SOCIAL RELEVENCE PROJECT ON

“A STUDY OF CORPORATE SOCIAL RESPONSIBILITY OF ITC TOWARDS

ENERGY AND CLIMATE CHANGE”

SUBMITTED IN PARTIAL FULFILMENT FOR THE AWARD OF THE DEGREE OF

MASTER OF MANAGEMENT STUDIES (MMS)

(Under University Of Mumbai)

Submitted by

SEJAL NAIK

(ROLL NO:-30)

Under The Guidance Of

PROF. POOJA THORAT

THAKUR INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

FULL TIME BATCH 2016-2018

Shyamnarayan Thakur Marg, Thakur Village,

Kandivali (East), Mumbai 40010

1
 CERTIFICATE

This is to certify that project titled “A STUDY OF CORPORATE SOCIAL

RESPONSIBILITY OF ITC TOWARDS ENERGY AND CLIMATE CHANGE” is
successfully completed by Ms. Sejal Naik during the IV semester, in partial fulfillment of the
master’s degree in management studies recognized by the University of Mumbai for academic
year 2016-2018 through

This project work is original and not submitted earlier for the award of any degree, diploma or
associate-ship of any other University/Institution.

Signature: Director Signature:

Project Guide: PROF. POOJA THORAT DR. RAMAKUMAR AMBATIPUDI
Date: TIMSR
Date:

2
 DECLARATION

I hereby declare that the project report submitted by me to the THAKUR INSITUTE OF
MANAGEMENT STUDIES AND RESEARCH, Mumbai is a bonafide work undertaken by me
and it is not submitted to any other University or Institution for the award of any degree diploma/
certificate or published any time before.

Signature:
Name of the student: Ms. SEJAL NAIK
Date:

3
 ACKNOWLEDGEMENT

Working on the Project of “A Study of Corporate Social Responsibility of ITC towards

Energy and Climate Change” has been a wonderful experience over a period of the 4
months. It was a great privilege working with the Firm and getting a firsthand knowledge of
some of the functions performed by them.

I am grateful to Dr. Ramakumar Ambatipudi, Director, Thakur Institute of Management

Studies and Research for giving me this opportunity.

I acknowledge with special thanks the help of my project guide Prof. Pooja Thorat for her
valuable guidance and assisting me in completion of the project. I also thank her for sharing
lots of her knowledge and ideas, which were useful for my project.

Sejal Naik

Thakur Institute of Management Studies and Research.

4
 EXECUTIVE SUMMARY

As a responsible corporate citizen, ITC has made a commitment to reduce dependence on

energy from fossil fuels. Substantial progress has been made in enhancing the renewable
energy portfolio and during 2016-17 over 48% of ITC's total energy requirements was met
from carbon neutral fuels such as biomass, and wind and solar. ITC has developed a strategic
approach and drawn up action plans based on a feasible balance of energy conservation and
renewable energy investments to progressively move towards meeting at least 50% of its total
energy requirements from renewable sources by 2020.

The present study being conducted follows an Exploratory Research to make best use of
project research. The study is based on secondary data that has been collected from the
respective companies’ website who are contributing towards energy conservation and also

from the previous research project. The study covers the period of 4 months that is 1 st

December 2017 to 31st March 2018.

5
 INDEX

PARTICULARS: PAGE NO.

Chapter 1: Introduction 1
1.1) NGO Name and area of operation 1
1.2) Reason for selection of the topic for research work 1
1.3) Research Objectives 2
1.4) Method of data/information collection 2
Chapter 2: Profile of the Organization 3
2.1) Name of the organization/NGO 3
2.2) Registration details 3
2.3) Mission, Vision, Goals 3
2.4) Activities completed in the past 5
2.5) Ongoing activities 12
Chapter 3: Planning for the Assignment/Activity 13
3.1) Information sources for getting the assignment 13
Chapter 4: Literature Review 14
Chapter 5: Execution of the Activity 17
5.1) Details of execution of the assignment 17
5.2) Problems & difficulties in execution of the assignments 18
5.3) Methods of evaluation of impact/outcome of the assignment 18
5.4) Analysis of the impact of the assignment 19
Chapter 6: Conclusion 23
Chapter 7: Suggestions 24
Chapter 8: References 25

TABLE OF CONTENTS

FIGURE NO. FIGURE TITLE PAGE NO.

