Reimagining

the future
Agility in a climate of change

Integrated Report
 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Approach to Reporting Performance Highlights COVID-19 Response

What’s in the Report Agility in a

climate of change
Introduction
Approach to Reporting 03
Performance Highlights 04
COVID-19 Response 09 ITC believes that when enterprises economic, environmental and social with agility, fast-tracking innovation
Company Overview make societal value creation an capital, thus embedding sustainability across every dimension of operations
ITC at a Glance 14 integral part of their corporate at the core of ITC’s strategy. Today, – across the value chain. This was
ITC’s Businesses 17
strategy, powerful drivers of this strategy has not only contributed accompanied by large scale efforts
ITC’s Brandscape 18
innovation emerge that make growth to building strong businesses of to provide relief and support to
Operational Footprint 19
ITC’s Value Chain 20
more enduring for all stakeholders. the future as well as a portfolio of communities in need, around our
Sustainability Ambitions 21 At ITC, we call this paradigm winning world-class brands, but it operational areas, across the country.
‘Responsible Competitiveness’ - also continues to guide our thoughts,
Approach to Value-creation At the same time - as the world
an abiding strategy that focuses strategies and actions as we address
Creating Integrated Value 26 prepares for a post-pandemic future,
Value-creation Model 27 on extreme competitiveness but the many challenges posed by the
ITC is actively working towards
Stakeholder Engagement 28 in a manner that replenishes the unprecedented COVID-19 pandemic.
Sustainability 2.0, an agenda which
Materiality Assessment 29 environment and supports sustainable
While navigating this ‘new normal’, reimagines sustainability under
Strategy 30 livelihoods. Our innovative business
Agility at scale underlined our the pressing challenges of climate
Value-creation for Stakeholders models synergise the building of
Delighting Customers 41
approach at each step. ITC responded change.
Creating Shareholder Value 49
Preserving and Nurturing the Environment 56
Serving and Empowering Communities 70 Key Stories
Workforce of Tomorrow 74
 ollaborating with Suppliers and
C
Value Chain Partners 78

Governance
ITC’s Corporate Governance 81
 overnance Structure and
G
Interlinkage with Management 82
Board of Directors and Executive Management 83
ESG Risk Management 86
Ratings and Awards 87 Corporate Overview Approach to Value-creation Value-creation for Stakeholders Governance
Certifications 89
Agility in Driving Agile in Creating Agile in Reimagining Enabling Agility
Innovation Enduring Value Sustainability & Responsibility
page 13 page 25 page 40 page 80
 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Approach to Reporting Performance Highlights COVID-19 Response

APPROACH TO REPORTING

Reporting Framework Data Management System and

This is ITC’s 4 Integrated Report, prepared in addition to the
th
Reporting Boundary
Company’s 18th Sustainability Report, which attempts to present
ITC has deployed an Integrated Sustainability Data Management
a range of financial and non-financial disclosures to inform its
System to collect, collate and analyse the environmental and social
stakeholders about how different ‘capitals’ are being deployed to
data. The system is equipped with strong internal controls to ensure
enable the creation of enduring value. ITC’s Integrated Report has
source-credibility and that the disclosures made in this Integrated
been prepared in line with the requirements of the International <IR>
Report are backed by integrity of the underlying data that have
Framework developed by the International Integrated Reporting
been appropriately verified. The data for environmental and social
Council (IIRC).
performance are based on the Company’s performance of various
businesses, units, hotels and office complexes and third-party
Independent Audit and Assurance manufacturers (TPMs)/subsidiaries as included in the Sustainability
The financial information in this Integrated Report for the year Reporting boundary, details of which are available in the Report
2020-21 has been taken from the standalone financial statements Profile section of ITC’s Sustainability Report 2021.
of the Company, which have been audited by independent
auditors, Messrs. S R B C & Co LLP. The non-financial information
(environmental and social performance data) presented in this Report
for year 2020-21, also appears in ITC’s Sustainability Report 2021
which is prepared on the basis of the Global Reporting Initiative (GRI)
Standards and meets the ’In Accordance - Comprehensive‘ criteria,
and has also been independently assured by Messrs. Deloitte
Haskins & Sells LLP.
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. The GHG inventory
of 2020-21 has been verified by Messrs. Deloitte Haskins & Sells LLP
at the ‘Reasonable Assurance’ level. ITC accounts for the following
gases in its GHG inventory: Carbon Dioxide (CO2), Methane (CH4),
Nitrous Oxide (N2O), Hydrofluorocarbons (HFCs), Perfluorocarbons
(PFCs) and Sulphur Hexafluoride (SF6), GHG Emissions and also CO2
sequestered.

Integrated Report 2021 | 03 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Approach to Reporting Performance Highlights COVID-19 Response

PERFORMANCE HIGHLIGHTS

Steady performance
amid uncertainties
Highlights

Financial

Operational

Environmental

Social

Human Capital

D 48,151 crores D 32,110 crores Among Top 3

contributors
Gross Revenue Contribution to the National
Exchequer (67% of Value-added) to the National Exchequer
in private sector

D33,557 crores D 2,68,948 crores 16.9%

Non-Cigarette Segment Market Capitalisation CAGR over the Last
Revenue As on 31st March, 2021 Two Decades
Total Shareholder Returns

Integrated Report 2021 | 04 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Approach to Reporting Performance Highlights COVID-19 Response

PERFORMANCE HIGHLIGHTS

Steady performance
amid uncertainties
Highlights

Financial

Operational

Environmental

Social

Human Capital

200+ 107 25 120+ 13

Manufacturing Hotels FMCG Brands Products Businesses
Units Launched of Tomorrow

Integrated Report 2021 | 05 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Approach to Reporting Performance Highlights COVID-19 Response

PERFORMANCE HIGHLIGHTS

Steady performance
amid uncertainties
Highlights

Financial

Operational

Environmental

Social

Human Capital

41% 33 42.95 million kl

ITC’s Energy from No. of USGBC/IGBC Total Rainwater Harvesting
Renewable Sources Certified Platinum Buildings (RWH) Potential Created

99% 78,000 MT+ 31,000 MT+

Of the total solid waste Of Dry Waste Sustainably Of Post-Consumer Plastic Waste
generated in ITC units was Managed by ITC Programmes – equivalent to more than 80%
either reused or recycled of plastic packaging films utilised
by ITC

Integrated Report 2021 | 06 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Approach to Reporting Performance Highlights COVID-19 Response

PERFORMANCE HIGHLIGHTS

Steady performance
amid uncertainties
Highlights

Financial

Operational

Environmental

Social

Human Capital

6 million 160 million

Sustainable Livelihoods Person-days of Employment Generated
supported through Social and Farm Forestry Initiatives

4 million+ 18 million+
Farmers Empowered Citizens Covered through ITC’s
by ITC e-Choupal Solid Waste Management
Programmes

Integrated Report 2021 | 07 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Approach to Reporting Performance Highlights COVID-19 Response

PERFORMANCE HIGHLIGHTS

Steady performance
amid uncertainties
Highlights

Financial

Operational

Environmental

Social

Human Capital

35,900+ 7.5 lakh+

Total Employees in Total Training (person-days)
ITC Group

95% ITC Hotels certified as a

Great Place
Of employees are proud to work at
ITC, as per a company-wide iEngage to Work
Survey - amongst the highest globally In FY 2020-21

Integrated Report 2021 | 08 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Approach to Reporting Performance Highlights COVID-19 Response

COVID-19 RESPONSE

Agility in Adversity,
Compassionate
in Crisis
The COVID-19 pandemic has impacted nearly
every nation on earth, at a scale and depth never
experienced before. In response, governments,
businesses, healthcare providers and individuals
came together to adapt to the new normal.
D 215 crores
Set up for COVID-19 Contingency
Committed to its credo of putting ‘Nation First: Fund which is being used to
provide relief to the poor and
Sab Saath Badhein’ ITC made concerted efforts
vulnerable sections of the society
to contribute to India’s fight against COVID-19.
Responding with agility and compassion,
Schemes under MGNREGA
ITC undertook several initiatives to support
generated over
communities in distress, crafting innovative
solutions to ensure business continuity and
addressing consumers’ emerging needs speedily.
5.5 million
Person-days of employment
ITC responded proactively to support its in 16 states
stakeholders.

25
States and Union Territories
supported with a combination
of cooked meals, packaged food
and hygiene products

Integrated Report 2021 | 09 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Approach to Reporting Performance Highlights COVID-19 Response

COVID-19 RESPONSE

Communities Farmers, Supply Chain Consumers

and Distribution
• ITC worked with Government's MGNREGS programme to create • Ensured efficient market servicing and availability of the • ITC ramped up production capacity of essential products,
55 lakh person-days of work worth ₹ 90.5 crores. Company’s products through concerted actions across and resumed distribution in record time while ensuring total
all nodes of operations including extension of support to compliance with safety protocols.
• ITC along with ITC Education and Healthcare Trust and ITC
trade partners, realignment of the distribution infrastructure,
Rural Development Trust has set up a ₹ 215 crores COVID-19 • ITC launched new and innovative solutions to meet the
deployment of innovative delivery models, strategic
contingency fund. A large part of the fund has been utilised heightened nutritional and hygiene requirements of its
partnerships and enhanced usage of digital technologies.
towards providing relief to the poor and vulnerable sections consumers.
of the society who are facing severe disruptions to their • ITC was amongst the first in the industry to launch an online
• Enhanced the presence of its product portfolio in alternative
livelihoods. ordering system for retailers to mitigate the disruption in sales
channels and entered into collaboration with new partners
operations.
• Together with local authorities, a combination of cooked meals, (viz., Dominos, Swiggy, Zomato and Dunzo) to efficiently
packaged food and hygiene products were distributed across • Business Continuity Plans have been activated by various service consumers.
25 States and Union Territories. business teams to secure key material supplies including usage
• Pioneered an innovative model - 'ITC Store on Wheels' - to
of substitute materials, identification of alternate/domestic
directly service consumers in 900+ residential societies in top
vendors, identification and activation of potential alternative
markets.
manufacturing capacities to supplement existing facilities.
• The recently-launched exclusive ‘ITC e-store’, was also
• ITC also extended financial support to its supply chain partners
leveraged effectively to provide on demand access to
for obtaining COVID-19 Insurance Cover for their associates,
consumers in select markets.
covering hospitalisation and diagnostic expenses, apart from
sharing COVID-19 safety protocols and providing training.

Integrated Report 2021 | 10 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Approach to Reporting Performance Highlights COVID-19 Response

COVID-19 RESPONSE

Standing with Team ITC

ITC salutes its frontline warriors • Contingency Management Teams deployed at • Employees have been provided secure remote • Risk mitigation protocols such as zoning in
all locations. connectivity to facilitate Work from Home. factories and restrictions on travel and office
who worked relentlessly to serve its
presence.
consumers and the nation amidst • Detailed advisories have been issued to • The Company’s employees, trade partners,
employees on how to safeguard themselves, transporters and their associates were provided • The Company has made arrangements with
such adversity. The Company has
their colleagues and associates, and their extensive training – both online and at the place various medical establishments to facilitate
taken a host of measures to ensure families, both at the workplace as well as at their of work - in COVID-19 safety protocols. COVID-19 vaccination among eligible employees
employee wellbeing: homes. and their families as well as value chain partners
• Medical advisories through a network of
across India.
• Covid care centres for employees and their Company Doctors and webinars, on preventive
families, assistance with hospitalisation and measures and counselling services.
treatment, and paid leave for those infected or
in quarantine.

Integrated Report 2021 | 11 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Approach to Reporting Performance Highlights COVID-19 Response

COVID-19 RESPONSE

Business response Some key interventions

Swift Resumption of Operations ‘WeAssure’ programme for hotels

In the wake of the pandemic, Over 90% of the factories manufacturing ITC’s Hotels business launched the ‘WeAssure’
ITC maintained a strict vigil on essential products were operational within two programme in collaboration with medical
weeks of imposition of the lockdown. professionals and disinfection experts to reassure
emerging trends, and responded
guests, and to provide best-in-class experience in
swiftly, leveraging opportunities More than 85% of the Company’s WDs and
hygiene and safety at the Company’s iconic Hotels.
associated warehouses were made operational
and mitigating risks. The Company within 10 days of the lockdown, serving million of
initiated a three-pronged consumers with highly motivated frontline teams.
‘Flavours’ and ‘Gourmet Couch’ menus as
approach of ‘Survive, Revive and home delivery and takeaway offerings
Reimagine’ to combat the evolving For presenting unique cuisine experiences to
situation and guide its business discerning guests during the lockdown, ITC Hotels
launched ‘Flavours’ and ‘Gourmet Couch’ menus
continuity.
as home delivery and takeaway offerings. These
ITC responded with agility by were further augmented with the introduction of
‘Biryani & Pulao Collection’ comprising timeless
innovating, ideating and launching Capacity Augmentation flavours of classic culinary dishes.
120+ products, and delivery The Personal Care Business rapidly expanded
manufacturing capacity manifold and enhanced
mechanisms in fast-track mode
availability of ‘Savlon’ antiseptic liquid, soap,
to meet the evolving needs of the handwash, hand sanitiser and ‘Fiama’ handwash accelerated digital transformation
consumers. These included several products in the market.
The pandemic has given wings to the trend of Digitalisation that
first-to-market products as well. was already gathering momentum. Apart from e-Commerce, digital
Agility was also reflected in the Purposeful innovation entertainment, work-from-home conferencing, telemedicine,
way the Company reconfigured In record time, several exciting and relevant offerings education, learning and skill development, e-services and social
under the ‘Savlon’ brand were launched viz., media communications, have all experienced exponential surge.
its supply chain, recalibrated
Surface Disinfectant Spray, Clothes Disinfectant and
manufacturing capacities, Refreshing Spray, Spray and Wipe, Multi-purpose
Accelerated digital transformation is integral to ITC’s future-
ready strategy and is increasingly being harnessed to enhance
collaborated effectively with Disinfectant Liquid, Germ Protection Wipes, Face
competitive advantage. Cutting-edge digital technologies are
partners and utilised digitalisation Mask, ‘Hexa’ range of soaps and hand sanitising liquid.
being increasingly deployed across key touch points spanning
to power processes. Repurposing manufacturing plants
Consumer Experience, Smart and Agile Manufacturing & Supply
Chain Operations, Employee Experience and Intelligent Insights
Repurposed its newly set up perfume
Platforms. Foundational initiatives such as the ‘DigiNext’ and ‘Young
manufacturing plant in Manpura, Himachal
Digital Leaders Forum’ have been implemented towards steering the
Pradesh in quick time to manufacture hand
Company through its digital journey and fostering a data driven and
sanitisers and service increased demand.
‘digital first’ culture across the organisation.

Integrated Report 2021 | 12 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

ITC at a Glance ITC’s Businesses ITC’s Brandscape Operational Footprint ITC’s Value Chain Sustainability Ambitions

COMPANY OVERVIEW ITC’s Core Values are aimed at

Agility
developing a customer-focused,
high-performance organisation,
which creates larger value for all

in Driving
its stakeholders.
ITC’s commitment to create a robust and
future-ready organisation that addresses the

Innovation
aspirations of the nation and its stakeholders
is at the core of its organisational vitality. This
commitment drives continuous innovation across
all products, processes and systems of its
diverse businesses.
ITC’s Life Sciences and Technology Centre (LSTC)
works continuously to churn out game-changing,
science-led innovative products and other
business solutions. This has enabled ITC to launch
first-to-market brands that delight customers
and retain the competitive edge in a
fast-changing operating environment. To
strengthen its digital infrastructure across the
value chain, ITC has formulated comprehensive
business-wise strategies. The Company’s
businesses are housed in state-of-the-art
manufacturing facilities, supported by
ITC at a Glance
ITC’s Businesses
14
17
120+ new-generation technologies to step up
resource productivity and the quality of its
New and innovative products were
launched in record time during products and services with speed and precision.
ITC’s Brandscape 18
FY2020-21 with compelling value
Operational Footprint 19 propositions, demonstrating agility
ITC’s Value Chain 20 and execution excellence

Sustainability Ambitions 21

Integrated Report 2021 | 13 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

ITC at a Glance ITC’s Businesses ITC’s Brandscape Operational Footprint ITC’s Value Chain Sustainability Ambitions

ITC AT A GLANCE

ITC’s
‘Nation First: Sab VISION
Sustain ITC’s position as one of India’s

Saath Badhein’
most valuable corporations through
world-class performance, creating
growing value for the Indian economy

Philosophy
and the Company’s stakeholders.

MISSION
To enhance the
ITC’s ‘Nation First: Sab Saath Badhein’ wealth-generating capability
philosophy has inspired the Company to of the enterprise in a globalising
integrate sustainability as a bedrock of environment, delivering superior and • The Company is creating multiple drivers of agriculture and industry, generating largescale
sustainable stakeholder value.
its corporate strategy even as it builds a growth across its leading businesses that employment opportunities and supporting
span all three sectors of the Indian economy - sustainable livelihoods, driving import
globally competitive Indian enterprise of
agriculture, manufacturing and services. These substitution by enhancing the competitiveness
tomorrow. VALUES include Fast Moving Consumer Goods (FMCG), of domestic agri-value chains and industry,
ITC’s Core Values are aimed at Hotels, Paperboards, Paper and Packaging, and creating national brands to maximise value
developing a customer-focused, Agri Businesses. capture in India, increasing Indian agri-exports
high-performance organisation which and promoting sustainable business practices.
• ITC derives its strengths from its deep consumer
creates value for all its stakeholders:
insights, cutting-edge Research & Development, • ITC’s sustainability initiatives seek to serve
differentiated product development capacity, national priorities through creation of largescale
cuisine expertise, brand-building capability, sustainable livelihoods and augmentation of
world-class manufacturing infrastructure, natural resources, reflecting the Company’s
Trusteeship Excellence extensive rural linkages, efficient trade commitment to its credo of ‘Nation First: Sab
marketing and distribution network and Saath Badhein’.
dedicated human resources.
• ITC is investing in the future through fortification
Customer focus Innovation
of its robust product portfolio, seeding of new Investments made by ITC continue to
categories, sharper alignment of R&D and be guided by the national objectives
innovation to business outcomes, harnessing
the power of digital, and an agile and efficient
of ‘Make in India’, ‘Doubling Farmers’
Respect Nation
for people orientation supply chain. Income’ and the overarching theme
• The Company’s interventions across its
of ‘Atmanirbhar Bharat’ that seeks
operating segments are aligned to the national to make the country stronger,
priorities of enhancing competitiveness of Indian resilient and more competitive.

Integrated Report 2021 | 14 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

ITC at a Glance ITC’s Businesses ITC’s Brandscape Operational Footprint ITC’s Value Chain Sustainability Ambitions

ITC AT A GLANCE

Highlights

A Global Exemplar in ‘Triple Clear leader in the FMCG industry Deep rural linkages and agri- Cutting-edge R&D capability with
Bottom Line’ Performance. in terms of Cash Flow generation. commodity sourcing expertise. over 350 highly qualified scientists
in Life Sciences & Technology
Centre (LSTC), Bengaluru, with
over 900 patents and design
Demonstrated track World-class distributed Leveraging digital technologies across
registration applications.
record of creating superior manufacturing footprint and a areas such as consumer engagement
shareholder value. multi-channel distribution network. and insight discovery, smart Leveraging synergies residing
manufacturing, agri value chains, across diverse businesses.
supply chain agility and
Consistent Dividend Payouts Building purpose-led brands front-end execution.
backed by a clear and robust anchored on larger consumer needs. Trailblazer in Green hoteliering.
dividend policy.

Zero Debt Company. Pursuing value-accretive and harnessing the power of digital
synergistic opportunities for
inorganic growth. cturing Insig
nufa hts
& Ma Pla
in tfo
ha rm
lyC
pp
Su

Em
ce

pl
en

oy
Building Intellectual Property through Cutting-edge R&D

eri

ee
Exp

Eng
The Company’s state-of-the-art ITC Life scientific infrastructure and state-of-the-art

mer

age
Sciences and Technology Centre (LSTC) in facilities to create knowledge, build intellectual

Consu
Digital-first Culture

ment
Bengaluru is at the core of driving science-led property through experimental research, rapid DigiNext / Young
Digital Leaders Forum
product innovation to support and build ITC’s prototyping and process development.
portfolio of world-class brands.
Centres of Excellence in Biosciences,
State-of-the-Art Digital Technologies, Infrastructure and Security
The LSTC team comprising over 350 highly Agrisciences and Materials, and robust research
qualified scientists have a mandate to work platforms such as Beauty & Hygiene, Heath
on future-ready science platforms, design & Wellness, Agro-forestry & Crop Sciences, The pandemic has given wings to the trend of areas spanning Consumer Experience, Smart and
differentiated products to address unique Sustainable Packaging materials continue to Digitalisation that was already gathering momentum. Agile Manufacturing & Supply Chain Operations,
Accelerated digital transformation is integral to Employee Experience and Intelligent Insights
needs and deliver superior benefits to Indian drive world-class innovation. Rigorous systems,
ITC’s future-ready strategy and is increasingly being Platforms. Foundational initiatives such as the
consumers. R&D teams seamlessly integrate processes and industry best practices have harnessed to enhance competitive advantage. ‘DigiNext’ and ‘Young Digital Leaders Forum’ have
classical concepts of product development enabled securing global quality certifications - a been implemented towards steering the Company
Cutting-edge digital technologies are being
to explore and harness cross-business key enabler in delivering products that follow increasingly deployed across strategic impact through its digital journey and fostering a data driven
synergies. LSTC has evolved over the years the highest standards in quality, safety and and ‘digital first’ culture across the organisation.
and is presently resourced with world-class efficacy to the Indian consumer.

Integrated Report 2021 | 15 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

ITC at a Glance ITC’s Businesses ITC’s Brandscape Operational Footprint ITC’s Value Chain Sustainability Ambitions

HARNESSING THE POWER OF DIGITAL

The FMCG Businesses continue to increasingly leverage ‘Sixth Several digitally powered interventions are underway towards
Sense’, the Marketing Command Centre and Consumer Data enhancing productivity, driving efficiency and reducing costs.
Hub – an AI powered hyper-personalised platform backed by a These initiatives are anchored on the key pillars of synchronised
robust partner ecosystem for content and data - to gain insights planning and forecasting, next generation agile supply chain,
on market trends and consumer behaviour and synthesise the smart manufacturing and sourcing, and smart demand capture
same to craft contextual brand communication and product and fulfilment. Strategic investments are also being made
development. Over 2,000 content assets have been deployed towards enhancing value creation leveraging data and analytics.
leveraging this platform within a relatively short span of time at Key interventions include augmenting the Company’s NextGen
significantly lower cost. data architecture powered by Artificial Intelligence/Machine
Learning (AI/ML), identifying and prioritising use cases for
impactful outcomes and setting up a Data Science academy
comprising data scientists and engineers to drive and sustain
data and analytics programmes.
The Company’s TM&D vertical continues to leverage digital
The year also marked the scale up of the Company’s Direct- technologies to drive productivity, improve market servicing,
to-Consumer (D2C) channel, the ‘ITC e-Store’. Launched draw actionable insights for sharp-focused interventions,
just prior to the lockdown in March 2020, this initiative was augment sales force capability and deepen connect with
extended to 11 cities during the year. Powered by state-of-the- retailers.
Superior Consumer Impactful Brand art digital technologies and a robust fulfilment infrastructure,
Insights and Campaigns and Several Robotic Process Automation BOTs are operational
the platform offers consumers on-demand access to a wide
Innovation Engagement across businesses thereby eliminating non-value adding and
range of the Company’s FMCG products under one roof.
repetitive work. Access to secure and contemporary platforms
Cutting-edge digital technologies including Industry 4.0, has been provided by seamlessly and securely implementing
Advanced Analytics, Big Data and industrial Internet of remote working for its employees through extensive IT
Things (IoT) continue to be deployed towards strengthening enablement.
the Company’s real time operations and execution platform.

Continuous Enhanced Synchronised Agile

Tracking and Shopper Planning Supply Chain
Feedback Experience
Leveraging Digital for Empowering Retailers
A virtual summit on ‘Digital Enablement for Kirana Outlets’ was
Smart
held to educate and upskill retailers on best practices in retail Operations
management. The summit saw an overwhelming participation
of 1500+ retailers, securing a place in the GUINNESS WORLD
RECORDS® for ‘Most viewers for a retail management live stream Smart Demand Smart Manufacturing
on a bespoke platform’. Capture & Fulfilment And Sourcing

Integrated Report 2021 | 16 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

ITC at a Glance ITC’s Businesses ITC’s Brandscape Operational Footprint ITC’s Value Chain Sustainability Ambitions

ITC’S BUSINESSES

Businesses that Build Value ITC is one of India's foremost private sector companies and
a diversified conglomerate with businesses spanning FMCG,

for the Indian Economy

Hotels, Paperboards, Paper & Packaging and Agri Business.

