Internationally benchmarked specific consumption of water, dedicated pursuit of the goal of zero discharge and scaling up of rainwater harvesting in several moisture-stressed districts of India have enabled ITC retain its enviable position of a water positive company for the third successive year. The water harvesting potential created so far is nearly three times the Company’s net water consumption.

ITC’s contribution to addressing the challenges of global warming and climate change are being expressed through significant improvement in specific energy consumption, use of environmentally superior fuels and carbon sequestration through large-scale agro-forestry programmes. The Company now sequesters nearly 86% of the carbon dioxide emitted by its operations. The systemic commitment to energy conservation even in a phase of aggressive business growth will enable ITC to achieve the goal of becoming a carbon positive enterprise within the next couple of years.

In order to eliminate solid waste, ITC has embarked on a unique initiative to either recycle all wastes from its operations or identify them as raw material for others. The strategic vision behind these policies and their dedicated implementation have positioned ITC firmly on the path to becoming a zero solid waste company.

In a nation where economic deprivation is widespread and the capacity of a large share of its citizens to participate effectively in economic growth is grossly limited, ITC seeks to contribute in meaningful measure towards social empowerment and genderised development. The ITC e-Choupal infrastructure - a combination of digital, human and physical assets - already serves over 3.5 million farmers and is potentially an efficient delivery channel for rural development. Similarly, ITC’s social farm forestry strategy enables the creation of substantial employment both on farms and off farms, besides converting private wastelands into productive assets, and simultaneously addressing serious issues relating to biomass depletion, soil erosion, water security, ecological balance and biodiversity.

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 2005, prepared in accordance with 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.

ITC dedicates this report to the cause of India’s social and ecological development. It also acknowledges the contribution made by the 28,000 employees in the ITC Group, whose initiative and commitment have enabled the Company make great strides in its sustainability performance.