Post on 04-Jun-2018
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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!