FMCG - Others FMCG Cigarettes Hotels Paperboards, Paper & Agri Business
• ITC’s FMCG-Others segment includes • Clear market leader. • 2nd Largest Hotel Chain in India; 4 brands - Packaging • Leading Agri Business player in India.
Branded Packaged Foods, Personal • Well-laddered portfolio of brands; Wide 107 iconic luxury properties. • Pioneer in Rural Transformation.
Care Products, Education and Stationery • Clear market leader in the Indian Paperboards &
and deep distribution network. • Trailblazer in ‘Responsible Luxury’ with all Specialty Papers industry. • Sourcing & Supply operations in 22 states
Products, Incense Sticks (Agarbattis) and Premium Luxury hotels being LEED Platinum
• World-class products & processes • Fully integrated business model – secure, encompassing over 20 agri value chain
Safety Matches. certified.
anchored on innovation. renewable and cost competitive fibre base, clusters.
• The diverse portfolio is anchored on over • Globally acknowledged for its iconic cuisine
• State-of-the-art manufacturing facilities. in-house pulp manufacturing. • Largest procurer of wheat after FCI (Food
25 world-class purpose-led Indian brands brands.
• Strong vertical integration with Leaf • India’s largest, technologically advanced and Corporation of India).
- creating, capturing & retaining value in
tobacco and Packaging & Paperboards • World’s first hotel chain to receive Platinum most eco-friendly Paper & Paperboards business; • Leveraging Information Technology for
India.
businesses. certification in infection risk management by ‘Make In India’ exemplar. the transformational ‘e-Choupal’ initiative;
• The Company’s FMCG products reach M/s DNV.
• Best-in-class profitability & returns globally. • No. 1 player in the Value-added Paperboards Empowering over 4 million farmers.
over 150 million households in India.
• ITC Windsor, Bengaluru - First hotel in the segment. • Quality & Cost-optimised agri commodity
• One of the fastest growing Branded world to receive the prestigious LEED Zero
• 40+ B2B Brands with Innovative & Differentiated sourcing.
Packaged Foods Businesses in India. Carbon Certification by USGBC.
Offerings. • Providing institutional support & empowering
• Purposeful innovation anchored on robust • ‘Asset-right’ growth strategy; robust pipeline
• World-class environmental performance; grassroots institutions.
R&D platforms nurtured by LSTC. of management contracts.
renewable energy consumption and large scale • Delivering competitive advantage to ITC’s
• Distributed state-of-the-art manufacturing
afforestation programmes. Branded Packaged Foods Businesses - high
facilities; 9 ICMLs operational.
• One-stop packaging solutions provider - quality & cost competitive agri-sourcing.
• Multi-channel Go-To-Market model; smart,
diversified manufacturing base and • Focus on scaling up Value-added segment
agile and responsive Supply Chain.
multi-technology platform capabilities. (Processed Fruits, Spices, Aqua, etc.).
• Strong growth platforms; chosen
• Largest value added convertor of paperboard • Enhancing competitiveness of domestic
categories offer significant headroom for B Y I T C H OT E L S

packaging in South Asia. value chains through e-Choupal 4.0, a crop

growth.
• Leveraging Industry 4.0 & Digital technologies to agnostic ‘phygital’ integrated agri solutions
» Fortifying the Core, Addressing platform.
Adjacencies through Mother Brands, improve operational efficiency, reduce wastages
and costs. • No 1. leaf tobacco exporter in India (5th largest
Building the New Core.
• Cutting-edge innovation and deep understanding in the world); One-Stop Shop for Quality
of end-user needs being leveraged for Indian Tobaccos; best-in-class profitability
developing sustainable Paperboards & Packaging • Pioneering cultivation of Flue-cured and
solutions. superior Burley tobaccos in India.

Segment Revenue* D20,333.12 crores D 14,728.21 crores D627.51 crores D5,618.55 crores D12,582.24 crores
FMCG-Cigarettes FMCG-Others Hotels Paperboards, Paper and Agri Business
*Figures for the year ended 31st March, 2021 Packaging

For more details on Segment-wise Revenue, Results, Assets and Liabilities, refer to Page 207 of Report and Accounts 2021

Integrated Report 2021 | 17 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

ITC at a Glance ITC’s Businesses ITC’s Brandscape Operational Footprint ITC’s Value Chain Sustainability Ambitions

ITC’S BRANDSCAPE

ITC’s building brands with purpose

World-Class No.1 in No. 1 in the Bridges segment No. 1 in

Indian Brands Branded Atta of Snack Foods (No. 2 overall

in Snacks & Potato Chips)
Cream Biscuits

Offerings Offerings Offerings

ITC has built over 25 world-class Atta, Salt and Spices, Bridges, Potato Chips and Namkeens Biscuits and Cakes Savlon Swasth India
brands across its diversified Fresh Dairy under Healthier Children, Healthier India
Aashirvaad Svasti
business portfolio of Branded
Packaged Foods, Personal Care
Products, Education and Stationery
Products and Incense Sticks
(Agarbattis) and Safety Matches,
garnering an annual consumer
Vivel
spend of over D 22,000 crores. No.1 in No. 2 in No. 2 in
Notebooks Noodles Deodorants Women Empowerment

Offerings Offerings Offerings

Educational and Noodles and Pasta Perfumes & Deodorants
Stationery products

YiPPee!
A Better World

D 1,200 crores
No. 2 in Agarbattis
No. 1 in Dhoop segment
Offerings
Matches, Dhoop & Agarbatti Significant growth in
consumer spends for ‘Savlon’ Mom’s Magic
portfolio Saluting Mothers

Source: Nielsen

Integrated Report 2021 | 18 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

ITC at a Glance ITC’s Businesses ITC’s Brandscape Operational Footprint ITC’s Value Chain Sustainability Ambitions

OPERATIONAL FOOTPRINT
Highlights

Expanding FMCG
Over the years, ITC has invested in setting

the Operational up multiple Integrated Consumer Goods

Manufacturing and Logistics facilities (ICML)
towards augmenting its manufacturing and

Canvas
sourcing footprint across categories and will
enable its FMCG businesses to rapidly scale up.

These ICMLs provide structural advantages

to the Company's businesses by enhancing
product freshness, improving market
responsiveness, reducing the cost of servicing
Manufacturing Locations proximal markets and ensuring the highest
standards of product hygiene, safety and
Agri Business Division (ABD) Agri
quality.
Agri Business Division (ABD) Tobacco Capacity utilisation at the 9 operational
ICMLs is being ramped up along with focused
Packaging & Printing Business (PPB)
smart manufacturing interventions leveraging
automation and Industry 4.0 technologies to
Education & Stationery Products Business (ESPB) drive operational efficiencies, yield and energy
management and further enhance safety
Matches and Agarbattis Business (MAB) and quality.

Paperboards & Specialty Papers Division (PSPD)

PAPERBOARDS AND SPECIALTY PAPERS
Foods
Recently, the Bhadrachalam unit augmented
its Value-added Paperboards (VAP) capacity
Personal Care Products Business (PCPB) Division
by 45000 TPA which will further strengthen
its market standing. The additional capacity is
India Tobacco Division
expected to be fully deployed in FY2021-22.

HOTELS
Construction of 3 properties - ITC Narmada,

200+
a Luxury Collection hotel in Ahmedabad and
Welcomhotels at Bhubaneswar and Guntur -
with around 500 rooms is nearing completion.
Manufacturing Units
During the year, in line with the ‘asset-right’
strategy, three new properties were added

Over 100
to the portfolio of ‘Welcomhotel’ brand of
ITC Hotels Business - Welcomhotel Bay Island
in Port Blair (formerly, Fortune Resort Bay
Island), Welcomhotel Shimla, and Welcomhotel
Countries where ITC exports Ahmedabad.

Integrated Report 2021 | 19 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

ITC at a Glance ITC’s Businesses ITC’s Brandscape Operational Footprint ITC’s Value Chain Sustainability Ambitions

ITC’S VALUE CHAIN

Building Sustainable ITC’s Vertically Integrated Sustainable Value Chain

Value Chains
ITC Brands

ITC Businesses
Empowering Indian Farmers and anchoring inclusive and sustainable value chains.

Wheat Potato Pulpwood Spices Milk Fruits Bamboo Leaf Tobacco

As a conglomerate with diversified interests in both • In addition, ‘Mangaldeep’ agarbattis

products and services businesses, ITC maintains support an indigenous bamboo value Cigarette
a vertically integrated supply chain for most of its chain with plantation interventions in
Ingredients Culinary insights
businesses, which facilitates optimum utilisation North East India. Foods

of raw materials, as well as efficient logistic Leveraging

Packaging
These vibrant value-chains provide Personal Care Synergies
operations. It also builds on intra-group synergies, across
consumers high quality products whilst Businesses
which further adds to organisational efficiency. Agri Business Paper
supporting substantial livelihoods for (Leaf tobacco)
Education & Stationery
Particularly in the FMCG segment, ITC is
farmers.
powered by: Agri Business Paperboards & Speciality Papers Matches & Agarbatti Packing & Printing Hotels

• Building of digitally-powered and climate-smart Deep rural linkages and agri-commodity

agri value chains. sourcing expertise resident in ITC’s Agri Paperboard

Value Chain
Business coupled with the ability to offer
• Smart and agile supply chain. differentiated value-added services of FMCG (B2C) Industrial Supplies and Exports (B2B) Services

• Distributed manufacturing and sustainable identity preservation, traceability and

operations. certification continue to be critical sources Responsible Sustainable Manufacturing Sustainable
Sustainable
Delighting
Responsible
Logistics & End-of-Life
of competitive advantage. Sourcing & Services Packaging
Warehousing
Consumers
Management
• Resilient and robust sales & distribution.
Through a diverse portfolio of food products,
Regenerative Optimal Health and ITC Hotels' Improving Strategically Responsible Sustainable
anchored on inclusive agri value chains, ITC has and climate- resource use safety, and ‘WeAssure’ recyclability located marketing models

Sustainability Interventions
resilient employee Programme of packaging manufacturing for managing
helped empower India’s farming community with Sourcing of superior quality of agriculture well-being focuses on units optimising post-consumer
health, hygiene distance packaging waste
varied interventions. A few examples of how ITC’s
brands enable inclusive agri value chains include:
milk laid the platform for launch and safety to market

• ‘Aashirvaad’ for wheat and spices.

of premium category milk Sustainable Climate Commitment Managing Phasing Strategically Consumer
forestry resilience and to highest talent, out hard located satisfaction
‘Aashirvaad Svasti Select’, which water risk
management
standards of
quality and
upholding
human rights
to recycle
plastics
automated
warehouses
and feedback
management
• ‘Bingo!’ Snacks for potato.
is first-of-its-kind in the country product safety and fostering
diversity
• ‘B Natural’, ‘Farmland’, ‘ITC MasterChef’ for fruits providing complete traceability
and vegetables. Sustainable Green Cutting-edge Sustainable
of milk quality across the bamboo
plantations
buildings R&D and
innovation
packaging
solutions for
• ‘Aashirvaad Svasti’ for dairy. supply chain the industry
with Omega
and Filo series
• ‘Classmate’ and ‘Paperkraft’ for 'Tree to
notebook' value chain. Responsible FSC-certified
sourcing in line paper and
with supplier’s paperboards
Code of for packaging
Conduct

Integrated Report 2021 | 20 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

ITC at a Glance ITC’s Businesses ITC’s Brandscape Operational Footprint ITC’s Value Chain Sustainability Ambitions

SUSTAINABILITY AMBITIONS

Building a
Collective Future
with Sustainability
2.0
As the world prepares for a post-pandemic
future, your Company is actively working
towards Sustainability 2.0, an agenda which
reimagines sustainability under the pressing
challenges of climate change and the The future will certainly belong
pandemic. to purposeful enterprises
that constantly build
With a view to ‘Building Back Better’, competitiveness with agility
Sustainability 2.0 calls for inclusive strategies and innovation to swiftly
that can support sustainable livelihoods, respond to shocks, evolving
pursue newer ways to fight climate change trends and opportunities.”
and enable the transition to a net zero
Sanjiv Puri,
economy, work towards ensuring water security Chairman & Managing Director, ITC
for all and create an effective circular economy
for post-consumer packaging waste. It also
entails protecting and restoring biodiversity.

Integrated Report 2021 | 21 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

ITC at a Glance ITC’s Businesses ITC’s Brandscape Operational Footprint ITC’s Value Chain Sustainability Ambitions

SUSTAINABILITY AMBITIONS

ITC believes that agility in thought Sustainability 2.0 Ambitions: 2030 Targets
and action, meaningful public-
private-people partnerships
and responsible competitiveness
will act as core enablers of
this new agenda. With its bold
Sustainability 2.0 agenda, ITC Climate Change
is setting the bar higher, and
remains committed to making a Goal Key Performance Indicators Target Target Year Baseline Year Performance 2020-21 Progress SDG Mapping

meaningful contribution to the 50% of Total Energy from % of Total Energy Consumed from 50% 2030 - 41% On Track
Nation’s future while retaining its Renewable Sources Renewable Sources

status as a sustainable business 100% Purchased Grid Electricity % of Total Electrical Energy (Grid 100% 2030 - 51% On Track
Requirements1 from Renewable Purchased) from Renewable Sources
exemplar. Sources

50% reduction in Specific GHG % Reduction in GHG Emissions 50% 2030 2018-19 Paper Business – 7.4% On Track
Emissions2 (Scope 1, 2) per Unit of Production Foods Business – 21.4%
Hotels – 4.2%3
Agri Business – 1.1%
Packaging & Printing – 30%
Tobacco – 2.0%

30% reduction in Specific Energy % Reduction in Energy Consumed 30% 2030 2018-19 Paper Business – 5.5% On Track
Consumption4 per Unit of Production Foods Business – 20%
Hotels – 14%5
Agri Business – 2.5%
Packaging & Printing – 6.6%
Tobacco – 0.5%

Sustain and enhance carbon Area under Social Forestry (Acres) 630,000 2030 - 394,678 On Track
sequestration by expanding forestry
projects on wastelands through ITC’s
Social and Farm Forestry programme
and other such initiatives

Improvement in KPIs Decline in KPIs

1
This includes all electricity sources except onsite power from co-generation plant.
2
For details, refer to ‘Building Climate Resilience’ section of this report.
3
For Hotels Business, specific GHG emissions went up because of low occupancy during the pandemic, though absolute GHG emissions has reduced.
4
For details, refer to ‘Building Climate Resilience’ section of this report.
5
For Hotels Business, specific energy consumption went up because of low occupancy during the pandemic, though absolute energy consumption has reduced.

Integrated Report 2021 | 22 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

ITC at a Glance ITC’s Businesses ITC’s Brandscape Operational Footprint ITC’s Value Chain Sustainability Ambitions

Water Stewardship
SUSTAINABILITY AMBITIONS
Goal Key Performance Indicators Target Target Year Baseline Year Performance 2020-21 Progress SDG Mapping

40% reduction in Specific Water % Reduction in Water Consumed 40% 2030 2018-19 Paper Business – 3.4% On Track
ITC believes that agility in thought Consumption6 per Unit of Production Foods Business - 33%
and action, meaningful public- Hotels – 22.6% 7
Tobacco – 4.5%
private-people partnerships
and responsible competitiveness Creation of Rainwater Harvesting Ratio of Rainwater Harvesting 5X 2030 - 4X On Track
Potential equivalent to over 5 times Potential created and Net Water
will act as core enablers of the Net Water Consumption from Consumed in Operations.
this new agenda. With its bold Operations

Sustainability 2.0 agenda, ITC All Sites in High Water Stressed Areas No. of AWS Certfied Sites 8 sites 2035 - 1 Site AWS certified. On Track
to be certified as per the International by 2023 ITC's Kovai unit received the
is setting the bar higher, and Water Stewardship Standard by AWS All high-risk Platinum-level certification in
remains committed to making a (Alliance for Water Stewardship) sites by 2035 2019-20. Certification of other
Units in Progress
meaningful contribution to the
Nation’s future while retaining its Ensure Water Security for All Watershed Area (Acres) 2,200,000 2030 2016-17 1,231,251 (cumulative) On Track
Stakeholders through Watershed On Track
status as a sustainable business Development & Managed Aquifer
Water Harvesting Structures (Nos) 50,000 2030 2016-17 21,991 (cumulative)
Storage Potential (million kl) 60 2030 2016-17 41.95 (cumulative) On Track
exemplar. Recharge

Improve Crop Water Use Efficiency in million kls of Water Saved 2,000 2030 - 208 On Track
Agri Value Chains through Demand (Annually)
Side Management Interventions

Plastic Waste and Circular Economy

Goal Key Performance Indicators Target Target Year Baseline Year Performance 2020-21 Progress SDG Mapping

100% of Packaging to be Reusable, % of Plastic Packaging Utilised that is 100% 2028 - 99.9% (less than 0.1% of On Track
Recyclable or Compostable Recyclable, Reusable or Compostable Packaging Portfolio is Non-
Recyclable or Hard to Recycle
– Phase out plans in place)
ITC is also actively working to
increase the collection and
recycling rates for Multi-Layered
Plastic (MLP) packaging waste
by implementing replicable,
scalable and sustainable models
of solid waste management

Plastic Neutrality: Enable Sustainable % of Plastic Packaging Waste >100% 2021 - 80%+ On Track
Management of Waste in Excess of Sustainably Managed
the Amount of Packaging Utilised

Improvement in KPIs Decline in KPIs

6
For details, refer to ‘Towards Water Security For All’ section of this report.
7
For Hotels Business, specific water consumption went up because of low occupancy during the pandemic, though absolute water consumption has reduced.

Integrated Report 2021 | 23 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

ITC at a Glance ITC’s Businesses ITC’s Brandscape Operational Footprint ITC’s Value Chain Sustainability Ambitions

SUSTAINABILITY AMBITIONS

ITC believes that agility in thought

Sustainable Agriculture
and action, meaningful public-
private-people partnerships Goal Key Performance Indicators Target Target Year Baseline Year Performance 2020-21 Progress SDG Mapping
and responsible competitiveness Promote Climate Smart Village Area Covered (Acres) 3,000,000 2030 2016-17 771,119 (cumulative) On Track
will act as core enablers of Approach in Core Agri-business
Catchments
this new agenda. With its bold
Sustainability 2.0 agenda, ITC
is setting the bar higher, and
remains committed to making a
meaningful contribution to the
Nation’s future while retaining its
Biodiversity Conservation
status as a sustainable business
exemplar. Goal Key Performance Indicators Target Target Year Baseline Year Performance 2020-21 Progress SDG Mapping

Revive & Sustain Ecosystem Area Covered (Acres) 250,000 2030 - 44,044 (cumulative) On Track
Services and Products provided
by Nature, through adoption
of Nature-based Solutions and
Biodiversity Conservation

Sustainable Livelihoods

Goal Key Performance Indicators Target Target Year Baseline Year Performance 2020-21 Progress SDG Mapping

Supporting Sustainable Sustainable Livelihoods 10,000,000 2030 - 6 million On Track

Livelihoods for 10 million supported (No.)
People by 2030

Integrated Report 2021 | 24 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Creating Integrated Value Value-creation Model Stakeholder Engagement Materiality Assessment Strategy

APPROACH TO VALUE-CREATION ITC partners India’s journey towards

Agile in Creating
inclusive growth with an expanding
presence across all three sectors
of the economy - agriculture,

Enduring Value
manufacturing and services. Over the
years, ITC’s multiple growth catalysts
have been meticulously crafted to
match internal competencies with the
emerging opportunities of a growing
Indian economy.
In agriculture, ITC’s deep engagements with farmers
across the country, have empowered million of
them. In the manufacturing sector, ITC has created
world-class manufacturing facilities in India for its
FMCG, Paperboards and Packaging businesses.
In the services sector, ITC Hotels is a trendsetter in
‘Responsible Luxury’.
From best-in-class manufacturing facilities, iconic
luxury hotels, logistics hubs to Life Sciences and
Technology Centre, ITC’s value-generating assets
contribute to strengthening ITC’s competitiveness
while contributing to the Government of India’s vision
for an ‘Atmanirbhar Bharat’.
Creating Integrated Value 26 Over the last five years, the
Value-Added by ITC, i.e. the value
Value-creation Model 27 created by the economic activities of
Stakeholder Engagement 28 ITC and its employees, aggregated
around ` 2,39,000 crores of which
Materiality Assessment 29 over ` 1,67,000 crores accrued to the
Strategy 30 Exchequer

Integrated Report 2021 | 25 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Creating Integrated Value Value-creation Model Stakeholder Engagement Materiality Assessment Strategy

Creating Integrated Value

Executing an Agile Business
Operating in a Materiality Creating Enduring Value
Model to Develop a Portfolio
Dynamic Environment Assessments for its Stakeholders
of World-class Businesses

India is One of the Largest Consumer

Customers
Markets in the World
• Rising disposable income. FMCG Hotels Paperboards Environment page 41

• Over 60% working population. • Climate-resilient • Biodiversity

agriculture. management.
• Emerging aspiring and affluent class. Paper and Agri • Water security for all. • Climate resilient
Packaging Business • Sustainable operations. Shareholders
packaging. page 49
Changing consumer Behaviour
Aligned to
• Elevated demand for Health & Hygiene,
Immunity, and Ayurveda products. • Mission, Vision and Core Values.
• Corporate Objectives and Strategies. Social
• With growing urbanisation and higher Environment
• Business specific strategies.
disposable incomes, discretionary • Consumer • Sustainable page 56
consumption is gaining in momentum. experience. livelihoods.
• Responsible • Health and safety
• Relatively stronger rural demand.
marketing. • Human rights.
Robust Brand
• Contactless payment and online shopping • Sustainable products • Diversity and
Portfolio Communities
becoming the order of the day. and brands. inclusion.
• Responsible • Learning and page 70
• Preference for responsible and sourcing practices. development.
sustainable products and brands. Purposeful Operating
Innovation Levers of Leverage
Margin
Expansion
Human Capital
(FMCG) Governance
page 74
• Ethics and • ESG risk
governance. management.
Power of Supply Chain
• Business success. • Innovation.
Digital Efficiencies
Refer Section Mitigating risks, managing values
page 36 Suppliers & Partners
Refer Section Strategy page 78
Refer Section Materiality Assessment
page 30
page 29

Integrated Report 2021 | 26 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Creating Integrated Value Value-creation Model Stakeholder Engagement Materiality Assessment Strategy

VALUE-CREATION MODEL

Designed to Deliver with Innovation and Resilience

Inputs Business Activities Outcomes

D59,005 crores D12,651 crores D17,164 D10.59 per share Amongst Top 3
Shareholders’ Funds Capital Expenditure
in the last 5 years
crores EPS Indian corporates in
the private sector in
Financial D34,000 crores+ Financial PBT 16.9% terms of Contribution
Total Shareholder Returns to the Exchequer
Revenue Expenditure D13,032
Agri FMCG crores
(CAGR over the last 2 decades)

Business PAT

200+ 10 million sq. ft.+

Manufacturing Units Warehousing Space
25+ 120+
Manufactured 107 World- class New Products Launches
Hotels Business Indian Brands in FY 2020-21
Intellectual

Capital Created, Preserved and Replenished

Activities
D774 crores State-of-the-art ITC’s Life Sciences &
Technology Centre (LSTC) spread over
Employee Engagement
R&D Spend in the last 5 year Survey Recipient of awards
3,42,000 Sq.Ft.+ 95%
demonstrating its ethos

Intellectual 350+ Paperboards, Hotels Human Of survey respondents

to encourage good labour
and employee practices
World-class scientists are proud to work at ITC as also enhance skilling for
Paper and manufacturing excellence

Packaging
35,900+ ~D2,821 crores
Total Employees in ITC Group Employee benefits
expenditure
6 million 8,08,462
Human 7.5 lakh+ Sustainable
livelihoods supported
Children covered under
education programme
Person days of
formal t raining Social and
Relationship 4 million 160 million
Farmers empowered Person-days of employment
Output through e-Choupal generated through social and
D353 crores 10,524 farm forestry initiatives
CSR Expenditure across 216 Grass-root Institution/
Social districts in 25 States/Union Community-based

D 2.69 lakh crores D 32,110 crores

Territories Organisations (CBOs) created
5,827 KT 78,000+ Tonnes
CO2 GHG Removals Dry waste sustainably managed
through ITC Programmes
Market Capitalisation Contribution to the National
D12,000 crores Distribution network:
As on 31st March, 2021 Exchequer (67% of Value-added) 42.95 million kl 31,000 Tonnes
Spend on indigenous 100,000+ 6 million+ during the year Rainwater Harvesting Post-Consumer Plastic Waste,
procurement of raw materials, Markets Retail Outlets Potential created sustainably managed by ITC’s
Relationship stores and supplies (As per Neilsen) Natural programmes – equivalent to more
(87% of total procurement)
99% than 80% of plastic packaging films
utilised by ITC

D 48,151 crores D33,557 crores

Of the total solid waste
generated in ITC units was

22,369 Terra 10 million kl either reused or recycled The Kovai unit of Paperboards
& Speciality Papers Business
Joules (TJ) Net Water Consumption Gross Revenue Non-Cigarette Revenue earned a unique distinction of
Of energy consumed over 41% 2,454 Kilo Tonnes Unit level water being the only facility in India
Natural (9,247 TJ) from renewable Of Raw materials processed, with
security interventions
at key units
to be awarded the Alliance
for Water Stewardship (AWS)
sources 97% (2,373 kilo tonnes) from agro/
Platinum- level certification
forestry based renewable sources

Integrated Report 2021 | 27 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Creating Integrated Value Value-creation Model Stakeholder Engagement Materiality Assessment Strategy

STAKEHOLDER ENGAGEMENT

Strengthening Relationships with All Stakeholders

As an Enterprise of Tomorrow, ITC ITC’s Process of Stakeholder Engagement
acknowledges its responsibility in
meeting stakeholder expectations
in today’s fast-changing consumer,
political and business landscape.
An effective engagement with
stakeholder groups plays an important
role in ensuring that ITC continues to
create larger societal value.
In line with the Board approved policy on
stakeholder engagement, ITC has evolved a
structured framework for engaging with its
stakeholders and fostering enduring relationships
with each one of them. ITC’s engagement approach
is anchored on the principles of materiality,
completeness and responsiveness.
Some of ITC’s key stakeholder groups include
shareholders, consumers, farmers, employees, Identification of Consultation with the key Identification and Addressing the prioritised
local communities, suppliers, Central and State key stakeholders stakeholders with due prioritisation of concerns and needs
Governments, regulatory bodies and the media. weightage given to each concerns and needs in a consistent and
The engagement approach takes into cognisance stakeholder based on the transparent manner
the fact that each stakeholder group is unique nature of engagement with
and has a distinctive set of priorities. Insights the organisation
gathered from stakeholder engagements, help
validate the Company’s performance and shape
new perspectives. For more details, please refer
to the Stakeholder Engagement section of ITC’s
Sustainability Report 2021. Periodical review of action taken

Transparency and Accountability

Integrated Report 2021 | 28 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Creating Integrated Value Value-creation Model Stakeholder Engagement Materiality Assessment Strategy

MATERIALITY ASSESSMENT

ITC’s Materiality Matrix

The sensitivity of an issue to Consumer
experience
stakeholders and to ITC, in terms
of importance, forms the basis of the Climate-resilient
agriculture
materiality analysis, which in turn
guides the processes for identifying, Ethics and
Water security
managing and devising specific action for all governance

plans for addressing these material Health and

Sustainable
livelihood
aspects. The outcome of the materiality safety

analysis is presented in the form of a

matrix that depicts the material topics Importance to Stakeholders
based on two dimensions - importance Sustainable
Business
success
to stakeholders and importance to Climate-resilient packaging
operations
ITC's businesses. The topics have been
categorised relative to each other and Human
Sustainable products
position of each topic represents its Biodiversity
management
and brands rights

relative importance. Innovation

Responsible-sourcing ESG risk
In 2019-20, the reassessment of materiality matrix practices management
was conducted to reflect the emerging material
Responsible Diversity
issues faced by its diverse set internal and external marketing and inclusion
stakeholders. ITC will continue to engage with both
internal and external stakeholders on an ongoing
basis for a dynamic materiality assessment.
Learning and
development

The identified material topics have been discussed

throughout this Report. For more details, please
refer to ITC’s Sustainability Report 2021. Importance to ITC

Integrated Report 2021 | 29 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Creating Integrated Value Value-creation Model Stakeholder Engagement Materiality Assessment Strategy

STRATEGY

Agile for
Tomorrow KEY CORPORATE STRATEGIES
The key pillars of Corporate
Strategies are given below:
The Company's Strategy of Organisation
and governance processes are crafted
in a manner that enables focus on each
Growth
business while harnessing the diversity of
the portfolio to create unique sources of
competitive advantage.
Market
Standing

Productivity and
Cost Management

Digital

Sustainability

Research and
Development

People

Integrated Report 2021 | 30 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Creating Integrated Value Value-creation Model Stakeholder Engagement Materiality Assessment Strategy

STRATEGY

Corporate Strategies

Growth Market Standing Productivity and Cost Management Digital

• Create multiple drivers of growth by developing • Build a future-ready product portfolio in each • Fuel growth and enhance profitability through • Institutionalise a data driven and Digital-First
a portfolio of world-class businesses that best business to cater to relevant and emerging structural interventions across each element of Culture across the organisation through
matches organisational capability with market segments through continuous innovation. the value chain with a view to eliminate waste foundational interventions such as Digital
opportunities. and drive down costs on a sustained basis. Council and Young Digital Leaders Forum
• Strengthen and expand the Company’s
(YDLF).
• Blend diverse core competencies residing in portfolio of brands and multichannel
various businesses of the Company to enhance distribution network to serve consumers • Focus on strategic impact areas spanning
the competitive power of the portfolio. across market segments. Customer Experience; Smart Operations
- NextGen agile supply chain, smart
• Proactively pursue acquisition, joint venture
manufacturing and sourcing, smart demand
and collaboration opportunities in strategic
capture and fulfilment; Employee Experience;
areas towards accelerating growth and value
Intelligent Insights platforms.
creation.
• Build a robust, secure and scalable digital
• Craft disruptive business models and value
infrastructure by leveraging new age
propositions anchored at the intersection
technologies.
of Digital, Sustainability and institutional
strengths.

