ITC Enlarges ‘Carbon Positive’ Footprint

The 4th Assessment Report of the Intergovernmental Panel on Climate Change forecasts serious consequences for the planet if Green House Gases (GHG) emissions are not reduced drastically.

ITC has been at the forefront of corporate India’s initiatives to progressively reduce GHG emissions. Its businesses continued to enlarge the Company’s positive carbon footprint through energy conservation, use of renewable sources of energy and identifying ways of mitigating the adverse effects of climate change caused by Global Warming. ITC has implemented several CDM projects under the Kyoto Protocol and ensured Carbon Dioxide (CO₂) sequestration through large-scale farm and social forestry initiatives.

ITC’s energy conservation initiatives, supported by benchmarking and audits by experts, have helped its businesses in maintaining very low specific energy consumption (energy required per unit of production). The Cigarette business has achieved a further 18.7% reduction in specific energy consumption over last year.

24% of the total energy used by ITC’s businesses was generated from renewable and carbon neutral fuels thereby significantly reducing Green House Gas emissions.

To date, 7 of ITC’s CDM projects have been registered by the CDM-EB (Clean Development Mechanisms - Executive Board), set up by UNFCCC (United Nations Framework Convention on Climate Change) under the Kyoto Protocol. These initiatives have not only saved significant energy costs and reduced CO₂ emission, but also earned revenues from the sale of CERs (Certified Emission Reductions). Several other projects are in various stages of registration.

CO₂ Emissions & Sequestration

The total CO₂ (equivalent) emission from ITC’s businesses in 2007-08 amounted to 1352 kilotonnes (1,143 KT in 2006-07).

Higher CO₂ emission in 2007-08 was on account of growth in production, significant project activities and inclusion of new businesses within the reporting boundary.

ITC continued to rapidly upscale its farm and social forestry initiatives, adding 15,000 hectares of plantations during

2007-08. Total plantations, as at March 31, 2008, covered an area of 80,000 hectares.

These initiatives have not only led to sustainable sources of raw material for the Paperboards business, but have also helped sequester 2638 kilotonnes of CO2, thus ensuring ITC’s status as a ‘Carbon Positive Company’ for the third year in a row.   Unit 05 - 06 06 - 07 07 - 08 CO2 released (Manufacturing & Freight) Kilo tonnes 1202 1143 1352 CO2 sequestered Kilo tonnes 1244 2025 2638 CO2 sequestered Percent 104 177 195