Environmental Performance

Climate Change Risks

ITC has carried out comprehensive studies to identify and evaluate the climate change risks for all its businesses. Based on its assessment, the Company has worked out individual strategies for mitigation and adaptation.

Agriculture

Since ITC is largely dependent on agricultural inputs, possible disruption in agricultural patterns & yields is a significant potential risk. Apart from the direct impact of climate change, water availability is the single largest risk that we foresee. A decline in agricultural output due to changed weather patterns and higher temperatures not only impacts ITC’s businesses but also threatens to push millions of marginal farmers over the brink, thus increasing the vulnerability of those who are dependent on agriculture for their livelihoods. ITC continues to pursue a Triple Bottom Line approach that contributes to the creation of economic, environmental and social capital.

Our water conservation, watershed development and rainwater harvesting projects not only improve the sustainability of our agri-related businesses, but also create sustainable livelihoods for a large number of marginal farmers. Our R&D specialists, in collaboration with expert study groups, are consistently evaluating agricultural productivity/adaptation issues related to climate change and support is being provided to farmers through in-house extension services.

Built Environment

Our Businesses and Units are also exposed to the physical risks associated with the impact of climate change. We have reinforced protection of our assets in coastal areas in anticipation of increased severity of storms and cyclones, which are likely to occur. All new buildings are constructed with the requisite factors of safety and the existing buildings and infrastructure have been reinforced, wherever required. This initiative, which had been taken up in a phased manner, has since been completed. Disruption of road and rail traffic, caused by such extreme events, may also affect the output of individual Units. This has been addressed by appropriate contingency and insurance plans. Higher surface temperature (increased air conditioning costs) and disruption of water supply are other foreseen risks. Establishment of green buildings is one of the relevant responses to these environmental challenges. ITC has been a pioneer in the green buildings movement that commenced with the construction of the ITC Green Centre at Gurgaon, which, in 2004, was the largest LEED platinum-rated office space in the world. ITC’s Hotels Business reaffirmed this commitment by formally adopting the ‘Responsible Luxury’ credo which is exemplified by the ITC Grand Chola, the 600-key luxury hotel in Chennai, rated as 5 Star GRIHA, the highest national rating for Green Buildings and as the World’s Largest LEED Platinum Certified Hotel in the ‘New Construction’ category.

Disruption of road and rail traffic, caused by such extreme events, may also affect the output of individual Units. This has been addressed by appropriate contingency and insurance plans. Higher surface temperature (increased air conditioning costs) and disruption of water supply are other foreseen risks.

Establishment of green buildings is one of the relevant responses to these environmental challenges. ITC has been a pioneer in the green buildings movement that commenced with the construction of the ITC