Sustainability Report 2011
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Sustainability Report 2011 The only Company in the world, of Creating over comparable size to 5 million be carbon, water sustainable and solid waste livelihoods recyling positive FOR ALL OUR TOMORROWS More than 35% of energy consumption at ITC is from renewable All ITC premium sources luxury Hotels are LEED Platinum certified GRI - G3 Compliant Application Level A+ ITC : An Exemplar in Triple Bottom Line Performance Economic $ 33 billion market capitalisation Powering $ 7 billion 26,000 growth with turnover employees ITC Group provides multiple direct employment to more than business 26,000 people drivers Diversified multi-business conglomerate spanning FMCG, Hotels, Paperboards & Total shareholder returns of Packaging, Agri Business and Information Technology 26% per annum Figures in this section are as on September, 2011 ITC : An Exemplar in Triple Bottom Line Performance Environment Water Carbon Solid Waste Positive: Positive: Recycling Positive: 9 years 6 years 4 years LEED Platinum Rating All ITC premium luxury Hotels are LEED Platinum certified Irrigating 35% 70,000 1,16,000 hectares renewable hectares energy ITC’s Watershed greened More than 35% of Development initiative ITC’s Social and Farm Forestry ITC’s total energy brings precious water to initiative has greened over consumption is from nearly 70,000 hectares of 1,16,000 hectares renewable sources moisture-stressed areas Social Creating 5 million sustainable livelihoods Empowering Creating Creating 52 million 4 million farmers Community Assets person-days of ITC’s globally acknowledged Strengthening the agri employment e-Choupal initiative is the production base of nearly ITC’s Social and Farm Forestry world’s largest rural digital 4 lakh farmers initiative has created over 52 million infrastructure benefitting person-days of employment over 4 million farmers 38,000 sustainable Animal husbandry Educating livelihoods for services to 5,00,000 2,80,000 rural women milch animals children ITC’s Women’s Empowerment ITC’s Livestock Development initiative ITC’s Primary Education initiative has created over has provided animal husbandry services initiative has educated over 38,000 sustainable livelihoods for nearly 5,00,000 milch animals 2,80,000 children All photographs used in this Report are an actual depiction of ITC's Figures in this section are various businesses and sustainability initiatives across the country as on September, 2011 Contents Chairman’s Statement: ITC’s Vision and Strategy 04 Key Impacts, Risks and Opportunities 08 ITC: Organisational Profile 16 Certfications, Honours and Awards 28 Report Profile, Scope and Boundary 32 Governance, Commitments and Engagements 36 Economic Performance 44 Creating Enduring Institutions 52 Environmental Performance 54 Climate Change and Sustainable Development 56 Water Management Stewardship 64 Recycling and Waste Management 72 Significant Air Emissions 78 Material Sustainability in ITC Businesses 82 Social Performance 86 Labour Practices and Decent Work 88 Social Investments - Mission Sunehra Kal 98 Product Responsibility 106 GRI Index 111 Annexures 116 Management Approach 117 Policies and Guidelines 122 Memberships & Affiliations 128 Independent Assurance Statement 130 Self-declaration on Application Level 133 04 Chairman's Statement Chairman’s Statement: ITC’s Vision and Strategy I am delighted to present ITC’s Sustainability commitment to contribute and provide leadership Report 2011. to building a sustainable, secure and inclusive future for the larger Indian society. Published for the 8th consecutive year, this Report is a transparent and voluntary disclosure This Report has been independently verified by M/s. of the Company’s multi-dimensional Sustainability Ernst & Young and conforms to the stringent ‘G3’ Initiatives. It is an expression of ITC’s enduring guidelines of the Global Reporting Initiative (GRI). Sustainability Report 2011 05 It is ‘GRI checked’ and qualified at the highest and higher growth. The World Economic and Social ‘A+’ level. Survey 2011 says that 25 countries have completely lost their forests and 29 countries have less than I am also happy to state that the Company’s 10% forest cover. The world has lost 50% of its initiatives and practices support the principles wetlands since 1900. This imminent collapse of underlying the United Nations Global Compact the globe’s ecosystem will cause serious distress (UN-GC). ITC’s large scale sustainability initiatives to the world’s living systems. Further exacerbating continue to contribute meaningfully to achieving these challenges is the ominous threat of climate many of the Millennium Development Goals change and global warming, exposing the planet to enunciated by the United Nations. These include