2.1 Afforestation Programme 5
2.2 Watershed Development for Soil and moisture conversation 6
2.3 Animal Husbandry 7
2.4 Women’s Empowerment 7
2.5 Primary Education 8
2.6 Skilling and vocational training 9
2.7 Health and Sanitation 10
2.8 Solid Waste Recycling 11
5.1 Sources of total energy in ITC during 2016-17 19
5.2 ITC’s GHG Performance 21
5.3 GHG Emissions and CO2 Sequestration 22

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 CHAPTER-1: INTRODUCTION

1.1) NGO Name and area of operation:-

Name: - ITC Corporate Social Responsibility

Area of Operation: -

 Afforestation Programme
 Watershed Development for soil and moisture conservation
 Animal husbandry
 Women’s empowerment
 Primary education
 Skilling and vocational training
 Health and sanitation
 Solid waste recycling
 Energy conservation and renewable energy
 Water conservation

1.2) Reason for selection of the topic for research work:-

Inspired by the opportunity to serve larger national priorities, ITC articulated a super-ordinate
vision nearly two decades ago to make societal value creation the bedrock of its business
strategy.

The focus was on driving innovative strategies that would enable ITC to make a growing
contribution to building economic, environmental and social capital for the nation and also was
the Company's aspiration that this Triple Bottom Line approach would manifest not only in
sustained prosperity creation for all its stakeholders, but also in the synchronized generation of
sustainable livelihoods as well as amplification of precious natural resources.

7
In consonance with ITC's belief and the need to promote greater alertness and acceptance of
sustainability amongst corporates, ITC together with the Confederation of Indian Industry,
launched the CII-ITC Centre of Excellence for Sustainable Development in 2006. The Centre
seeks to address the institutional void in evolving the requisite capability among Indian industry
to pursue sustainability goals. The Centre is directed by its Advisory Council, led by Shri Y C
Deveshwar, Chairman, ITC Limited, and comprises members from industry, government, civil
society and institutions, which provides strategic direction to the organization. The Centre has
already taken various initiatives to help renovate Indian businesses by providing thought
leadership, promoting awareness and building capacity.

1.3) Research Objectives:-

1. Study of ITC CSR and areas of operations.

2. Analysis of the impact of Energy conservation and renewable energy.
3. Literature review for knowing the best practices for conduct of Energy conservation and
renewable energy in the world.
4. Suggesting suitable measures for enhancing the impact of Energy conservation and
renewable energy.

1.4) Method of data/information collection:-

The research is a secondary research by collecting information from the company’s sustainability
reports from the last few years and analyzing the work done by them in the field of energy
conservation and its effects on the climate change.

8
 CHAPTER-2: PROFILE OF THE ORGANIZATION:-

2.1) Name of the organization/NGO:-

ITC Limited or ITC is an Indian company based in Kolkata, West Bengal. It is India's
biggest cigarette manufacturer. Its diversified business includes five segments: Fast-Moving
Consumer Goods (FMCG), Hotels, Paperboards & Packaging, Agri Business & Information
Technology. Although, cigarette business contributes more than 80% of the profits of the
company.

2.2) Registration details:-

Registered Office: ITC LIMITED, Virginia House, 37, Jawaharlal Nehru Road, Kolkata -
700071, India | Ph: +91-33-22889371, Fax:+91-33-22880655

Corporate Identity Number: L16005WB1910PLC001985 | For any queries or grievances

contact Mr. Aurko Dasgupta atcontactus@itc.in

2.3) Mission, Vision, Goals:-

Mission:-

Create multiple drivers of growth by developing a portfolio of world class businesses that best
matches organizational capability with opportunities in domestic and export markets.

Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards & Packaging,
Agri Business and Information Technology.