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 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Creating Integrated Value Value-creation Model Stakeholder Engagement Materiality Assessment Strategy

STRATEGY

Corporate Strategies

Sustainability Research and Development People

• Sustain ITC’s status as a global exemplar in sustainable business • Focus on purposeful inventions, innovations and collaborations • Create a shared mind-set across the organisation where people
practices. sharply aligned with business strategy, as a key driver of impactful are inspired, engaged and aligned to the Company’s Mission,
growth; execute strategic action plans with speed and agility. Vision, Values and Strategic Agenda.
• Actively decarbonise operations by enhancing the share of
renewable energy usage, reducing specific energy consumption • Develop science-based platforms embedding sustainability • Build a high performance, customer-centric organisation and
and specific GHG emissions. and digitalisation strategies with a view to securing long-term nurture a culture of creativity and innovation that enables
competitiveness for each business. the organisation respond proactively to rapid changes in the
• Enhance the Company’s resilience against climate change; climate
environment.
proof agri-value chains and physical assets based on detailed risk
assessments through climate modelling. • Develop capabilities and competencies for the future in order to
enhance competitiveness and win in the markets of tomorrow.
• Spearhead the water stewardship approach for addressing
water security risks of units located in high water stress areas by • Build a talent pipeline across levels to meet the growing and
optimising demand both at the operating plant level as well as the diverse requirements in an extremely competitive talent market.
sub-catchment / micro watershed level.
• Leverage the recent experience of remote working and provide
• Build on the Company’s track record of being solid waste recycling employees the added flexibility of switching between the
positive for several years and accelerate the path to achieving conventional and ‘work from home’ modes, in roles and situations
‘plastic neutrality’ in the short to medium-term. where feasible.
• ITC’s vision to serve larger national priorities is manifest in its • As a merit-based, equal-opportunity employer, offering a
strategy to launch multiple drivers of growth across agriculture, workplace free from any discrimination, encourage and enhance
manufacturing and services which enables it to make a meaningful the participation of women and differently abled people in the
contribution to livelihood creation and environmental replenishment. workforce through concerted and focused actions.
Read more in ‘Preserving and Nurturing the Environment’ Read more in ‘Workforce of Tomorrow’
page 56 page 74

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STRATEGY

ITC’s business priority areas

FMCG Paperboards, Paper & Packaging

• Build a robust FMCG Business anchored on • Leverage the power of digital and cut-through • Drive cutting-edge innovation towards » Decarbonising operations by enhancing
strong growth platforms and a future-ready communication to drive superior consumer developing sustainable paperboards and renewable energy usage leveraging
portfolio. insights & innovation, deeper consumer packaging solutions for specific end-user investments in wind and solar power,
» Fortify the Core: strengthen market engagement and enhance brand loyalty. segments by leveraging ITC LSTC capability green boiler, soda recovery boiler.
standing in existing categories. and external collaborations.
• Leverage world-class distributed » Leveraging a diversified manufacturing
» Address adjacent opportunities: leverage infrastructure, multi-channel distribution • Sustain market leadership and competitive base and multi-technology platform
powerful and extendable mother brands. network, delayering operations, smart buying advantage by capabilities.
& value engineering and smart manufacturing. » Augmenting the value-added portfolio.
» Build the ‘New Core’: scale up nascent » Stepping up investments in Industry
categories such as Dairy & Beverages, • Cutting-edge R&D at the Company’s LSTC, » Scaling up the renewable and 4.0 & Digital technologies to enhance
Chocolates, Coffee, Home Care, leveraging science based platforms are driving cost-effective fibre base. operational efficiency, reduce wastage
Skin Care etc. purposeful innovation and enabling agility to and costs.
swiftly introduce differentiated & first-to-market » Leveraging in-house pulp and blown film
• Build brands powered by purpose and manufacturing capabilities. Read more in Management Discussion and Analysis
products, catering to constantly evolving section on Page 72 of Report and Accounts 2021
innovation. consumer needs.

Read more in Management Discussion and Analysis

section on Page 48 of Report and Accounts 2021

Insights, Multi-Channel Value

Innovation, Distribution, Accretive
Quality Agile Supply M&A
Chain

Future-ready Purpose-led Digital

Portfolio Brands

ITC Synergy Extreme Cost Focus

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 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

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STRATEGY

ITC’s business priority areas

Hotels Agri Business

• Pursue an ‘asset-right’ strategy to accelerate • Continue to deploy structural interventions • Develop a future-ready portfolio of value • Develop NextGen Indian agriculture
growth while reducing the capital intensity of across all nodes of operations towards added agri products to accelerate growth anchored on digitally powered and
the business. driving significant cost reduction. and enhance value capture. climate smart agri value chains along with
appropriate market linkages.
• Ensure the highest standards of hygiene Read more in Management Discussion and Analysis » strengthen
­ and customise supply chains
and safety across all properties to reassure section on Page 68 of Report and Accounts 2021 for traceable and identity preserved • Deliver sustainable competitive advantage
guests and bounce back strongly in the new sourcing of agri-commodities. to ITC’s FMCG Businesses – high quality &
normal. cost competitive agri-sourcing.
• Develop a robust business model to
• Leverage investments in state-of-the-art scale up e-Choupal 4.0 – a crop-agnostic Read more in Management Discussion and Analysis
digital infrastructure with a view to section on Page 80 of Report and Accounts 2021
‘phygital’ integrated agri solutions
enhancing guest experience, increasing platform to deliver customised solutions
brand awareness, augmenting distribution. to the farming community, create new and
scalable revenue streams and re-engineer
commodity sourcing through a robust
network of Farmer Producer Organisations.

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 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

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STRATEGY

Strategic Risk Management Accordingly, management of risk has always been • The Risk Management Committee, constituted • The annual planning exercise requires all
an integral part of ITC’s ‘Strategy of Organisation’ by the Board, monitors and reviews the strategic businesses to clearly identify their top risks and
As a diversified enterprise, and straddles its planning, execution and reporting risk management plans of ITC as a whole and set out a mitigation plan with agreed timelines
processes and systems. Backed by strong internal provides necessary directions on the same. and accountabilities. Businesses are required
ITC continues to focus on a
control systems, the current Risk Management to confirm periodically that all relevant risks
system-based approach to Framework consists of the following key elements:
• The Corporate Risk Management Cell,
have been identified, assessed, evaluated and
through focused interactions with businesses,
business risk management. The that appropriate mitigation systems have been
• The Corporate Governance Policy approved facilitates the identification and prioritisation of
management of risk is embedded implemented.
by the Board, clearly lays down the roles strategic and operational risks, development of
in the corporate strategies of and responsibilities of the various entities in appropriate mitigation strategies and conducts
developing a portfolio of world- relation to risk management covering a range periodic reviews of the progress on the
of responsibilities, from the strategic to the management of identified risks.
class businesses that best match operational.
organisational capability with
market opportunities, focusing
on building distributed leadership Risk Management System Cyber Security Committee
and succession planning ITC endeavours to continually sharpen its A Cyber Security Committee, chaired
processes, nurturing specialism Risk Management systems and processes by the Chief Information Officer, is
in line with a rapidly changing business in place to provide specific focus on
and enhancing organisational environment. In this regard, it is pertinent cyber security related risks, with the
capabilities through timely to note that some of the key businesses of primary responsibility of tracking
developmental inputs. ITC have adopted the ISO 31000 Standard emerging practices and technologies
and accordingly, the Risk Management and provide suitable recommendations
systems and processes prevalent in these for enhancing security of the IT
businesses have been independently systems and infrastructure. The Chief
assessed to be compliant with the said Information Officer, is invited to all the
global Standard on Risk Management. Risk Management Committee meetings
During the year, the Businesses transitioned and is responsible for ensuring that the
from the erstwhile ISO 31000:2009 Cyber Security systems of ITC remain
Standard to the revised ISO 31000:2018 effective and contemporary.
Standard. This intervention provides
further assurance on the robust nature of
risk management practices prevalent in the For more information on the Risk
Company. Management Framework, please refer
to the Risk Management section on
The centrally anchored initiative of Page 96 of the Report of the Board of
Directors forming part of ITC's Report
conducting external independent reviews and Accounts 2021.
of key business processes with high ‘value
at risk’ continued during the year.

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 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

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Increasing complexity of operations

STRATEGY Key Risk Material issues linked Risk Mitigation Strategy

Mitigating Risks, Increasing complexity of Business success, Innovation, 1. ITC's Strategy of Organisation and 2 ITC believes that the right balance between
operations in the context of Sustainable Products and Brands, three-tier governance structure ensure that: freedom of management and accountability to
a highly diversified business Ethics & Governance, ESG Risk • Strategic supervision (on behalf of the shareholders can be achieved by segregating

Managing Value
portfolio. Management, Learning and shareholders), being free from involvement strategic supervision from strategic and
Development. in the task of strategic management of executive management.
the Company, can be conducted by the 3. The governance framework of the Company
Board of Directors with objectivity, thereby enables each business to focus on its
sharpening accountability of management. operating segments, while harnessing the
• Strategic management of the Company, diversity of the Company’s businesses
uncluttered by the day-to-day tasks of to create unique sources of competitive
executive management, remains focussed advantage.
and energised; and 4. Drive synergistic growth and enhance the
• Executive management of the divisional competitive power of the portfolio by blending
business free from collective strategic the diverse skills and capabilities residing in
responsibilities for ITC as a whole, the various Businesses of the Company.
remains focused on enhancing the
quality, efficiency and effectiveness of
the business to achieve best-in-class
performance.

Delivering superior performance

Key Risk Material issues linked Risk Mitigation Strategy

Delivering superior Business success, Ethics & 1. Deep understanding of consumer preferences 7. Seamless access to institutional strengths
performance amidst Governance, Sustainable Products and customer needs through robust consumer resident in various businesses of the Company
heightened competitive and Brands, Consumer Experience, insight discovery processes and close to drive synergistic growth and enhance the
intensity. Innovation, Responsible Sourcing collaboration with key customers. competitive power of the portfolio.
Practices, ESG Risk Management, 2. Purposeful innovation for impactful business 8. Increasing use of digital technologies spanning
Innovation. outcomes powered by focused R&D platforms the strategic impact areas of Customer
nurtured by LSTC and robust product Experience, Smart and Agile Manufacturing
development processes at the Business level. & Supply Chain Operations, Employee
3. Future-ready portfolio addressing existing Engagement and Intelligent Insights Platforms.
and emergent consumer needs anchored on 9. Sustainable business practices embedded in
world-class B2C and B2B brands; continual business strategy; Sustainability 2.0 agenda
premiumisation of portfolio with enhanced set with bolder goals to sustain the Company’s
focus on value-added products. status as a global exemplar in Triple Bottom
4. Distributed and state-of-the-art manufacturing Line performance.
facilities and an agile and responsive supply 10. Relentless focus on strategic cost
chain. management and enhancing productivity
5. Multi-channel go-to-market model; focused across the value chain.
investments in augmenting capability in 11. World-class, diverse and highly motivated talent
emerging channels such as e-Commerce, pool of professional entrepreneurs - ‘proneurs’.
Modern Trade, Food Services, On-the-Go etc.
Please refer to write-ups on each operating
6. Integrated business model with strong Segment in the Report of Directors & Management
backward linkages, as applicable. Discussion and Analysis for further details

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 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

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Attracting and retaining the best talent

STRATEGIC RISK Key Risk Material issues linked Risk Mitigation Strategy
MANAGEMENT
Attracting and retaining the Learning & Development, Diversity 1. Strengthening and communicating 4. Investments in capability building 6. Benchmarking compensation to the
best talent in a competitive & Inclusion, Health & Safety, ITC’s talent proposition about 'Building of managers through access to the relevant market periodically, ensuring
market. Human Rights. Winning Businesses. Building Business best-in-class upskilling programmes strong alignment with short-term and
Leaders. Creating Value for India'. and development interventions, hence long-term performance, particularly at
2. Providing meaningful and challenging providing the confidence to talent senior levels and ring-fencing top talent.
roles which enrich individual capability that ITC offers an enriching learning 7. Energising and nurturing pride
and act as a powerful incentive to stay, environment. in membership through frequent
learn and grow. 5. Recognising and nurturing Specialism leadership outreach to managers.
3. Building a robust talent pipeline across so that employees who wish to focus
responsibility levels through requisite on niche, business critical skills can
quality in key roles, depth of bench and continue to grow in their area of
reliable succession plans. expertise.

Employee relations/disputes
Key Risk Material issues linked Risk Mitigation Strategy

Employee relations/disputes Learning & Development, Diversity 1. Nurturing a collaborative employee 3. Ensuring grievance management 5. Communication of ITC’s principle-based
impacting operations and & Inclusion, Health & Safety, relations culture through participative systems and compliance with principles employee relations systems to managers
productivity. Human Rights. forums which foster employee of natural justice in dealing with and workmen.
involvement in operations and create grievances and complaints.
greater commitment to shared goals. 4. Wages based on region cum industry
2. Recognition of the collective bargaining benchmarks, competitive context of the
process, and engagement with Business and a reasonable portion of it
employee representatives in the spirit of aligned to performance.
finding mutually acceptable solutions.

Climate Change and Sustainability Risks

Key Risk Material issues linked Risk Mitigation Strategy

Climate Change and Water Security for All, Climate 1. Continue to focus on energy 4. Design products and packaging in a 7. Securing agri value chains for ITC’s major
Sustainability Risks Resilient Agriculture, Climate conservation and enhancing the share manner that improves recyclability crops and continue to collaborate with
1. Direct impact on Resilient Operations, ESG Risk of renewables in ITC's total energy especially for plastic packaging and supply chain partners for responsible
operations and business Management, Sustainable requirement. create a time bound road map such sourcing.
on account of critical Packaging, Biodiversity 2. Enhance efficiency by monitoring the that 100% of packaging is reusable, 8. Contingency planning in supply chain.
sustainability risks like management, Sustainable carbon footprint of operations, optimise recyclable or compostable.
Products and Brands, 9. Micro segmentation of growing zones
climate change, water distribution networks and work towards 5. Comprehensive programmes on social and developing appropriate package
security, plastic waste, Responsible Sourcing Practices. building resilience against the impacts of forestry, soil and moisture conservation, of practices and precision farming
disruption in supply chain climate change; biodiversity conservation and techniques to mitigate impact of
and sourcing. 3. Adoption of water stewardship sustainable agriculture. weather.
2. Vagaries of weather approach to achieve water security 6. Enabling sustainable management 10. Development of drought tolerant and
caused by climate change for its stakeholders within the defined of waste and operationalise Reduce- high yielding varieties to improve
impacting crop cycles, catchment areas of units located in high Reuse-Recycle waste-management productivity by adopting micro region-
output and productivity. water stress areas. model. specific agronomic practices.

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 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

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Disruption across the value chain

STRATEGIC RISK Key Risk Material issues linked Risk Mitigation Strategy
MANAGEMENT
Disruption across the value chain arising Business Success, Consumer 1. The safety and well-being of our partners for obtaining a COVID-19 network and associated infrastructure
out of unforeseen events like the COVID-19 Experience, Health & Safety, employees and trade partners is Insurance cover for their associates. in key growing areas coupled with
pandemic. Responsible Sourcing, accorded paramount importance. 2. Cross-functional Crisis/Contingency deep-rooted farmer linkages.
Sustainable Livelihoods & ESG Key measures include: maximising Management Teams, both at the
Risk Management. ‘Work From Home’; issuance of Business as well as at the Corporate
comprehensive advisories and 6. Leveraging digital technologies for
level for continually reviewing agile operations including areas such
implementation of safety protocols strategic, operational, and financial
across all nodes of operations; as remote monitoring, conducting
matters. training, augmenting sales force
safe transportation arrangement
for employees at factory locations; 3. Business continuity plans for securing capability, facilitating digital ordering
restrictions on travel; medical key material supplies including usage and trade engagement etc. to
assistance including access to of substitute materials, identification minimise risk of contact as well as
company doctors for consultation; of alternate/domestic vendors, to facilitate operations with lower
setting up COVID care centres; identification and activation of manpower availability.
Company-wide vaccination drives; potential alternative manufacturing 7. Distributed manufacturing base
conduct of wellness/mental health capacities to supplement existing across the country and flexible
programmes. ITC COVID Response facilities. operations to serve markets
App has been rolled out, serving as 4. Close monitoring of emergent efficiently.
a single point of information on all consumer trends backed by robust 8. "WeAssure" programme, designed
COVID-19 related matters concerning innovation and research platforms to reassure guests of best-in-class
employee well-being and safety. of ITC’s Life Sciences & Technology hygiene and safety standards, rolled
Employees, trade partners, Centre (LSTC) along with strong out across all operating hotels.
transporters and their associates have product development capabilities at
the Business level. 9. Supporting local communities and
been provided extensive training supply chain partners during the
in social distancing and personal 5. ITC Agri Business’s wide geographical pandemic.
protection. The Company also spread, multiple sourcing models,
extended financial support to its trade extensive sourcing and supply chain

Impact of high taxation on legal cigarette industry

Key Risk Material issues linked Risk Mitigation Strategy

Impact of high taxation and stringent Responsible Marketing, 1. Engagement with policy makers for an 2. Corporate strategy to create multiple
regulations on legal cigarette industry in India Business Success, Ethics & equitable, non-discriminatory, pragmatic, growth drivers by developing a portfolio
1. Sub-optimisation of revenue potential Governance. evidence-based regulations and taxation of world-class businesses, matching
of the tobacco sector due to shift in policies that balance the economic organisational capabilities with market
consumption to lightly taxed/ tax-evaded imperatives of the country and tobacco opportunities
tobacco products. control objectives, having regard to the
unique tobacco consumption pattern in
2. Fillip to contraband cigarette trade India; highlighting the growing threat of
in India due to attractive arbitrage illegal and smuggled cigarettes.
opportunities; significant loss of revenue
to the exchequer.
3. Subdued demand for Indian tobacco due
to pressure on legal cigarette industry
volumes; adverse impact on farmer
earnings and livelihoods dependent on
tobacco value chain.

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 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

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Corporate and Brand Reputation

STRATEGIC RISK Key Risk Material issues linked Risk Mitigation Strategy
MANAGEMENT
Risks arising due to inadequate Consumer Experience, Business 1. Structured and targeted media-engagement plan in place. 4. Sustained communication of ITC’s commitment to the protection
protection against malicious Success, Responsible Marketing, 2. Effective engagement and responsible advocacy with of the environment and wellbeing of society and stakeholders.
attacks, misinformation or Sustainable products and brands. stakeholders on issues relating to ITC's products, services, 5. Robust mechanisms in place to counter any fake or malicious
misrepresentation, including initiatives and business practices. media posts, including in social media, that can impact the
those on social media. This can reputation of ITC, its businesses and brands.
impact ITC's customer loyalty/ 3. Leveraging publicly available web applications and dedicated
consumer franchise. brand advocacy platforms to disseminate information about ITC
and its brands digitally.

Market risks, credit risks and liquidity risks

Key Risk Material issues linked Risk Mitigation Strategy

Market risks, credit risks and Ethics & Governance. 1. Robust risk management practices in place, governed by a 4. Comprehensive framework in place to manage risks arising out
liquidity risks impacting ITC's combination of centrally issued policies and standard operating of commodity sourcing and agri-commodity trading (including
operations and revenues. procedures at the Business level. effective market monitoring systems, continuous tracking of
2. Centralisation of treasury operations for the deployment of net open positions and 'value at risk' against approved limits,
surplus liquidity and management of forex exposures within a use of futures contracts, backward integration and in-house
well-defined risk management framework. manufacturing).

3. Independent and regular internal audits, supported by project 5. Large and diverse customer base leading to diversification
and IT audits, and Risk Management Cell. of risk.
6. Zero-debt Balance Sheet with strong cash generation from
operations.

Disruption of business operations

Key Risk Material issues linked Risk Mitigation Strategy

Disruption of business operations Ethics & Governance, ESG Risk 1. Identification of critical IT systems and establishing robust IT 4. IT Security controls have enabled secure ‘Work From Home’
due to non-availability of critical Management. Continuity Plans along with periodic review and testing thereof. regime and facilitated uninterrupted business operations.
Information Technology (IT)
systems and cyber attacks. 2. Implementation of contemporary security practices and 5. Periodic review of ITC's IT security posture by an independent
technologies. third party expert specialising in Information Security along with
time-bound implementation of recommendations.
3. ITC Corporate Data Centres are ISO 27001 certified providing
an independent third party assurance of the effectiveness of the
Company’s information security management system (ISMS).

