ITC Sustainability Integrated Report 2023

SHAPING
THE FUTURE
I N N OVATI VE. I N C LU S IVE. IMPACTFU L.
Sustainability Report
Contents
Chairman’s Message 1 Approach to Environmental Social Stewardship:
Sustainability 2.0 25 Stewardship 51 Sustainable and
About this Report 5
Inclusive Growth 102
Strengthening Relationships Climate Change 53
About ITC 8 with All Stakeholders 25
Sustainable Supply Chain and
Sustainable and Climate
20 Years of Sustainability Material Issues 30 Responsible Sourcing 103
Resilient Agriculture 63
Reporting at ITC 10
Strategic Risk Management 31 Product Sustainability 111
Biodiversity Management 73
Sustainability 2.0 Workforce for Tomorrow 133
Management Framework 37 Water Security 81 Human Rights 142
Sustainability 2.0 Ambitions 38 Towards Circularity 93 Occupational
Governance 40 Health and Safety 143
Chemical Safety
Creating Sustained 48 Mission Sunehra Kal for
ITC’s Approach to Management 101
Sustainable and Inclusive
Value-creation 13 Economic Value
Air Emissions Management 101 Growth 148
Strategic Pillars 15 Annexures 181
ITC Businesses 18 Contribution to UN SDGs 182
Value Creation Model 24

Annexures 187
GRI Content Index 187
Quantification Methodologies 195
Certifications 196
Awards and Recognitions 198
Scan here to know more about
Independent External Assurance 200
Sustainability at ITC
| Sustainability Report 2023

Chairman's
Message
It is with a deep sense of satisfaction and It is a matter of pride that our innovative crisis, reglobalisation as well as technological
pride that I present ITC’s 20th Sustainability business models have enabled ITC to achieve advancements and digital acceleration. The
Report, combined this year again with our the global environmental distinction of being consequences are starkly visible- be it in
Integrated Report, now in its sixth year. As in carbon, water and solid waste re-cycling supply chain disruptions, structural inflation,
the previous years, this report has received positive enterprise for over 18, 21 and 16 the danger of food and livelihood security and
the “In Accordance” rating of GRI Standards years respectively and support sustainable indeed widening inequality. Terming 2023 as
and is externally verified by Deloitte Haskins livelihoods of over 6 million people. It is the year of ‘polycrisis’, the World Economic
& Sells. immensely satisfying that the first 12 LEED Forum has called out several areas, like climate
Zero Carbon hotels in the world and the first change, food and energy shortages, etc, where
ITC’s sustainability performance continues to
2 LEED Zero Water properties are ITC Hotels. the world is at an inflection point.
be acknowledged across the globe. We have
ITC’s Foods unit at Malur became Asia’s first
sustained our ‘AA’ rating by MSCI-ESG, for The threats of livelihood generation and
food processing facility to be awarded the
the 5th consecutive year. We have also growing inequalities are also making societies
AWS Platinum level certification, the highest
featured in the Dow Jones Sustainability vulnerable. The stark inequalities of income
recognition for water stewardship in the world,
Emerging Markets Index. Additionally, ITC has and wealth are reflected in the fact that the
which follows a similar achievement for our
been rated top 1% of the world’s adults own around 48% of
Paperboards Unit in Kovai, the first site in India
total global wealth, while the bottom 53% own
‘A -’ at the Leadership Level for Climate and the first paper mill in the world to achieve
around 1%. Nearly 345 million people face acute
Change, Supply Chain and Water Security this certification. ITC Sankhya in Bengaluru
food insecurity worldwide. Such challenges
by CDP. became the first data centre in the world to be
are threatening the very fabric of society,
awarded the LEED Zero Carbon certification.
triggering dissonance and unrest. As reports
Two Glorious Decades of Sustainability ITC has also implemented large-scale
Sanjiv Puri Reporting interventions for empowerment of farmers and
have pointed out, between 2011 and 2019, there
was significant increase in riots, general strike
This Report marks a momentous occasion in rural communities. Today, many corporates
Chairman & Managing Director and anti-government demonstrations around
ITC’s sustainability journey as we complete are mainstreaming sustainability - some even
the world.
2 decades of reporting. The theme “Shaping embracing it as their core brand identity.
the Future” encapsulates the pathways that However, it is evident that our collective efforts Climate change has spiralled into an existential
we have defined to pursue our vision of need to be scaled up further to address the threat, despite the heightened awareness and
“Responsible Competitiveness” and contribute risks posed by the mounting efforts by nations across the globe. Its impact
to a world that’s greener and cleaner while sustainability threats. is borderless. The recent IPCC Synthesis Report
supporting livelihoods at scale. It is immensely on Climate Change has warned that current
heartening that ITC is today recognised as A world in permacrisis policies could take global warming to 3.2°C
a global exemplar in sustainability, having We live today in a world of permacrisis rise by 2100. To limit temperature rise to 1.5°C,
achieved many a milestone over the years and uncertainty. Unprecedented change emissions would have to be reduced by at
with multi-dimensional interventions that is upon us given the mega threats of least 43% by 2030 compared to 2019 levels, and
have been innovative, inclusive and impactful. geopolitical dynamics, existential climate at least 60% by 2035. New research suggests
1 | Sustainability Report 2023