Benchmark the health of each business comprehensively across the criteria of Market Standing,
Profitability and Internal Vitality.

Create distributed leadership within the organisation by nurturing talented and focused top
management teams for each of the businesses.

9
Continuously strengthen and refine Corporate Governance processes and systems to catalyze the
entrepreneurial energies of management by striking the golden balance between executive
freedom and the need for effective control and accountability.

Vision:-

Inspired by a patriotic fervour to serve larger national priorities, ITC redefined its Vision two
decades ago to make societal value creation the bedrock of its business strategy. The need to
sustain global competitiveness in economic value creation, whilst simultaneously creating larger
societal value, has led to innovation in business models that seek to synergize the building of
economic, ecological and social capital as a unified strategy. This Triple Bottom Line approach
has, over the years, spurred innovation in strategy and execution to deliver significant outcomes.
Leveraging the Company’s innovative capacity, enterprise strengths and its presence in rural
communities, ITC has designed and implemented large-scale programmes to create sustainable
livelihoods, empower local communities, enrich the environment and address the challenges of
climate change. It is a matter of great satisfaction that the Company is today a global exemplar in
sustainability. ITC has sustained its position as the only Company in the world to be carbon
positive (12 years), water positive (15 years) and solid waste recycling positive (10 years). The
Company’s Businesses and value-chains generate sustainable livelihoods for over 6 million
people.

Goals:-

 De-risk poor rural households by diversifying farm portfolios through the promotion of
tree-based farming
 Integrate diverse elements of the rural portfolio of initiatives into a Climate Smart Village
approach
 Ensure water security for all stakeholders through watershed development & managed
aquifer recharge

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  Actively promote non-farm livelihood opportunities to diversify income portfolios of
poor households
 Ensure that every child is in school and learning well through improvement in pedagogy
and the learning environment
 Align skills training to market demand to maximize employment of youth from our core
areas
 Reduce morbidity, especially amongst women and children, by promoting a clean and
healthy environment

2.4) Activities completed in the past:-

2.4.1) Afforestation Programme:-

Figure 2.1:- Afforestation Programme

Source:- ITC Sustainability Report 2017

The recently introduced agro-forestry model, which combines tree growing with field crop
production, ensures both food and wood security as well as helps in the conservation of precious
natural resources. ITC has been conferred the Forest Management certification from the Forest
Stewardship Council, which confirms compliance with the highest international benchmarks of
plantation management in terms of being environmentally responsible, socially beneficial and
economically viable.
Today, ITC’s Afforestation Programme coupled with the Agro Forestry Programme covers over
6,82,000 acres and has provided over 120 million person-days of employment. In addition, the
11
plantations have also helped sequester 5,121 KT of CO2 in 2015-16 and played a major role in
maintaining ITC’s carbon positive status over the past 11 years.

2.4.2) Watershed Development for Soil and moisture conversation:-

Figure 2.2:- Watershed Development for Soil and moisture conversation

Source:- ITC Sustainability Report 2017

Initiated in 2001, the programme today covers 13 states across the country. The total watershed
area covered under soil & moisture conservation is over 8,48,000 acres, benefiting over 269,000
households. There are over 11,000 water harvesting structures and over 2,300 functioning Water
User Groups. Civil work on structures generated over 5 million person-days of employment,
particularly benefiting the landless. Projects under the programme have made a significant
contribution in ITC maintaining its water positive footprint for 14 years in a row.

ITC has also entered into public-private-people partnerships with several state governments and
NABARD, bringing together government and corporate resources to undertake watershed
development projects with considerably greater scale and impact. Currently, these PPP projects
are targeting to cover over 1,58,000 hectares in some of India’s most drought-prone regions.

12
2.4.3) Animal Husbandry:-

Figure 2.3:- Animal Husbandry

Source:- ITC Sustainability Report 2017

Milk yields from cross-bred progeny are significantly higher than indigenous stock, generating
substantial supplementary incomes from surplus milk sales, paving the way for dairying to
emerge as a viable livelihood option. This income also acts as a cushion in times of crop failure.

