ITC :: Sustainability Report 2008

Chairman’s Statement:
ITC’s Vision and Strategy

ITC:
Organisational Profile

Certifications, Honours & Awards

Report
Parameters

Governance, Commitments & Engagements

ITC’s Triple Bottom Line

GRI Index

Statement from
Ernst & Young

Annexures

Self-declaration on Application Level

Home | Contents

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ECONOMIC PERFORMANCE

Our businesses have actively pursued Green House Gas (GHG) emission reductions through energy conservation and sequestration through large-scale farm and social forestry programmes. Seven of our CDM projects, involving clean technology and energy conservation initiatives have already been registered, and a large number of projects, including one on social forestry, are in various stages of registration.

We encourage our consumers to partner our efforts in mitigating the adverse effects of climate change and also support our endeavour to create more sustainable livelihoods. By choosing to buy an ITC product, the consumer also makes a positive contribution as a share of the proceeds is utilised for various social and environmental initiatives including watershed development, children’s education and social forestry.

Pension Obligations

Image of Graph showing Contribution to Provident & Other Funds, Pension Funds and Workmen & Staff Welfare Expenses from the Financial Year 2003-04 to 2007-08

Employees’ Retirement Benefit Schemes funded through duly constituted and approved independent trusts.
Provident Fund and Family Pension contributions in respect of unionised staff, as required by the statutes, deposited with the Government.
There are different pension plans and obligations and these plans cover over 17,000 employees. These plans are fully funded in accordance with annual actuarial valuation. The expected rate of return on plan assets is based on the current portfolio of assets, investment strategy and market scenario. In order to protect the capital and optimise returns within acceptable risk parameters, the plan assets are well diversified. The funds are consistently sustained to meet requisite superannuation commitments.

Financial Assistance from Government

Image of Graph showing Subsidies Received from the Financial Year 2003-04 to 2007-08

We support a large number of national priorities. The Governments of Andhra Pradesh and Tamil Nadu offer incentives such as deferment of sales tax for setting up new unit or for the modernisation/expansion/diversification of existing units. Our Paperboards & Specialty Papers Division (PSPD), has received such assistance for the Bhadrachalam and Bollarum units in Andhra Pradesh and for expansion of Kovai unit in Tamil Nadu.

Locally Based Suppliers

Our businesses have state-of-the-art facilities and use the best relevant technologies to ensure benchmarked quality and value. We source specialised production machinery globally as well as from reputed Indian manufacturers. High-class utility machinery such as boilers, gensets, air-conditioning and refrigeration machinery, electrical & electronic systems are sourced largely from Indian or India based suppliers. Competent Indian contractors carry out construction of new factories, hotels and large-scale upgrades.

Image of Graph showing Raw Materials consumed from the Financial Year 2003-04 to 2007-08

Nearly 87% of our raw materials are local/agri based.