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 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Delighting Customers Creating Shareholder Value through Responsible Competitiveness Preserving and Nurturing the Environment Serving and Empowering Communities Workforce of Tomorrow Collaborating with Suppliers and Value Chain Partners

VALUE-CREATION FOR STAKEHOLDERS Combining deep-rooted insights,

Agile in
perspectives and on-ground
managerial expertise with
meaningful collaborations and

Reimagining
partnerships, ITC has created
sustainable, scalable and replicable
business models. This has enabled

Sustainability the Company to support sustainable

livelihoods for more than 6 million
people.
ITC also recognises the urgent need to combat
climate change and the role it can play in
enabling a net-zero economy. Over the last two
decades, ITC’s large scale efforts have resulted in
empowerment of over 4 million farmers through
its revolutionary e-Choupal ecosystem, greening
of over 876,000 million acres through Social
and Farm Forestry Initiative, and bringing soil
and moisture conservation measures to over
1.23 million acres through Integrated Watershed
Development. Company’s holistic and sustainable
Delighting Customers 41 waste management models enabled recycling of
 reating Shareholder Value through
C more than 78,000 MT of dry waste in FY 2020-21.
Responsible Competitiveness 49 ITC is now a part of Dow
Preserving and Nurturing the Environment 56 Jones Sustainability
Serving and Empowering Communities 70 Emerging Markets Index
Workforce of Tomorrow 74 - a recognition of being a
sustainability leader in the
 ollaborating with Suppliers and
C
industry.
Value Chain Partners 78

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 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Delighting Customers Creating Shareholder Value through Responsible Competitiveness Preserving and Nurturing the Environment Serving and Empowering Communities Workforce of Tomorrow Collaborating with Suppliers and Value Chain Partners

Developing New and Differentiated Value Propositions for Customers

ITC has been at the forefront of addressing Emerging consumer trends include:

Delighting Customers
emerging consumer needs during the pandemic 1. Need for Immunity-enhancing products.
through:
2. Prioritising hygiene and sanitation.
• Diverse and differentiated brands.
3. Due to increased at-home consumption,
The pandemic has significantly changed consumer lifestyles, • Customised products, addressing the evolving consumers are seeking products that help
aspirations of Indian consumers. reduce cooking time and effort.
with the demand for health, hygiene and wellness rising
• Product development powered by Innovation. 4. Consumers are also seeking to re-create dining-
exponentially. These drivers spur the need for consumer
• Premiumisation of the portfolio while out experience at home.
companies to adapt quickly, innovate smartly and deliver with a simultaneously focusing on expanding market During the year, the Company launched over
solution-centric mindset. ITC continues to leverage LSTC’s strong share. 120 new and innovative product offerings in record
innovation engine to build a robust portfolio of value-added • Efficient supply chain and expanding distribution time addressing several of these emerging trends.
products that address emerging consumption trends. network.

product launches-fmcg
‘YiPPee!’ Saucy Masala ‘Sunfeast Caker’ an exciting
Noodles, in unique red colored range of cakes with variants
noodle blocks, with a drizzle of such as Trinity and Swiss Roll
tomato sauce

Range of organic dals and

‘Sunfeast Dark Fantasy’ Choco
pulses under ‘Aashirvaad
Chip and Choco Nut Fills biscuits
Nature’s Super Foods’
comprising a combination of
cashews, almonds and hazelnuts

Range of frozen snacks and

‘B Natural Juices’ and
all-purpose gravies under ‘ITC
ready-to-drink soups with a
Master Chef’
clinically proven ingredient that
supports immunity

‘Aashirvaad Svasti’ ‘Select Milk’ Savlon Surface Disinfectant Spray,

with the added assurance to a first-to-market offering, was
consumers through ready online rapidly scaled up across markets
access of quality report for each achieving clear market leadership
pouch

Aashirvaad’ ready-to-eat range Other innovative first-to-market

of breakfast and snacking meals product launches include
made with the goodness of grains Mangaldeep agarbattis ‘Lo Smoke’
and vegetables - Khatta Meetha variant that emits 80% lesser smoke,
Poha, Veggie Upma, Mini Idli interactive Classmate Origami
Sambar, Suji Halwa with Jaggery; notebooks

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 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Delighting Customers Creating Shareholder Value through Responsible Competitiveness Preserving and Nurturing the Environment Serving and Empowering Communities Workforce of Tomorrow Collaborating with Suppliers and Value Chain Partners

DELIGHTING CUSTOMERS

Consistent Innovation Provides the Winning Edge

In the context of the current pandemic, LSTC Advances in materials chemistry, paper science,
researchers and product development teams agronomy and process science have led to
continue to enable ITC businesses deliver a range compelling propositions to indigenously value-
of differentiated and superior quality products. add and create environmentally friendly solutions
for Education & Stationery Products (ESPB) and
The future-ready scientific platforms in hygiene,
Matches & Agarbatti (MAB) businesses.
health & wellness and immunity are constantly
innovating to evolve new next generation ITC’s unique competencies in Materials and
product offerings to serve consumer needs. LSTC Packaging have focused on delivering innovative
has created long-term research platforms to recyclable flexible packaging and bio-compostable
evolve multi-generation product concepts. New coating solutions in line with the environmental
synergistic value chains in health, nutrition and sustainability agenda.
sensory sciences have been created to propel
future growth to develop food products without
compromising on sensory attribute.

sustainability meets innovation: itc’s paperboards, paper and

packaging business
In line with its pursuit of providing sustainable has also developed antiviral paper for applications
packaging solutions to consumers, ITC’s in pharma and education & stationery businesses
Paperboards & Specialty Papers Business launched which is in the process of commercialisation.
antifungal soap packaging paper designed to The Packaging Business in collaboration with
replace single use plastics. LSTC has developed unique and novel solutions
The Business also scaled up its new product including Bio-seal (bio- compostable packaging
launches in the previous year comprising recyclable solution for Quick Service Restaurants, personal care
paperboards, ‘FiloPack’ and ‘FiloServe’ for the food and packaged foods industries) and Oxyblock (a
delivery and food service segments respectively recyclable packaging solution with enhanced barrier
and biodegradable paperboards, ‘OmegaBev’ and properties for packaged foods, edible oils, etc.).
‘OmegaBarr’, which are alternatives to plastic coated
containers, cups and other deep freeze applications.
ITC is actively engaged in developing suitable paper/
paperboard as well as barrier-coated substrates that ITC is actively engaged in developing
can replace single-use plastics. Further, the Business suitable paper/paperboard as well as
barrier-coated substrates that can
replace single-use plastics.

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 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Delighting Customers Creating Shareholder Value through Responsible Competitiveness Preserving and Nurturing the Environment Serving and Empowering Communities Workforce of Tomorrow Collaborating with Suppliers and Value Chain Partners

DELIGHTING CUSTOMERS

Delivering Future-ready Products Aimed at Health & Hygiene

ITC’S LSTC is at the forefront in leveraging science business. Innovations and collaborations aligned
platforms to execute robust R&D strategies that with business strategies are key drivers
embed sustainability and digitalisation, in order of impactful growth.
to secure long-term competitiveness for each

itc’s hygiene portfolio

ITC’s Savlon brand fast tracked innovation in line with • Nimyle floor cleaner with 100% natural action, which
emerging consumer needs, rapidly scaled up capacity is now certified by the prestigious authority in green
and swiftly positioned new innovations in the market. products, TUV-Nord India.
Examples include Savlon Surface Disinfectant Spray,
Savlon Clothes Disinfectant Spray, Savlon Spray and • Nimwash vegetable & fruit wash and its most recent
introduction Nimeasy dishwashing gel.
Wipe, Savlon Germ protection Wipes, Savlon Hexa ‘weassure’ grows from strength to strength
Hand Sanitizer, Savlon Hexa Advanced Bodywash, Nimyle is the No.1 brand of floor cleaner in the states
Savlon Pichkiao, Nimwash among others. The ‘WeAssure’ programme, designed in collaboration technology has been deployed to provide a pathogen
of West Bengal and Odisha, while continuing to gain
with medical professionals and disinfectant experts, free environment in each property, thereby re-assuring
Responding to the growing preference for natural traction in new markets. The range was augmented
was rolled out to reassure guests and to provide guests and associates of the highest standards
products, ITC has expanded its homecare portfolio with the launch of a lemongrass fragrance variant.
best-in-class experience in hygiene and safety at ITC’s of safety.
crafted with Neem which includes:
iconic Hotels. Under this initiative, stringent protocols
and visible markers of safety across all guest touch
The ‘WeAssure’ programme, certified
points have been implemented demonstrating ITC
by M/s. DNV (one of the world’s leading
Hotels’ commitment to well-being and safety of all its
certification bodies), is benchmarked
stakeholders. Further, investments in digital assets and
to world-class standards in the areas
contactless technologies were made to significantly
of health, hygiene, safety & pathogen
reduce touchpoints during check-in, check-out, stay
management, and achieved a Platinum
as well as usage of F&B facilities. State-of-the-art
Level certification.

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 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Delighting Customers Creating Shareholder Value through Responsible Competitiveness Preserving and Nurturing the Environment Serving and Empowering Communities Workforce of Tomorrow Collaborating with Suppliers and Value Chain Partners

DELIGHTING CUSTOMERS

ITC Foods Business’ Four Pillar

Model for a Healthier, Happier India
ITC supports the development of value-added DEVELOPING A HEALTHIER
product portfolio, sustainable food systems, healthy PRODUCT PORTFOLIO- FEW HIGHLIGHTS
communities and a healthy planet. This is deeply
embedded in the core business strategy of ITC’s Foods
More than 70% of ITC food products
Business and is reflected in the below 4-pillar model.
portfolio has goodness of at least
These pillars are:
one key vital macro/micronutrient.

Developing a Healthier Product

More than 60% of ITC food products
Portfolio provides goodness of protein.
SDGs impacted

94% of ITC biscuits portfolio has

goodness of vital micronutrients and/ Developing a Healthier Product reformulated in line with the commitment. By 2023,
or Protein & Fibre. Portfolio ITC has further committed to reduce the sodium by
Sustainable Food 5%, targeting a total reduction of 10%.
ITC’s healthier product portfolio impacts the lives
Ecosystem of million every day. These are in line with the UN
Sugar Reduction
SDG 3 – Good Health & Well Being.
SDGs impacted
Products with a special focus on ITC committed in 2018 to reduce sugar by 5% in
goodness of Protein & Fibre The key highlights of the product portfolio include: 75% of its biscuits & beverage portfolio by 2020.
In line with this commitment, around ~75% of the
Enhancing the Fortified/Value-added biscuits portfolio has achieved an average of 5%
85% of biscuits & cakes portfolio has
Portfolio reduction in sugar. Around ~87% of the beverages
Community Health goodness of protein
portfolio has achieved an average of 5% or
Impactfully increase the overall contribution of
Initiatives more sugar reduction. By 2023, ITC has further
88% of Sunfeast Farmlite range is the enriched, fortified and naturally rich product
SDGs impacted rich in fibre portfolio in power categories. This will have a clear committed that 75% of its beverage portfolio will
focus on key nutrients of public health importance have a further reduction of 5% of added sugar.
100% of Noodles & pasta portfolio is like protein, fibre, iron, iodine, calcium, zinc,
a source of protein. vitamins A, D, and B, amongst others.
Trans Fat Free
ITC also committed to make all products trans-fat
Consumer & Employee YiPPee! Power up Atta Noodles is rich Reductions free on per serving as well as per 100g basis in
Awareness Initiatives in fibre. 100% of Atta portfolio is a accordance with national legislations (source being
source of Fibre & Protein. Salt Reduction HVO’s). The same has been achieved to ensure we
SDGs impacted ITC committed in 2018 to reduce salt by 5% delight consumers with healthier food products.
from the current levels in 75% of its snack and
instant noodles portfolio by 2020. Against this The Foods business continuously endeavours to
commitment, approximately 97% of instant noodles reformulate the existing portfolio and launch newer
has been already reformulated with 5% lesser products that are as per the commitment.
sodium and 75% of the snack portfolio has been

Integrated Report 2021 | 44 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Delighting Customers Creating Shareholder Value through Responsible Competitiveness Preserving and Nurturing the Environment Serving and Empowering Communities Workforce of Tomorrow Collaborating with Suppliers and Value Chain Partners

DELIGHTING CUSTOMERS
Specially formulated products

DEVELOPING A HEALTHIER
PRODUCT PORTFOLIO- FEW
HIGHLIGHTS

Products with a special focus

Sunfeast Biscuits Range B- Natural Beverages - Plus range on value-added ingredients
Made with value-added ingredients like nuts, These contain a clinically proven ingredient
seeds & oats, rich in fibre along with a special low that is known to support immunity, along with ITC launched 2 new variants
GI variant, milk biscuits with Shakti of vitamin A & goodness of fruit & fibre. Sunfeast Farmlite 5 Seed
Zinc; this range is especially for those looking for Digestive with seeds like
taste & nutritious offerings. Immunoz Jellies Sustainable Food Ecosystem
chia, sunflower, pumpkin,
Vitamin C and Zinc fortified gummies for kids, watermelon, and flax & ITC supports the SDG 12 (Responsible Consumption and Production)
Aashirvaad Salt Proactive to support their immunity. Sunfeast Farmlite Nuts Digestive and SDG 13 (Climate Actions) to help fulfil the needs of million
Refined, iodised and potassium enriched, with cashew nuts & almonds. responsibly and sustainably. These initiatives include reducing food
AASHIRVAAD Salt Proactive is a sodium-reduced Aashirvaad Superfoods Range waste and developing more planet friendly, plant-based food options
salt specially formulated to provide 15% lower These are specially crafted mixes which are Sunfeast Farmlite Veda and (vegan eggs, meat alternates).
sodium than regular salt. It is designed to provide high both in nutrition & taste with their own Sunfeast Marie light Veda are
unique health benefits. These include Multi Resource efficient and environment-friendly manufacturing across
consumers* a convenient means to take preventive made with 5 natural ingredients
Millet mix (source of Zinc, protein, fibre & all factories also support ITC’s commitment towards SDG 12 and 13.
measures towards keeping the blood pressure and such as Ginger, Cardamom, Tulsi,
magnesium and gluten free), (Naturally) Gluten In addition, ITC Foods has voluntarily participated in the ‘Eat Right
health of their family members in check. Mulethi and Ashwagandha.
Free atta (with goodness of protein, iron, fibre Campus’ campaign, as institutionalised by the FSSAI and Government
Aashirvaad Sugar Release Control Atta & magnesium) and Ragi Flour (source of Iron, of India under a broader ‘Eat Right India’ movement to create an
100% of Sunfeast Farmlite
A specially formulated blend with low GI. Low GI calcium, protein, fibre and also gluten free). environment of safe food and healthy eating in workplaces, schools,
active range has goodness
foods are known to help manage sugar spikes and colleges, hospitals and similar places. Under this initiative, campuses
of oats.
support a diabetic diet. are assessed and rated against 5-star scale, based on food safety &
75% Sunfeast Farmlite range hygiene standards that they maintain. As of now, 9 factories of Foods
has goodness of Atta. Division (Haridwar, Mysore, Malur, Kapurthala, Uluberia, Panchla,
Portion control Pudukkottai, Ranjangaon and Guwahati) have been certified as
Portion guidance is one of the most effective tools Focus is also on individually packed portions 100% of Jellimals Immunoz ‘Eat Right Campus’ in the audit conducted by the FSSAI.
to educate and empower the consumers for them with a clear calorie mapping (e.g. 200 kcals range is fortified with Vitamin C
to manage their overall consumption of any food or less). Individually wrapped products help and Zinc.
product, as a part of their diversified balanced diet. consumers recognize the portion sizes, eat
95% of the B- Natural beverages
ITC LIMITED FOODS DIVISION - ICML
ITC Limited, Foods Division,
ITC Limited,Foods Business Division,ICMF

It is essential for any foods company to responsibly mindfully and help manage their calories Panchla, Howrah PUDUKKOTTAI, Pudukkottai
ICMF, Mysuru

communicate the appropriate serve size to intake. Examples include Jelimals and have the goodness of Fibre
their consumers and enable a more balanced Farmlite range. and are made “not
consumption behaviour. from concentrate”.

ITC has also initiated the process of declaring

responsible serve sizes across its product portfolio
Implemented Partner:
M.S.Certificatioin Services Pvt.Ltd Digital Skill Certification Self Prime Certification & Inspection India National Agro Foundation ITC Limited Foods Division , ICML
Pvt Ltd Pudukkottai Prime Certification Narayan Training ITC Limited
& Inspection Services

Valid up to 22nd January 2022

: 06 November 2022 : 12 January 2023

and 100% of the products will carry this by end of

this year.

Integrated Report 2021 | 45 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Delighting Customers Creating Shareholder Value through Responsible Competitiveness Preserving and Nurturing the Environment Serving and Empowering Communities Workforce of Tomorrow Collaborating with Suppliers and Value Chain Partners

DELIGHTING CUSTOMERS

Community Health Initiatives Over 2.2 lakh beneficiaries were covered Consumer & Employee Awareness benchmarked quality management systems. The
under the initiative, through 2,924 awareness Initiatives systems and practices are subject to periodic
To live healthier and happier lives, ITC’s
camps aimed to improve the health-nutrition reviews to ensure that they remain contemporary in
flagship 'Swasthya Choupal' initiative would be ITC commits to support consumers, employees and
status of women, adolescents and children by line with national and international developments.
continued and the main focus will be to improve customers across the value chain in their journey
strengthening institutional capacity, promoting The quality performance of third-party
the knowledge, attitude, behaviour and the of learning on how to adopt healthier food choices
greater convergence with existing government manufacturing facilities is also monitored regularly.
health indicators of the most vulnerable groups and an active lifestyle.
(adolescent girls, pregnant and lactating women, schemes and increased access to basic services
kids under 5, the complete first 1000 days on maternal, child, and adolescent health, nutrition I. All ITC employees will be trained on how to best Responsible Marketing
journey). and child protection. manage them and their families health needs All businesses of the Company comply with
and increase their understanding on the interplay the regulations and relevant voluntary codes
The Company’s intervention on Mother and Both these programmes have a direct link with
of Food, Nutrition & Wellness on their overall concerning marketing communications, including
Child Health will also be stepped up. It is aligned the National Health Mission / Mission Poshan 2.0,
well-being. advertising, promotion and sponsorship. The
to the Integrated Child Development Services Anemia Mukt Bharat initaitives as well as SDG 2
Company’s communications are aimed at enabling
and Poshan Abhiyan and aims to reduce infant/ (Zero Hunger), SDG 3 (Good Health & Well Being) II. ITC fully supports breastfeeding mothers with
customers to make informed purchase decisions.
maternal mortality and child malnutrition. and SDG 17 (Partnerships for Goals). appropriate working conditions and facilities at
The Company also makes efforts to educate
work which also enables the mothers to provide
customers on responsible usage of its products
the healthiest start to their baby with ITC’s
and services.
responsible HR policies.
In addition, the Company’s businesses have a
The Company continues to reach out to consumers
dedicated consumer response cell to respond
via various communication platforms (websites,
to customer queries and receive feedback on
integrated brand initiatives, specific health and
products so as to be able to continuously improve
hygiene messages) to enhance their awareness on
upon its products and services. Additionally, the
key health issues across life stages (key platforms
Company has a dedicated consumer response
being immunity, healthier life with Ayurveda, gut
cell to address consumer queries related to
health, cognition and bone health etc.) and help
ITC products.
them living their life to the fullest.
ITC’s Hotels Business follows a self-regulated
For more details, please refer to the “Helping Consumers
Make Sustainable Choices” section of ITC Sustainability
marketing communications approach, guided by
Report 2021. the ISA (Indian Society of Advertisers) rules and
guidelines.
ITC’s Competitively Superior Products
The Cigarettes Business is governed by the
and Services
Cigarettes and Other Tobacco Products

2.2 lakh+
ITC delivers world-class products and services with
(Prohibition of Advertisement and Regulation of
consistent focus on health and safety. Rigorous
Trade and Commerce, Production, Supply and
systems, processes and industry best practices
Distribution) Act (COTPA). While the business
Beneficiaries were covered under have enabled securing global quality certifications
complies with stringent regulations, it has to battle
the Poshan Abhiyan, through 2,924 - a key enabler in delivering products that follow the
illegal and contraband products in the market,
awareness camps aimed to improve highest standards in quality, safety and efficacy to
which circumvent these requirements and cause
the health-nutrition status of women, the Indian consumers.
substantial loss to the exchequer.
adolescents and children ITC’s manufacturing units and hotels have
state-of-the-art facilities with internationally

Integrated Report 2021 | 46 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Delighting Customers Creating Shareholder Value through Responsible Competitiveness Preserving and Nurturing the Environment Serving and Empowering Communities Workforce of Tomorrow Collaborating with Suppliers and Value Chain Partners

DELIGHTING CUSTOMERS

Best practices from across ITC’s businesses

Agri Business Branded Packaged Foods Personal Care Products

• Holistic approach of ’Integrated Crop Engagement’ • The ‘ITC Master Chef’ range of ‘Super Safe’ frozen • 82 out of 88 manufacturing locations, which • Stringent testing protocols for conducting safety
to ensure that the product meets stringent global prawns adhere to stringent standards prevalent in account for more than 97% of ITC Foods Division’s tests of final products in accordance with national
food safety standards. USA, EU and Japan These products go through total production volume in FY 2020-21, are FSSC and international guidelines.
rigorous testing (240+ tests) and are ‘individually 22000/ ISO 22000/Hazard Analysis and Critical
• For organic and sustainable farm practices in the • All its ingredients undergo rigorous analysis,
quick frozen’ to ensure freshness. Certifications Control Point (HACCP) certified. Certification of
processed fruits business and for specific customer based on existing scientific literature for toxicity
from Best Aquaculture Practices, Hazard Analysis the remaining six newly commissioned units is
segments, the business has received the following and skin sensitivity prior to clearance for use in
Critical Control Point (HACCP), Food Safety and planned in FY 2021-22.
international certifications: product development.
Standards Authority of India (FSSAI), BRC (British
• The ICMLs are state-of-the-art, world-class
» Fairtrade Certification endorsing that the agri Retail Consortium) Global Standard for Food Safety • Manufacturing takes place in a highly automated
manufacturing hubs with extensive focus on
products meet defined environmental, labour ensure adherence to the most stringent norms of environment under strict hygienic conditions.
hygiene, automation and productivity.
and developmental standards. food safety.
• Product safety and efficacy certification through
» USDA (United States Department of Agriculture) • The branded packaged frozen snacks under the external accredited laboratories.
Organic and India Organic Certifications for ‘ITC Master Chef’ brand are manufactured using
Organic Farming of processed fruits. state-of-the-art Individual Quick Freezing (IQF)
technology which helps in retaining the shape,
» Bio Suisse Certification for Organic Farming of colour, aroma and taste of the product even after
processed fruits. defrosting as compared to conventional frozen food
» Rainforest Alliance (RFA), Global G.A.P. (Good preparation methods.
Agriculture Practices) and UTZ Certifications for
adherence to the Standards’ comprehensive
requirements on sustainable farm management
practices.
» State of the art processing and warehouse
facilities in the processed fruits & spices
business complying with the National
Programme for Organic Production Standard
(NPOP), National Organic Program (NOP) and
EU certification standards.

Integrated Report 2021 | 47 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Delighting Customers Creating Shareholder Value through Responsible Competitiveness Preserving and Nurturing the Environment Serving and Empowering Communities Workforce of Tomorrow Collaborating with Suppliers and Value Chain Partners

DELIGHTING CUSTOMERS

Best practices from across ITC’s businesses

Hotels Paperboards & Specialty Papers Packaging and Printing Education and Stationery Incense Sticks (Agarbattis) and
• Robust food safety management • Pioneer in the manufacture of India’s • The Tiruvottiyur and Haridwar Products Safety Matches
systems (complying with HACCP/ ISO Elemental Chlorine Free (ECF) pulp. units received the `Grade A’ Brand • Multiple process controls such as third Chemicals approved by the International
22000) are in place at all ITC Hotels. Reputation Compliance Global party certifications, inline and final Fragrance Resource Association,
• All food-grade papers and
Additionally, ITC Hotels adhere Standards (BRCGS) certification, for quality checks are deployed across the Geneva are used to prepare fragrances
paperboards are periodically tested
to Good Hygiene Practices (GHP) global standards in packaging and manufacturing process. required in the manufacture of dipped
for compliance with the U.S. Food
and Good Manufacturing Practices packaging materials - a key enabler Mangaldeep incense sticks (Agarbattis).
and Drug Administration (the FDA) • The notebooks are manufactured
(GMP). for supplies to the packaged foods
standards and European regulation using Elemental Chlorine Free
industry.
• All ITC hotels adhere to the ITC on Registration, Evaluation, (ECF) paper and paperboards. A
Fire and Life Safety management Authorisation and Restriction of • Tiruvottiyur site is Forest considerable portion of its paper and
guidelines that are based on the Chemicals (REACH) and Restriction Stewardship Council® – Chain of paperboards requirement is procured
National Fire Protection Association of Hazardous Substances (RoHS). Custody (FSC CoC) certified. It is from the Forest Stewardship Council®
(NFPA) codes and other international certified with ‘Hallal’ certification (FSC) Chain of Custody certified paper
• Spearheading the development of
best practices. for the manufacturing of packaging mills of the Company’s Paperboards &
plastic-free paperboard for critical
materials. Specialty Papers Business.
applications.
• All notebooks and pens use only
• ITC's Paperboards & Specialty
approved non-hazardous inks and
Papers Business obtained the
dyes.
prestigious Forest Stewardship
Council® (FSC) Chain of Custody • Pencils and art stationery items are
Certification last year, which is valid in compliance with the European
till 2025. Standard EN 71.

Integrated Report 2021 | 48 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Delighting Customers Creating Shareholder Value through Responsible Competitiveness Preserving and Nurturing the Environment Serving and Empowering Communities Workforce of Tomorrow Collaborating with Suppliers and Value Chain Partners

Creating Shareholder
Value through
Responsible
Competitiveness
ITC’s ‘Responsible Competitiveness’ strategy aims
at creating significant value for the nation through
superior ‘Triple Bottom Line’ performance that builds
on Economic, Environmental and Social Performance.
Inspired by the superordinate purpose to serve larger
national priorities, ITC redefined its Vision about two
decades ago to transform itself into a vibrant engine
of growth that would make a substantial contribution
to the Indian economy, whilst rewarding shareholders
by creating growing value for the Indian society.
ITC today, is the leading FMCG marketer in India, a
pre-eminent hotel chain and a globally acclaimed
icon in green hoteliering, the clear market leader
in the Indian Paperboards and Packaging industry,
a pioneering trailblazer in farmer and rural
empowerment through its Agri Business and a global
exemplar in sustainable business practices.

