Towards Sustainable Development : Creating an ethos of care and commitment

The material progress of industrial society has taken a heavy toll of the natural capacity of planet earth and yet left a vast share of global population in abject poverty. This manner of progress is clearly not sustainable. India accounts for one-sixth of the world’s population. How much natural resources would need to be used up if India were to follow the same path to economic progress as the mature western economies ? The threat of environmental degradation was poignantly highlighted way back by Mahatma Gandhi in his reaction to a question related to India’s economic development. He said, “It took Britain half the resources of the planet to achieve prosperity. How many planets will a country like India require!”

Sustainability assumes great importance and urgency in the developmental context of India. As our nation embarks on a trajectory of high rates of economic growth, it would become critically necessary to focus on the impact of such growth on society and the environment. Economic growth will translate to sustainable development only when it is inclusive, creating the capacity to consume among those living at the margin – the lion’s share of whom are in rural India. Equally, sustainable development will be achieved only when environmental capital is enriched. The sharp decline in per capita availability of water, the low forest cover due to continuing deforestation, increasing levels of air and water pollution, the remorseless increase in the quantum of wastelands and the rising demand for fossil fuels are some of the serious issues that need to be addressed on a war footing if India has to realise its ambitious agenda for sustainable progress.

Corporates, which constitute an important membership of any society, need to make their contribution in meeting this global challenge. Premium needs to be placed on those companies that create economic progress with minimal adverse impact on ecology by deploying technologies that use the planet’s finite resources efficiently. Indeed those that serve to replenish natural capital need to be valued even more. Accordingly, the contribution of companies needs to be more comprehensively measured along three dimensions, commonly referred to as the ‘‘triple bottom line’’. These dimensions are : economic, ecological and social. As society witnesses the growing influence of corporations in driving economic, environmental and social change, investors and other stakeholders will expect the highest standards of ethics, transparency, sensitivity and responsiveness from corporates. It is my belief that stakeholders, including consumers, will increasingly raise the bar of expectation in relation to corporate response to issues of sustainable development.

Envisioning a larger societal purpose has always been a hallmark of ITC, described by me in the past as “a commitment beyond the market”. ITC sees no conflict between the two goals of shareholder value enhancement and societal value creation. The challenge lies in fashioning a corporate strategy that enables realisation of these goals in a mutually reinforcing and synergistic manner.

As a Company that continuously strives to be ‘Citizen First’, ITC has always attached critical importance to its responsibility to contribute to the triple bottom line. ITC perceives itself as a corporate trustee of the physical, social and economic resources deployed in its business operations. ITC’s mission is to enhance the capacity of its businesses to generate sustainable wealth by using these resources wisely and responsibly. This commitment finds expression in the Company’s sustainable development philosophy, which recognises the need to not only preserve but also enrich precious environmental resources while providing a safe and healthy workplace for its employees.

ITC is committed to conducting its business operations with passionate respect for the environment. Several prestigious national and international awards testify to ITC’s abiding commitment. Such recognition has further reinforced the Company’s commitment to consciously synergise and direct the collective endeavour of its employees at all levels across all businesses, functions and locations to continuously improve sustainability practices, to ultimately attain and exceed global standards.

Enterprises use significant amounts of societal resources. It is therefore imperative that companies make periodical disclosures to stakeholders, including the civil society. Such disclosures need to reflect how efficiently societal resources are being utilised, and how companies are contributing to the triple bottom line.

The enclosed Sustainability Report, prepared along the guidelines of the Global Reporting Initiative (GRI), represents a balanced and reasonable presentation of ITC's economic, environmental and social performance. It sets out the progress made by ITC against measurable indices. It is a matter of pride that for two years running ITC has been a water-positive enterprise. We also aim to become a carbon-positive company in the next few years and move towards becoming a ‘zero solid waste’ company.

ITC dedicates this report to the cause of a cleaner and greener environment. It also acknowledges the contribution made by its 15,000 employees, whose initiative and commitment have enabled the Company make great strides in its sustainability performance.

(Y.C.DEVESHWAR)

CHAIRMAN'S STATEMENT