| Sustainability has assumed significant importance and urgency in the
developmental context of India, which ranks 127th in the Human Development Index. As our
nation embarks on a trajectory of high rates of economic growth, it would become
critically necessary 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. Corporates, which
constitute an important membership of any society, need to make their contribution in
meeting this challenge. Premium needs to be placed on those companies that create economic
progress with minimal adverse impact on ecology by deploying technologies that use the
planet’s finite resources efficiently. Indeed those that serve to replenish natural
capital need to be valued even more. Accordingly, the contribution of companies needs to
be more comprehensively measured along three dimensions, commonly referred to as the
‘‘triple bottom line’’. These dimensions are: economic, ecological and
social. As society witnesses 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.
Envisioning a larger societal purpose has always been a hallmark of ITC, described by
me in the past as “a commitment beyond the market”. ITC sees no conflict between
the two 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 represent two stellar examples of this philosophy in action.
As a Company that continuously strives to be ‘Citizen First’, ITC has always
attached critical importance to its responsibility to contribute to the triple bottom
line. ITC perceives itself as a corporate trustee of the physical, social and economic
resources deployed in its business operations. ITC’s mission is to enhance the
capacity of its businesses to generate sustainable wealth by using these resources wisely
and responsibly. 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.
Apart from crafting business models that establish direct linkages between business 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 ‘Sunehra Kal’,
is in three areas: (i) natural resource management, which includes wasteland, watershed
and 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.
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