ITC Limited

Report and Accounts 2012   

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Developmental Challenges for India

The principles as enunciated in the National Voluntary Guidelines find meaning when viewed against the developmental challenges confronting India.

It is estimated that over 400 million people live in multi-dimensional poverty, surviving on less than $1 a day.
   
With 17% of the global population, India possesses only 2.4% of land-mass, 4% of water resources and 1% of forest resources.
   

Reliable surveys show that almost half of the total of 600 districts in the country face severe water-stress. This will aggravate the challenges of food security by impacting India’s agricultural sector (mostly rain fed) which provides a tenuous sustenance to over 58% of the country’s work force, already battling issues like top soil erosion, groundwater depletion, etc.

The challenge before business and industry, therefore, is to not only sustain profitable enterprises as growth engines for the economy but to contribute meaningfully to social equity.

ITC has responded to these challenges by crafting innovative business models that align social sector investments with its value chains that have led to large scale livelihood creation as well as natural resource augmentation.

ITC continues to be a Carbon Positive
Corporation for 7 consecutive years
Protecting and Restoring the Environment

ITC’s approach to addressing environmental challenges are governed by its low carbon growth strategy, integrated water management strategy and improving efficiencies on natural resource usage.

Low Carbon Growth Strategy

Increasing energy usage efficiency: Concerted efforts by all ITC Units to reduce energy consumption through stringent audits and benchmarking have yielded positive results in most of the Units. In 2011-12, the total energy consumed by ITC stands at 21,130 TJ which is 6.3% lower than the energy utilised during the previous year (22,554 TJ in 2010-11*), inspite of significant growth in production volumes in almost all businesses.

The largest integrated Paperboards and Paper Unit at Bhadrachalam which accounted for 71% of the total energy consumed across ITC in 2011-12 has achieved a significant reduction of 12% in energy consumed per tonne of product over the last year, which now stands at 33.21 GJ per tonne of product.

Image of graph displaying CO2 Emissions and Sequestration for the year from 2009-10 to 2011-12
   

Enhanced use of renewable sources of energy: In line with ITC’s commitment to reduce dependence on fossil fuel based energy, it has progressively made major investments in renewable resources of energy.

In addition to the 43.6 MW wind power projects and a 90 TPH biomass fired Boiler already in operation for over a year, it has installed additional 13.8 MW wind energy units in Maharashtra and Tamil Nadu. These investments and better utilisation of biomass in the Paperboards and Specialty Papers Business ensured that 38.5% of the Company’s total energy requirements are from renewable sources, which is a remarkable achievement.

   

Increase in large scale carbon sequestration: Total CO2 emissions from ITC’s operations decreased to 1,564 Kilotonnes in 2011-12 from 2,046 Kilotonnes in 2010-11*. These emissions, estimated in accordance with the GRI-G3 reporting framework, include 1,157 Kilotonnes of CO2 emissions arising from use of direct energy (scope 1), 160 Kilotonnes from purchased electricity (scope 2) and 247 Kilotonnes emitted due to transportation of materials and products (scope 3).

   
* The reduction in energy consumption and associated CO2 emissions, primarily reflects energy efficiency measures and revisions in computation of calorific value of fuel which the organisation intends to adopt in order to conform to ISO 14064 standard.
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