ITC :: Sustainability Report 2008

Chairman’s Statement:
ITC’s Vision and Strategy

ITC:
Organisational Profile

Certifications, Honours & Awards

Report
Parameters

Governance, Commitments & Engagements

ITC’s Triple Bottom Line

GRI Index

Statement from
Ernst & Young

Annexures

Self-declaration on Application Level

Home | Contents

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ENVIRONMENTAL PERFORMANCE

MATERIALS FLOW IN ITC BUSINESSES

All figures in tonnes | The diagram shows only principal raw materials that are over 5% of the total raw materials in respective businesses

The diagram above representing principal raw materials in our businesses clearly demonstrates that our raw materials are primarily agri-based.

Vertical and horizontal integration of our businesses provides us significant opportunity and synergy in reducing/eliminating our environmental footprint through optimal material utilisation, waste recycling and optimising logistics and transportation.

We also use very substantial quantities of wastepaper in our paper business and this is sourced locally as well as internationally. Details are already provided elsewhere.

Our initiatives in large-scale social and farm forestry plantations, watershed projects, empowerment of marginal farmers through e-Choupals create large-scale opportunities in rural employment. These endeavours along with technology upgradation, extensive R&D and waste minimisation through product and process improvements help us in improving long-term availability of necessary raw materials at optimum and competitive prices.

Environmental Footprint of our products

ITC products can be broadly classified into the following categories -

• FMCG products

Cigarettes, foods, matches, agarbattis, stationery, etc.

All significant strategies aimed at minimising environmental impacts are implemented at the product design stage.

The final actual environmental impact needs detailed evaluation, given the varied nature and range of our products.

We have recently completed an evaluation of the environmental impact of the products from one of our major FMCG businesses. We are progressing with our plans to address some of the environmental impact issues.

• Industrial Supplies and Exports

Paper, paperboards, packaging, Leaf tobacco, etc.

We expect the users/industries to take adequate measures to minimise the environmental impact from these supplies.

• Services - Hotels

The environmental impact from our hotels has already been accounted for in the relevant sections of this Report.

ITC’s Fibre Strategy - Raw Material Sustainability

Availability of wood, the prime source of fibre for the paper and paperboards, remains a major challenge and concern for sustainability.

Our paperboards mill at Bhadrachalam manufactured over 299,459 tonnes of paperboards in 2007-08, using 296,528 tonnes of wood, apart from waste paper and some special pulp.

Our R&D has evolved high yielding, site specific, disease resistant clones and a comprehensive package of plantation management practices. During the year 52 million high quality saplings were distributed to farmers and an additional 15,115 hectares plantations were added. (Todate 31.03.2008, cumulative plantations amount to over 80,000 hectares and the Company has distributed 332 million saplings).

Apart from the obvious benefits of increasing the green cover, this effort also directly contributes to in-situ moisture conservation, ground water recharge and significant reduction in topsoil losses due to wind and water erosion. As a result of the leaf litter from multi-species plantations and the promotion of leguminous intercrops, depleted soils are constantly enriched.

Our forestry initiatives have not only built grassroots capacities to initiate a virtuous cycle of sustainable development, but have also provided significant opportunities to the economically backward by helping them raise plantations.

Over 93% of the Bhadrachalam mill's total wood requirement in 2007-08 came from plantations under our forestry project. 18,393 tonnes of bamboo was sourced from government authorised/open markets. Only 1165 tonnes of wood (0.39%) was sourced from private farmlands. The mill also utilised 70,226 tonnes of waste paper.

The Bhadrachalam mill, the only unit in ITC with pulping facilities, does not buy wood-based raw materials from unidentified sources. The mill is ISO 9001-2000 certified and ensures traceability of all the wood used in the manufacturing process.

We are committed to green 100,000 hectares in the next few years, which would far exceed our wood fibre requirement, create livelihood opportunities for a very large number of people in tribal areas and further consolidate our position as a ‘Carbon Positive’ corporation.