itc limited – sustainable development

8/13/2019 ITC Limited Sustainable Development

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ITC LimitedSustainable

Development

HryshikeshAnkit

NU MBA 2ndYear


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Organizational Setup

ITC

FMCG Hotels

Agri Business, Leaf

Tobacco, AgriCommodities

Paperboard,

Paper &Packaging

Information

Technology

FMCG includes cigarettes, lifestyle retailing,

branded packaged goods, personal care products,matches, incense sticks


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ITCs Sustainability Management Structure

Board of Directors

Corporate Management

Committee (Financial,environmental,

OH&S, social policies)

CarbonCommittee

Divisional/Strategic BusinessUnit (SBU); Management

Committees, each headed by

Divisional/SBU Chief Executive

Corporate Functions, each headed by a

HOD

Corporate functions include: Planning &

Treasury, Accounting, Legal, Secretarial,

EHS, Human Resources, Corporate

Communications, Corporate Affairs,

Internal Audit and R&D


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Strategy

Company has invested in technology, talent andR&D to create brands that enhances consumers

lifestyle.

ITCs non-cigarette portfolio grew by 48.6% in

2012 and accounted for 52.4% of the companys

net turnover.

By leveraging its business to create & sustain

value-chains, ITC provides livelihood

opportunities to more than 5 million people,

most of them from rural India.


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Sustainability Driving Innovation

ITCs raw materials are significantly agri-based.

In paper business, ITC uses substantial

quantities of waste paper sourced locally and

internationally. Vertical and horizontal integration helps in:-

Reducing the environmental footprint

Opportunity to recycle and reuse waste, and

Optimizing logistics and transportation


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E-choupal Initiative

Worlds largest rural digital infrastructure

empowering over 4 million farmers in 40,000

villages.

E-choupalsstrategic thrust:-

Procurementcost & quality optimization

Rural distribution

Financial services

Rural retail


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ITCs external resource input-outputEnergy used:14,820 terajoules

Energy used increased by 13.3% over

2006-07Renewable energy:24.1%

Fresh water intake:27.5 million kilo liters

Fresh water intake increased by 0.7%

over 2006-07

Treated effluents discharged: 18.92

million kilo liters

Total RWH potential created: 25.84million kilo liters

Principal raw materials: 2,212,913

tonnes (externally sourced)

ITCs Business

Solid waste generated:353,000 tonnes

Recycled/reused: 99%

CO2 emissions: 1352 kilotonnes (manufacturing

& freight)

Increase of 18.3% from 2006-07

CO2sequestered: 2638 kilotonnes


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Greenhouse Gas Emissions

The Company minimises its carbon footprint

through:

Conserving energy through audit,

benchmarking and use of next practices to

achieve the lowest specific energy

consumption (energy required per unit of

production)

Using renewable sources of energy


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Creating a positive carbon footprint through

forestry initiatives that enable carbon dioxide

sequestration

Implementing Clean Development Mechanism

(CDM) projects under the Kyoto protocol to

mitigate the adverse effects of climate change


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ITC draws 24.1 per cent of its energyrequirements from renewable sourcesproduced internally. The major sources ofrenewable energy in ITC include:

Black liquor - waste from pulping process in theBhadrachalam Paperboards unit.

Locally sourced wood chips/sawdust and de-oiledbran in the Kovai Unit.

Solar thermal systems for preheating boiler feedwater and canteen hot water at various locations.

Wind energy for ITCs Hotel Kakatiya.


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Water Management

ITCs water management practices are based on: Water conservation through audits, benchmarking

and use of next practices to achieve the lowest

specific water consumption (water per unit of

production)

Zero Wastewater Discharge treating and recycling

all wastewater.

Creating a Positive Footprint through rainwaterharvesting, both on the companys premises and

socially relevant watershed projects.


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ITC's watershed development seeks to achievetwo critical objectives:

1. water conservation and

2. soil enrichment.

Currently, 2178 small and large water harvesting

structures built by ITC provide irrigation inAndhra Pradesh, Karnataka, Madhya Pradesh,Tamil Nadu and Rajasthan.


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ITC's Soil and Moisture Conservation Programme

has covered over 30,000 hectares of rain-fed

agricultural land.

From five projects covering 100 villages during2004-05, the activity was extended to 23 districts

covering a total of 450 villages.

Total of 35,000 hectares of land has been coveredthrough watershed projects., with targets to

cover a total of 50,000 hectares by 2012.


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Compared to the net fresh water consumption

of 8.54 MKL in 2007-08, the company has

created potential storage of 25.84 MKL

through its rainwater harvesting efforts, threetimes that of its net consumption.


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Solid Waste Management

ITC aims to achieve a zero solid waste

status through:

Reduction of waste per unit of output Recycling of all wastes generated by

operations

Maximum reuse of the wastes as rawmaterial


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Initiative by ITC

ITC-Bhadrachalam unit is recognised for

leapfrogging into a new technology and becoming the

first plant in the Indian paper industry to eliminate the

use of chlorine. Chlorine is used to bleach pulp and impart brightness

to paper.

This extremely polluting process generates toxic

organo-chlorines that end up polluting the water that

they are discharged into. By eliminating chlorine use,

ITC can now make food-grade paper


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Engagement in key areas and with key

stakeholders

ITC has achieved considerable success in key

environment areas within its boundaries.

The companys carbon-positive and water-positive

status, and waste management standards reflect its

environmental performance within its immediatebusiness concerns.


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From Risk to Opportunity

ITC takes best-practice and leadershipapproach to address key sustainability risks.

Through better compliance to statutoryrequirements and voluntary standards.

However, high risks continue to prevail in itsbusiness domain, particularly when it reachesout to consumers.


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ITC promotes some of its brands (Aashirvad andClassmate) with philanthropic measures. Whether thisresults in increased sales and better brand valueattributed to philanthropic attachments is yet to be

established.

It has taken the business approach to areas like farmforestry and e-choupal.

ITCs leadership identifies market-based structures toreward brands and companies that are good corporatecitizens.


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The path towards sustainable profit and

innovation

ITC has been one of the front-runners in corporate responsibility inIndia.

Efforts towards integrating sustainability to business strategies andoperations through new business models, such as farm forestry ande-choupal.

Much of its house appears well equipped to handle its ownoperations and its direct impact on various aspects of society andenvironment.

However increasing FMCG businesses bring additional challengesregarding issues concerning consumers, and environmental impactof the companys retail supply chain, including thepoint-of-sale.

Taking up responsibility in the extended supply chain will bringadditional economic benefits to ITC.


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THANK YOU!

itc limited – sustainable development

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