ITC’s initiative covers over 10,500 villages in 7 states and has so far provided animal husbandry
services to over 13,00,000 milch animals.

2.4.4) Women’s Empowerment:-

Figure 2.4:- Women’s Empowerment

Source:- ITC Sustainability Report 2017
13
One of ITC’s interventions targets ultra-poor women with the objective of mainstreaming them
socio-economically over a period of time. ITC assists these women with productive income
generating assets, supported with intensive handholding, counseling, on-job assistance, training
and local level facilitation with the objective of bringing them into the financial mainstream.
Over 18,800 ultra-poor women have benefitted till date.

Enabling women to earn independent incomes has a positive impact on their families and
communities as it is spent largely on their children’s education, health and nutrition and is a
powerful catalyst for gender development and supporting social inclusion.

ITC has helped create sustainable livelihoods for over 59,000 rural women either through micro-
enterprises or assistance with loans to pursue income generating activities.

2.4.5) Primary Education:-

Figure 2.5:- Primary Education

Source:- ITC Sustainability Report 2017

Age-appropriate infrastructural facilities are provided to government schools, ranging from

separate toilets for boys and girls, boundary walls, drinking water stations and furniture.
Focusing particularly on sanitation and health, students and teachers are trained on WASH

14
(Water, Sanitation, Hygiene) principles, and students are motivated to form WATSAN (Water
and Sanitation) Committees and Child Cabinets to take ownership of WASH areas in schools,
helping to promote behaviourial change among children in their formative years.

The Programme also works to strengthen school management committees and build capacity
among teachers to ensure that infrastructure can be sustainably maintained in the long run.
Parents’ participation is actively encouraged to develop collaborative partnerships that ensure
that more and more children are able to complete their schooling.

The 'Read India Plus' initiative, in partnership with the NGO, Pratham, was introduced in 2013.
Utilising an innovative pedagogy, it is geared towards helping children between the ages of 6-14
to achieve all five competencies - Listening, Speaking, Reading, Writing and Doing.

2.4.6) Skilling and vocational training:-

Figure 2.6:- Skilling and vocational training

Source:- ITC Sustainability Report 2017

The initiative offers training in market-linked skills for the hospitality, automotive, electrical,
computer and construction sectors as well as in a range of trades – tailoring, beautician and

15
bedside nursing. Courses run for 4 to 12 weeks, depending on the skill. On completion,
placement camps are organised to facilitate employment opportunities.

Nearly 43,000 youth have been trained, of whom 34% are girls and 42% belong to the SC/ST
community.

ITC’s Primary Education programme has covered over 5,54,000 students to date. In addition,
more than 1,500 government primary schools have been provided infrastructural support.

2.4.7) Health and Sanitation:-

Figure 2.7:- Health and Sanitation

Source:- ITC Sustainability Report 2017

ITC’s strategy is centered on galvanizing a people’s movement and mobilizing empowered

grassroots institutions that take the lead in building family-owned toilets. Intensive awareness
generation programmes customized to target men, women and children combined with a
mandatory financial contribution from participating families help to ensure high and sustained
usage levels of the constructed toilets. Wherever possible, the initiative works in active
collaboration with government sanitation schemes. More than 29,000 toilets have been built of
which 58% were constructed during the last two years.

16
2.4.8) Solid Waste Recycling:-

Figure 2.8:- Solid Waste Recycling

Source:- ITC Sustainability Report 2017

The ecosystem of participants involved in the collection and recycling of segregated waste
include waste handlers who derive sustainable livelihood from this activity, recycling units who
benefit from a steady source of identified and relevant waste, NGOs who train waste handlers
and increase awareness about segregating waste among communities, and social entrepreneurs
who avail of the opportunity to develop a sustainable business model out of waste collection and
supply to recyclers.

This programme is today being actively propagated and is receiving widespread support across 8
cities in South India, including Bengaluru, Chennai and Coimbatore and 5 cities in Telengana
with plans to extend it to other towns and cities as well. The WOW programme started with a
collection of just 10 MT of recyclables in 2007 has now swelled to collections of over 20000
MT. Over 2100 waste handlers have gained sustainable livelihoods through this activity.
Additionally, similar waste collection and recycling programmes along with composting of
organic waste in Munger in Bihar, Saharanpur in Uttar Pradesh and Tribeni in West Bengal
provide gainful livelihood to 300 people.