A pre-eminent hotel The Clear market A Pioneering trailblazer A Global exemplar in

A leading FMCG
chain and a globally leader in the Indian in farmer and rural sustainable business
marketer in India
acclaimed icon in Paperboard and empowerment practices
green hoteliering Packaging industry

Integrated Report 2021 | 49 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Delighting Customers Creating Shareholder Value through Responsible Competitiveness Preserving and Nurturing the Environment Serving and Empowering Communities Workforce of Tomorrow Collaborating with Suppliers and Value Chain Partners

CREATING SHAREHOLDER VALUE THROUGH RESPONSIBLE COMPETITIVENESS

Value-creation track record of ITC

Performance track record of the Company over the last decade Rapid scale up in FMCG-Others Segment
• Segment Revenue 4x of FY10.
GROSS SALES VALUE #
PAT • Robust and vibrant portfolio of 25 world-class Indian brands
(` crores) (` crores) representing annual consumer spend of over 22,000 crore in
FY 2020-21.
76,097 74,979 15,136
75,309
13,032
• EBITDA Margin expansion by ~640 bps over the last four years;
67,082
57,799 60,196
64,174 12,464 At least 150 bps expansion p.a. in last four years.
53,889 11,223
10,201
47,755 9,608 9,328
8,785
39,353 7,418
6,162
RAPID SCALE UP IN FMCG-OTHERS
(` crores)
14,728

4X 12,505 12,844
11,329
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 10,512
9,731
9,038
8,122
7,012
5,545
#
Refer Note to Ten Years at a Glance 4,482
3,642

DIVIDEND EARNING PER SHARE AND DIVIDEND PER SHARE

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
(` crores) (` per share)

13,230
12,477 SEGMENT EBITDA EBITDA MARGIN
(` crores) 8.9%

12.31
1,937 1,317
8,498

10.75
10.59
1.60

10.17

10.15
7,577 7.1%
6,030 6,945

9.20
5,583 1,317

8.40
7.99

7.73

4,853
7.36
3.49

4,089

6.93
5.5% 914
6.26

6.21
6,296

5.72
5.25

5.22
5.01
4.68

5X
4.10

4% 688

FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21
2.5%
456
Ordinary Dividend Special Dividend Earning Per Share Dividend Per Share Special Per Share
265 265
Includes Dividend Distribution Tax, where applicable Includes Dividend Distribution Tax, where applicable

Notes:
• Financials for FY 2020-21 are to be viewed in the context of unprecedented disruptions in certain operating segments of the Company due to the FY17 FY21 FY17 FY18 FY19 FY20 FY21
COVID-19 pandemic (Please refer to Report of the Board of Directors & Management Discussion and Analysis for details).
• EPS and DPS have been adjusted for impact of corporate action to facilitate like-to-like comparison. Segment EBITDA (` crores) Segment Margin (%)

• 2016 to 2020 as per Ind AS; previous GAAP for earlier years.

Integrated Report 2021 | 50 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Delighting Customers Creating Shareholder Value through Responsible Competitiveness Preserving and Nurturing the Environment Serving and Empowering Communities Workforce of Tomorrow Collaborating with Suppliers and Value Chain Partners

CREATING SHAREHOLDER VALUE THROUGH RESPONSIBLE COMPETITIVENESS

Performance track record of the Company, during the

Sharper Capital Allocation Strategy RETURN ON OPERATING CAPITAL EMPLOYED
immediately preceding three-year period i.e. between
17,528
Stepped-up Dividend payouts 15,536
17,060 FY 2016-17 and FY 2019-20, was as follows:
14,525 72%
13,751 70%
• As per Dividend Distribution Policy, dividend pay-out ratio 11,747
13,105 a) Earnings Per Share (EPS) grew by 46% in absolute terms from
69%
in the medium term is expected to be around 80% to 85% 10,078 ₹ 8.4 to ₹ 12.3 (CAGR 14%).
8,571
of PAT. 7,121
61% 61% 61% b) Return on Segment Capital Employed (ROCE) improved
59% 58%
• In line with the Company’s track record of consistent 58% sharply from 61% to 72%.
55%
increase in annual dividend payouts, the Company
c) Robust growth in FMCG-Others Segment EBITDA; Segment
declared a total dividend of ₹ 10.75 per share.
FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 EBITDA moved up from 265 crores to 914 crores; Segment
EBITDA Margins grew from 2.5% to 7.1%.
Asset-Right growth strategy in Hotels Segment PBIT (` crores) Segment ROCE (%)

The Company’s ‘asset-right’ strategy envisages large part of Please refer to Report of the Board of Directors & Management
incremental room additions going forward to accrue through Discussion and Analysis for details
management contracts. The Business is witnessing growing
interest amongst property owners to align with its iconic
brands resulting in healthy generation of leads and pipeline
for management contracts.

FY21 Performance – Agility in Adversity | Compassionate in Crisis

FMCG-Cigarettes

The onset of COVID-19 pandemic in March 2020 and the Business sustained its leadership position in the cigarettes industry Industry 4.0 and Data Sciences were leveraged to build a smart
subsequent lockdowns and restrictions imposed to curb its spread, through its unwavering focus on nurturing a portfolio of world- manufacturing environment of connected systems.
caused unprecedented disruption across the value chain with class products anchored on superior consumer insights, robust
manufacturing and sales operations coming to a virtual standstill. innovation pipeline and superior product development capabilities.
The Business strengthened direct reach in target markets across all Several new variants were introduced during the year to cater to
traditional trade channels and augmented the stockist network to the continuously evolving consumer preferences and to ensure the
service rural and semi-urban markets efficiently. future readiness of the product portfolio. These include the launch
of innovative offerings such as ‘Gold Flake Neo’, ‘Classic Connect’,
With easing of restrictions and improvement in mobility
‘American Club Clove Mint’, ‘Gold Flake Indie Mint’ and ‘Capstan
progressively, the Business recovered to reach nearly
Fresh Flavour’. Refreshed packs were also introduced for several
pre-COVID levels towards the close of the year.
‘Navy Cut’ variants. The Business also expanded its presence in
Notwithstanding the extremely challenging operating landscape strategic markets with the launch of differentiated offerings to fortify
and the headwinds faced during the year under review, the the portfolio across segments. Cutting-edge technologies such as

Integrated Report 2021 | 51 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Delighting Customers Creating Shareholder Value through Responsible Competitiveness Preserving and Nurturing the Environment Serving and Empowering Communities Workforce of Tomorrow Collaborating with Suppliers and Value Chain Partners

CREATING SHAREHOLDER VALUE THROUGH RESPONSIBLE COMPETITIVENESS

FY21 Performance – Agility in Adversity | Compassionate in Crisis

FMCG-Others

Following the outbreak of the pandemic, there stockists network was nearly doubled to sharp During the year, ITC acquired Messrs. Sunrise The Company remains focused on building
was heightened demand for high quality products target rural markets to drive growth. Direct-to- Foods Private Limited (Sunrise), which is a clear purpose-led brands anchored on larger consumer
anchored on the vectors of hygiene, health, market shipments were scaled up substantially market leader in eastern India in the fast-growing needs. The Businesses continue to increasingly
wellness and immunity. ‘At-home’ consumption to ensure freshness and reduced time-to-market Spices category with a rich heritage and brand leverage ‘Sixth Sense’, the Marketing Command
surged even as ‘out-of-home’ consumption was in categories like Atta, Snacks and Biscuits. Sales legacy of over 70 years. Over the years, the Centre and Consumer Data Hub – an AI powered
severely impacted due to mobility restrictions. through the e-Commerce channel more than brand has built a loyal consumer franchise, hyper-personalised platform backed by a robust
Heightened concerns on hygiene and safety also doubled during the year, taking its salience to anchored on a differentiated product portfolio partner ecosystem for content and data - to
manifested in consumers’ preference for trusted over 5% of Segment Revenue. tailored to regional tastes and preferences, gain insights on market trends and consumer
brands. both in the basic and blended spice segments. behaviour and synthesise the same to craft
Leveraging the robust innovation platforms of
Besides augmenting ITC’s product portfolio, the contextual brand communication and product
The Company was amongst the fastest off the LSTC, over 120 new and innovative products with
acquisition is also aligned with the Company’s development.
blocks to resume operations after obtaining compelling value propositions were launched in
aspiration to significantly scale up its Spices
necessary permissions and establishing record time, demonstrating agility and execution Cutting-edge digital technologies including
business and expand its footprint across the
comprehensive hygiene and safety protocols. The excellence. Industry 4.0, Advanced Analytics, Big Data and
country. The deep consumer connect and
Company rapidly expanded capacity to cater to industrial Internet of Things (IoT) continue to be
On a comparable^ basis, FMCG-Others Segment distribution strength of Sunrise in focus markets,
the heightened demand for essentials and health deployed towards strengthening the Company’s
Revenue grew by 15.8%. Segment EBITDA grew together with synergies arising out of the
& hygiene products. Several technology-driven real time operations and execution platform.
at a robust pace of 44.1% with significant margin sourcing and supply chain capabilities of ITC’s
solutions were deployed to effectively service the
expansion of ~180 bps to 8.9%. Improvement Agri Business and, its pan-India and multi-channel
surge in demand. The Company also proactively
in profitability was driven by higher operating distribution network, will provide significant value
engaged with e-Commerce platforms and aligned
leverage, enhanced operational efficiencies, creation opportunities.
the supply chain to deliver the right product
product mix enrichment, delayering of operations,
assortment and SKUs.
reduced distance-to-market and other structural
The Company pioneered an innovative model interventions across the value chain, despite
– ‘ITC Store on Wheels’ - to directly service incremental operating costs due to COVID-19
consumers across 13 cities and also rolled and gestation costs pertaining to new categories/
out the ‘ITC e-store’ in 11 cities – an exclusive facilities.
direct-to-consumer platform – to facilitate
The state-of-the-art Integrated Consumer Goods
‘contactless shopping’. Product availability was
Manufacturing and Logistics facilities (ICMLs)
also augmented through alternative channels
aided in driving structural advantages such as
in collaboration with new partners such as
ensuring product freshness, enhancing agility
Dominos, Swiggy, Zomato and Dunzo. Market and
and responsiveness of the supply chain, reducing
outlet coverage were expanded to 1.3x and 1.1x
cost of servicing proximal markets through lower
respectively compared to pre-Covid levels. The
distance-to-market, etc.

^ excluding the Educational and Stationery Products Business, Lifestyle Retailing Business and the impact of acquisition of Sunrise Foods Private Limited during the year

Integrated Report 2021 | 52 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Delighting Customers Creating Shareholder Value through Responsible Competitiveness Preserving and Nurturing the Environment Serving and Empowering Communities Workforce of Tomorrow Collaborating with Suppliers and Value Chain Partners

CREATING SHAREHOLDER VALUE THROUGH RESPONSIBLE COMPETITIVENESS

FY21 Performance – Agility in Adversity | Compassionate in Crisis

Hotels

The Travel & Tourism industry was amongst and achieved a Platinum Level certification by The Business also implemented several The Business is witnessing growing interest
the most severely impacted sectors due to the M/s. DNV. Further, investments in digital assets structural cost management measures across amongst property owners to align with its iconic
COVID-19 pandemic. With gradual withdrawal of and contactless technologies were made to the value chain resulting in substantial reduction brands resulting in healthy generation of leads
restrictions, the industry staged a progressive significantly reduce physical touchpoints with in controllable fixed costs during the year. and pipeline for management contracts.
recovery with room occupancies and food & guests during check-in, check-out, stay, and Progressive improvement in mobility, strong
Focused digital investments continue to be
beverage (F&B) revenue picking up in the latter usage of F&B facilities. demand for leisure properties along with robust
scaled up towards facilitating guest acquisition,
half of the year. wedding business led to a smart sequential
The Business launched a host of curated offerings enhancing guest experience, augmenting
recovery and the Business turning EBITDA
Responding with agility to the dynamic situation, across accommodation, dining and banqueting revenue generation and driving operational
positive in the second half of the year.
the Business swiftly re-engineered operating to augment revenues. These include launch of efficiency.
protocols to provide best-in-class experience ‘Gourmet Couch’ and ‘Flavours’ home delivery/ The Company’s ‘asset-right’ strategy envisages a
in hygiene and safety at the Company’s iconic takeaway offerings and special packages for large part of incremental room additions to accrue
Hotels. short getaways/staycations & Club ITC loyalty through management contracts. During the year,
programme members. in line with the asset-right strategy, three hotels
Towards this, the Business rolled out ‘WeAssure’,
were added to the Welcomhotel portfolio of
a programme designed in collaboration with
managed properties.
medical professionals and disinfectant experts;

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 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Delighting Customers Creating Shareholder Value through Responsible Competitiveness Preserving and Nurturing the Environment Serving and Empowering Communities Workforce of Tomorrow Collaborating with Suppliers and Value Chain Partners

CREATING SHAREHOLDER VALUE THROUGH RESPONSIBLE COMPETITIVENESS

FY21 Performance – Agility in Adversity | Compassionate in Crisis

Agri Business

Leaf Tobacco leaf tobacco industry. New business development The Business continues to leverage its strong The Business strengthened its milk procurement
The COVID-19 pandemic posed several and enhanced value delivery to existing farm linkages and wide sourcing network network in West Bengal and Bihar to support the
operational challenges for the Business. The customers enabled the Business to sustain its pre- across geographies to secure supplies of growing requirement for fresh dairy products
Business mitigated the same with agility and eminent position as the largest Indian exporter critical grades of wheat with benchmark quality under ‘Aashirvaad Svasti’ and in Punjab towards
ensured continuity in operations across all nodes of unmanufactured tobacco. The Business also towards meeting the growing requirements of supporting the requirements of ‘Sunfeast’ dairy
while strictly adhering to comprehensive safety continued to provide strategic sourcing support to Aashirvaad atta. During the year, the Business beverages. The capability to source superior
protocols. Opportunities to drive revenue were the Company’s Cigarettes Business. further scaled up its strategic sourcing and supply quality milk enabled the launch of ‘Aashirvaad
captured by responding to customers’ needs chain interventions. These include focused crop Select’ milk during the year – the first-of-its kind
Other Agri Commodities
with speed and agility, meeting exigent demand development towards securing the right varieties in the country providing complete traceability of
The Agri Business registered a robust growth in
of mid-tier manufacturers by rapidly re-orienting for Aashirvaad atta with a view to providing milk quality across the supply chain.
revenue during the year driven by opportunities
internal processes, and facilitating remote consumers best-in-class product quality and
in wheat, rice and oilseeds, scale up of the The Business is scaling up e-Choupal 4.0 - a
inspections for all major customers leveraging experience, use of multi-modal transportation
value-added portfolio and higher supplies to the crop-agnostic ‘phygital’ integrated agri solutions
digital technologies. comprising rail, road & coastal routes and blend/
Branded Packaged Foods Businesses to support platform - towards enhancing the competitiveness
cost optimisation through geographical and
enhanced scale. of domestic agri value chains, fostering new
varietal arbitrage.
business models and value creation opportunities.
In line with its strategic focus of accelerating
growth and enhancing value capture by rapidly
scaling up its Value-Added Agri Products (VAAP)
portfolio comprising Spices, Coffee, Frozen
Marine Products and Processed Fruits amongst
others, the Business continues to leverage its
deep rural linkages and extensive sourcing
expertise towards strengthening and customising
supply chains for traceable and identity-
preserved sourcing of agri commodities.
During the year, with robust growth in exports
of value added spices to ‘food safe’ markets, viz.
USA, EU and Japan, the Business consolidated its
The Business continued to leverage its crop position as a preferred supplier. The Business has
development expertise, superior product maintained an unblemished track record over the
quality and world-class processing facilities and years in terms of compliance with stringent food
consolidate its leadership position in the Indian safety parameters.

Integrated Report 2021 | 54 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Delighting Customers Creating Shareholder Value through Responsible Competitiveness Preserving and Nurturing the Environment Serving and Empowering Communities Workforce of Tomorrow Collaborating with Suppliers and Value Chain Partners

CREATING SHAREHOLDER VALUE THROUGH RESPONSIBLE COMPETITIVENESS

FY21 Performance – Agility in Adversity | Compassionate in Crisis

Paperboards, Paper and Packaging

The imposition of nationwide lockdowns severely strengthening the fibre chain for securing cost- The Packaging Business too rose to the challenge developed unique and novel solutions including
impacted domestic demand across most end- competitive wood supplies which have made the of servicing the critical packaging supplies of ‘Bio-seal’ (bio-compostable packaging solution)
user industries with the exception of pharma, Business stronger and more resilient. essential items to its domestic customers as well and ‘Oxyblock’ (a recyclable packaging solution
décor grades, e-Commerce and other essential as that of internal businesses. Recognising the with enhanced barrier properties) which are
The Business is actively engaged in developing
commodities, which remained relatively resilient. need for sustainable packaging, the Business under various stages of commercialisation.
suitable paper/paperboards and barrier-coated
With the easing of restrictions, demand across
substrates that can replace single use plastics.
most segments witnessed progressive recovery,
During the year, the Business launched anti-
barring the Writing & Printing Paper segment
fungal soap packaging paper and also scaled
which remained under stress due to closure of
up its sustainable products portfolio comprising
educational institutions.
recyclable paperboards, ‘FiloPack’ and ‘FiloServe’
The Businesses recovered smartly with significant for the food delivery and food service segments
sequential improvement in revenue and respectively and biodegradable paperboards,
profitability. Robust growth in exports aided in ‘OmegaBev’ and ‘OmegaBarr’, which are
partly offsetting the impact of a tepid domestic alternatives to plastic coated containers, cups
demand environment. The Businesses proactively and other deep freeze applications. Further, the
engaged with its customers to prioritise continuity Business has also developed antiviral paper
of supplies. Relentless focus on operational for applications in pharma and education &
efficiency and structural cost-saving interventions stationery businesses which is in the process of
aided in partly mitigating the impact of negative commercialisation. The Business is also a leading
operating leverage. player in the eco-labelled products segment and
premium recycled fibre-based boards space.
The Paperboards and Specialty Papers Business
sustained its clear leadership of the Value-added Several structural interventions have been made
Paperboards (VAP) segment, consolidating its to increase in-house pulp production, core
preferred supplier position amongst leading area sourcing, and to secure improved wood
end-use customers and brands. In recent mix. Capacity utilisation of Bleached Chemical
years, the Business has made several strategic Thermo Mechanical Pulp mill (BCTMP) at the
investments in areas such as pulp import Bhadrachalam unit touched a record high.
substitution, proactive capacity augmentation Investments in Industry 4.0 technologies have
in Value-added Paperboard (VAP) segment, yielded substantial benefits in the form of higher
innovation platforms focused on providing holistic process efficiencies, productivity enhancement,
& customised solutions to end user industries and improved resource utilisation and cost reduction.

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 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Delighting Customers Creating Shareholder Value through Responsible Competitiveness Preserving and Nurturing the Environment Serving and Empowering Communities Workforce of Tomorrow Collaborating with Suppliers and Value Chain Partners

Preserving and
Nurturing the STRATEGIES TO ADAPT TO NEWER
ENVIRONMENTAL REALITIES

Environment Building Climate

Resilience
Climate change is a reality, which is
page 57
already making its impacts felt across
the world. In developing and emerging
economies such as India with a higher
share of vulnerable population, climate
Towards Water
risks are even more pronounced. The
Security for All
global call for concerted action needs to
match on-ground implementation to cap page 60

global warming under safe levels.

Quicker responses to mitigate imminent
and future effects of climate change,
and strategies to adapt to newer Making Agriculture
environmental realities should form the Future-ready
agenda of governments, corporates page 63

and societies alike. Climate change also

necessitates urgent focus on aspects
such as water security, sustainable and
regenerative agriculture and scientific
waste management. Managing
Waste
page 67

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 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Delighting Customers Creating Shareholder Value through Responsible Competitiveness Preserving and Nurturing the Environment Serving and Empowering Communities Workforce of Tomorrow Collaborating with Suppliers and Value Chain Partners

PRESERVING AND NURTURING THE ENVIRONMENT

Building Climate Resilience Pursuing Low-Carbon Pathways

ITC remains committed to steering its course towards a low-carbon
ITC’s Approach pathway. Some of the efforts made by the Company comprise:
ITC is pursuing a low-carbon growth • Energy audits, benchmarking and target setting for progressively
strategy through extensive decarbonisation reducing specific energy consumption (energy per unit of product/
programmes across its value chain. These service).
In FY 2020-21, ITC units consumed 22,369 Terra Joules (TJ) of energy
include increasing the share of renewable • Investment in renewable energy assets based on techno-
out of which over 41% was from renewable sources, despite the
energy, continuous reduction of specific energy, commercial feasibility. The Company has set a target of achieving
expanding footprint in hotels and manufacturing.
a 50% share of renewable energy in its total energy mix, and
construction of green buildings, greening meeting 100% of purchased grid electricity requirements from For addressing climate change impacts in the value chain:
logistics and optimising ‘distance-to-market’, renewable sources.
• Life Cycle Assessment (LCA) studies are carried out for key
and promoting regenerative agriculture • Enhance efficiency by monitoring the carbon footprint of products/services.
practices in key agri value chains. Additionally, operations, optimise distribution networks and work towards
• ITC also engages with its major supply chain partners for monitoring
ITC’s multi-pronged approach also focuses on building resilience against the impacts of climate change. ITC is
and improving their energy performance and progressively
targeting a reduction of 50% in Specific GHG Emissions and a
sequestering more carbon than what it emits including them within the sustainability reporting boundary.
30% reduction in Specific Energy Consumption by 2030 across
and climate proofing its operations as well businesses. • To further mitigate value chain impact, steps are being taken for
as agri value chains, thus enabling a rapid reducing energy consumed in transportation of raw materials,

Over 41%
transition to a net zero economy. finished goods and waste. ITC has strategically located its
Integrated Consumer Goods Manufacturing and Logistics (ICML)
Of ITC’s total energy requirements were facilities for FMCG businesses closer to the market. This allows
met from renewable sources such as for making direct shipments to customers, thereby avoiding
ITC’s Focus Areas biomass, wind and solar, during the year
intermediate movements and optimising distribution logistics.

Pursuing Low-Carbon
Pathways Specific GHG Emissions Specific Energy
For Foods Business, improvement in specific energy is driven by
(Scope 1,2) Performance Performance energy conservation measures, higher capacity utilisation and
ITC’s Businesses* Business’ Business’ changes in product-mix. Specific GHG emission further improved
Sustaining & Enhancing ITC’s % Reduction Share (%) in % Reduction Share (%) in on account of increase in renewable energy consumption.
as compared ITC’s Total as compared ITC’s Total
Carbon Positive Status to 2018-19 GHG Emissions to 2018-19 Energy
(Scope 1,2) Consumption For Hotels Business, specific metrics went up because of low
Paper Business 7.4% 80% 5.5% 86% occupancy during the pandemic, though absolute GHG emissions
Building Climate Resilient Foods Business 21.4% 10% 20% 6.7% and energy consumption have reduced.
Operations and Agri Value Chains Hotels 4.2% 3.3% 14% 2.0%
For Packaging & Printing Business, improvement in specific energy
Agri Business 1.1% 2.1% 2.5% 1.5%
Printing & Packaging 30% 1.9% 6.6% 1.3%
is driven by investment in energy conservation measures like
Tobacco 2.0% 1.4% 0.5% 1.3% energy efficient water cooled chiller. Specific GHG emission further
improved on account of increase in renewable energy consumption.
Improvement in KPIs Decline in KPIs
*Personal Care Products, Matches & Agarbatti, Education & Stationery Products Businesses contribute to less than 2% of total GHG emissions (scope 1,2) and 2% of total energy
consumption.

Integrated Report 2021 | 57 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Delighting Customers Creating Shareholder Value through Responsible Competitiveness Preserving and Nurturing the Environment Serving and Empowering Communities Workforce of Tomorrow Collaborating with Suppliers and Value Chain Partners

PRESERVING AND NURTURING THE ENVIRONMENT

• ‘ITC One Supply Chain’ initiative covering ITC’s • A beginning has also been made towards usage
total network in India has resulted in optimisation of electric vehicles by ITC Trade Marketing
of all routes including both supply and & Distribution vertical. The initiative covers 5
demand-side thereby lowering total kilometres metros and based on the encouraging initial
traversed by ITC’s raw materials and products. results, the efforts are proposed to be scaled up.
Shipment through rail and sea routes have
also helped reduce GHG emissions.

Sustaining and Enhancing ITC’s Carbon Sequestration

While working towards constantly reducing its For more information on ITC’s Social and Farm
emissions and greening its energy portfolio, Forestry initiatives, please refer to Making
Agriculture Future Ready section of ITC’s
ITC seeks to increase carbon sequestration by Sustainability report 2021 or visit the ITC’s Forestry
expanding forestry projects on wastelands. microsite.

Building Climate Resilient findings of the assessment, appropriate site-

Operations and Agri Value Chains specific risk mitigation and adaptation measures
ITC’s extensive manufacturing base including are being evaluated. Detailed studies are also
factories, warehouses and hotels are also being conducted to understand the potential
prone to climate change risks on account of adverse impacts of climate change on the
extreme weather events, precipitation, and Company’s value chain covering both physical
temperature variation, and other factors. assets as well as key agri value chains. These aligning itc’s climate strategy with tcfd recommendations
Appropriate investments have been made towards risk assessments will help fine tune the climate The Task Force on Climate-related Financial Strategy
strengthening climate resilience covering the resilience measures that are being implemented Disclosures (TCFD) has developed voluntary, ITC has identified climate resilient operations including
Company’s operational units including those across the Company’s value chain. consistent climate-related financial risk disclosures agri value chains as one of its material issues. For
located in coastal areas. Business continuity for companies to provide information to stakeholders. ITC's strategy on the same, please refer to ‘Building
ITC’s approach to climate change is duly aligned Climate Resilience’ section of this report and ITC's
plans are also in place to mitigate any operational
by TCFD recommendations and the Company is Sustainability Report 2021.
interruption due to extreme weather events. committed to providing stakeholders with relevant
Modern Curing Technology information on climate-related issues. The disclosures
Additionally, in order to identify long-term risks, Risk Management
Helping Indian Farmers pertaining to TCFD recommendations are provided in
ITC worked with climate experts to conduct this report as well as in ITC Sustainability Report 2021. Please refer to ‘Building Climate Resilience’ and
a comprehensive climate change risk and In 2020-21, the Business has undertaken large ITC also disclosed its climate change impacts through ‘Strategic Risk Management’ section of this report and
vulnerability assessment using climate models scale experimentation and trials in alternate curing CDP, a global non-profit that runs the world’s leading refer to ITC's Sustainability Report 2021.
technologies (Loose Leaf Barn and others) to environmental disclosure platform.
across its operating locations (factories, hotels,
warehouses etc.). The assessment considered
reduce fuel requirement. The use of Loose Leaf Metrics and Targets
Barn technology has entailed approximately 50%
impact of climate variables like temperature, Governance Refer ‘Sustainability Ambitions’ section of this Report
fuel reduction in curing and substantial reduction and ITC's Sustainability Report 2021.
precipitation, sea level rise, river/coast proximity in labour requirement during tobacco post-harvest For information on sustainability related governance,
management. The technology uses digital sensors please refer to ‘Sustainability and ESG governance
and extreme weather events over long-term time
and control panel in making tobacco curing at ITC’ section of this report and ITC's Sustainability
frames (2040-2060 and 2060-2080) under two Report 2021.
user-friendly and environmentally sustainable.
Representative Concentration Pathway (RCP)
scenarios - RCP 4.5 and RCP 8.5. In line with the

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 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Delighting Customers Creating Shareholder Value through Responsible Competitiveness Preserving and Nurturing the Environment Serving and Empowering Communities Workforce of Tomorrow Collaborating with Suppliers and Value Chain Partners

PRESERVING AND NURTURING THE ENVIRONMENT

spearheading the green buildings

movement in india
The Company’s commitment to environmental
stewardship is reflected in its role of pioneering the
Green Building movement in India. 33 buildings of
the Company have achieved Platinum certification
by USGBC/ IGBC. The Company’s Hotels Business
has demonstrated high levels of resource efficiency
by achieving the LEED® certification at the highest
Platinum level for all of its premium luxury hotels.
Several of the Company’s factories, Hotels and
office complexes have received the Green Building
certification from Indian Green Building Council
(IGBC), the LEED® certification from US Green
Building Council (USGBC) and Bureau of Energy
Efficiency’s (BEE) star ratings.
In order to continually reduce the Company’s
environmental footprint, green attributes are
integrated in all new constructions and are
also being incorporated into existing hotels,
manufacturing units, warehouses and office
complexes during retrofits.