Chairman's Message
climate change could push up to 132 million Pathways to greener, cleaner It is indeed heartening to note how India is livelihoods and empower rural communities. ITC
people into extreme poverty by 2030. Between and inclusive world leading in climate action. The nation ranks is now actively working towards Sustainability
2030 and 2050, climate change can cause The enormous environmental and social first among all G20 members in terms of 2.0, an agenda which reimagines sustainability
approximately 250,000 additional deaths per challenges make it evident that progress overall climate performance in the Climate under the pressing challenges of climate change
year from malnutrition, malaria, diarrhoea and cannot take place unless we redefine our Performance Index. India’s updated NDCs also and social inequity. The goals envisaged in S2.0
heat stress alone. The WEF Global Risks Report strategies for growth and competitiveness to reinforce its commitment to climate action. will further strengthen ITC’s large-scale efforts
2023 has highlighted that climate change and make sustainability and inclusivity the core India has already forged a global collaboration to combat climate change, enable the transition
related issues are the top 3 risks in terms of of business transformation. Reimagining a “One Sun, One World, One Grid” to promote to a net zero economy, work towards ensuring
severity facing the world in the next decade. cleaner and greener future will necessitate solar energy. A National Hydrogen Mission has water security for all, restore biodiversity through
The IPCC has pointed out that globally nearly giant strides in transitioning to a net zero also been launched. India’s G20 presidency, adoption of nature-based solutions, create an
3.6 billion people were ‘dangerously exposed economy together with large-scale adaptation with the theme of “One Earth, One Family, effective circular economy for post-consumer
and vulnerable to climate impacts. measures. The world over, nations and One Future” which is extremely relevant in packaging waste and scale up programmes that
policymakers are accelerating mitigation and today’s context, also provides the nation with a support large-scale sustainable livelihoods.
We are already witnessing the catastrophic
decarbonisation initiatives to battle climate huge opportunity to lead the world in climate
effects of climate change. In 2022, Europe
change. However, it is clear that breaching 1.5 action and promote a new dimension of global ITC’s Climate Action
experienced the worst drought since the Middle
degrees is an inevitability in the short term. progress though collaboration. Recognising the urgent need to combat
Ages, resulting in the loss of thousands of lives.
Therefore, solutions for better adaptation must climate change for building a more secure
Rivers ran at historic low levels compromising
find equal focus as mitigation measures. The ITC – Vision and Strategy future, ITC has crafted a comprehensive
agri yields and disrupting supply chains.
IPCC report has emphasised ‘climate resilient It is ITC’s firm belief that businesses exist to climate action plan that includes pursuing a
Drought-stricken waters of river Danube ran so
development’ that integrates adaptation and serve society. Enterprises with their immense low carbon growth strategy through extensive
low that 20 hulks of explosives-laden German
mitigation to safeguard against the inevitable and multi-dimensional resources can play decarbonisation programmes across its
warships sunk during World War Two were
climate hazards. A sustainable future will also a significant role in alleviating societal operations and value chains, increasing the
exposed. Erratic rainfall also led to devastating
necessitate adoption of green technologies, challenges. In their own enlightened self- share of renewable energy, reduction of
floods across the world. A cyclone of record-
implementation of nature-based solutions, interest, corporates must not only be agile, specific energy, adoption of circular economy
breaking duration devastated parts of south-
building resilience while simultaneously scaling consumer centric and innovative, but also models, construction of green buildings and
eastern Africa.
up investments in R&D to define new pathways purpose-driven and responsibly competitive. greening logistics. Accelerating adaptation
India is also reeling under the effects of climate to address climate risks. R&D and Innovation, efforts, ITC is building climate resilience by
Inspired by its credo of Nation First: Sab Saath
change. In 2023, the country experienced its particularly in agriculture and hard-to-abate promoting regenerative agriculture practices
Badhein, ITC has made sustainable and
hottest February in the past 122 years. The IPCC sectors, joint efforts in carbon capture, usage in agri value chains and stepping up nature-
inclusive growth the bedrock of its corporate
report has warned that India is among the and storage, green energy and mobility will based solutions, among others.
strategy. ITC has crafted innovative business
countries that face the highest risk from climate enable a cost-efficient energy transition.
models that work towards building economic, ITC has undertaken comprehensive climate risk
change related events like heat waves to Collaboration among nations and enterprises,
environmental and social capital as a unified assessments with the help of climate experts
cyclones and displacement. India experienced removal of barriers to knowledge sharing and
strategy. ITC’s large-scale programmes address to identify site-specific solutions for adaptation
extreme weather events on 84 of the 120 days transfer of technology including intellectual
the challenges of climate change with focus and the same is also being spearheaded to
in the first four months of 2023. Cities like property rights will ensure a just transition,
on both mitigation and adaptation measures, enable mitigation measures.
Kolkata, Mumbai, Chennai, Goa and Kochi will particularly for developing nations.
replenish the environment, create sustainable
be adversely affected by sea-level rise.