These initiatives have played a major role in sustaining ITC’s ‘Solid Waste Recycling Positive’
status for 9 consecutive years.

17
2.5) Ongoing activities:-

Areas listed under Schedule - VII to the ITC’s interventions (including through
Companies Act, 2013 Trusts established by the Company)
Eradicating hunger, poverty and malnutrition, Health & Sanitation, Drinking Water and
promoting healthcare including preventive Eradication of Poverty
healthcare and sanitation including
contribution to the Swachh Bharat Kosh set-up
by the Central Government for the promotion
of sanitation and making available safe
drinking water.
Promoting education, including special Education, Vocational Training, Livestock
education and employment enhancing vocation Development and Livelihood generation
skills specially among children, women,
elderly, and the differently abled and
livelihood enhancement projects.
Promoting gender equality, empowering Women Empowerment
women, setting up homes and hostels for
women and orphans; setting up old age homes,
day care centres and such other facilities for
senior citizens and measures for reducing
inequalities faced by socially and economically
backward groups.
Ensuring environmental sustainability, Environment Sustainability, Soil & Moisture
ecological balance, protection of flora and Conservation and Wasteland Development
fauna, animal welfare, agro-forestry,
conservation of natural resources and
maintaining quality of soil, air and water
including contribution to the Clean Ganga
Fund set-up by the Central Government for
rejuvenation of River Ganga.
Protection of national heritage, art and culture, Protection of national heritage, art and culture
including restoration of buildings and sites of
historical importance and works of art, setting
up public libraries, promotion and
development of
traditional arts and handicrafts.
Rural Development Projects. Agri Development

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 CHAPTER-3: PLANNING FOR THE ASSIGNMENT/ACTIVITY

3.1) Information sources for getting the assignment:-

 ITC Company website

 ITC CSR Annual report 2017
 ITC Presentation 2017
 ITC CSR Presentation 2017

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 CHAPTER-4:- LITERATURE REVIEW

Literature Review for knowing the best practices of execution of ITC CSR:-

1. Anupam Sharma and Ravi Kiran in their paper ” Corporate Social Responsibility
Initiatives of Major Companies of India with Focus on Health, Education and
Environment” explain that Corporate social responsibility (CSR) is emerging as a new
field in the management research. In India, many firms have taken the initiatives of CSR
practices which have met with varying needs of the society. The present study has made
an attempt to understand the status and progress and initiatives made by large firms of
India in context to CSR policy framing and implementation. Data has been collected from
the official websites of the firms, in-person interviews and through structured
questionnaire. The CSR initiatives in context to health, education and environment sector
to be rated by the interviewee were identified from the literature. Based on the
information and discussions mentioned a matrix of various policy factors has been
prepared. All initiatives factors have been rated on the scale of 1 to 5. Results of the study
depicts that IT and Auto industry is more going for taking up CSR initiatives while
FMCG sector has focused yet not too much into the social responsibility initiatives.
Although India has entered or taken a transformational change by involving into new
CSR initiatives, but still a lot has to be done in this area

2. Adit Grover in his paper “Importance of CSR in Inclusive Development”explains that

Corporates are aware of the importance of CSR (Corporate Social Responsibility) in the
present scenario, but are not aware of the right kind of CSR activities which would lead
to creating an impact in the lives of the people and capacity building. This study will try
to bring out the importance of CSR activities to the corporates (Cause Related Marketing)
and the role which it can play in brand enhancement. The focus would not only be on
impacting lives of the people but also the nature and wildlife animals (sustainable
development).