As a testament to ‘Responsible Luxury’

and the organisation’s ‘Triple Bottom
Line’ philosophy, ITC Windsor, Bengaluru,
became the first hotel in the world
to receive the prestigious LEED Zero
Carbon Certification. Awarded by US
Green Building Council (USGBC), this
certification recognises buildings
operating with net zero carbon emission.

Integrated Report 2021 | 59 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Delighting Customers Creating Shareholder Value through Responsible Competitiveness Preserving and Nurturing the Environment Serving and Empowering Communities Workforce of Tomorrow Collaborating with Suppliers and Value Chain Partners

PRESERVING AND NURTURING THE ENVIRONMENT

Towards Water Security for All Implementing this approach requires an in-depth understanding
of both the environmental and social aspects of water resources,
ITC’s Approach which are done through hydro-geological studies and stakeholder
engagement processes respectively. A thorough understanding of
ITC has adopted the water-stewardship water use in the catchment areas, and collaborative efforts from all
approach to address water-security major stakeholders (farmers, local communities, industries and local
challenges, as it offers a comprehensive governments) help improve water balance and quality. A combination
of demand-side and supply-side interventions have proven to be the
solution to the challenges that India faces
most effective towards this objective.
as a water-stressed country. The Company’s
approach is to use water responsibly, and Demand-Side Measures to Improve Water Use
at the same time encourage and enable Efficiencies in Operations & Agriculture
other stakeholders in the catchment areas The first step is the optimisation of usage to minimise withdrawal,
both at the operating plant level as well as the sub-catchment or
to manage their water consumption with
micro-watershed level where the plant is located. To this end, ITC’s
prudence. This is a collaborative approach to units focus on:
achieve long-term water security.
• Continuous monitoring of water use efficiency by progressively
reducing specific water intake (water per unit of product/service).
In most agri-catchments, more than 95% of water use is for irrigation
• Focus on recycling/reusing of all treated effluents within or outside
and therefore improving irrigation, soil conservation and agronomical
ITC’s Focus Areas ITC premises.
practices have huge water saving potential. ITC works extensively for
• Conducting water security studies and hydrogeological promoting agronomical practices and micro irrigation techniques that
Demand-Side Measures to Improve assessments for operating units located in high water stressed save water in cultivation and help farmers to improve their net returns.
Water Use Efficiencies in Agriculture areas. ITC has also made water security assessment an integral
part of greenfield/brownfield project design and development. For information on ITC’s efforts on demand side management, please refer
& Operations to ‘Making Agriculture Future Ready’ section of this report, and 'Towards
• Implementation of recommendations emerging from water security Water Security for All' and ‘Making Agriculture Future Ready’ sections of ITC’s
Sustainability Report 2021.
studies.
Supply Side Augmentation through
Managed Aquifer Recharge and Soil ITC is targeting 40% reduction in specific water consumption by 2030 across businesses.
& Water Conservation Measures
Specific Water For Foods Business, improvement in specific water consumption is
Consumption Performance driven by water conservation measures, higher capacity utilisation
ITC’s Businesses*
Strengthening Water Governance % Reduction as
Business’ Share (%) and changes in product-mix.
in ITC’s Total Water
to ensure Equitable Resource Use compared to 2018-19
Consumption **For Hotels Business, specific water consumption went up because
Paper Business 3.4% 89% of low occupancy during the pandemic, though absolute water
Foods Business 33% 3% consumption has reduced.
Hotels 22.6% ** 4%
Tobacco 4.5% 0.6%

Improvement in KPIs Decline in KPIs

*Personal Care, Matches & Agarbatti, Education & Stationery, Agri Business, Printing & Packaging businesses contribute to less than 4% of total water consumption.

Integrated Report 2021 | 60 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Delighting Customers Creating Shareholder Value through Responsible Competitiveness Preserving and Nurturing the Environment Serving and Empowering Communities Workforce of Tomorrow Collaborating with Suppliers and Value Chain Partners

PRESERVING AND NURTURING THE ENVIRONMENT

Supply-Side Augmentation through

Managed Aquifer Recharge and Soil &
Water Conservation Measures
The demand-side measures are followed by augmenting
supply at the sub-catchment level through various
interventions. These interventions are focused on harvesting
rainwater and maximising infiltration through Managed
Aquifer Recharge, based on the recommendations of hydro-
geological studies. Stakeholder engagement is integral to
any water harvesting stewardship initiative, and is duly taken
into cognisance.
Over the years, ITC has created rainwater harvesting
potential through extensive investments in its Integrated
Watershed Development Projects. As on March 31, 2021,
these projects covering over 1.23 million acres of land
have created a total rainwater harvesting potential (RWH)
of close to 42.95 million kl which is over four times the
net water consumed by ITC’s operations in 2020-21. 42.95

38.95
WATER BALANCE 35.35
33.07
(million kl) 28.18 30.80
25.84 25.63
23.59 20.6 23.27
ITC is targeting creation of Rainwater 19.6 19.93 19.89 21.05 21.47
16.06 16.86

Harvesting Potential equivalent to over 12.74

5 times the Net Water Consumption from

Operations by 2030. 10.89
9.95
10.34

9.49 8.44 5.43 4.62 6.21 8.54 8.20 6.55 7.15 6.22 9.26 9.83 10.24 9.35 9.17 9.64

ITC is Targeting AWS Certification of

all Sites in High Water Stressed Areas
by 2035.

2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21

Net Water Consumption = Fresh Water Intake - Treated Effluents Discharged Total RWH potential created for the year

Integrated Report 2021 | 61 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Delighting Customers Creating Shareholder Value through Responsible Competitiveness Preserving and Nurturing the Environment Serving and Empowering Communities Workforce of Tomorrow Collaborating with Suppliers and Value Chain Partners

PRESERVING AND NURTURING THE ENVIRONMENT

Strengthening Water Governance to Ensure water security in tobacco supply chain

Equitable Resource Use While Indian tobacco production is pre-dominately
The effectiveness and long-term sustainability of the rain fed, there are a few nodes in the farm supply
chain for which water is critical. To address water
demand-side and supply-side interventions undertaken
risks in the tobacco supply chain, ITC carries out
is directly dependent on the effectiveness of the water continuous risk-assessments and implements
governance mechanisms in the catchment. Therefore, the interventions as a part of its holistic two pronged
Company focuses on grassroots level institutionalisation and approach involving both - demand-side management
capacity building through creation of water-user groups, self- to improve irrigation efficiency and supply-side
help groups etc. These help in instilling accountability and management to revive traditional water harvesting
and recharge structures in areas of cultivation.
ownership in the relevant stakeholders, thereby ensuring the
long-term sustainability of collective interventions. Some of the interventions on demand-side
management for tobacco include:
For more information, please refer to the Creating Sustainable • Climate appropriate seeds, backed by extensive
Livelihoods section of ITC’s Sustainability Report 2021. research and development, to suit the region’s
specific climatic requirements.
• Sub soiling to improve root penetration and water-
Progress so far holding capacity of the soil.
The recommendations of water security studies conducted in • Biological interventions such as green manuring,
previous years are in various stages of implementation in ITC mulching and vermicomposting to improve soil
organic content and water-holding capacity.
units in Bhadrachalam, Kovai, Trichy, Pune, Haridwar, Malur,
Bengaluru, Kapurthala, Saharanpur, and ITC Grand Bharat. • Tray Seedling technique to reduce water usage in
the nursery (up to 30%).
ITC’s Paperboards & Speciality Papers unit at Kovai was only • Drip irrigation for improved irrigation efficiency;
the second facility in the world and first in India to be awarded and
the Alliance for Water Stewardship (AWS) Platinum-level • Smart irrigation technology, which determines
certification in 2019-20 – the highest recognition for water water requirement of plants on real-time basis and
stewardship in the world. The Company is in the process of automates irrigation activity, using soil moisture
implementing the AWS Standards at other units in high water sensors and cloud technology. This precision
farming method has a potential to reduce water7
stress areas, and will progressively obtain AWS certification
and energy requirements by 50% and improve
for these sites in the coming years. farm productivity by 10%. Large scale trials
promoting contemporary technologies such as
drones for irrigation which reduces water usage
by up to 90% when compared with conventional
spraying are also underway.
These interventions are currently deployed in the
major crop growing regions of Andhra Pradesh and
Karnataka and progressively cover more farmers
every year.

As compared to drip irrigation

7

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 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Delighting Customers Creating Shareholder Value through Responsible Competitiveness Preserving and Nurturing the Environment Serving and Empowering Communities Workforce of Tomorrow Collaborating with Suppliers and Value Chain Partners

PRESERVING AND NURTURING THE ENVIRONMENT

Making Agriculture Future-ready

‘baareh mahine hariyali’: new horizons in
ITC’s Approach multiplying farm incomes
ITC has, over the years, designed and implemented ITC's Baareh Mahine Hariyaali, a pioneering intervention aligned
large-scale programmes on sustainable agriculture. to Government’s Doubling Farmers’ Income programme, facilitates
farmers to enhance their incomes. This programme follows a
The focus of these interventions has been largely 360°, multipronged approach with interventions ranging from
around improving farmer livelihoods, increasing increased cropping intensity with a third crop during summer,
enhancement of productivity through context-specific agronomic
agricultural productivity, strengthening regional practices demonstrated through Choupal Pradarshan Khets
water security and addressing the challenge of (on-farm demonstrations) and provision of market linkages with
transparency in assessment of quality, prices and weighment. In
climate change and enhancing agri-resilience. some regions, taking a holistic approach to income diversification
as an adjacency, livestock development, women empowerment
To achieve the above, the Company has a 360⁰ and agro forestry are also included. Over 2,00,000 farmers have
already benefited from the interventions under the ‘Baareh Mahine
approach to enrich rural eco-systems, putting Hariyali’ programme, out of which over 35,000 farmers who have
in place long-term drivers that progressively adopted the package of practices have reported doubling of their
incomes while others who have implemented the programme
contribute to the national priorities of employment Multiplying Farmer Incomes partially reported increase in their incomes by 30% to 75%. The
generation and inclusive growth, through grassroots ITC’s Agri Business and the Social Investments Programme (ITC’s programme, which aims to multiply incomes of farmers through a
Mission Sunehra Kal) work on mechanisms to make dominant sources wide spectrum of interventions in climate-smart and sustainable
capacity building and rural asset creation. agriculture, is planned to be rolled out to 10,00,000 farmers
of income sustainable for farming communities, by making them more
progressively.
ITC’s Focus Areas secure, climate-resilient and economically stable. Based on the crop
and location, large scale interventions on agricultural productivity
Multiplying Farmer
Incomes
enhancement, income augmentation/enhancing non-farm income,
value added crops, creation of financial support mechanisms as well
2,00,000 35,000
Farmers benefited from the Farmers who have adopted the
as market linkages have been implemented across the country. interventions under the ‘Baareh package of practices, reported
Replenishing Natural Resources Crucial for Mahine Hariyali’ programme doubling of their incomes

Agriculture – Water, Soil and Biodiversity Replenishing Natural Resources Crucial for
Agriculture – Water, Soil and Biodiversity
Promoting Climate In the agri-catchments, the focus is on drought-proofing agriculture
Smart Agriculture by reducing crop-water demand through agronomic practices for
improving soil water-holding capacities and improved irrigation
Leveraging e-Choupal for Enabling Market techniques (drip irrigation, augmenting water supply through the
Access & a Digital Driven Agri- Transformation rejuvenation and/or creation of water harvesting and recharge
structures).
Providing Institutional Support &
ITC’s Mission Sunehra Kal has collaborated with reputed institutions
Empowering Grassroots Institutions
and thematic expert organisations (IWMI, WWF India, ACWADAM
and CII) to improve water use efficiency in agriculture, map recharge
Building Rural Infrastructure for Improving
zones for managed aquifer recharge and for water balance
Adaptive Capacity estimation.

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 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Delighting Customers Creating Shareholder Value through Responsible Competitiveness Preserving and Nurturing the Environment Serving and Empowering Communities Workforce of Tomorrow Collaborating with Suppliers and Value Chain Partners

PRESERVING AND NURTURING THE ENVIRONMENT

In agricultural catchments, ITC continues to work for biodiversity

conservation along with soil and water as these three are essential
natural capitals vital for sustainable agriculture. As a part of its
biodiversity conservation efforts, ITC has focused on:
• Biodiversity conservation in agri-supply chains to minimise the PROGRAMME
adverse impacts of agriculture on biodiversity. HIGHLIGHTS

• Community driven biodiversity conservation at the watershed

level by landscape renewal and rehabilitation of degraded plots The cumulative coverage area
for mosaic restoration; and under watershed is over 12.31
lakh acres spanning 14 states,
• Revival of ecosystem services provided to agriculture by nature, with over 0.97 lakh acres
which has witnessed considerable erosion in recent decades. covered in FY 2020-21.
During the year, ITC’s biodiversity conservation initiatives covered
13,124 acres, taking the cumulative area under biodiversity
conservation to over 0.44 lakh acres in 13 districts across 7 states.
21,991 water harvesting
structures constructed till date.
Promoting Climate Smart Agriculture
Factors such as rise in extreme weather events, varying climatic
parameters and dependency on rainwater for irrigation make
agriculture in India quite vulnerable to climate change. Identification 41.95 million kl of fresh
of climate risks and managing these by building climate resilience water-harvesting potential niti aayog and itc partnership to
across the value chain is an important component of ITC’s approach. created till date. improve agriculture and allied
For major crops such as wheat, pulp-wood and leaf tobacco among
sectors in 27 aspirational districts
others, significant and sustained work is in progress towards
development of climate-tolerant varieties as well as towards ITC entered into a partnership with NITI Aayog
dissemination of climate-resilient agronomic practices in the Till date, practices promoted in 2018 for improvement of agriculture and allied
growing areas. by ITC have been adopted sectors in 27 aspirational districts of 8 states (Assam,
by farmers across around Bihar, Jharkhand, Rajasthan, Madhya Pradesh,
Given the vulnerabilities, it is critical to strengthen climate resilience Maharashtra, Odisha and Uttar Pradesh) under
3 lakh acres, and has created a Mission Sunehra Kal.
and adaptability of the agri-food sector. In this context, the potential to save an estimated
Company’s interventions in collaboration with CGIAR’s ‘Climate 208 million cubic metres of The project design entails training government
Change and Food Security Programme’ to build climate smart water in a year. officers who, in turn, would cascade the methodology
villages was expanded to over 1600 villages across 14 states and to farmers.
supported farmers in the management of risks arising from erratic During the year, 3.8 lakh farmers were brought onto
For more information on ITC’s work
and extreme weather events. on water stewardship, please refer digital training platforms by forming 4,836 WhatsApp
to the Towards Water Security for All groups in around 5,000 villages. The total number of
section of ITC’s Sustainability Report farmers trained to date in five seasons including Rabi
2021. 2019-20 season is 25 lakhs.

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 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Delighting Customers Creating Shareholder Value through Responsible Competitiveness Preserving and Nurturing the Environment Serving and Empowering Communities Workforce of Tomorrow Collaborating with Suppliers and Value Chain Partners

PRESERVING AND NURTURING THE ENVIRONMENT

e-Choupal 4.0 - towards next-gen agriculture
Leveraging e-Choupal for Enabling Towards enhancing the competitiveness of domestic agri value chains,
foster new business models and value creation opportunities, ITC is scaling
Market Access & a Digital Driven up e-Choupal 4.0 - a crop-agnostic ‘phygital’ integrated agri solutions
Agri-Transformation platform.
The ITC e-Choupal network leveraging information
The digitally powered platform seeks to empower the farming community
technology to empower farmers, through a rich repertoire by delivering customised solutions by synergistically integrating NextGen
of agri based interventions, not only addresses the core agri-technologies. These include e-Marketplace for agri inputs and farm
needs of farmers in terms of infrastructure, connectivity, price outputs, wide range of advisory services covering weather forecasts,
discovery and market access, but also provides a significant agronomy, best practices for improved productivity, quality assurance, etc.
boost to farm productivity through extension services and Value propositions across each of these opportunity spaces are expected
research based agri-inputs. Initiatives like the ‘Choupal to create new and scalable revenue streams over time. The platform is
Pradarshan Khet’ bring suitable agricultural best practices also expected to facilitate re-engineering commodity sourcing through a
to farmers and have demonstrated significant productivity robust network of ten million farmers and nearly 4,000 Farmer Producer
gains. These interventions have helped to transform village Organisations (FPOs), leading to efficient price discovery, lower transaction
costs and higher levels of traceability in the supply chain.
communities into vibrant economic organisations by
enhancing incomes and co-creating markets. Empowerment
and building trust amongst the farming community remains at
the core of this model.
e-Choupal 4.0 - a phygital model

Launched in June 2000, ITC e-Choupal is today India’s largest PHYSICAL DIGITAL
initiative among internet-based interventions in rural India.
Demonstration Plots Crop Advisory and Forums
Its serves over 4 million farmers in 35,000+ villages through Learns Package of Practices Digital Catalouge: Live Weather Updates,
6,100 kiosks spanning 10 states. Success Stories, etc.

Sanchalaks/FPOs
Supports the Farmers Platform : Inputs

4 million 35,000+ Understands Good Practices On-demand Service Marketplace

On-ground Troubleshooting
Farmers served Villages served through
through e-Choupal internet-based Field Team Market Linkages
interventions in rural India
Training on Crop Online Marketplace for buyer-seller
Management interaction

6,100 Digital Enagagement Center e-Commerce Shop

e-Choupal kiosks
spanning 10 states Expert Solutions : Anytime, Anywhere Online Store for Price Discovery and
Purchase of High Quality Inputs

Physical Transactions Complimented by Digital Interventions

Lower Transaction Costs | Customised Solutions at Scale

For more information on the above initiatives and the work being done with grassroots institutions like Water User Groups (WUGs), Agri Business Centres
(ABCs) and creation of rural infrastructure for improving adaptive capacity, refer to Creating Sustainable Livelihoods section of ITC’s Sustainability Report
2021 and ITC’s Sab Saath Badhein, ITC e-Choupal and ITC Watershed microsites.

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 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Delighting Customers Creating Shareholder Value through Responsible Competitiveness Preserving and Nurturing the Environment Serving and Empowering Communities Workforce of Tomorrow Collaborating with Suppliers and Value Chain Partners

PRESERVING AND NURTURING THE ENVIRONMENT

Securing Agri Value Chains for ITC’s

Major Crops Precision Farming
Wheat, pulpwood, leaf tobacco, potato and spices Experimenting and supporting farmers in deploying
constitute some of the major agri commodities sourced digital technologies such as smart irrigation, drone
by ITC. A bouquet of regenerative and sustainable based spraying and farm mechanisation through
agriculture interventions across these crops help ITC's e-Choupal 4.0 digital platform.
straddle the value chains supporting ITC’s leading
brands. These interventions include:
Organic Farming
Supporting farmers in the implementation of
Variety Security organic cultivation practices and appropriate
Development and promotion of location-specific, certification.
improved and climate resilient varieties.
Crop Diversification
Climate Smart Farming Practices Handholding farmers in year round crop production
Promotion of climate-resilient practices such as zero and supplementary income through animal
tillage, soil conservation measures, balanced crop husbandry programme thereby improving income
nutrition, drip irrigation and large scale watershed level of farmers.
development programmes to manage climate
vagaries.
Better labour Practices
Guiding and encouraging farmers and labours in
Agri Extension Network the agri value chain on right labour and human
Trained agri experts supporting and handholding rights practices.
farmers in implementation of best package of
practices and addressing specific farmer queries.
Village Infra Upgradation
Supporting farmers in post-harvest infra upgradation
Also leveraging the Digital Engagement Centre of
which helps in clean and safe drying, storage,
e-Choupal 4.0 for the same.
ensuring quality and reducing wastage.
Integrated Pest Management
Market Linkage
Deployment of sustainable agrochemical
Enabling market access through e-Choupal and
management programmes that address
helping farmers ‘produce the buy’ meeting national
the importance of safe and environmentally
and international quality requirements.
responsible agrochemical use, storage, handling
and disposal.
For details on crop-wise interventions, please refer to
Natural Resource Management Making Agriculture Future Ready section of ITC’s
Deployment of sustainable practices with focus Sustainability Report 2021.
on conserving resources such as soil, water,
biodiversity and forest.

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 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Delighting Customers Creating Shareholder Value through Responsible Competitiveness Preserving and Nurturing the Environment Serving and Empowering Communities Workforce of Tomorrow Collaborating with Suppliers and Value Chain Partners

PRESERVING AND NURTURING THE ENVIRONMENT

Managing Waste
ITC’s Approach
ITC takes a circular economy approach to solving
the issue of waste which encompasses the entire
waste value-chain.

ITC’s Focus Areas

Running Behavioral Change Programmes

for Citizens to Ensure Source Segregation

Creating Replicable, Scalable & Sustainable

Models of Solid Waste Management

Sustaining & Enhancing ITC’s Status

as Solid Waste Recycling Positive Running Behavioural Change Programmes for Creating Replicable, Scalable and Sustainable
Citizens to Ensure Source Segregation Models of Solid Waste Management (SWM)
ITC’s initiatives encompass instilling behavioural change and ITC creates replicable, scalable and sustainable models of municipal
Ensuring that 100% of packaging is reusable, door-to-door awareness programmes for citizens in collaboration solid waste management that can be implemented across the
recyclable or compostable with various stakeholders like Urban Local Bodies, Civil Society country to ensure that zero waste goes to landfill. These models are
and the informal sector of waste collectors. The initiatives focus on centred on the following pillars:
educating citizens on segregating waste at source into dry and wet • Partnering Urban Local Bodies (ULBs), Panchayats for facilitating
streams and ensuring that value is derived from these resources and door-to-door collection of segregated waste.
in the process support sustainable livelihood for waste collectors and
rag-pickers. • Supporting sustainable livelihoods for waste collection workers.

ITC’s programmes have reached out to more than 4.5 million • Identifying and implementing suitable end-of-life solutions for each
households till date. Additionally, ITC also leverages its brands for waste stream.
creating awareness campaigns for consumers in driving the message
• Creating viable recycling options for post-consumer multi-layered
of responsible waste management.
plastic packaging waste.

4.5 million From sprawling metros to small and medium towns, different models
of waste management were implemented under ITC’s flagship
Households impacted through ‘Well-Being Out of Waste’ (WOW) programme. During the year, the
running behavioural change programme was continued to be executed in Bengaluru, Mysuru,
and door-to-door awareness
programmes Hyderabad, major towns of Telangana, Coimbatore, Chennai, Tirupur,
Cochin, Muzaffarpur, Delhi and several districts of Andhra Pradesh,
collecting 70,900 MT of dry waste from 1,067 wards.

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 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Delighting Customers Creating Shareholder Value through Responsible Competitiveness Preserving and Nurturing the Environment Serving and Empowering Communities Workforce of Tomorrow Collaborating with Suppliers and Value Chain Partners

PRESERVING AND NURTURING THE ENVIRONMENT

WOW’s outreach spans over 3.8 million households, 5.2 million

school children and around 2,040 Corporates since its inception.
The programme has supported sustainable livelihoods for
over 16,900 waste collectors and has also created 140 social
entrepreneurs.
ITC’s Mission Sunehra Kal programme has SWM models for Towns,
Villages and Temples. The intervention manages both wet and dry
waste, close to the generator. The programme spanned 17 districts
across 11 states covering 0.73 million households and collected
41,000+ MT of waste during the year. This programme focuses on
minimising waste to landfill by managing waste at source. During the
year, source segregation and home composting and was practised
by 0.55 million households and 95,000 households respectively.
As a result of this decentralised model, only 18% of the total waste
handled in these projects were sent to landfills.

