Climate Change Risks
Comprehensive studies evaluating climate change risks for all our businesses have been carried out and based on the findings of these studies, we have crafted strategies for mitigation and adaptation.
Agriculture
ITC 's strategy has been to create a holistic Triple Bottom Line approach that focuses on building sustainable livelihoods |
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Being largely dependent on agricultural inputs for its raw materials, the possible disruption in agricultural patterns or yields is a significant potential risk for ITC.
Water availability is yet another significant threat that we foresee in the future, besides the direct impact of climate change.
Furthermore, the possible decline in agricultural production due to changed weather patterns and rising temperatures not only impacts ITC, but becomes a major threat for millions of farmers, whose livelihoods depend on agriculture. This adversely impacts the nation’s social stability as well.
ITC's strategy has been to create a holistic Triple Bottom Line approach that focuses on building sustainable livelihoods.
Our water conservation, watershed development and rainwater harvesting projects, not only improve the sustainability of our agri-related businesses, but also create sustainable livelihoods for a large number of marginal farmers. Our R&D specialists, in collaboration with expert study groups, are consistently evaluating agricultural productivity / adaptation issues related to climate change, and support is provided to farmers through in-house extension services.
Built Environment
We are also exposed to physical risks related to climate change. We have two large manufacturing facilities in coastal areas. Protection of our assets in these coastal areas has been reinforced in anticipation of increased severity of storms and cyclones, which may occur. All new buildings have been built with requisite factors of safety. For existing buildings and infrastructure that need to be reinforced, work is being taken up in a phased manner.
Disruption in road and rail traffic by such extreme events may also affect the output of individual Units, which has been taken care of by appropriate contingency and insurance plans. Higher surface temperatures (increased air conditioning costs) and disruption in water supplies are other anticipated risks.
We had started the conscious movement towards green buildings by construction of the ITC Green Centre at Gurgaon which in 2004 was the largest platinum rated LEED certified building in the world. All new construction by ITC now incorporate validated green attributes and efforts are underway to have existing buildings and factories also meet these validated green norms. |
