• Management Approach

    ITC's vision to serve larger national purposes is intended to be realised by embedding sustainability in its core business models. Innovative strategies have therefore been designed and implemented to create sustainable value chains linked to its Businesses. As the Organisation is dependent on agricultural resources, these value chains encompass small and marginal farmers, who constitute some of the most disadvantaged sections of Indian society. ITC recognises that with an expanding and diversified portfolio of Businesses, the actualisation of its vision of sustainable development has to necessarily take into account the environmental and social impact within the supply chain. This will ensure competitiveness through a balance between creation of long-term social & environmental value and the economic viability of the Businesses.

    To formalise the sustainable procurement process, ITC has put in place Board approved Policies which address the issues of labour practices, human rights, bribery, corruption and occupational health, safety & environment in the supply chain. These policies, meant for Third Party Manufacturers (TPM), service providers including transporters, suppliers of agricultural & non-agricultural materials and capital goods, franchisees, dealers and distributors collectively referred to as supply chain partners, define the structure around which efforts are directed for continually improving the sustainability performance along the supply chain. A 'Code of Conduct for Vendors and Service providers' details out specific requirements related to the aspects addressed in the policies and through acceptance of this code by supply chain partners, ITC seeks their commitment to comply with applicable laws, respect human rights and contribute to environmental conservation. Further, based on their requests, ITC will support in organising training workshops for educating, creating awareness and building capacity on human rights and decent labour practices.

    As evident from the representation (next page) of the generic material flow for ITC Businesses, the supply chains of most of ITC's Businesses are vertically integrated. Farmers are the key suppliers for the majority of our Businesses as they are dependent on agri commodities, and therefore constitute a vital part of ITC's supply chain. Accordingly the Company has focused on enhancing the sustainability of its agri supply chain, details of which are mentioned in the section that follows.

  • Sustainability in the Agri Supply Chain

  • The Road Ahead