Global supply chains are evolving across industries with rising digitalisation, a stronger focus on sustainability and responsible sourcing. Recent supply chain disruptions, often due to unprecedented climate change-related events, have emphasised the need for greater supply chain sustainability. Additionally, the global movement towards net zero is also driving massive supply chain transformations. Addressing these trends is therefore key to building resilience and embedding sustainability in the supply chain.
ITC works with its suppliers including farmers, third-party manufacturers, service providers, transporters, suppliers of materials and capital goods, franchisees, dealers and distributors to scale up its sustainable supply chain initiatives. This includes identification of sustainability risks and opportunities through assessment of key value chain partners; conducting third-party assessments in line with international standards and obtaining certifications like Rain Forest Alliance and Forest Stewardship Council; and implementing systems and processes for enabling supply chain oversight, transparency and traceability as well as measures for addressing identified risks and opportunities.
The portfolio continues to be rapidly scaled up, leveraging ITC's deep rural linkages and extensive sourcing expertise towards strengthening and customising supply chains for traceability. The division has large-scale programmes on sustainability certifications of traded commodities driven by customer demands and emerging international regulations on due diligence and transparency.
ITC has implemented the Rainforest Alliance 2020 Sustainable Agriculture Standard in traditional coffee-growing regions. The Standard requires all certified farms to be managed efficiently, transparently, inclusively, and economically. The certification programme focuses on 6 key areas:
Ensuring Human Rights in the supply chain is a part of ITC's Integrated Adarsh Gram Strategy (Model Village Approach). The programme focusses on building economic, environment and social capital in over 360 villages of Andhra Pradesh and Karnataka impacting over 30,000 farmers. ITC's Agri-extension and field teams play a critical role in understanding the needs and grievances of farmers and supply chain partners.
ITC's Paperboards and Specialty Papers Division (PSPD) processed about 75% of the total raw material procured by ITC, out of which over 90% were from renewable sources. Overall, 100% of the fibre used by ITC's PSPD is of known and legal origin.
ITC encourages critical value chain partners like third-party manufacturers to adopt management practices detailed under International Standards. Ensuring compliance with accepted standards is a key part of the agreements with value chain partners, covering areas such as:
ITC actively promotes the competency development of local vendors, with a strong focus on medium and small-scale enterprises that are proximate to its manufacturing locations. The total percentage of input material sourced from suppliers within India is over 92%.
These partnerships have enhanced the survival and competitiveness of several small-scale units.
In line with its commitment to bring the power of cutting-edge digital technologies and unlock the potential of India's farmers, ITC has launched ITCMAARS (Metamarket for Advanced Agriculture and Rural Services), a 'phygital' ecosystem that empowers farmers by providing:
