Environment of rapidly escalating challenges, particularly in the areas of taxation and regulation for cigarettes.
Discriminatory Taxation for Cigarettes -Cigarettes constitute less than 15% of total tobacco consumption but contribute more than 85% of total revenue collections from the tobacco industry.
ITC Initiatives
Creating multiple drivers of growth by investing in businesses of the future, leveraging its diverse competencies in agri-sourcing, world class manufacturing, branding, packaging, hospitality, trade marketing and distribution.
Engaging with policy makers to highlight the adverse impacts of high taxation which has led to the emergence of tax evaded illegal cigarettes and a spurt in contraband cigarettes which are a growing threat to legitimate industry, government revenue, market stability and the social objective of regulating tobacco consumption.
Investments in R&D, Innovation and Quality Upgradation.
Climate Change and Global Warming
The ensuing Summit of the UNFCCC at Copenhagen signals the beginning of an era that will compel nations and corporations to look at distinctive carbon mitigation measures. It may lead to the emergence of stringent legislation that will significantly change the manner in which businesses conduct themselves.
Growing environmental concerns of consumers will compel businesses to demonstrate low carbon performance.
Non-tariff barriers and import restrictions will force a low carbon and an environmentally and socially responsible regime across the world.
Climate Change will adversely impact agricultural productivity through rise in temperatures and severe moisture stress. It will also enhance coastal vulnerability.
ITC Initiatives
ITC has not only created a positive environmental footprint in the areas of carbon, water and solid waste, but continues to invest in building competitiveness through a low carbon strategy addressed by the following:
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Maximising its renewable energy portfolio (30.6% of energy consumption in 2008-09 is from renewable resources. Installation of additional wind turbines,
a large green boiler etc are in progress).
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Enlarging its carbon positive footprint by large scale social and farm forestry programme which will cover more than 100,000 hectares over the next few years. This exemplary initiative has already greened over 90,000 hectares.
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While a number of CDM projects are in various stages of progress, ITC already has 8 registered CDM projects including two unique projects - The Social Forestry Project, the first of its kind in India and second after China to receive CDM registration and ITC Sonar is the only hotel in the world to earn carbon credits.
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ITC is the only company of its size and diversity, to be carbon positive, water positive and solid waste recycling positive.
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All ITC buildings are progressing towards the Green Building concept. ITC Green Centre at Gurgaon is the world's first largest LEED certified platinum rated Green Building.
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ITC has carried out studies to evaluate the implications of climate change and implement measures to minimise the risks.
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ITC is gaining competitive advantage through pioneering environment friendly products and technologies including use of ozone bleaching and ECF processes.