Sustaining and Enhancing ITC’s Status as Solid

Waste Recycling Positive
‘Segregation at source’ along with focused attention on identifying
and tracking of all waste streams all the way till their final disposal,
helped the Company in recycling over 99% of the 684,000 tonnes ITC, on the back of above
of total waste generated within ITC units during FY 2020-21. Also, programmes and other tie-ups
the Kovai and Bhadrachalam units utilised over 79,000 tonnes of with leading waste management
post-consumer paper waste as raw material in FY 2020-21. agencies, collected more than
Efforts at these ITC units to recycle 100% of waste generated along
31,000 MT of post-consumer
with utilisation of externally generated paper waste as a source of
plastic waste during the year from
fibre, have helped ITC maintain its solid waste recycling positive
24 States and Union Territories,
status for 14 years in a row.
more than doubling last year’s
collections despite the challenges
posed by the COVID-19 pandemic.
This is equivalent to more than
80% of plastic packaging films
utilised by ITC during the year. In
the ensuing fiscal, the endeavour
would be to collect in excess
of 100% of plastic packaging
introduced in the market.

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 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Delighting Customers Creating Shareholder Value through Responsible Competitiveness Preserving and Nurturing the Environment Serving and Empowering Communities Workforce of Tomorrow Collaborating with Suppliers and Value Chain Partners

PRESERVING AND NURTURING THE ENVIRONMENT

Ensuring that 100% of Packaging is

Reusable, Recyclable or Compostable
As part of its sustainable packaging strategy, ITC is leveraging
its unique in-house capabilities and expertise in the form of:
• LSTC’s Centre of Excellence in Agri Sciences and Materials.
• Sustainable and Circular Design Expertise of packaging
experts from Paperboards & Specialty Papers Division,
Packaging and Printing Division and FMCG businesses.
• Consumer insights of FMCG businesses.
• Sustainable Waste Management experience housed within
the Company.

ITC’s approach to sustainable packaging involves:

• Optimising packaging in a way that it reduces the
environmental impact arising out of post-consumer
packaging waste without affecting integrity of the product.
• Progressive reduction in plastic packaging intensity over
time.
• Improving the recyclability of multi-layer laminate
packaging by reducing the complexity of the structure and
phasing-out hard to recycle plastics.
• Examining the possibility of recycled plastic content for
non-food applications.
In health & hygiene, Savlon
• Evaluating the life cycle impacts of packaging and
has further augmented its
identifying opportunities for improvement using tools
handwash portfolio with the
like Life Cycle Assessment studies.
launch of ‘Savlon Pichkiao’
• Identifying alternative packaging material with lower (easy-squeeze pack) recently
environmental impact including bio-based compostable in limited select markets, an
plastics. innovative Designed-For-
Sustainability hand wash pack
• Identifying suitable end-of-life solutions for packaging with its packaging utilising
waste. 22% lower plastic and is
convenient, affordable
and refillable.
For more information, please refer to the Managing
Waste section of ITC’s Sustainability Report 2021.

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Delighting Customers Creating Shareholder Value through Responsible Competitiveness Preserving and Nurturing the Environment Serving and Empowering Communities Workforce of Tomorrow Collaborating with Suppliers and Value Chain Partners

SERVING AND EMPOWERING COMMUNITIES

Supporting Sustainable
Livelihoods
Horizon I | Strengthen today’s
ITC’s Management Approach dominant source(s) of livelihoods
ITC’s Social Investment Programme - Mission Sunehra OBJECTIVE
Kal (MSK) aims to transform the lives of even the most Build resilience, reduce costs & risks
marginalised sections of the society to live a life of dignity. and improve returns from the current
The Company’s focus on grassroots empowerment, portfolio of economic activities.
based on knowledge and technology transfer, confronts
livelihood challenges of today and tomorrow through a INITIATIVES & INTERVENTIONS
holistic approach to create healthy, educated, skilled and On-farm
engaged communities, which look towards the future with Sustainable management of natural
confidence and determination. capital and farms to strengthen
agriculture
The Company’s CSR Policy, approved by the Board guides
the programmes, projects and activities that the Company Off-farm
plans to undertake to create a significant positive impact Create non-farm livelihood
on its identified stakeholders. These fall within the opportunities, especially for women
purview of Schedule VII of the provisions of Section 135 of
the Companies Act, 2013 and the Companies (Corporate
Social Responsibility Policy) Rules, 2014. Horizon II | Create capabilities
for tomorrow
ITC’s Two Horizon Approach
OBJECTIVE
Extensive needs assessment surveys demonstrate that
• Improve habitats to reduce
the core challenge of ITC’s stakeholder groups (rural
morbidity and ensure a healthy
communities with whom ITC’s Agri Business has forged
community.
long and enduring partnerships through crop development
• Enable the youth to develop skills Create enduring partnerships
and procurement activities, and communities close to Coverage
for gainful employment.
ITC’s manufacturing units) is that of securing sustainable The projects promoted under the Social At the core of MSK programmes is the
livelihoods today and creating capabilities for tomorrow. Investments Programme are spread over commitment to create enduring partnerships
INITIATIVES & INTERVENTIONS
216 districts of 25 States/Union Territories. with key stakeholders like grassroots institutions,
Accordingly, interventions under the Company’s Social • Invest in public hygiene facilities.
government, and knowledge and implementation
Investments Programme (SIP) are appropriately designed to • Focus on quality learning in schools.  With the addition of new factory locations, 6 more partners. Public Private Partnerships with
build their capacities and promote sustainable livelihoods. clusters were added to the original 113 totalling
• Promote skills aligned to market governments enable rapid scale-up of
A summary of this approach and key highlights has been 119 clusters, comprising 1,924 villages/wards
demand. programmes that have been piloted and tested
provided below. (previously 1,086). This forms the core operational in ITC’s project locations. Cumulatively, MSK has
For more details on ITC’s Mission Sunehra Kal (MSK), please geographies of the Company’s Social Investments signed 83 MoUs with several State Governments
refer to the Creating Sustainable Livelihoods section of ITC’s Programme. and other Government agencies.
Sustainability Report 2021.

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 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Delighting Customers Creating Shareholder Value through Responsible Competitiveness Preserving and Nurturing the Environment Serving and Empowering Communities Workforce of Tomorrow Collaborating with Suppliers and Value Chain Partners

SERVING AND EMPOWERING COMMUNITIES

Key Highlights of Mission Sunehra Kal

10,524 1,64,055 83 7,71,119 160 million 29,184

Grassroots Institutions/ Members MoUs Signed Acres Person days of employment Women Covered through
Community Based generated Ultra-Poor Women
Organisations created Empowering Grassroots Institutions Government Partnerships Sustainable Agriculture Social & Farm Forestry programme
Empowering Grassroots Institutions Women Economic Empowerment

8.08 lakh 93,980 38,153 7.31 lakh 26.13 lakh 21,991

Children Covered under Youth trained on Individual Household Toilets Households Artificial Inseminations (AIs) Water Harvesting
various education initiatives market-relevant skills (IHHTs) constructed leading to covered undertaken Structures Constructed
Primary Education Vocational Training 100% of project catchments Solid Waste Management Integrated Animal Husbandry Water Stewardship
becoming Open Defecation Programme
Free (ODF)

41.95 million m
Public Health - Sanitation
3
Of Fresh Water Harvesting
Potential Created
Water Stewardship

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 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Delighting Customers Creating Shareholder Value through Responsible Competitiveness Preserving and Nurturing the Environment Serving and Empowering Communities Workforce of Tomorrow Collaborating with Suppliers and Value Chain Partners

SERVING AND EMPOWERING COMMUNITIES

Performance Horizon I

against Sustainable Livelihoods Today

Target 2030 Objective

De-risk poor rural households by diversifying farm

Initiatives

Social Forestry
UoM

Acres
Target 2030

6,30,000
Achieved till 20-21

3,94,678
Balance to achieve

2,35,322

for Mission
portfolios through the promotion of tree-based farming

Integrate diverse elements of the rural portfolio of initiatives Sustainable Agriculture1 Acres 30,00,000 7,71,119 22,28,881

Sunehra Kal
into a Climate Smart Village approach

Ensure water security for all stakeholders through Watershed Development Acres 22,00,000 12,31,251 9,68,749

programmes
watershed development & managed aquifer recharge Water Harvesting Structures Nos. 50,000 21,991 28,009
Storage Potential million kl 60.00 41.95 17.11
Bio-Diversity Conservation Acres 2,50,000 44,044 2,05,956

Actively promote non-farm livelihood opportunities to Women Economic Nos. 1,50,000 77,851 72,149
diversify income portfolios of poor households Empowerment

Horizon II
Creating Capabilities for Tomorrow

Objective Initiatives UoM Target 2030 Achieved till 20-21 Balance to achieve

Ensure that every child is in school and learning well Improvement in learning No. of 13,00,000 8,08,462 4,91,538
through improvement in pedagogy and the learning outcomes children
environment Infrastructure support to Nos. 4,000 2,105 1,895
Government Schools

Align skills training to market demand to maximise Vocational Training No. of 2,82,000 93,980 1,88,020
employment of youth from core areas youths

Reduce morbidity, especially amongst women and children, Toilets constructed Nos. 40,000 38,153 1,847
by promoting a clean and healthy environment Solid Waste Management No. of 6,00,000 7,31,272 Achieved
(SWM) Households2

1 hectare = 2.47105 acres | 1. Figures on Sustainable agriculture area and SWM - households covered, pertains to FY 2020-21 | 2. In view of 100% of project areas being declared ODF by the government the Target has been revised

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 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

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SERVING AND EMPOWERING COMMUNITIES

reaching out to those in distress

The pandemic has uprooted lives and livelihoods of The outcomes of these large-scale initiatives were
million of people at an unimaginable scale, especially measures and the impact data was shared with
those close to the bottom of the social pyramid. As the Government. Sample studies conducted at
part of its societal commitment, ITC has focused on one village in Andhra Pradesh showed that the enabling the marginalised to build an inclusive society
generating additional employment in its project areas intervention areas performed better on several
Bhaukhedi Nikas is a small village in Madhya Pradesh has realised how digital banking can transform the
to support vulnerable communities. ITC’s Mission parameters (higher average earnings per day,
with no access to digital communication or banking lives of rural people. She has also taken a loan of
Sunehra Kal has generated livelihoods for farmers, participation of women and SC and ST members,
services within 20 kilometres. Madina, 37, a resident ` 2.5 lakh from the bank to set up a Common Service
and daily wage earners under the Mahatma Gandhi among others) vis-à-vis other villages in the district.
of the village was unaware of the benefits provided Centre.
National Rural Employment Guarantee Scheme
by the government until she became a part of ITC’s
(MGNREGS).

Following the easing of restrictions, ITC has

55 lakh Sunehra Kal programme conducted in collaboration
with Madhya Pradesh State Rural Livelihood Mission.
Today, villagers from 10 panchayats rely on her for a
variety of online banking services. Her Centre also
Person days of work (valued at D 90.5 crores) helps people to get the benefits (LPG subsidy, pension,
collaborated with the government and NGO partners was completed in 2,448 villages spanning She was also trained to become a Yojna Sakhi, where
she initially managed accounts for Self Help Groups insurance) of government schemes. Earning a decent
to mobilise farmers, migrant families, and landless 64 districts of 16 states
and encouraged women to open their own bank income, while helping so many around her, Madina
workers to access work opportunities under
5,631 accounts. feels more confident than ever before. She wants to
MGNREGS; and help build productive community
study more and help others learn as a teacher. She has
assets. ITC has provided technical support for
Water Harvesting Structures were Madina, now a Bank Sakhi, helps community already registered for a BA and B.Ed course, because
planning and execution of the projects and ensured
Constructed for Irrigation members, especially rural women to open their own she knows education is the pathway to empowerment.
the adherence of safety protocols for workers.
bank accounts. Not a digital have-not anymore, she

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Delighting Customers Creating Shareholder Value through Responsible Competitiveness Preserving and Nurturing the Environment Serving and Empowering Communities Workforce of Tomorrow Collaborating with Suppliers and Value Chain Partners

Workforce
of Tomorrow
ITC'S FOCUS AREAS

Nurturing Leaders
of Tomorrow

Employee
Engagement: The
ITC Way

Upholding
Human Rights

ITC’s Approach
ITC believes that sustained long-term value ITC's human resources that provide the thrust
is created through organisational vitality in ensuring ITC continues to deliver world-class
Diversity & Equal manifested through the power of innovation, performance and enhances its reputational
Opportunity connectedness with evolving consumer capital. ITC, therefore, directs its efforts and
and customer expectations and execution human capital investments towards sustaining
excellence. Such vitality is best nurtured in an its position as one of India's most valuable
enabling environment of empowerment and employers, strengthening engagement of the
accountability to harness the full potential of workforce, fostering a competitively-superior,
Promoting A ITC’s human capital. In a volatile, uncertain performance-driven culture and remaining
Culture of Safety and intensely competitive environment, it is future-ready.

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 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Delighting Customers Creating Shareholder Value through Responsible Competitiveness Preserving and Nurturing the Environment Serving and Empowering Communities Workforce of Tomorrow Collaborating with Suppliers and Value Chain Partners

WORKFORCE OF TOMORROW

Nurturing Leaders of Tomorrow Apart from career management and a strategy of organisation
Building talent has been a foundational feature of ITC’s talent that promotes agility and accountability, the Company also makes
strategy. ITC’s human resources systems and practices are designed significant investments in management development. ITC has
to deliver the unique talent promise of ‘Building Winning Businesses, assiduously built a culture of continuous learning, innovation and
Developing Business Leaders and Creating Value for India’. The collaboration by providing leading-edge learning and development
talent development practices help create, foster and strengthen the support to managers. The emphasis is on providing experiential
capability of human capital to deliver critical outcomes on the vectors learning through on-the-job assignments, an enabling & supportive
of strategic impact, operational efficiency and capital productivity. ITC environment and promoting learning agility. Managers are assessed
continues to draw the finest management, technical and commercial ITC’s behavioural competency framework and provided with
talent from premier institutions in the country and is ranked amongst learning and development support to address areas identified for
the leading companies in these institutions. Intensive engagement improvement.
with the country’s premier academic institutions over the years to ITC has identified three capability platforms relevant to making
communicate the Company’s talent proposition through case-study businesses future-ready – Business Critical Strategic Competencies,
competitions, knowledge sharing programmes by senior managers Leadership Development and Organisation Identity & Pride.
and the annual internship programmes have all contributed to create Employees are offered best-in-class learning and development
a compelling proposition for the best candidates to aspire for a career support comprising a blend of classroom, online and on-the-job
with ITC. Such talent is positioned in high-impact roles which offer training. Globally benchmarked learning curriculums are designed
opportunities to deploy functional mastery and team management and delivered through subject matter experts and internationally
capabilities to problem solve, deliver operational excellence and recognised faculty which are supplemented with business-critical
contribute to strategy development. Such roles facilitate deep application projects. Learning is further supplemented with
functional expertise early in one’s career through immersion in on-demand, online programmes made accessible to employees
complex problem-solving assignments requiring the application of through reputed content platforms. This approach ensures the
domain expertise. Apart from early responsibilities, such talent is assimilation as well as application of learning for superior
provided the opportunity to work closely with, and be mentored by, business results.
senior leadership on strategic projects and assignments through fora
such as 'Launch Pad' and the 'Young Manager Committee’.
Employee Engagement: The ITC Way
ITC’s three-tiered governance structure is designed to promote ITC's focus on creating a stimulating work environment supported
agility through a culture of distributed leadership. This is reflected by a caring and compassionate work ethos enables employees to ITC’s three-tiered governance
in market and consumer facing businesses which are driven by thrive and deliver winning performances. ITC's efforts consistently structure is designed to promote
empowered teams and supported by shared assets and capabilities, aim to positively influence all aspects of an employee's life - physical, agility through a culture of
enabling strategic relevance, speed, responsiveness and operational mental and emotional. Specific elements of ITC's work practices and distributed leadership. This is
excellence. This approach allows Businesses, through their culture are based on the management approach articulated in Board- reflected in market and consumer
Management Committees, to focus, develop and execute business approved Policies on 'Diversity and Equal Opportunity', 'Freedom facing businesses which are
plans relevant to their product-market spaces while leveraging of Association' and 'Environment, Health and Safety', among others. driven by empowered teams and
the institutional strengths of the Company and harvesting internal Beyond every framework, enabler or outcome, the success of supported by shared assets and
synergies. Such an approach provides talent the autonomy to solve employee centric policies across businesses can be attributed to a capabilities, enabling strategic
business challenges and craft relevant, market-focussed solutions, relational contract that inspires pride and endears employees to the relevance, speed, responsiveness
while acting with accountability and preserving ITC’s values in the Company. It is something that, over time, has become the "ITC way", and operational excellence.
operations of the various Businesses. guiding and influencing the Company's people policies and providing
fertile ground for a culture of commitment and excellence.

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WORKFORCE OF TOMORROW

In 2020, ITC completed the third edition of its Employee Engagement power of synergy for cross-fertilisation of ideas. Both these forums Diversity and Equal Opportunity
Survey - iEngage, capturing employee perceptions and views in combination are expected to serve as fertile ground for ideation, ITC believes that diversity at the workplace fosters and enhances the
on various workplace dimensions. In this survey, 95% of survey exploration and harvesting of the full potential of digital. overall quality of decision making and problem solving, helps bring
respondents said that they were proud to work at ITC, a score that
ITC's approach to enthusing talent with market driven remuneration, different perspectives to issues at work and therefore enhances
is amongst the highest globally. The results of the 2020 survey,
learning avenues, quality of life and challenging work continues to the quality of discourse within the Company. The Company's Policy
which witnessed even higher scores over the previous survey
play a pivotal role in enduring employee relationships. Rigorous in this regard provides for equal opportunities to all employees
on the dimensions of Employee Engagement, Performance
and objective performance assessment and management systems based on merit. It ensures a work environment free from any
Enablement and Managerial Effectiveness are a testimony to the
provide impetus to the alignment between expectations and business form of discrimination amongst employees – whether based on
efforts devoted to enhancing the culture of high performance and
outcomes. 'Career Conversations' to navigate and craft meaningful caste, religion, disability, gender, sexual orientation, race, colour,
employee care. Through a process of focus group discussions,
roles and manage aspirations were strengthened this year to provide ancestry, marital status or affiliation with a political, religious or union
action plans in the areas of Communication, Recognition, Team Work
a boost to performance and retention. organisation or majority/minority group.
& Collaboration, Career Management and Employee Wellbeing,
have been implemented during the year. Employee recognition ITC believes that the achievement of ITC’s growth objectives will
through introduction of recognition platforms across businesses, Promoting a Culture of Safety
depend largely on the ability to innovate continuously, connect
communication through Town Halls, skip level meetings and direct closely with the customer, and create and deliver superior and A safe and healthy work environment is a prerequisite for ensuring
interaction of identified managers with the senior leadership, unmatched customer value. This has been made possible by nurturing employee wellbeing, and adopting best practices in occupational
reinforcement of career dialogues and improving goal clarity through a culture of continuous learning, innovation and collaboration health and safety bears a direct impact on the overall performance
the performance management system have all contributed to across the organisation. In keeping with this spirit of innovation and of ITC.
improving the levels of engagement across the Company. experimentation, the year also saw the launch of the ‘ReImagine To percolate safety deeper into ITC's operational practices and
In addition to the existing initiative of ‘StudioOne’ Townhall, a second Next’ ideation contest, inviting suggestions from teams of employees achieve the 'Zero Accident' goal, the Company has developed
more personalised platform for interactions titled ‘Studio One about new business models and products. The most promising of a comprehensive EHS strategy founded on two pillars: ‘Safety
Xchange’ commenced in 2020-21, providing an avenue for employees these ideas were selected and identified teams were commissioned by Design’ and ‘Safety by Culture’. ITC follows ‘Safety by Design’
to hear from and engage with the leadership in the Company resources to execute pilots. by continuously striving to improve on safety performance by
incorporating best-in-class engineering standards in the design and
In pursuit of strengthening its competitive vitality, ITC has made Upholding Human Rights
project execution stage for all investments in the built environment.
significant investments in recent years in building digital capacity,
The Company has Policies on human rights which are applicable This helps reduce potential hazards as well as optimise operational
recognising its transformative potential across the value chains of
to all its employees and value chain partners. The said Policies and costs. Additionally, Environment, Health & Safety audits are carried
its Businesses. The utility of all these investments were amplified
their implementation are directed towards adherence to applicable out to verify compliance with standards.
during the pandemic, enabling superior responsiveness and agility
laws and upholding the spirit of human rights, as enshrined in
in our engagement with consumers, various stakeholders and in the ‘Safety by Culture’ looks at driving behavioural change so that safety
existing international standards such as the Universal Declaration
management of our supply chains. With the intent of embedding is ingrained in the culture of the organisation across operating units.
and the Fundamental Human Rights Conventions of the International
digital adoption and recognising its potential as a foundational Accordingly, behaviour-based safety initiatives are progressively
Labour Organisation (ILO). The Company continues to work
capability, the ‘Young Digital Innovators Lab’ was constituted, being implemented across several operating units.
towards strengthening and introducing systems to ensure sound
comprising of select managers, drawn from ITC’s Businesses. The
implementation of ITC's policies on human rights and decent ITC’s Paperboards and Specialty Papers Division (PSPD) has
role of the Digital Innovators is to benchmark ITC’s digital assets
work place. pioneered the use of Design Thinking principles for seamless
against the best-in-class, suggest opportunities for adoption and
integration of safety in business operations, resulting in significant
improvement and propose deployment of digital technologies to
For more details on ITC’s Talent Management approach including information positive behavioural changes.
enhance the competitiveness of our various Businesses. The Young on Recruitment, Employee Engagement, Learning and Development,
Digital Innovators act as mentors to the Digital Council who will ideate, Employee Well-being Initiatives, Rewards and Recognition, Diversity and Equal Several national awards and certifications received by various
Opportunity and Human Rights, please refer to Workforce of Tomorrow section
seed, sponsor high impact digital interventions and harness the of ITC’s Sustainability Report 2021. units reaffirm Company’s commitment to provide safe and healthy
workplace to all.

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 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Delighting Customers Creating Shareholder Value through Responsible Competitiveness Preserving and Nurturing the Environment Serving and Empowering Communities Workforce of Tomorrow Collaborating with Suppliers and Value Chain Partners

women in factories

ITC’s food manufacturing units have been engaging about safety practices, product quality and hygiene,
an increasing number of women on the shopfloor. and systems relating to the wellbeing of employees.
With women constituting about 73% of the Institutional support, in the form of facilities like
workforce, ITC's Pudukkottai unit in Tamil Nadu is a creche, round the clock access to the health centre
beacon of diversity with regard to employment of and safe transportation with vehicles equipped with
women. Similarly, ITC's Foods unit at Nanjangud in CCTV cameras, GPS and panic button, have been
Karnataka is the first FMCG factory in the region to provided.
deploy women workforce across all shifts. Women
constitute close to 62% of the workforce at the Several communication and participation fora
Nanjangud unit. These factories deploy state-of-the- such as Committees, Town Hall meetings, and a
art manufacturing technology with ergonomically grievance management process are in place.
designed equipment to enable women participation The factories have also been organising well-being
across all jobs on the shop floor. initiatives and occupational awareness sessions
regarding women health issues and gender
As part of the induction and assimilation process, sensitisation.
on the day of joining, women employees as well
as their family members are provided with an
orientation to the work environment. They interact
with the factory leadership team and are briefed

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 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Delighting Customers Creating Shareholder Value through Responsible Competitiveness Preserving and Nurturing the Environment Serving and Empowering Communities Workforce of Tomorrow Collaborating with Suppliers and Value Chain Partners

Collaborating
with suppliers
and value chain
partners
Global supply chains continue to evolve
across industries with rising digitalisation,
integration and strong emphasis on The Foods Business has a robust
food safety management
sustainability and responsible sourcing.
system to effectively meet the
stringent requirements related
to food safety, quality processes
ITC’s Approach and hygiene.
ITC has Board approved Sustainability Policies
namely ‘Responsible Sourcing’ and ‘Human 82 out of 88 manufacturing ITC has a 'Code of Conduct for Vendors and ISO 9001, ISO 14001, OHSAS 18001 and ITC's
Rights Consideration of Stakeholders beyond locations (including outsourced Service Providers' that detail the requirements Corporate Environment, Health and Safety
the Workplace’ that address key supply chain manufacturing units) which related to the aspects addressed in the Policies. (EHS) Guidelines. Contract manufacturing
sustainability issues like: accounted for more than 97% Through acceptance of this Code by supply chain agreements provide for compliance with
of ITC Foods Division’s total partners, ITC seeks their commitment to comply accepted standards on issues related to EHS,
production volume in 2020-21, with applicable laws, respect human rights and human rights and labour practices. These
Labour Practices are certified as per recognised contribute to environmental conservation. ITC interventions are some of the examples of
standards like FSSC 22000/ ISO has facilitated training workshops for more than the Company’s sustainability practices being
Human Rights 22000/ Hazard Analysis and 150 supply chain partners to educate, and create adopted by its supply chain network partners.
Critical Control Point (HACCP). shared awareness on human rights and decent
Bribery and Corruption Certification of the remaining ITC also supports its Third Party Manufacturing
labour practices till date and ITC will continue
six newly commissioned units is Units by providing knowledge support in specific
to support more such workshops to strengthen
planned in 2021-22. areas like energy, water, waste and quality
Environment awareness on human rights and decent labour
management to drive performance improvement
practices. Going forward, systems will be put in
across the value chain.
place for coordinated efforts towards continual
Occupational Health and Safety For more information, please refer to the
‘Sustainable Supply Chain’ section of
improvement in working conditions. The Company works in close partnership with
ITC Sustainability Report 2021. small-scale units in businesses such as Safety
Vendors and service providers including
Matches, and Education and Stationery Products.
outsourced manufacturing establishments are
These partnerships have significantly enhanced
encouraged to adopt management practices
survival and competitiveness of a number of units
detailed under International Standards such as
in these sectors.