Chairman's Message
Building Climate Resilience in Agriculture Mission Millets encompasses development of a Water Stewardship in the world. ITC’s Kovai unit was the first site
One of our major efforts is the Climate Smart 'good-for-you' foods portfolio, implementation in India and the first paper mill in the world to
Currently, 54% of India is confronted with high
Agriculture programme that aims to de-risk of sustainable farming systems as well as achieve this AWS Platinum certification. We aim
water stress and almost 600 million people
farmers from erratic weather events through enhancing consumer awareness on the to get all water-stressed sites AWS Platinum
are at higher risk of surface-water supply
the promotion of Climate Smart Agriculture benefits of millets, a nutritionally superior certified by 2035.
disruptions. Given the critical role water plays
practices. The initiative focuses on promoting food option. Indeed, with low carbon and
in sustaining life and agriculture, ITC has
high yielding & climate resilient crop varieties, water footprint, greater resilience to high Decarbonisation and Green
implemented an integrated water stewardship
adoption of appropriate mechanisation, temperatures and the ability to grow in poor Infrastructure
programme that includes both demand side
reduction in stubble burning, and provision soils, millets are a comprehensive answer for ITC has adopted a low carbon growth path
and supply side management initiatives.
of institutional services. The initiative has sustained food security in the face of drought, through extensive decarbonisation efforts.
ITC’s Integrated Watershed Development
benefitted 740,000 farmers, covering 2.3 million water shortage and climate change. Millets During the year, around 43% of ITC’s total
Programme has cumulatively covered around
acres in 17 states. As per a study of 43 villages are nutrient-dense super foods that are rich energy requirements were met from renewable
1.47 million acres of water-stressed area,
across 3 states in the first phase, 70% of the in protein, fibre, calcium, iron, vitamins and sources. In addition, 12 ITC units met more than
benefitting over 400,000 people. Over 28,000
villages have moved into the High-Resilience, can help address micronutrient deficiency in 90% of their electrical energy requirements
water harvesting structures have been built,
High-Yield category. GHG emissions of select developing countries. ITC Mission Millets is from renewable sources. ITC is at the forefront
creating storage capacity of over 48.9 million
crops reduced by 13% to 66% as per assessment aligned to the Government’s vision to introduce of Green Infrastructure movement in India with
kl of water in our catchment areas. In addition,
done in 2021. Net returns of farmers increased India’s ‘super-grain’ to the global audience. 40 Platinum certified green buildings. 12 of ITC’s
to reduce water use in agriculture, we have
upto 90%, over a period of five years from 2016 hotels were the first in the world to be LEED
launched a focused demand side management
to 2021. We expect to achieve our target of Biodiversity Zero Carbon certified while ITC Mughal in Agra
programme that has led to potential water
making 3 million acres climate-resilient much ITC has also spearheaded a holistic Biodiversity and ITC Sonar in Kolkata are the first two hotels
savings of over 780 million kl. ITC has also
ahead of time. Conservation programme that aims to protect in the world to be LEED Zero Water certified.
undertaken 4 river basin regeneration projects,
and enrich biodiversity, including in catchments
In order to sharp target research and crop including one in the river Ghod in Maharashtra In addition, ITC’s largescale Afforestation
linked to its agri value chains. The focus of
development efforts aligned to the changing which turned water positive in 5 years. ITC's initiatives, besides mitigating the impact of
the programme is on reviving ecosystem
conditions in the identified climate hot water stewardship programme is aligned to the increasing levels of GHG emissions, help green
services provided to agriculture such as
spots, ITC has been undertaking climate Government initiatives of ‘Jal Shakti Abhiyan’ degraded wasteland, prevent soil erosion,
natural regulation of pests, pollination, nutrient
risk modelling across key agri value chains. and ‘More Crop Per Drop’. and enhance organic matter content in soil.
cycling, soil health retention and genetic
ITCMAARS, the ‘phygital’ ecosystem with Cumulatively, ITC has greened more than
diversity, which have witnessed considerable ITC also works to maximise water-use
FPOs at the core, are supported by field 1 million acres, generating over 190 million
erosion over the past few decades. We also efficiency across its operations through
demonstrations, which enable farmers to adopt person-days of employment among small and
involve communities in landscape restoration adoption of water-efficient technologies,
recommended practices to combat the threat marginal farmers.
& rehabilitation of degraded plots. I am minimising water withdrawal, enhancing
of climate change.
pleased to announce that we have restored recycling and reuse, and continuous reduction
Circular Economy and Sustainable
It would be appropriate to make a special 290,000 acres in 12 States. We are committed in specific water intake. Today, it is a matter of
Packaging
mention of ITC Mission Millets, a programme to restoring degraded village commons & great pride that ITC’s unit at Malur became
Waste management has assumed critical
that we have launched recently, recognising pasturelands and enrich biodiversity across 1 the first foods processing facility in Asia to be
importance in the past decade or so, posing
the immense benefits of the crop for the million acres by 2030. awarded the AWS Platinum level certification,
increasing pressure on landfills, clogging
planet, the farmer and the consumer. ITC the highest recognition for water stewardship

