I am delighted
to present ITC's third Sustainability Report. This Sustainability Report, prepared in
accordance with G3, the latest Revision of the Global Reporting Initiative guidelines and
assured by PricewaterhouseCoopers Pvt. Ltd., represents a balanced and reasonable
presentation of ITC's economic, social and environmental performance.
ITC is committed to sustain its position as one of India's most
valuable corporations through world-class performance, creating growing value for the
Company's stakeholders and the Indian economy. Over the last decade, Total Shareholder
Returns, measured in terms of increase in market capitalisation and dividends, grew at a
compound rate of over 30% per annum, placing ITC among the foremost in the country in
terms of efficiency in servicing financial capital. ITC aims to sustain its premier market
standing and leadership position in each of the business segments.
Sustainability reporting by corporates is of significant relevance and
meaning in these times of escalating global opportunities and challenges. Business
leadership worldwide is confronted with the realisation that the limits to sustainable
growth will be determined less by access to financial capital and more by the commitment
to preserve and augment social and ecological capital. Given the growing influence of
corporations in driving economic, environmental and social change, investors and other
stakeholders will expect the highest standards of ethics, transparency, sensitivity and
responsiveness from corporates. It is my belief that stakeholders, including consumers,
will increasingly raise the bar of expectation in relation to corporate response to issues
of sustainable development. In keeping with this belief, ITC, along with the Confederation
of Indian Industry, launched the -CII-ITC Centre of Excellence for Sustainable
Development' in January 2006. The Centre seeks to address the institutional void in
developing the requisite capability among Indian industry to pursue sustainability goals.
The Centre will endeavour to transform Indian businesses by providing thought leadership,
promoting awareness and building capacity.
Development in a country as large and diverse as India poses special
challenges. As India embarks on a trajectory of high rates of economic growth, it is
imperative to focus on the impact of such growth on society and the environment. Economic
growth will translate to sustainable development only when it is inclusive, creating the
capacity to consume among those living at the margin - the lion's share of whom are in
rural India. Equally, sustainable development will be achieved only when environmental
capital is enriched. The sharp decline in per capita availability of water, the low forest
cover due to continuing deforestation, increasing levels of air and water pollution, the
remorseless increase in the quantum of wastelands and the rising demand for fossil fuels
are some of the serious issues that need to be addressed on a war footing if India has to
realise its ambitious agenda for sustainable progress.
Envisioning a larger societal purpose has always been a hallmark of
ITC - 'a commitment beyond the market'. This commitment finds expression in the Company's
sustainable development philosophy, which recognises the need to not only preserve but
also enrich precious environmental resources while providing a safe and healthy workplace
for its employees. ITC sees no conflict between the twin goals of shareholder value
enhancement and societal value creation. The challenge lies in fashioning a corporate
strategy that enables realisation of these goals in a mutually reinforcing and synergistic
manner. ITC's e-Choupal and social forestry programmes represents just two of the stellar
examples of this philosophy in action.
Apart from crafting business models that establish direct linkages
between businesses and societal goals, ITC is also engaged in implementing various other
sustainable development initiatives towards making a meaningful contribution in the
economic vicinity of its operating locations. The thrust of these initiatives, christened
'Mission Sunehra Kal', is in three areas: (i) natural resource management, which includes
wasteland, watershed and
ITC seeks to
contribute in meaningful measure towards social empowerment and genderised development |
agriculture development; (ii) sustainable livelihoods,
comprising genetic improvement in livestock and economic empowerment of women; and (iii)
community development, with focus on primary education and health and sanitation.
ITC is committed to conducting its business operations with passionate
respect for the environment. Several prestigious national and international awards (listed
elsewhere in this report) testify to ITC's abiding commitment. Such recognition has
further reinforced the Company's commitment to consciously synergise and direct the
collective endeavour of its employees at all levels across all businesses, functions and
locations to continuously improve sustainability practices, to ultimately attain and
exceed global standards.
Internationally benchmarked specific consumption of water, dedicated
pursuit of the goal of zero discharge and scaling up of rainwater harvesting in several
moisture-stressed districts of India have enabled ITC retain its enviable position of a
'water positive' Company for the fourth successive year. The water harvesting potential
created so far is over four times the Company's net water consumption.
It is a matter of pride that ITC became 'carbon positive' during the
year on the back of several energy conservation measures, usage of carbon neutral fuels
and carbon sequestration through large-scale agroforestry programmes. ITC is making rapid
strides towards attaining 'zero solid waste' status. Upon this achievement in the near
term, ITC would perhaps be the only global enterprise of its size in the world to have
achieved these milestones encompassing all three critical facets of environmental
sustainability.
In a nation where economic deprivation is widespread and the capacity
of a large share of its citizens to participate effectively in economic growth is grossly
limited, ITC seeks to contribute in meaningful measure towards social empowerment and
genderised development. The ITC e-Choupal and Choupal Saagar infrastructure - a
combination of digital, human and physical assets - already serves over 3.5 million
farmers and is potentially an efficient delivery channel for rural development. Similarly,
ITC's social farm forestry strategy enables the creation of substantial employment both on
farms and off farms, besides converting private wastelands into productive assets, and
simultaneously addressing serious issues relating to biomass depletion, soil erosion,
water security, ecological balance and biodiversity.
ITC dedicates this Report to the cause of the Bharat Nirman programme
initiated by the Prime Minister as a leading symbol of public-private partnership in
India's development. It also acknowledges the contribution made by the employees of the
ITC Group, whose initiative and commitment have enabled the Company make great strides in
its sustainability performance.
Y. C. Deveshwar |
