocated a bulk of their funds to alleviating concerns triggered by the Covid-19 pandemic.

They have announced allocations of at least Rs 7,537 crore, according to an analysis which was part of a report released by rating agency CRISIL’s charitable arm CRISIL Foundation.

It analysed 130 companies, of which 113 were found to have promised support — either monetarily or through donation of cash or kind — to mitigate the effects of the pandemic, such as masks, sanitizers, personal protective equipment, and food and rations.  Around 57 per cent of the amount — which can be classified under the head CSR — went to the PM CARES Fund.

“Interestingly, the 130 companies analysed by CRISIL accounted for nearly 80 per cent of the total CSR spend by all listed companies in 2018-19 (FY19). Assuming other companies would have followed a similar path, India Inc has already allocated over 80 per cent of the annual CSR budget to address the pandemic. This could impact spending on other CSR projects this financial year,” said Maya Vengurlekar, chief operating officer, CRISIL Foundation, in statement accompanying the report.

For example, in FY19, nearly three-fourth of all CSR funds was spent on education and skill development, health care and sanitation, and rural development projects.

According to CRISIL, 1,276 listed companies had spent around Rs 11,400 crore in CSR activities in FY19.

Two-thirds of the CSR spend on Covid-19 pandemic came from Indian private sector companies. Around 30 per cent came from the public sector. Seven foreign private sector companies accounted for the rest.

The report noted that Maharashtra, where many large companies have their headquarters, accounted for 63 per cent of the contributions. The National Capital Territory of Delhi was second (17 per cent), followed by Gujarat-based companies at 7 per cent.  

The report noted that the total CSR spending has been rising since it was made compulsory to spend 2 per cent of profits on such activities. It said health care and sanitation, education and skill development, and rural development was among the sectors that had seen the highest spending in the past.