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3. Ramendra Singh & Sharad Agarwal’s (2013) study titled “Corporate Social
Responsibility for Social Impact: Approach to Measure Social Impact using CSR Impact
Index” argues the case for developing “scalable” CSR models. The study 70 notes that at
present the CSR activities of business organizations are largely confined to the local areas
of their operation and their beneficiaries are mostly the local people living close to a
business operation. It is argued that if business organizations are able to develop scalable
models, it would help expand their CSR activities throughout the country. In this effort,
they can associate with NGOs working in each local area. By such efforts, businesses can
create greater socioeconomic value which will benefit them to claim wider legitimacy,
going beyond the local areas and communities. The study also calls for a directional
change in the perspective of the corporates. This change consists in adopting a
meaningful and fruitful strategy for expanding their CSR activities from the usual areas
of health and education to newer areas in order to aim for a holistic and comprehensive
change in the society. Such a sound strategy will help coporates to use their CSR
expenditures for really sustainable development.

4. Akanksha Jain (2014) in her article titled “The Mandatory CSR in India: A Boon or
Bane” supports the mandatory provision for the corporates to allocated at least 2 percent
of their profits as a necessary intervention on the part of the government for bringing
about economic justice in India. It is a novel solution considering the various social
problems the country is beset with and also taking into account the fact that the business
leaders in India have so far been not forthcoming to take the responsibility for the costs of
their business activities. They mostly do not want to take responsibility for the pollution
of environment that they are causing and they often run away from human hazards that
they cause. The new law has ensured that the various chemical and oil companies have at
least begun to take environmental and safety initiatives and technology companies to take
tech-education initiatives. Thus, the initiative on the part of the Indian Government in

21
 introducing the CSR 71 law turns out to be a boon for the good of both the corporates and
the society. It has taken India to the equitable and sustainable growth path.

5. Anshul Agarwal (2014) in her paper titled “The New Spectrum of Corporate Social
Responsibility in Emerging Economies” take note of the acceptance that the idea of CSR
has received from all stakeholders. Analysing the CSR reports of India’s 20 top
companies, the author observes that the CSR has become a key factor and helping tool in
the success story of many companies. This is evidenced by the innovative “societal
marketing” strategy increasingly being adopted by the companies. The focus of this study
is a systematic anlaysis of the CSR spectrum in the developing countries and the possible
impact of adoption of this spectrum on the emerging markets in these countries. The
author finds that more and more companies in the developing countries, especially in
India, are realizing the advantage of taking care of the society’s needs for long-term
success of their business. The author finds that, among the specific benefits of CSR for
these markets is the creation of more employment opportunities for the semi-skilled
people.

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 CHAPTER-5:- EXECUTION OF THE ACTIVITY

5.1) Details of execution of the assignment:-

Energy Conservation Activity:-

Compared to the 21,946 TJ consumed in 2015-16, there was a significant reduction of 1.6%
during 2016-17. This was achieved despite the inclusion of two new units within the reporting
boundary, (Mangaldai Unit of North East Nutrients Private Limited and Dhulagarh Unit in Foods
Division), and primarily due to energy conservation measures implemented across the Units as
detailed in subsequent section. Paperboards and Specialty Papers Division which accounts for
about 89% of total energy consumed in ITC, has recorded a decrease in energy consumption by
2.0% as compared to last year.

Reduction in energy consumption was achieved by higher utilisation of wind energy (avoiding
losses in conversion from thermal to electrical) 86 Reporting ITC’s Performance ITC’s
performance of Energy and Greenhouse Gas (GHG) emissions is presented below. Energy
Consumption within the Organisation In 2016-17, ITC Units consumed 21,600 Terra Joules (TJ)
of energy. Out of the total energy consumed, 48.2% was from renewable energy sources. and
energy conservation measures such as installation of higher efficiency CFBC (Circulating
Fluidised Bed Combustion) Boiler in Bhadrachalam Unit of Paperboards and Specialty Papers
Division.

Apart from the reduction in overall energy consumption, ITC has also been able to increase the
share of renewable energy in its overall portfolio which has increased yearon-year from 47.3% to
48.2%. Primary reasons for the increase in renewable energy utilisation from 10,375 TJ in 2015-
16 to 10,420 TJ in 2016-17 are as follows: z Increased consumption of biomass at Kovai Unit of
Paperboards and Specialty Papers Division, and Munger Unit of Foods Division. z Increased
utilisation of electricity from wind mills in Bhadrachalam and Kovai.

