CSR and Water Sustainability, How Beverage Giants are responding to the Water Crisis in India

Water is not merely a component of a beverage it is the blood of a community, a system, and a business. And in India, where 600 million are exposed to high or even greater water stress, the water issue has ceased to be a question of concern to the environment and turned into the imperative of the society. Companies particularly those whose operations are water intensive such as beverage production are in the eye of this storm and are progressively changing their CSR policies to long-lasting water policies.

Not only are beverage giants such as The Coca Cola Company and PepsiCo redefining the principles of water stewardship as a way of ensuring their supply chains are safe, but also as a way of providing real water security to the local people. This is in line with the mandatory CSR requirement in India, which is in place in Section 135 of the Companies Act,2013 and mandates corporations to allocate at least 2% of their net profit towards CSR spending and to address their environmental priorities on sustainable water management, protection of natural resources and the welfare of the communities.

Water–Risk Realities: The need of CSR to evolve

The water crisis in India is not just some abstract figure anymore it is a reality that is experienced both in rural and urban India. Other areas like Rajasthan are struggling with acute water shortage and over worked aquifers which drive the locals into daily water wars. These pressures bring to the fore the two facets of corporations: consuming water in their practices and the key holders of common water resources.

Corporate Water Stewardship Action

1. Coca-Cola: More than just Consumption

The Coca-Cola system was once criticized in the past due to its water usage in India though; it has completely transformed its strategy by creating measurable stewardship to lessen water consumption and contribute even more water than it consumes. The company has also surpassed its water replenishment targets across the world, giving more than 100 percent of the water consumed in the final products to the environment and society.

Anandana- The Coca-Cola India Foundation in India has established rural water security by initiating projects that concentrate on rainwater harvest, watershed management, and rehabilitation of conventional water bodies that have introduced clean and dependable water supply to needy areas. In addition to infrastructure, the company partners with non-governmental organisations and villagers to construct over 200 water-saving infrastructures that can restore over 13 billion litres of water in over 800,000 villagers in 600+ villages.

‍2. PepsiCo: Net Water Positive Vision

PepsiCo has been more strategic and has gone a wider path in becoming net water positive by 2030. This implies that it must replenish more water than the company uses in high water-risk regions where access pressure is the most pronounced. Its water stewardship activities involve promoting water efficiency in the manufacturing sector, revitalizing natural watersheds, promoting safe water access by local population, and empowering farmers through irrigation-smarts that use water with less energy.

PepsiCo projects around the world were able to replenish around 24 billion litres of water by the end of 2024, and this serves as an example of how large CSR objectives can be converted into measurable water beneficiation results.

In addition to the world beverage giants, there are several Indian firms that can serve as positive examples of effective water CSR:

• ITC has also been working extensively in the watershed development and water stewardship in drought-prone areas, contributing to the formation of water-positive villages and enhancing farm livelihood, and climate resilience.

• Hindustan Unilever Limited (HUL) is involved in supporting communities to conserve water and recover rainwater to replenish the ground water and enhance greater sanitation results.

• Using Tata Trusts, Tata Group has re-established poor watersheds and traditional tanks, creating a direct connection between water security and rural livelihoods and nutrition.

These examples indicate that water-based CSR, when developed based on communities and ecosystems as the central focus, can produce environmental, social, and economic advantages at the same time.

In addition to Hydration: Community and Social Benefits

These corporate programs on water are not mere ecological pretences, but they literally change the lives. Water conservation projects in most villages ease the pressure exerted by women and children who walk long distances in search of water. Restored water bodies enhance agricultural output, empower livelihood, and enhance domestic hygiene and health. In addition, companies can reach much further than the factory gates by aligning CSR water projects with government projects such as watershed management and community rain harvesting.

Correspondingly, such CSR practices also echo with the sustainability agenda at the global front such as the SDG 6 (Clean Water and Sanitation) of the UN, which explain show corporate India could help to bridge the gap between the needs of the people and environmental sustainability.

What Businesses Can Do Next

Companies must ensure that to maximize the impact of water-oriented CSR they should:

• Integrate water stewardship into main CSR undertakings as opposed to regarding it as a side project.

• Collaborate with local non-governmental organizations and community leaders to co-create water solutions in the image of local desires.

• Measure and publicly disclose water performance e.g. litres refilled, access points established to water, or watershed health benefits.

• Next, it should examine nature-based remedies such as check dams, bio-filtration wetlands, and grassroot rainwater harvesting systems that provide long-term resilience.

DevInsights has worked extensively in the water, sanitation, and environmental sustainability space through projects such as SBM(Gramin) Technical Support with WASH Institute, ODF Diagnostics and Sanitation Sustainability Studies with WaterAid India, Safe Drinking Water and WASH assessments with WJCF, pond and environment rejuvenation evaluations under Max Healthcare CSR, and water and sanitation components of HDFC Bank’s Holistic Rural Development Program (HRDP).

Building on this experience, DevInsights can help companies strengthen water-focused CSR by identifying high water-risk areas, designing evidence-based interventions, measuring water and community outcomes, and supporting credible CSR and ESG reporting, enabling a shift from compliance to measurable, long-term water sustainability impact.

From Compliance to Catalyst

The current CSR has become much more than a legal obligation; it has become a source of sustainable development in the neediest areas of India. The beverage companies can, by the nature of their water consumption, and their presence, have a special place in influencing the way communities adapt to scarcity and prosper. Once CSR is turned into an agent of water sustainability, it does not only secure the corporate interests, but it preserves the lives of millions of people, whose lives rely on every drop of water.