unforeseen peril. focussed programmes to create sustainable livelihoods that improve the quality of life of rural It is abundantly clear that business cannot succeed communities, particularly women and children. in societies that fail. Indeed, the limits to future growth will be defined more by vulnerabilities It is a matter of great satisfaction that ITC’s focus flowing from social inequities, environmental on creating larger societal value has enabled its degradation, and climate change than by any other businesses to generate sustainable livelihood economic factor. Therefore, in enlightened self- opportunities for over 5 million people, many of interest, businesses must play a more meaningful, whom represent the weakest sections of society. involved and active role in the creation of a more In addition, its commitment to contribute to climate sustainable and inclusive future. With its numerous change mitigation and to the creation of natural touch points in society, businesses can deliver capital has led to a symphony of efforts making ITC significant social value given their wide array of the only enterprise in the world of comparable enterprise capabilities including financial, human size to have achieved and sustained the three and other strategic resources. global environmental distinctions of being water positive (for 9 years), carbon positive (for 6 years), For India, the developmental challenges are even and solid waste recycling positive (for 4 years). more acute. It is estimated that over 400 million people live in multi-dimensional poverty, surviving on less than $1 a day. In addition, with 17% of the Global Challenges : global population, India possesses only 2.4% of land-mass, 4% of water resources and 1% of forest Redefining Role of resources. It is estimated that almost half of the Business total 600 districts in the country face severe water- stress. This will aggravate the challenges of food The year gone by has been witness to a series of security and impact India’s agricultural sector tumultuous social upheavals across the world. which provides sustenance to almost 55% of the In more ways than one, this widespread global country’s work force. unrest is a reflection of the growing intolerance of civil society with economic models that have The challenge therefore, before business failed miserably in ensuring social equity. While and industry, is to not only sustain profitable there is little doubt that the world has created enterprises as growth engines for the economy but enormous material wealth over the last century, to contribute meaningfully to building social equity. it is a painful reality that almost half of the world And this it must do by pursuing innovative business lives in some form of poverty. Today, the richest strategies that synergise the creation of sustainable 1% of adults control 43% of the world’s assets. The livelihoods and the preservation of natural capital bottom 50% have access to only 2% of the world’s with the building of shareholder value. assets. The 2010 Human Development Report of the UNDP says that around 1.75 billion people, living in as many as 104 countries, are in a state of Embedding ‘multi-dimensional poverty’, a new indicator that Sustainability in reflects acute deprivation in health, education and standard of living. This iniquitous balance has Business Strategy created a vulnerable and fragile social order putting future generations at enormous risk. ITC’s belief that businesses can bring about transformational change to create a more Compounding this further, there has been utter sustainable future led to a conscious redefinition disregard of the environment in the race for faster of its abiding Vision, a decade and a half ago, 06 Chairman's Statement to make societal value creation a primary assets that support sustainable agriculture as well purpose of its business strategy. We believe as off-farm livelihood opportunities. that sustainable corporations can create larger societal value by not only serving their consumers ITC’s business-linked sustainability initiatives together with its social investment programmes through competitively superior value propositions have enabled a transformational change in but by innovating business strategies to ensure rural India given the scale and reach of these that it simultaneously leads to the creation of interventions. The figures speak for themselves. sustainable livelihood opportunities and a positive For example, the ITC e-Choupal initiative has environmental footprint. This ‘Triple Bottom Line’ benefited over 4 million farmers in 40,000 approach to creating larger ‘stakeholder’ value, villages; ITC’s Social & Farm Forestry programme as opposed to merely ensuring uni-dimensional has greened nearly 1,14,000 hectares of ‘shareholder value’, is