Chairman's Message
rivers and polluting oceans. For more than a ITC - Supporting Livelihoods Towards a better future – Building a technology, focussing on plastic substitution.
decade, ITC has implemented a unique Well- Rural India is home to two-thirds of the Competitive, Climate Positive & Inclusive With its bold Sustainability 2.0 agenda, ITC
being Out of Waste (WOW) programme that country’s population. Aligned to the national Enterprise remains committed to making a meaningful
has covered over 22 million citizens in over 5.5 priorities of empowering rural communities, A few years ago, when the disruptions and contribution across all the three sectors of the
million households. It has promoted sustainable ITC has adopted a 2-horizon approach to devastations caused by the pandemic jolted economy – Agri, Manufacturing and Services,
livelihood for over 17,750 waste collectors. support livelihood generation and inclusive the world into reimagining the future, ITC while strengthening its status as a sustainability
growth. While the first horizon aims at securing orchestrated an extensive strategy reset titled exemplar and a competitive enterprise.
To tackle the growing challenge of plastic
and strengthening the dominant sources of ‘ITC Next’, strengthening its vision to become
waste, ITC has spearheaded a first-of-its-kind As we move into the future, it will be our
livelihood through extensive programmes for a Competitive, Climate Positive and Inclusive
Multi-Layer Plastic collection and recycling constant endeavour to dial up our efforts to
farmer empowerment, the second focuses on enterprise. Accordingly, we are providing
programme in Pune. ITC has sustained its build an exemplary Indian enterprise that will
building capabilities for the future in areas accelerated impetus to digital transformation,
plastic neutrality status for the 2nd year in a row create sustained value for all our stakeholders
such as primary education, vocational training, agile and purposeful innovation, resilient
by collecting and sustainably managing more and shape pathways to building a brighter
women empowerment, healthcare and so supply chains, talent empowerment as well as
than 60,000 tonnes of plastic waste in 2022-23. future for the generations to come. We will look
on. It is a matter of immense satisfaction that sustainability leadership. Recognising that the
In addition, ITC’s Paperboards and Specialty forward to your support, as always.
over the years, women are playing a larger mega trends of digital and sustainability will be
Papers Division has been relentlessly developing
role in ITC’s Social Investments Programme, the defining pivots of competitiveness, we are
sustainable packaging solutions on laminated Sanjiv Puri
branded Mission Sunehra Kal. Our women pursuing business opportunities that lie in the
and moulded fibre platforms. Our sustainable Chairman & Managing Director,
focused initiatives catalyse a range of gainful intersection of these trends and our enterprise
products portfolio comprises recyclable ITC Limited
opportunities in areas such as economic strengths. Examples include ITCMAARS that
paperboards, ‘FiloPack’ and ‘FiloServe’, and
empowerment, agri-entrepreneurship, bring the power of digital revolution to farmers,
biodegradable paperboards, ‘OmegaBev’
financial inclusion, skilling, health and well- tech-enabled cloud kitchens in the food
and ‘OmegaBarr’, which are alternatives to
being. These multi-dimensional interventions service space, sustainable packaging solutions
plastic coated containers, cups and other
have reached out to over 5 million women so with innovative plant-based moulded fibre
deep freeze applications. To replace plastic
far across different parts of the country.
containers in Food delivery, we have introduced
the paperboard-based ‘IndoBowl’. We also
innovated the ‘WrapWell’ food wrapping paper
roll, which is food-grade and eco-friendly. In
the Personal Care space, ITC’s brands such as
Vivel and Fiama are progressively adopting
recyclable packaging options.

Approach to Environmental Social Stewardship - Sustainable
Annexures
Sustainability 2.0 Stewardship and Inclusive Growth
About this report

Reporting Framework Independent Audit assurance as per the International Standard Assurance’ level. ITC accounts for the following
for Assurance Engagements (ISAE) 3000 at a gases in its GHG inventory: Carbon Dioxide
ITC has been reporting its sustainability and Assurance ‘Reasonable Assurance’ level. The assurance (CO2), Methane (CH4), Nitrous Oxide (N2O),
performance annually for the last 20 years, The financial data included in the report statement of Messrs. Deloitte Haskins & Sells LLP Hydrofluorocarbons (HFCs), Perfluorocarbons
and the Sustainability & Integrated Report is excerpted from the Company’s Report is included in the report and covers the summary (PFCs) and Sulphur Hexafluoride (SF6) and CO2
2023 covers the sustainability performance & Accounts 2023, audited by independent of the work performed, the manner in which the Sequestration.
for the period April 1, 2022 to March 31, 2023. External Auditors – Messrs. S R B C & Co LLP. assurance engagement has been conducted, the
extent to which ITC has applied GRI Standards, Contact Point
ITC’s Sustainability & Integrated Report 2023 ITC has obtained independent third-party
and their conclusions on the Report. For any clarifications and requesting
has been prepared in accordance with the assurance for its Sustainability Reports since
additional copies of this Report, contact at
Global Reporting Initiative (GRI) Standards. it started reporting in 2004. In the reporting ITC has computed its greenhouse gas (GHG)
below mentioned address:
Reporting on sustainability topics continues to year, authenticity of the data and systems inventory, including GHG emissions, biogenic
Corporate Sustainability & Corporate
be on the basis of materiality. The Reporting disclosed in the Sustainability Report 2023 emissions and GHG removals, in accordance
Communications Departments
Principles, Universal Standards and Topic has been assured by Messrs. Deloitte Haskins with ISO 14064:2018. The GHG inventory of
ITC Limited, 37 J. L. Nehru Road,
Standards detailed in the GRI Standards & Sells LLP, an independent third-party FY 2022-23 has been verified by Messrs.
Kolkata - 700 071
have been considered while preparing the assurance provider. They have provided the Deloitte Haskins & Sells LLP at the ‘Reasonable
e-mail: enduringvalue@itc.in
Report. Additionally, the Report has also been
prepared in line with the requirements of the
International <IR> Framework published by
the Value Reporting Foundation. It presents
Reporting Boundary For the current reporting period, the reporting class sustainability practices along the value
boundary has been further expanded chain. In the current year, ITC continues
a range of financial and non-financial ITC has deployed an Integrated Sustainability to incorporate performance of newly to incorporate the performance of four
disclosures to inform its stakeholders about Data Management System to collect, collate commissioned factories namely Spices factory TPMs of Cigarette Business, eight TPMs
how different ‘capitals’ are being deployed to and analyse environmental and social data. in Guntur, Packaging and Printing Factory at of the Notebooks segment of Education
enable the creation of enduring value. The system is equipped with strong internal Nadiad- Gujarat, Integrated Consumer Goods and Stationery Products Business and
controls to support the underlying integrity and Manufacturing and Logistics (ICML) facility two Associate Companies. ITC intends to
The Report contains disclosures pertaining
credibility of disclosures made in the Report. at Medak-Telangana, and Hotel namely ITC progressively include more supply chain
to Task Force on Climate-related Financial
Narmada at Gujarat. The state-of-the-art members in the reporting boundary, and will
Disclosures (TCFD) recommendations as The data related to environment and social
Ancillary Manufacturing cum Logistics Facilities continue to build capacity of its key supply
well. ITC also discloses its climate change performance unless otherwise specified in
(AMLF) at Pudukkottai and Kapurthala co- chain partners and regularly review their
and water security related approach the respective sections is based on the actual
located with the respective ICMLs are also sustainability performance.
and performance through CDP, a global performance of various businesses of the
included in this year’s reporting boundary.
non-profit that runs the world’s leading Company (including units, hotels and office CSR programmes: ITC’s CSR footprint is
environmental disclosure platform. complexes), Subsidiaries, Associate Companies In line with ITC’s Policy on Sustainable Supply spread across 27 States/ Union Territories.
and Third-Party Manufacturers (TPMs) Chain and Responsible Sourcing, the Company
ITC Registered Office: Kolkata (West Bengal).
included in the reporting boundary. continues its efforts to encourage best-in-

