More than three lakh hectares of forest have been diverted to infrastructure and industry in 15 years.
By Rohit Bhagwat
Global temperatures are on track to surpass the most ambitious goal of the Paris Agreement, according to the Emissions Gap Report 2025. In India, the warning signs are hard to ignore. Summers feel hotter, floods hit with more force and seasons shift unpredictably. One reason is the pace of urban expansion. As cities push outward, patches of tree cover vanish, wetlands are drained and grasslands give way to construction. These natural areas clean the air, regulate heat, store water and give biodiversity room to survive. When they disappear, the systems that keep cities liveable begin to break down. Addressing this loss will require action beyond what government policy or municipal programs alone can deliver. The private sector has a critical role to play.
Recognizing this need, India became the first country in the world to mandate corporate social responsibility (CSR) under Section 135 of the Companies Act, 2013. The mandate turns what was once voluntary giving into a legal obligation to invest in environmental and social priorities. Corporations influence where and how land is developed, shape infrastructure decisions and manage supply chains. They bring resources including funding, expertise and partnerships that can help restore what has been damaged.
In FY 2024-25, leading Indian companies spent Rs. 17,742 crore on CSR, averaging Rs. 59 crore each. That is more than double the average in 2015-16. Environment and sustainability projects accounted for 13% of that amount, yet biodiversity-focused work remains far less common than the scale of loss requires.
Closing the gap in biodiversity funding
Environmental CSR often prioritizes immediate, tangible outcomes over lasting impact. Short-term beautification projects or token tree plantings may look impressive in the moment, but without long-term planning and maintenance they fade fast.
True biodiversity projects, including restoring habitats, using native species and stitching together green corridors, take more time, more expertise and more patience before results show.
The cost of neglect shows in diminished natural networks. Nearly 30% of India’s wetland cover has disappeared over the past three decades and grasslands now account for only about a tenth of the country’s area. More than three lakh hectares of forest have been diverted to infrastructure and industry in 15 years. This erosion of connected green spaces, from wetlands to wooded patches, fragments habitats, making it harder for species to move, feed and breed. In cities, the loss of links between parks, tree-lined streets and water bodies weakens the ecological systems that help control heat, filter pollutants and sustain biodiversity.
At the same time, redirecting even part of existing environmental CSR budgets toward biodiversity would have benefits that reach far beyond ecology. Healthy, connected landscapes strengthen city resilience, protect water sources, enhance community wellbeing and help cool urban microclimates.
Moreover, private sector involvement in biodiversity restoration is not just good citizenship. It is a business imperative. Corporate-led development has played a role in habitat loss, and forward-looking companies recognize that they have a responsibility to help repair that damage. Global sustainability frameworks, such as the Taskforce on Nature-related Financial Disclosures (TNFD), now treat biodiversity loss as a material financial risk. Investing in ecological resilience through CSR protects supply chains, reduces vulnerability to climate shocks and creates stronger, more sustainable markets.
How to create lasting impact
Shifting the balance will take intentional design. Biodiversity projects should have clear milestones, link to other environmental initiatives like water conservation and be delivered in partnership with credible organizations that understand the terrain. Two years should be treated as a starting point, not a ceiling, for project timelines. That allows time not just for planting, but for growth, monitoring and adaptation.
ZS’s work shows how corporate action can breathe life back into urban landscapes. In Pune, New Delhi and Bengaluru, the company has carried out tree plantation drives that together added 16,600 saplings, working alongside partners Green Yatra Trust, Jeevan Stambh Foundation and Samarthanam.
Building projects that endure
Real restoration happens when ecological thinking becomes part of everyday business decisions, from where a facility is located to how suppliers are chosen. Partnerships with ecological experts, strong community engagement and hands-on monitoring all raise the odds of success. Just as importantly, companies must commit to funding upkeep, because nature does not operate on an annual budget cycle. Regeneration is measured in decades.
When a degraded urban plot turns into a thriving green space, it does more than change a view. It changes the microclimate. It draws back pollinators. It becomes a shared space for communities. These are gains that pay back over and over again, in ways that bolster both quality of life and business stability.
About the Author: Rohit Bhagwat is a Global ESG Committee Member and Office Managing Principal at ZS
