Instant Coffee, Numerous Tata Coffee Have Steadily Enhanced Our Focus on Environmental and Social Factors Have to Be Balanced
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For many of us, it is hard to imagine life without a cup of coffee. Across the world, the intensely aromatic beverage is both a delight and a daily essential for hundreds of millions of people. However, to bring this magical goodness of nature to the world, there are hundreds of people caring for the coffee plantations, there is a lush green forest surrounding and supporting the plantations and a multitude of natural resources sustaining them. For sustainable growth of coffee beans and To combat the threat of climate change, we at production of high-quality instant coffee, numerous Tata Coffee have steadily enhanced our focus on environmental and social factors have to be balanced. water conservation and management across all our We at Tata Coffee are cognizant that this sustainable divisions and in our daily operations. Sustainable growth is also susceptible to the changing climate. water practices are aligned to the sustainability principles of the Company and our Group. Water, among all the natural resources, plays a critical role in coffee production and is very sensitive to the We will continue to focus on climate change, water changing climate. Just the right amount of water at management, renewable energy, waste management the right time is imperative for coffee growth. and community development as a part of our overarching sustainability strategy. Natural blossoming and backing showers are very important for a good harvest. However, rainfall ‘A sustainable brew’ flows from the concoction of our patterns are changing and appropriate humidity initiatives to create lasting impact for our customers, conditions for vegetative growth of coffee plantations shareholders, community and the world. are becoming a challenge. Message from the MD & CEO Sustainability is a core value of the Tata group, and is a strongly held belief in your Company. At Tata Coffee, we are in a unique position to display our commitment to various components of this core value – across social, economic and environmental factors. Dear Shareholders, Every time we sip on a hot steaming cup Our shade-grown and hand-picked coffee water management is therefore critical to of coffee, we are reminded of the magical beans delight millions of consumers across insure the long-term health of the coffee goodness of nature that nurtured the the globe. The quantity and quality of these plantations, and our overall business. bean behind the cup. At Tata Coffee, we beans depend on the elixir of life – water. have walked the path to preserve as well The right amount of natural showers at the Tata Coffee has invested heavily in rainwater as celebrate this magic by embracing right time leads to a blossom that is often a harvesting initiatives over the past few sustainable practices in every aspect of sight to behold. The backing showers that years. Rainwater harvesting in itself is an coffee making. follow help in optimal development of the ancient practice in our country, with the coffee fruit. A year blessed with good rainfall earliest archaeological evidence of this Sustainability is a core value of the Tata coupled with Tata Coffee’s best-in-class being found in the Indus Valley Civilization. group, and is a strongly held belief in plantation practices delivers a harvest It ensures that rainwater that would have your Company. At Tata Coffee, we are in a that excites customers and gratifies run-off or seeped below the usable water unique position to display our commitment workers alike. tables is not wasted. Today, your Company to various components of this core value – is capable of irrigating the plantations fully across social, economic and environmental However, climate change is adversely through over 250 rainwater harvesting factors. One such area is our ability to impacting rainfall patterns across the world tanks built across our 19 estates. This is optimally manage water, one of our planet’s – and India is not immune to this. Your a formidable achievement that you can most valuable resources. Company’s continued dedication towards feel proud of. The foresight and focused 2 Corporate Overview Statutory Reports Financial Statements Annual Report 2016 - 17 At Tata Coffee, our hearts always find a way to ensure we bring the best of our business execution that has gone into this initiative freeze-dried coffee plant at Theni comes learnings to benefit the will mitigate the risk of erratic rainfall from renewable energy sources. The effort communities around patterns to a large extent. has been recognised by the Society of Energy Engineers and Managers’ us. We have extended One of our critical downstream processes (SEEM) National Energy Management our water conservation is pulping of the harvested coffee fruit. Our Award in 2016. investments in state-of-the-art imported initiatives into the pulping technology ensures that we As a culmination of our efforts, all of Tata