Annexures
About this report
ITC’s Businesses
FMCG Cigarettes Education and Stationery Products Paperboards and Specialty Papers Subsidiaries
INDIA TOBACCO DIVISION (ITD) Business (ESPB) Business ITC Infotech India Limited
Divisional Headquarters: Headquarters: Chennai (Tamil Nadu) Divisional Headquarters: Units: Bengaluru (Karnataka), Kolkata (West
Kolkata (West Bengal) Third Party Manufacturers (TPMs) of Secunderabad (Telangana) Bengal) and Pune (Maharashtra)
Units: Kolkata (West Bengal), Bengaluru Notebooks: 8 nos. Units: Tribeni (West Bengal), Bhadrachalam
(Karnataka), Munger (Bihar), Saharanpur (Telangana), Bollaram (Telangana) and Technico Agri Sciences Limited
(Uttar Pradesh) and Pune (Maharashtra) Incense Sticks (Agarbattis) and Kovai (Tamil Nadu)
Units: Chandigarh and Manpura (Himachal
Third Party Manufacturers (TPMs): Four Safety Matches
Pradesh)
nos. Headquarters: Chennai (Tamil Nadu) Packaging and Printing Business (PPB)
Headquarters: Chennai (Tamil Nadu)
Srinivasa Resorts Limited
FMCG-Others Hotels Division Units: Haridwar (Uttarakhand), Munger
Divisional Headquarters: (Bihar), Nadiad (Gujarat) and Tiruvottiyur Hotel: ITC Kakatiya, Hyderabad (Telangana)
Branded Packaged Foods Businesses
ITC Green Centre, Gurugram (Haryana) (Tamil Nadu)
Divisional Headquarters: Bay Islands Hotels Limited
Hotels: ITC Maurya (New Delhi), ITC
Bengaluru (Karnataka)
Maratha and ITC Grand Central (Mumbai), Others Hotel: Welcomhotel Bay Island in Port Blair
Units: Haridwar (Uttarakhand), Pune
ITC Sonar and ITC Royal Bengal (Kolkata), Trade Marketing and Distribution (TM&D)
(Maharashtra), Munger (Bihar), Panchla,
ITC Mughal (Agra), ITC Grand Bharat TM&D Headquarters: Kolkata (West Bengal) Landbase India Limited
Uluberia and Sankrail$ (West Bengal),
(Gurugram), ITC Windsor and ITC District Offices: Kolkata (West Bengal), Classic Golf & Country Club, Gurugram
Guwahati (Assam), Kapurthala (Punjab),
Gardenia (Bengaluru), ITC Rajputana Mumbai (Maharashtra) (Haryana)
Pudukkottai (Tamil Nadu), Malur & Mysuru
(Jaipur), ITC Grand Chola (Chennai), Owned Warehouses: Ambernath
(Karnataka), Medak (Telangana), Bikaner$,
ITC Grand Goa Resort and Spa (Goa), (Maharashtra), Hyderabad (Telangana), North East Nutrients Private Limited
Reengus$ & Jaitpura$ (Rajasthan) and Agra$
ITC Kohenur (Hyderabad), ITC Narmada Malur (Karnataka), Chennai (Tamil Nadu),
(Uttar Pradesh) Unit: Mangaldoi (Assam)
(Gujarat), Sheraton New Delhi (New Delhi), AMLF Pudukkottai (Tamil Nadu) and AMLF
$
For these factories, data related to materials, Welcomhotel Bengaluru, Welcomhotel Kapurthala (Punjab) Surya Nepal Private Limited
energy and social indicators have been included Chennai, Welcomhotel Coimbatore,
in the report. Other parameters will be included Welcomhotel Amritsar, Welcomhotel Units: Simara and Seratar (Nepal)
in subsequent years. ITC Life Sciences & Technology Centre,
Bhubaneswar, Welcomhotel Guntur Bengaluru (Karnataka)
Associates
Personal Care Products Central Projects Organisation, Bengaluru ATC Limited
Agri Business Division (ABD)
Business Division (PCPBD) (Karnataka)
Divisional Headquarters: Unit: Hosur (Tamil Nadu)
Divisional Headquarters:
Guntur (Andhra Pradesh)
Kolkata (West Bengal)
Units: Anaparti, Chirala, Mysuru (Karnataka) Gujarat Hotels Limited
Units: Haridwar (Uttarakhand), Manpura
and Research Centre, Rajahmundry (Andhra Hotel: Welcomhotel Vadodara (Gujarat)
(Himachal Pradesh) and Guwahati (Assam)
Pradesh), Spices Factory (Guntur)