Integrated Report 2021 | 78 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

Delighting Customers Creating Shareholder Value through Responsible Competitiveness Preserving and Nurturing the Environment Serving and Empowering Communities Workforce of Tomorrow Collaborating with Suppliers and Value Chain Partners

COLLABORATING WITH SUPPLIERS AND

VALUE CHAIN PARTNERS
zero deforestation in tobacco value chain
ITC Agri Business is committed to ensuring ‘Zero Deforestation’ across
the leaf tobacco value chain. The Business has implemented a three-
pronged approach to conserving energy and ensuring sustainable fuel
management in tobacco curing. This entails the introduction of fuel-
efficient technologies, promotion of self-sustenance through energy
plantations and use of alternative fuels.
• Energy conservation measures (Barn Roof Insulation, turbo
ventilators and so on) which can reduce nearly about 30% of
energy requirement during curing are being deployed on a large
scale, spanning 36,965 barns in Andhra Pradesh and Karnataka.
• To embrace a self-sustaining model for fuel sourcing, ITC has
encouraged the planting of trees that cover 155,866 acres till date.
The Business has also undertaken green cover across rural lands
by helping improve natural vegetation.
• Encouraging farmers to use alternate fuels for curing like coffee
husk, coffee stems, coconut fronds and biomass briquettes.

155,866 36,965
Acres of trees planted, to Barns in Andhra Pradesh and
embrace a self sustaining Karnataka run with energy
model for fuel sourcing conservation measures (Barn Roof
Insulation, Turbo Ventilators and so on) sustainable tobacco programme (stp 2.0)
ITC's approach to sustainability in the tobacco value chain
undergoes a comprehensive review by the Sustainable
Tobacco Programme (STP). The programme evaluates
empowering farmers through crop value the sustainability performance of Leaf Tobacco suppliers'
chain cluster model operations on eight themes namely – Water, Human Rights,
Crop, Soil, Climate Change, Natural Habitats, Livelihoods and
ITC is stepping up farmer engagement in wheat, potato, chillies Governance. The Business successfully implemented the
and fruits & vegetables through a Crop Value Chain Cluster model tobacco customers’ requirement in the farm supply chain.
to connect small farmers to key markets. ITC expects to support
nearly 3000 Farmer Producer Organisations (FPOs) with more than
a million farmers across 24 crop value chain clusters in 21 states,
shaping competitive agri value-chains and enhancing farmer
incomes. These value chains are anchored on ITC’s investments
in food processing, its vibrant brands as well as exports.

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 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

ITC’s Corporate Governance Governance Structure and Interlinkage with Management Board of Directors and Executive Management ESG Risk Management Ratings and Awards Certifications

GOVERNANCE In order to address its unique

Enabling Agility &

organisational context and prepare
itself for the global Indian market,
ITC, as early as in 1999, fashioned

Responsibility
a unique corporate governance
model that would enable it to
‘focus’ on its multiple businesses,
while maximising shareholder value.
The Governance Policy of ITC has not only
stood the test of time, but also supported ITC’s
rapid growth in the last two decades since its
formulation.
ITC defines Corporate Governance as a systemic
process by which companies are directed and
controlled to enhance their wealth generating
capacity. Since large corporations employ a
vast quantum of societal resources, ITC believes
that the governance process should ensure that
these resources are utilised in a manner that
Adjudged ‘Best Governed
meets stakeholders’ aspirations and societal
Company’ by the Institute
expectations.
of Company Secretaries
ITC’s Corporate Governance 81 of India (ICSI)
Governance Structure and At the 20th ICSI National Awards
Interlinkage with Management 82 for Excellence in Corporate
Board of Directors and Governance, 2020 in the ‘Listed
Segment: Large Category’, in
Executive Management 83 recognition of its robust governance
ESG Risk Management 86 model anchored on the values
of trusteeship, transparency and
Ratings and Awards 87 ethical corporate citizenship.
Certifications 89

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 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

ITC’s Corporate Governance Governance Structure and Interlinkage with Management Board of Directors and Executive Management ESG Risk Management Ratings and Awards Certifications

ITC’s Corporate
Governance Ethics and Integrity
The ITC Code of Conduct, as adopted
by the Board of Directors of the
ITC’s corporate governance Company, is applicable to Directors,
philosophy is anchored on the senior management and employees
of the Company.
values of trusteeship, transparency,
The Code is derived from three
ethical corporate citizenship,
interlinked fundamental principles,
empowerment & accountability viz. good corporate governance, good
and control. corporate citizenship and exemplary
personal conduct in relation to the
Company’s business and reputation.
The Code covers ITC’s commitment to
CSR and sustainable development,
concern for occupational health,
safety and environment, a gender
friendly workplace, transparency and
auditability, legal compliance and
the philosophy of leading by personal
ITC’s governance framework example. The Code is available on the
enjoins the highest standards of Company’s corporate website and is
ethical and responsible conduct shared with employees at the time
of their induction into the Company.
of business to create value for all Any violation of the ITC Code of
stakeholders. Conduct by an employee renders the
person liable for disciplinary action.

For more details on ITC’s Code of Conduct, ITC’s Corporate Governance Philosophy
Corporate Governance at ITC and other
ITC Policies, please refer to the Report on
Corporate Governance section of ITC’s
Report and Accounts 2021 and the Corporate
Governance section of ITC’s Sustainability
Report 2021

Trusteeship Transparency Ethical Corporate Empowerment Control

Citizenship & Accountability

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 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

ITC’s Corporate Governance Governance Structure and Interlinkage with Management Board of Directors and Executive Management ESG Risk Management Ratings and Awards Certifications

Governance Governance Structure

structure and
interlinkage with
management
Board of Directors
ITC’s Corporate Governance structure, systems
and processes are based on two core principles:
• Management must have the executive freedom
to drive the enterprise forward without undue
restraints.
• This freedom of management should be
exercised within a framework of effective CSR and Audit Nomination & Corporate Securityholders Independent
accountability. Sustainability Committee Compensation Management Relationship Directors
Committee Committee Committee Committee Committee
The practice of Corporate Governance in ITC
takes place at three interlinked levels:
Divisional Management Corporate Functions Shared Services
1. Strategic supervision by the Board of Directors
Committees Businesses Businesses
2. Strategic management by the Corporate Each headed by a Divisional Planning & Treasury | Accounting | Taxation | Life Sciences & Technology |
Management Committee Chief Executive Risk Management | Legal | Secretarial | Central Projects Organisation |
Businesses Internal Audit | EHS | Human Resources | Trade Marketing & Distribution
3. Executive management by the Divisional FMCG | Hotels | Paperboards, Corporate Communications | Corporate
Paper & Packaging | Agri Business | Affairs | IT Support Services
Chief Executive assisted by the Divisional
Information Technology
Management Committee

Reference to Division includes Strategic Business Unit, Business Vertical and

Shared Services. For more details on ITC’s governance structure, please refer to
the ‘Report on Corporate Governance’, forming part of the Report and
Accounts 2021.

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 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

ITC’s Corporate Governance Governance Structure and Interlinkage with Management Board of Directors and Executive Management ESG Risk Management Ratings and Awards Certifications

BOARD OF DIRECTORS & EXECUTIVE MANAGEMENT

Strategic Mr. S. Puri Mr. N. Anand Mr. B. Sumant Mr. R. Tandon

Supervision by
Chairman & Managing Director Executive Director Executive Director Executive Director
NC CS CM RM CM RM SR CM RM SR CM RM

the Board of
Directors Mr. S. Banerjee
Independent Director
Mr. A. Duggal
Independent Director
Mr. S. B. Mathur
Independent Director
Mr. A. Nayak
Independent Director
AC NC IC AC IC AC IC NC SR IC

7 2 ~98%
Independent Women Average Board
Directors Directors Meeting Attendance
Ms. N. Rao Mr. A. K. Seth Ms. M. Shankar
Independent Director Independent Director Independent Director
CS IC CS IC NC CS IC

Mr. H. Bhargava Mr. A. Jerath* Mr. D. R. Simpson

Non-Executive Director Non-Executive Director Non-Executive Director
Representative of Life Representative of General Representative of Tobacco
Insurance Corporation Insurers’ (Public Sector) Manufacturers (India) Limited,
of India as Investor Association of India as Investor a subsidiary of British American
AC CS CS Tobacco p.l.c. as Investor
CS

NC | Nomination & Compensation Committee SR | Securityholders Relationship Committee

CS | CSR and Sustainability Committee AC | A  udit Committee
CM | Corporate
 Management Committee IC | Independent Directors Committee
RM | Risk Management Committee Chairman Member

*w.e.f. 01.05.2021 | Data as on 31.03.2021

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 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

ITC’s Corporate Governance Governance Structure and Interlinkage with Management Board of Directors and Executive Management ESG Risk Management Ratings and Awards Certifications

BOARD OF DIRECTORS & EXECUTIVE MANAGEMENT

Strategic Mr. Sanjiv Puri Mr. Nakul Anand Mr. Sumant Bhargavan

Management by
Chairman & Managing Director Executive Director Executive Director

the Corporate
Management Mr. Rajiv Tandon Mr. Supratim Dutta Mr. Hemant Malik

Committee
Executive Director Chief Financial Officer Divisional Chief Executive
Foods Business

Mr. Anil Rajput Mr. Sanjiv Rangrass Mr. Sanjay Singh

Senior Vice President Group Head - Quality Assurance Group Head
Corporate Affairs LSTC, CPO & EHS Paper and Packaging
Businesses

Mr. S. Sivakumar
Group Head
Agri & IT Businesses and
Chairman of the Management
Committee of the Social
Investments Programme

Data as on 31.03.2021

Integrated Report 2021 | 84 |

 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

ITC’s Corporate Governance Governance Structure and Interlinkage with Management Board of Directors and Executive Management ESG Risk Management Ratings and Awards Certifications

BOARD OF DIRECTORS AND EXECUTIVE MANAGEMENT

Executive India Tobacco Division Mr. Sandeep Kaul

Divisional Chief Executive
Matches and Mr. Gaurav Tayal
SBU Chief Executive

Management by
Agarbatti Business
Mr. Devraj Lahiri
Chief Operating Officer

the Divisional Chief Foods Division Mr. Hemant Malik Trade Marketing & Mr. Sandeep Sule

Executive assisted Divisional Chief Executive

Mr. S. Ganesh Kumar
Distribution (TM&D)
of ITC FMCG
Chief Executive Officer

by the Divisional
Chief Operating Officer, SBU Chief
Executive, Staples, Snacks & Meals
Mr. Sanjay Singal

Management
Chief Operating Officer,
Dairy & Beverages Hotels Mr. Anil Chadha
Division Chief Operating Officer
Ms. Kavita Chaturvedi

Committee
Chief Operating Officer, Snacks
Mr. Anuj Kumar Rustagi
Chief Operating Officer for
Chocolates, Coffee, Confectionery
and New Category Development Paperboards & Mr. Vadiraj Kulkarni
Mr. Ali Harris Shere Speciality Papers Division Divisional Chief Executive
Chief Operating Officer,
Biscuits & Cakes

Personal Care Mr. Sameer Satpathy Packaging and Mr. Dhananjay Salunkhe
Divisional Chief Executive Printing Business SBU Chief Executive
Products Division

Education and Mr. Vikas Gupta Agri Business Mr. Rajnikant Rai
Stationery Business SBU Chief Executive Divisional Chief Executive

Please refer to Business Heads Agri Business - Mr. H. N. Ramaprasad

Tobacco SBU SBU Chief Executive
As on 08.07.2021

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 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

ITC’s Corporate Governance Governance Structure and Interlinkage with Management Board of Directors and Executive Management ESG Risk Management Ratings and Awards Certifications

ESG Risk Sustainability Governance Structure

Management
CSR and Sustainability Committee During the year, four meetings of the SCRC were
Board Committee on CSR and Sustainability held to review the sustainability performance of
The CSR and Sustainability Committee of the
Board, inter alia, reviews, monitors and provides the Company.
Headed by Chairman
strategic direction to the Company’s CSR and
For superior ‘Triple Bottom Sustainability Policies
sustainability practices towards fulfilling its ‘Triple
ITC has adopted a comprehensive set of Board
Line’ performance, ITC’s Bottom Line’ objectives. The Committee seeks
to guide the Company in crafting unique models approved Sustainability Policies that are being
Governance processes ensure Corporate Management Committee implemented across the organisation in pursuit
to support creation of sustainable livelihoods
that sustainability principles are together with environmental re-generation, of its ‘Triple Bottom Line’ agenda. These Policies
Chairman & Managing Director
embedded in business strategies and formulates & monitors the CSR Policy. The are aimed at strengthening the mechanism of
Committee also reviews the annual CSR Action engagement with key stakeholders, identification
and execution plans. of material sustainability issues and progressively
Plan and the Business Responsibility Report of
the Company, and recommends the same to the monitoring and mitigating the impact along the
Sustainability Compliance Review Committee value chain of each Business.
Board for approval.
Chaired by Group Head Sustainability, EHS The CSR and Sustainability Committee presently Implementation
and CMC Member comprises the Chairman of the Company and In line with ITC’s sustainability roadmap,
five Non-Executive Directors, three of whom businesses are moving ahead in a phased manner
are Independent Directors. The Chairman of the to implement the above Policies. The overall
Company is the Chairman of the Committee. responsibility for ensuring implementation of
Divisional CEO & Divisional The Company Secretary is the Secretary to the Policies resides with the Divisional/ Strategic
Management Committees
Committee. The names of the members of this Business Unit (SBU) Chief Executives who
the Committee and the number of meetings held work with their respective management teams.
during the year are provided in the Report and Various committees designated with specific
Accounts. responsibilities have also been constituted for
Unit Level Responsibility operationalising the Sustainability Policies.
Sustainability Compliance Review
Sustainability Coordinators across Divisions Committee Please check the following link for details
The Corporate Management Committee ITC’s Sustainability Policies.
(CMC) has also constituted the Sustainability
Compliance Review Committee (SCRC), which
presently comprises seven senior members of
management, with its Chairman being a member
of the CMC. The role of the Committee includes
monitoring and evaluating compliance with
the Sustainability Policies of the Company and
placing a quarterly report thereon for review by
the CMC.

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 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

ITC’s Corporate Governance Governance Structure and Interlinkage with Management Board of Directors and Executive Management ESG Risk Management Ratings and Awards Certifications

Ratings and ITC has been a pioneer and frontrunner in Sustainability

performance for more than two decades. It has undertaken
ITC is continuously working on all fronts focusing on well-
defined targets and goals to sustain and strengthen its

Awards multi-dimensional and large-scale initiatives that contribute

to its leadership in Environmental, Social and Governance
leadership in ESG performance. Its superior ESG performance
has also been acknowledged by leading analysts and
(ESG) issues. During the year, ITC sustained its ‘AA’ rating by brokerage firms.
MSCI-ESG - the highest amongst global tobacco companies,
and has also been included in the Dow Jones Sustainability
Emerging Markets Index.

Major Awards 2020-21

• M
 r. Sanjiv Puri, Chairman & Managing Director, • ITC received the ‘Gold Award’ for the sustainable programme, for its efforts in implementing • ITC’s Unit in Bengaluru was presented the
was ranked 2nd nationally in the Impact Digital paper value chain and CSR initiatives in sustainable agricultural practices with chilli ‘Sustainable Factory of the Year Award’ from
Power 100: Business Leaders List published Bhadrachalam in the ‘Media PR engagements’ farmers in the states of Andhra Pradesh, Frost & Sullivan and The Energy and Resources
by Exchange4Media, a leading online news category at the SABRE South Asian Awards 2020. Karnataka and Telangana. Institute (TERI) at the Sustainability 4.0 Awards
platform. and ‘Environmental Best Practices Award 2020’
• ITC won 2 ‘Gold Awards’ at the Fulcrum Awards • ITC’s India Tobacco Division received CII by CII.
• ITC was conferred the ‘Best Governed Company’ 2020 under the Best Manufacturing Sector National HR Excellence Award for ‘Significant
Award in the Listed Segment: Large category Campaign category and under the Best Regional Achievement in HR Excellence’. • ITD Kidderpore unit received ‘IGBC Platinum’
by the ICSI at the 20th ICSI National Awards for Campaign category. Rating 2020 from the Indian Green Building
• The ‘Savlon Healthy Hands Chalk Sticks’ Council.
Excellence in Corporate Governance 2020.
• ITC’s Foods Division received Two Effie Awards campaign by ITC’s Personal Care Products
• ITC won the First prize in seven categories at the in the ‘Integrated Marketing Campaign’ and Business Division (PCPBD) was featured in the • ITC’s Units in Kidderpore and Saharanpur,
Public Relations Society of India (PRSI) National ‘Foods’ Categories (Silver Awards – highest Cannes Lions ‘Iconic Work of the Decade’. Bhadrachalam and Nanjangud received ‘Energy
Awards 2020. honours) for Aashirvaad Atta’s ‘Tarun’s Tiffin’ Efficient Unit Awards’ from CII at the 21st National
• ITC’s Hotel Division won the First prize at the Awards for Excellence in Energy Management
advertisement campaign.
• ITC’s Paperboards & Specialty Papers Division Travel + Leisure India’s Best Awards 2020. 2020.
(PSPD) was awarded the ’Most Innovative • ITC’s Foods Division received Four Gold Awards
• ITC’s Hotel Division received Six Awards at the • ITC’s PSPD Bhadrachalam unit received
Environmental Project‘ Award at the 7th CII for Excellence in Digital Marketing at the CMO
Conde Nast Traveller Readers’ Travel Awards ‘Excellent Energy Efficient Unit’ and ‘Best
Environmental Best Practices Award 2020 Asia National Awards 2020.
2020. Innovative Project’ Awards at the 21st National
organised by CII - Green Business Centre.
• The virtual summit on ‘Digital Enablement for Awards for Excellence in Energy Management
• ITC’s PSPD Bhadrachalam unit received
• ITC’s Communications campaign on ‘Well-being Kirana Outlets’ organised by ITC’s Foods Division 2020 organised by CII.
“GreenCo Platinum+” rating by the Confederation
out of Waste (WOW) was adjudged as one of and Trade Marketing and Distribution (TM&D)
of Indian Industry (CII) - Green Business Centre
the best global Communication campaigns at was registered by the Guinness World Records
for its Environmental Stewardship.
the Global SABRE Awards 2020. It also won for the ‘Most Viewers for a Retail Management
‘Diamond Award’ in the ‘Superior Achievement Livestream on a Bespoke Platform’. • ITC’s Units at Munger and Bengaluru received
in Reputation Management’ category and two ‘IGBC Performance Challenge 2020’ for Green
• ITC’s Agri Business received the Global Good
‘Gold Awards’ in the ‘Corporate image’ and Built Environment - Excellence Award’ at the
Agricultural Practices (GAP) certification, an
‘Corporate Social Responsibility’ categories at Green Building Congress 2020.
internationally acknowledged farm assurance
the SABRE South Asian Awards 2020.

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ITC’s Corporate Governance Governance Structure and Interlinkage with Management Board of Directors and Executive Management ESG Risk Management Ratings and Awards Certifications

RATINGS AND AWARDS

Major Awards Over the Years

• Mr Sanjiv Puri, Chairman & Managing Director, • ITC won the ‘Best Practices Award’ from United • ITC was ranked ‘India’s Most Admired Company’
was ranked one of the India’s Most Valuable Nations Global Compact Network India for two in a survey conducted by Fortune India
CEOs by BW Businessworld (2019). major game-changing initiatives of the Company magazine and Hay Group (2014).
– Integrated Watershed Development and
• M
 r Sanjiv Puri, Chairman & Managing Director, Social & Farm Forestry (2017). • ITC was presented the World Business and
was honoured with the ‘Distinguished Alumnus Development Award at the Rio+20 UN Summit
Award of the Year 2018’ conferred by IIT, • ITC Limited became the 1st company to win for its Social and Farm Forestry initiative (2012).
Kanpur in recognition of his achievements of the India Today Safaigiri Corporate Trailblazer
Award 2016. • ITC was conferred the National Award for
exceptional merit (2018).
Excellence in Corporate Governance by the
• ITC’s Kovai unit received the Platinum-level • ITC’s Sankhya Data Centre, Bengaluru became Institute of Company Secretaries of India (2007).
certification, the highest recognition for water the first data centre in the world to get LEED®
Platinum Certification from the US Green • ITC was the 1st Indian Company and 2nd in the
stewardship in the world, based on international
Building Council (2016). world to win the Development Gateway Award
benchmarks, from the Alliance for Water
for its trailblazing e-Choupal initiative (2005).
Stewardship, Scotland (2019).
• ITC’s Paperboards & Specialty Papers units at
• ITC has won the prestigious Porter Prize 2017 Bhadrachalam, Bollaram, Kovai and Tribeni are
for ‘Excellence in Corporate Governance and FSC Chain of Custody certified (2015).
Integration’ and for its exemplary contribution in
‘Creating Shared Value’ (2017).

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ITC’s Corporate Governance Governance Structure and Interlinkage with Management Board of Directors and Executive Management ESG Risk Management Ratings and Awards Certifications

CERTIFICATIONS

Environment, Social, Occupational Health

and Safety, Food Safety Certifications

ISO 14001: Environment Management SA 8000: Social Accountability Offices LEED® Zero Carbon by US Green Building
System Cigarettes factories at Kolkata and Munger, ITC Green Centre Gurugram, ITC Virginia House Council (USGBC)
• All ITC owned manufacturing units (except Leaf Packaging and Printing units at Munger, Kolkata and ITC Centre Kolkata • ITC Windsor.
threshing Unit at Anaparti). Tiruvottiyur and Haridwar, and SNPL Simara.
LEED® Platinum Rating by US Green Forest Stewardship Council ®
• All ITC owned Hotels (except recently
FSSC 22000/ISO 22000/HACCP: Food Building Council/Indian Green Building
commissioned ITC Grand Goa, ITC Royal • Paperboards & Specialty Paper units at
Safety Management System Council (New Construction category)
Bengal, Welcomhotel Coimbatore and Bhadrachalam, Tribeni, Kovai and Bollaram.
• All ITC owned Foods units and NENPL unit in Hotels
Welcomhotel Amritsar where systems are under • Packaging and Printing unit at Tiruvottiyur.
Mangaldoi. WelcomHotel Bengaluru, WelcomHotel
development) and ITC Kakatiya, Welcomhotel
Coimbatore, ITC Grand Bharat, ITC Kohenur and
Bay Island in Port Blair. • All ITC Hotels (except recently commissioned BRC/ IOP Certification as per BRC Global
ITC Gardenia
ITC Grand Goa, ITC Royal Bengal, WelcomHotel Standard for Packaging and Packaging
• ITC Green Centre Gurugram, SNPL Simra, SNPL Coimbatore and WelcomHotel Amritsar where Offices Materials
Seratar and ATC Limited at Hosur. systems are under development), ITC Kakatiya ITC Green Centre at Bengaluru, ITC Green Centre
• Packaging and Printing units at Tiruvottiyur and
and Welcomhotel Bay Island in Port Blair. Manesar and ITC Green Centre at Guntur.
OHSAS 18001/ ISO 45001: Occupational Haridwar.
Data centre
Health and Safety Management Systems LEED® Platinum Rating by US Green ITC Sankhya Data Centre
• Paperboards & Specialty Papers units at
• All ITC owned manufacturing Units (except Leaf Building Council/Indian Green Building Bollaram, Bhadrachalam and Tribeni.
threshing unit at Anaparti), SNPL Simra, SNPL Council (Existing Building category) LEED® Platinum Rating by Indian Green
Seratar and ATC Limited at Hosur. Alliance for Water Stewardship (AWS)
Hotels Building Council (IGBC) (Green Factory
Platinum-level certification
• Hotels ITC Maurya, ITC Windsor, ITC Maratha, ITC Grand Building)
ITC Gardenia and Welcomhotel Bay Island in Central, ITC Mughal, ITC Sonar, ITC Kakatiya, • ITC Units at Saharanpur, Bengaluru, Munger, • Paperboards & Speciality Papers unit at Kovai.
Port Blair ITC Rajputana, ITC Gardenia, ITC Grand Chola, Pune, Kidderpore and Medak.
ITC Grand Bharat, ITC Grand Goa, and ITC Royal • ATC Limited at Hosur.
Bengal

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 Introduction Company Overview Approach to Value-creation Value-creation for Stakeholders Governance

ITC’s Corporate Governance Governance Structure and Interlinkage with Management Board of Directors and Executive Management ESG Risk Management Ratings and Awards Certifications

CERTIFICATIONS

Sustainable Farming
Certifications

Rainforest Alliance Certification (RFA) UTZ Certification Certified Organic Production Bio Suisse Certification
In 2020-21, ITC produced around 4,332 MT of In 2020-21, ITC implemented UTZ standards in its In spices segment, ITC has a portfolio of Bio Suisse Certification for organic farming of
Rainforest alliance certified raw material covering coffee operations and produced 1,353 MT of UTZ crops such as Chilli and Turmeric, which are processed fruits covering 2,924 acres.
crops such as Chilli, Cumin, Turmeric, Celery and certified coffee. authentically certified according to India’s
Coffee. national organic production norms, which are
NPOP, NOP and EU certification
Fairtrade Certification in line with global requirements e.g. USDA
standards
Global G.A.P Certification Fairtrade certification endorsing that the Standards. State-of-the-art processing and warehouse
In 2020-21, 1,236 acres of ITC Chilli farm area was products meet defined environmental, labour and facilities in the processed fruits business
certified for Global G.A.P. developmental standards. In 2020-21, it covered USDA Organic and India Organic complying to NPOP, NOP and EU certification
about 1,598 acres of Mango Plantation. Certifications standards.
USDA Organic and India Organic Certifications
covering 3,838 acres of organic farming for
processed fruits.

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 ITC Limited
Virginia House
37 JL Nehru Road
Kolkata 700 071
India

[email protected]

www.itcportal.com @ITCCorpCom itc-limited