communities around consume 60 - 70% less water than regular Coffee’s estates have the unique distinction pulpers. Our instant coffee business has of being triple certified by Rainforest us by making it a key grown appreciably over the last few years. Alliance, UTZ and SA 8000. Our focus However, both our instant coffee plants on sustainability also acts as a unique focus area for our in Theni and Toopran are situated in areas differentiator as our global customers CSR efforts. impacted by relatively harsh weather identify with similar value systems. As a conditions. To sustain growth, cross- result, many marquee roasters source Indian functional teams have worked closely origin coffee from our estates. Our soluble with experts from the Tata Sustainability coffee plants are also RFA and UTZ certified Group and other external consultants to – ensuring stringent export requirements in identify areas of water optimisation. Our some countries do not act as a barrier. product development teams have worked on specific blends of soluble coffee that At Tata Coffee, our hearts always find consume less water in the manufacturing a way to ensure we bring the best of process without compromising on the taste our business learnings to benefit the work done by Swastha. This centre for profile. Today, we require significantly less communities around us. We have extended differently-abled children imparts academic water per unit of instant coffee produced our water conservation initiatives into the and vocational skills that help them compared to two years ago. We will communities around us by making it a key integrate with the society. continue to focus on the 3Rs – Reduce, focus area for our CSR efforts. We have a recycle and re-use – to achieve our water team dedicated to the cause that evaluates The team at Tata Coffee is invested in the sustainability goals in the plants. In short, and selects the neediest villages for mission of ‘creating long-term value for we will continue to conserve a lot of blue, intervention. We are working with experts all our stakeholders through sustainable to stay green. in the area of surface water recharging and practices’. We are confident that we will our efforts will positively impact more than continue to delight our customers across While water has been a key area of 3,000 people this year in the Coorg the globe in every sip for years to come, focus, Tata Coffee also focuses on other district alone. We will continue to build as we have all the right ingredients of - sustainability initiatives across areas of on this effort. ‘A Sustainable Brew’. environmental, social and economic importance. To cite an example, almost The Coorg Foundation, established by Tata Sanjiv Sarin 60% of the energy used in our Coffee, continues to support the excellent Managing Director & CEO 3 Thought leadership on sustainability Sustainability is embedded into the Tata Group’s business processes through a well-defined vision, a value system committed to social expenditure and environmental preservation; and a governance structure that engages employees and stakeholders. Vision Philosophy The Tata Group shall be The Tata Group is committed to acknowledged as a global leader integrate environmental, social and in its commitment to improving ethical principles into its business the quality of life of communities which is central to improving the across the globe by embedding quality of life of the communities we environmental, social and ethical serve globally and enhancing long- principles in all its businesses term stakeholder value. and enhancing long-term stakeholder value. Reaffirming its commitment to promote sustainability in business, the Tata Group has crafted the Tata Sustainability Policy, which lays down the guiding principles for the sustainability efforts of all Tata companies. As per the Tata Sustainability Policy announced in 2015, Tata companies aspire to incorporate environmental, social and ethical principles into all business decision-making. The Group established the Tata Sustainability Assessment Framework. It maps the maturity of Tata companies with respect to their sustainability practices, processes and initiatives using a maturity assessment tool. 4 Corporate Overview Statutory Reports Financial Statements Annual Report 2016 - 17 500 million people live in places where water consumption is double the amount replenished by rain for the entire year, leaving them At least two-thirds of extremely vulnerable as the global population, underground aquifers over 4 billion people, run-down. live with severe water scarcity for at least one month every year Criticality of water Water is a key aspect of the sustainability initiatives at the Tata Group. One of the significant initiatives of the group is to help its companies understand, measure and optimise their ‘water footprint.’ The water footprint looks at both direct and indirect fresh water consumed by a producer as well as a consumer. It looks at the sustainability of the sources of water and also takes into account water quality issues.