Annexures
About this report
Reporting Scope Exclusions**

The following subsidiaries included in ITC’s Consolidated Financial Statements are not The following jointly controlled entities (incorporated Joint Ventures) included in ITC’s Consolidated
included in the Sustainability Report 2023. Financial Statements are not included in the Sustainability Report 2023:
Names of % of Shares Held by Names of % of Shares Held by

Subsidiaries Listed Entity* Joint Ventures Listed Entity*
ITC Infotech Limited 100 Espirit Hotels Private Limited 26
ITC Infotech (USA), Inc. 100 Logix Developers Private Limited 27.9
Indivate Inc. 100 ITC Essentra Limited 50
ITC Infotech Do Brasil LTDA. 100 Maharaja Heritage Resorts Limited 50
ITC Infotech Malaysia SDN. BHD. 100
ITC Infotech France SAS 100 The following Group’s Associates included in ITC’s Consolidated Financial Statements are not
ITC Infotech GmbH 100 included in the Sustainability Report 2023:
Technico Pty Limited 100 Names of % of Shares Held by

Technico Technologies Inc. 100 Associates Listed Entity*
Technico Asia Holdings Pty Limited 100 International Travel House Limited 48.96
Technico Horticultural (Kunming) Co. Limited 100 Russell Investments Limited 25.43
Fortune Park Hotels Limited 100 Divya Management Limited 33.33
WelcomHotels Lanka (Private) Limited 100 Antrang Finance Limited 33.33
Russell Credit Limited 100 Delectable Technologies Private Limited 33.42#
Greenacre Holdings Limited 100 Mother Sparsh Baby Care Private Limited 22.00#
Wimco Limited 100
Gold Flake Corporation Limited 100
ITC Integrated Business Services Limited (formerly known as ITC 100
Investments & Holdings Limited)
MRR Trading & Investment Company Limited 100 * held directly or through subsidiary companies.
Prag Agro Farm Limited 100
#
on a fully diluted basis.
Note: Refer Note 28(iii) of Consolidated Financial Statements forming part of Report and Accounts 2023 for
Pavan Poplar Limited 100 further details on subsidiaries, associates and joint ventures.
ITC IndiVision Limited 100 **ITC developed the process of defining the system for inclusion/ exclusion of these entities in the Sustainability
Reporting boundary. Going forward, the performance of these entities against identified material topics will be
ITC Fibre Innovations Limited 100 reported in a progressive manner.

Annexures
About ITC
ITC is one of India’s foremost private sector
companies with a diversified presence in
FMCG, Hotels, Packaging, Paperboards
& Specialty Papers, Agri-Business and
Information Technology.
Driven by the ‘Nation First: Sab Saath

Badhein’ philosophy and the abiding strategy
of ‘Responsible Competitiveness’, ITC has
brought about transformational change
in society by pursuing innovative business
models that synergise creation of shareholder
value with social and natural capital. This
strategy has not only contributed to building
Fast Moving Hotels Paperboards
strong businesses of the future as well as a Consumer Goods ITC’s Hotels Business is a trailblazer in and Packaging
portfolio of winning world-class brands, but With over 25 mother brands, ITC’s FMCG ‘Responsible Luxury’. ITC’s Paperboards and Specialty Papers
also in making ITC a global exemplar in ‘Triple businesses are present in: Business is a leader in the Value-Added
It is one of world’s pre-eminent and
Bottom Line’ performance. Paperboards (VAP) segment.
fastest growing hospitality chains with
Cigarettes over 120 properties and 11,500 rooms The Business is also a leading player in the
under distinguished and distinctive brands eco-labelled products segment as well as
K69,480.89 crores Branded Packaged Foods – ‘ITC Hotels’ in the Luxury segment, the premium recycled paperboards space.
Gross Revenue ‘Welcomhotel’ in the Premium segment,
‘Fortune’ in the Mid-market to Upscale ITC’s Packaging & Printing Business is
Education and Stationery a leading provider of superior value-
segment and ‘WelcomHeritage’ in the
K18,573.31 crores Products Leisure & Heritage segment. added packaging solutions leveraging its
Profit After Tax comprehensive capability-set spanning
Further expanding its footprint, the multiple technology platforms coupled with
Personal Care Products
Business launched two new brands in in-house cylinder making and blown film
12 Incense Sticks and Safety
the previous year - ‘Mementos’ in the manufacturing lines.
Future Ready Businesses Luxury Lifestyle segment and ‘Storii’ in
across 5 Segments Matches the Premium segment, targeting new age
travellers looking for varied experiences.
23,725
Full Time Employees