23
5.2) Problems & difficulties in execution of the assignments:-

 Existing regulatory requirements such as the Perform, Achieve, Trade (PAT) and the
Renewable Energy Certificates (REC) schemes.
 Future regulatory pressures in line with India’s commitment under NDCs to UNFCCC.
 Increasing competition for biomass.
 Lack of viable alternatives for fossil fuel to meet thermal energy requirements.
 Risks involved in off-site renewable energy investments – weak infrastructure linkages,
restriction on inter-state wheeling/banking of electricity, open access etc.
 Mapping energy footprint for supply chain.

5.3) Methods of evaluation of impact/outcome of the assignment:-

 Effective measurement and benchmarking our performance with international best

practices.
 Identification of energy conservation opportunities through rigorous third party audits
and implementation of the viable recommendations. During 2016-17, ITC has achieved
savings of 44.7 TJ over 2015-16 levels.
 Social investments made in various programmes, such as soil & moisture conservation,
climate smart agriculture practices and technologies, etc., reduce dependence on
rainwater.
 Significant investments have been made to strengthen measures covering ITC
manufacturing units located in the coastal areas.
 Business continuity plans are in place to compensate any interruption of production by a
manufacturing facility due to extreme weather events.
 ITC’s development models are based upon deep rooted stakeholder concern and provide
the opportunity for generation of sustainable livelihoods. Such models unleash strong
drivers for achieving development with social equity. With initiatives like Sustainable
Agriculture, Soil & Moisture Conservation, etc., ITC has been working to develop
climate-smart agriculture. For details on ITC’s Social Investments Programmes, please
refer ‘ITC Mission Sunehra Kal’ section of this Report.

24
5.4) Analysis of the impact of the assignment:-
In 2016-17, ITC Units consumed 21,600 Terra Joules (TJ) of energy. Out of the total energy
consumed, 48.2% was from renewable energy sources.

Figure 5.1:- Sources of total energy in ITC during 2016-17

Source:- ITC Sustainability Report 2017

Compared to the 21,946 TJ consumed in 2015-16, there was a significant reduction of 1.6%
during 2016-17. This was achieved despite the inclusion of two new units within the reporting
boundary, (Mangaldai Unit of North East Nutrients Private Limited and Dhulagarh Unit in Foods
Division), and primarily due to energy conservation measures implemented across the Units as
detailed in subsequent section.

25
Paperboards and Specialty Papers Division which accounts for about 89% of total energy
consumed in ITC, has recorded a decrease in energy consumption by 2.0% as compared to last
year. Reduction in energy consumption was achieved by higher utilisation of wind energy
(avoiding losses in conversion from thermal to electrical) 86 Reporting ITC’s Performance ITC’s
performance of Energy and Greenhouse Gas (GHG) emissions is presented below.

Energy Consumption within the Organisation In 2016-17, ITC Units consumed 21,600 Terra
Joules (TJ) of energy. Out of the total energy consumed, 48.2% was from renewable energy
sources. and energy conservation measures such as installation of higher efficiency CFBC
(Circulating Fluidised Bed Combustion) Boiler in Bhadrachalam Unit of Paperboards and
Specialty Papers Division. Apart from the reduction in overall energy consumption, ITC has also
been able to increase the share of renewable energy in its overall portfolio which has increased
yearon-year from 47.3% to 48.2%.

Primary reasons for the increase in renewable energy utilisation from 10,375 TJ in 2015-16 to
10,420 TJ in 2016-17 are as follows: z Increased consumption of biomass at Kovai Unit of
Paperboards and Specialty Papers Division, and Munger Unit of Foods Division. z Increased
utilisation of electricity from wind mills in Bhadrachalam and Kovai

Units of Paperboards and Specialty Papers Division, Tiruvottiyur Unit of Packaging and Printing
Division, Pune Unit of Cigarette Division and Malur Unit of Foods Division. ITC has accounted
for the following gases in its GHG inventory: Carbon Dioxide (CO2), Methane (CH4), Nitrous
Oxide (N2O), Hydrofluorocarbons (HFCs), Perfluorocarbons (PFCs) and Sulphur Hexafluoride
(SF6). Provided below is a comparison of ITC’s GHG inventory for 2016-17 with that for 2015-
16

26
 Figure 5.2:- ITC’s GHG Performance
Source:- ITC Sustainability Report 2017

ITC has computed its greenhouse gas (GHG) inventory, including GHG emissions, biogenic
carbon dioxide (CO2) emissions and GHG removals, in accordance with ISO 14064:2006, which
is the latest international standard specifying principles and requirements at the organization
level for quantification and reporting of GHG emissions and removals. The 2016-17 GHG
inventory has been verified by EY at the ‘Reasonable Assurance’ level.

Decrease in Energy Indirect GHG (Scope 2) emissions:-

 Displacement of grid electricity by captive wind electricity at several Units of ITC.

 Decrease in energy consumption through various energy savings initiatives.

Increase in Other Indirect GHG (Scope 3) emissions:-

 Due to significant increase in business at Agri Business Division, its emissions from
transport increased leading to an increase in scope 3 emissions.

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 Figure 5.3:- GHG Emissions and CO2 Sequestration
Source:- ITC Sustainability Report 2017

63,314 acres of plantations added during 2016-17 under Social and Farm Forestry Initiatives
Total plantations as on March 31, 2017 at 6,20,025 acres 54,17,078 tonnes of CO2 sequestered in
this year ITC Carbon Positive for 12 years in a row.

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 CHAPTER 6): CONCLUSION

ITC being a very large company and working across different sectors of business is actively
engaged in CSR activities having a vision to serve a larger National Purpose of Nation building
through core values so that every part of the society have the chance and the accessibility to the
basic needs which the rural India doesn’t have through imparting assistance and education to
uplift them from poverty and misery these people have been facing from a very long time.

The company continues to uphold its commitment to managing its environment impacts as
evidenced by its continued status as being water positive, carbon positive and solid water
recycling positive. The company’s carbon positive status is based on improvements in specific
energy consumption, increasing share of energy from renewable sources and sequestration of
carbon-dioxide through social and farm forestry initiatives, the water positive status on reduction
of specific water consumption and creation of rainwater harvesting structures both within and
outside the fence and their evaluated rainwater harvesting potential, while the solid waste
recycling positive status of the company is based on reduction of specific waste generated and
usage of post-consumer wastes as raw material. The company has also continued to demonstrate
its commitment to creating shared value through its extensive social initiatives activities. There is
further scope for streamlining data compilation through reinforcement of uniform guidance and
strengthening internal controls.

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 CHAPTER-7:- SUGGESTIONS

1. Continuation of the management approach in terms of :-

 Energy audits, benchmarking and target setting for progressively reducing specific
energy consumption (energy per unit of product/service).
 Investment in renewable energy assets based on techno-commercial feasibility.
 Continuous monitoring and review of performance through Integrated Sustainability Data
Management System (ISDMS).

2. Redesign of strategy if warranted according to the dynamics of the economy.

3. Progressive accounting of goods and services along the value chain within the
sustainability reporting boundary.
4. Engagement with supply chain members for improvement of environmental performance.
5. Reduction of environmental impacts in transportation of raw materials, finished goods
and wastes.

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 CHAPTER-8:- REFERENCES

1) ITC Sustainability report:-

http://www.itcportal.com/sustainability/sustainability-report-2017/sustainability-report-
2017.pdf

2) ITC Corporate Website:-

http://www.itcportal.com/sustainability/sustainability-report-2013/corporate-social-
responsibility.aspx

3) ITC Company website:-

http://www.itcportal.com/about-itc/index.aspx

4) ITC CSR Website:-

http://www.itcportal.com/sustainability/index.aspx

5) ITC Corporate Presentation:-

http://www.itcportal.com/about-itc/shareholder-value/ITC-Corporate-Presentation.pdf

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