Sustainable Supply Chain

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Sustainability at ITC

Building a Resilient
& Sustainable Supply
Chain

Global supply chains are evolving across industries with rising digitalisation, a stronger focus on sustainability and responsible sourcing. Recent supply chain disruptions, often due to unprecedented climate change-related events, have emphasised the need for greater supply chain sustainability. Additionally, the global movement towards net zero is also driving massive supply chain transformations. Addressing these trends is therefore key to building resilience and embedding sustainability in the supply chain.

Sustainable Supply Chain at ITC
Sustainable Agri-Sourcing Practices
Responsible Sourcing of Fibre

Sustainable Supply Chain at ITC

ITC works with its suppliers including farmers, third-party manufacturers, service providers, transporters, suppliers of materials and capital goods, franchisees, dealers and distributors to scale up its sustainable supply chain initiatives. This includes identification of sustainability risks and opportunities through assessment of key value chain partners; conducting third-party assessments in line with international standards and obtaining certifications like Rain Forest Alliance and Forest Stewardship Council®; and implementing systems and processes for enabling supply chain oversight, transparency and traceability as well as measures for addressing identified risks and opportunities.

ITC's vertically integrated supply chain

Sustainable Agri-Sourcing Practices

ITC's Agri Business primarily engages in sourcing of agri-commodities like:

Wheat
Rice
Coffee
Spices
Maize
Soybean
Mustard
Fruits
Prawns

The portfolio continues to be rapidly scaled up, leveraging ITC's deep rural linkages and extensive sourcing expertise towards strengthening and customising supply chains for traceability. The division has large-scale programmes on sustainability certifications of traded commodities driven by customer demands and emerging international regulations on due diligence and transparency.

Implementing Sustainable Agriculture Standard in Coffee Value Chain

ITC has implemented the Rainforest Alliance 2020 Sustainable Agriculture Standard in traditional coffee-growing regions. The Standard requires all certified farms to be managed efficiently, transparently, inclusively, and economically. The certification programme focuses on 6 key areas:

Management
Traceability
Income and Shared Responsibility
Farming Practices
Social Welfare
Environmental Stewardship

Integrated Adarsh Gram Programme

Ensuring Human Rights in the supply chain is a part of ITC's Integrated Adarsh Gram Strategy (Model Village Approach). The programme focusses on building economic, environment and social capital in over 360 villages of Andhra Pradesh and Karnataka impacting over 30,000 farmers. ITC's Agri-extension and field teams play a critical role in understanding the needs and grievances of farmers and supply chain partners.

Responsible Sourcing of Fibre

ITC's Paperboards and Specialty Papers Division (PSPD) processed about 75% of the total raw material

~78% of the fibre produced in Bhadrachalam is from wood sourced from ITC's Forestry initiatives.

Fibre used at the Kovai Unit is either recycled or reclaimed fibre.

Upstream
Own Operations
Downstream

Upstream

Farmers/Mandis/Auction platforms
Other Suppliers
Key Agri Products
- Wheat
- Potato
- Pulpwood
- Spices
- Milk
- Fruits
- Bamboo
- Leaf Tobacco

Engaging with Third Party Manufacturers

ITC encourages critical value chain partners like third-party manufacturers to adopt management practices detailed under International Standards. Ensuring compliance with accepted standards is a key part of the agreements with value chain partners, covering areas such as:

EHS (Environmental, Health and Safety)
Human Rights
Labour Practices

Supporting a Local and Inclusive Value Chain

ITC actively promotes the competency development of local vendors, with a strong focus on medium and small-scale enterprises that are proximate to its manufacturing locations. The total percentage of input material sourced from suppliers within India is over 92%.

ITC also works closely with small-scale units in industries such as:

Education & Stationery Products
Safety Matches

These partnerships have enhanced the survival and competitiveness of several small-scale units.

In line with its commitment to bring the power of cutting-edge digital technologies and unlock the potential of India's farmers, ITC has launched ITCMAARS (Metamarket for Advanced Agriculture and Rural Services), a 'phygital' ecosystem that empowers farmers by providing:

Hyperlocal & Personalised solutions
Synergistically integrating NextGen agri technologies

Going forward, ITC will focus on scaling up its efforts towards:

Building Capacity of Value Chain Partners
Conducting Structured Sustainability Assessments of Key Suppliers
Partnering with Key Suppliers on their Sustainability Journey

Outcome

In FY'24, ITC processed around 3.3 million tonnes of raw materials, out of which around 90% were from renewable sources

Sustainable Farm Certifications in place for Key Agri-Commodities: Covering 32,166 acres.

Rainforest Alliance, Forest Stewardship Council®, Global G.A.P. (Good Agriculture Practices), Union for Ethical Bio Trade (UEBT), Fairtrade - Covering 15,160 acres

Contribution to National Priorities

Make In India

Atmanirbhar Bharat

Promotion of Farmer Producer Organizations (FPOs)

Alignment to SDGs

Our key initiatives

ITC invests in people and practices that are good for the planet.

Addressing Climate Change

Building a Climate Positive Organisation

Supporting Livelihoods

Transforming Lives and Livelihoods

Renewable Energy

Powering the Transition to Renewable Energy

Green Buildings

Pioneering Green Buildings

Circularity

Towards Circularity

Sustainable Packaging

to address single use plastic substitution with scalable, innovative, and eco-friendly solutions.

Climate Smart Agriculture

Empowering Farmers with Climate Smart Agriculture

Water Stewardship

Integrated Water Stewardship Programme

Biodiversity Conservation

Preserving Biodiversity for a Sustainable Future

Afforestation

Enhancing Green Cover, Supporting Livelihoods

Livestock Development

Creating Off Farm Livelihood Opportunities

Women Empowerment

Enabling Women to Fulfil their Potential

Support to Education

Helping Children Improve Quality of Education

Skilling & Vocational Training

Skilling India's Youth to Build a Future-Ready Workforce

Healthcare

Improving Preventive Healthcare, Augmenting Curative Services

Sustainable Supply Chain

Building a Resilient & Sustainable Supply Chain

Brands with Purpose

Driving Change through Purpose-led Brands

Occupational Health & Safety

Fostering Health and Safety at Workplace

Talent

Creating a Workforce for Tomorrow

Diversity, Equity and Inclusion

Creating a Diverse, Equitable and Inclusive Culture

Human Rights

ITC has a long-standing commitment to Human Rights, which is reflected in its Code of Conduct for its employees, Suppliers', and Service Providers'.

Corporate Social Responsibility

Generating livelihoods & environmental capital

ITC CSR Policy

Corporate Social Responsibility Policy

ITC Social Investments Impact Studies

ITC's Social Investments Programme under Mission Sunehra Kal

RPF's For Impact Assessment & Other Studies

Request for Proposal of Impact Assessment of Projects undertaken by ITC’s Social Investments Programme across India

FSC FM License Code (FSC®-C102390)
Chain of Custody Certification from the Forest Stewardship Council® (FSC®-C064218)

Major Subsidiaries

Operational Joint Ventures

Major Associate Companies

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