Annexures
About this report
A Bouquet of leading FMCG Brands
#1 in Branded Atta
Atta, Salt & Spices
#1 in Cream Biscuits
Biscuits & Cakes
Agri Business Information Technology
A pioneer in rural transformation, ITC is ITC Infotech – a wholly-owned subsidiary #1 in Bridges Segment
one of India’s largest exporters of agri of ITC.
commodities.
Leading global technology services and
Bridges, Potato chips & Namkeen
The scale of operations encompass over solutions provider with presence in 40
4.5 million tonnes of annual volume
throughput in 22 states and over
countries.
#2 in Noodles
Partner of choice for customers in their
20 agri-value chains.
Digital Transformation and Software as a Noodles & Pasta
The Business aims to scale up its value- Service (SaaS) adoption journey.
added portfolio across categories like
organic, food safe, attribute specific, as #1 in Notebooks
well as medicinal & aromatic plants.
ITC’s e-Choupal initiative empowers over Educational & Stationery products

4 million farmers.
ITCMAARS (Metamarket for Advanced #1 in Dhoop, #2 in Agarbattis

Agriculture and Rural Services) – a crop-
agnostic ‘phygital’ full stack AgriTech
Matches, Dhoop & Agarbatti
platform will bring the power of digital
technologies to farmers.
The Business is powering NextGen #2 in Floor Cleaner

Agriculture through value addition, digital
adoption and climate smart agriculture. Floor Cleaner
Source: Nielsen, Kantar Household Panel

Annexures
20 years of Sustainability
Reporting at ITC
ITC has traversed an incredible journey of As ITC marks two glorious decades of its
transformation over the past quarter of a Sustainability Report, here are some of the
century, achieving several defining milestones milestones that have made ITC not only one of
in its endeavour to create enduring value for India’s foremost private sector enterprises but
the nation and its stakeholders. also a global exemplar in Sustainability
2003 Launches ‘Let’s Put India First’ campaign 2007 2009

ITC becomes first in India to ITC is first Indian company to
ITC acquires Paperboards Mill at Kovai
ITC brings out Environment, publish Sustainability Report as gain WWF GFTN membership
Health and Safety Report Inaugurates 1st Choupal Saagar per GRI G3 guidelines for responsible forestry
ITC turns water positive ITC Sonar is 1st hotel in the world to ITC’s market capitalisation touches
receive carbon credits for energy efficiency `100,000 crores
ITC Foods
launches Sunfeast Personal Care brand, Fiama launched ITC Gardenia opens in Bengaluru
ITC launches 2005 Mission Sunehra Kal launches Sustainable

Classmate notebooks Sunfeast breaks Guinness Agriculture Programme 2010
World Record for simultaneous ITC completes momentous
ITC forays into Agarbatti segment
tree plantation milestone of 100 glorious years
Forays into Personal Care with launch of 2008
BCG ranks ITC as the world’s 6th largest
Essenza Di Wills ITC wins UNIDO Award for e-Choupal
sustainable value creator
2004
ITC turns solid waste recycling positive
ITC releases 1st Sustainability ITC Gardenia becomes the world’s largest
Report as per GRI guidelines Launches ‘Well Being Out of Waste (WOW)’ LEED Platinum rated Green Hotel
ITC pioneers ECF packaging for the initiative
‘e-Choupal’ wins inaugural Foods and Pharma sectors Afforestation initiative crosses
UNDP World Business Award ITC ranks 2nd in S&P ESG India Index 2.5 Lakh Acres
ITC Grand Central opens in Mumbai
‘e-Choupal’ becomes a Case Study at Forays into wind energy for meeting energy Bhadrachalam Facility gets
Harvard Business School requirements in Packaging and Printing FSC® Certification
Business
ITC Green Centre, Gurgaon is world’s 2006 ITC Hotels adopts credo of
largest green building to win LEED CII-ITC Centre of Excellence for Eco-friendly Paperkraft Premium ‘Responsible Luxury’
Platinum Rating Sustainable Development set up Business Paper launched
ITC Foods launches
ITC Hotels Limited merges with ITC ITC turns carbon positive Personal Care brand, Vivel launched Sunfeast YiPPee!

Annexures
20 years of Sustainability Reporting at ITC
2011 2015 2018 2019

ITC Hotels becomes the greenest ITC acquires ‘Savlon’and ‘Shower to Shower’ Commits to making 100% of ITC ranks 1st globally amongst
luxury hotel chain in the world product packaging reusable, peers for ESG models by Sustainalytics
recyclable, compostable or
Paperboards factory in Kovai is first factory
biodegradable
2012 in India to get AWS Platinum certification
HBR ranks then ITC Chairman ITC Grand Bharat opens in Gurugram ITC receives AA rating by MSCI for water stewardship
YC Deveshwar as the 7th Best Collaborates with NITI Aayog for Watershed Development
Performing CEO in the World Aspirational Districts Programme Programme covers 10 Lakh Acres
2016
ITC conferred World Business and Over 47% of ITC’s total energy Signs voluntary pledge with FSSAI to ITC ranks 3rd globally in ESG performance
Development Award by UNDP requirements met from renewable sources support The Eat Right Movement on in Food Products industry by Sustainalytics
product reformulations
ITC Sankhya is world’s first ITC launches MLP (Multi-layered Plastic)
2013 LEED Platinum certified Ventures into frozen snacks with launch of Collection Programme in Pune
ITC adopts “CII Code of Conduct for data centre ITC MasterChef
ITC Royal Bengal opens in Kolkata
Affirmative Action’’ ITC unveils 2 new factories ITC’s Personal Care business launches the
ITC Foods launches Aashirvaad Natures
Iconic hotel ITC Grand Chola opens in West Bengal premium skincare brand, Dermafique
Superfoods
in Chennai Bukhara recognised amongst ITC unveils Pudukkottai factory
ITC Foods launches world’s most
‘best restaurants in the world’
ITC acquires expensive chocolate, Fabelle
2014 ITC launches Sunbean Gourmet Coffee floor-cleaning brand, Nimyle
Accelerates digital adoption for efficiency
ITC’s Sustainability Report among first Savlon wins Grand Prix for in distribution
in India to follow GRI G4 guidelines ‘Creative Effectiveness’ at Cannes Lions
2017 Accelerates Industry 4.0 adoption leading
Announces Board approved sustainability Foods factory in Kapurthala unveiled ITC sets up Consumer Data Hub, to increased efficiency
policies Sixth Sense
Forays into fresh fruits and vegetables
ITC Grand Chola secures 5 Star GRIHA segment with launch of brand, Farmland ITC Kohenur opens in Hyderabad 2020
rating, highest national rating for green
Wins Porter Prize for Corporate ITC Mission Sunehra Kal (MSK)
buildings ITC Grand Goa opens in Goa
Governance and Creating Shared Value completes twenty years
ITC Hotels forays into hospitality in ITC builds 25,000+ toilets as part of its
Paperboards Business commissions ITC launches digital farmer training
Colombo Health and Sanitation programme
India’s first Bleached Chemical Thermo initiatives during COVID-19
ITC acquires Juice Brand, Mechanical Pulp mill at Bhadrachalam D2C platform, ITC e-Store launched
B Natural
ITC acquires Sunrise Foods

Annexures
20 years of Sustainability Reporting at ITC
2021
ITC articulates targets for
ITC commissions first offsite
solar plant in Tamil Nadu
ITC’s Biodiversity Conservation
programme covers 1 lakh acre 2023
Sustainability 2.0 vision
ITC Paperboards Business launches ITC’s demand side management of
ITC brings out its 20th
Unveils extensive strategy reset sustainable packaging solutions water leads to water savings of nearly
Sustainability Report
with ITC Next 500 million kl
Collaborates with D2C brands – Amway,
World’s first 12 hotels to
ITC launches ITCMAARS, ‘Phygital’ farmer McDonald’s to launch specialized products Over 5 lakh women, adolescents and
receive LEED Zero Carbon
empowerment platform children benefited under its Mother &
ITC Paperboards Business commissions Certification are ITC hotels
Child Health interventions including
ITC Foods launches Nutrition strategy – High Efficiency Recovery Boiler to increase
Swasthya Choupal World’s first 2 hotels to receive LEED
Help India Eat Better renewable energy share
Zero Water Certification are ITC hotels
Crosses milestone with 40 LEED
ITC Windsor becomes 1st LEED Zero Carbon ITC turns Ghod river basin in Maharashtra
Platinum certified green buildings ITC’s Climate Smart Village programme
certified hotel in the world water positive through supply and demand
covers 10 Lakh Acres
management ITC Foods forays into
ITC launches 110 products during COVID-19
food service online space ITC’s Vocational Training initiative benefits
Sets up Covid Contingency Fund over 1 lakh candidates
ITC Foods launches India’s first pouch
of `215 crores
2022 packaged lactose free milk under ITC’s Women Economic Empowerment
ITC helps set up 200-bed ITC turns Plastic Neutral Aashirvaad Svasti programme covers over 1 lakh women
Covid-19 medical facility in Kolkata
ITC Malur is the first Foods Factory in Asia ITC Foods launches nutrition projects, ITC’s Primary Education initiative helps over
ITC’s Bhadrachalam unit supplies medical to get Platinum level AWS Certification Project Samposhan & Project Balposhan 10 lakh children
oxygen to Telangana hospitals
Two decades of being water positive ITC Foods launches plant-based meat ITC launches
Mission Sunehra Kal launches products ‘Mission Millets’
ITC strengthens its Diversity & Inclusion policy
Integrated Rural Healthcare
ITC Narmada opens in Ahmedabad ITC unveils Foods factories
Programme, ‘ITC Swaasth Kiran’ ITC wins ‘Leadership Level’ score for in Medak, Khordha
climate change, water security by CDP ITC unveils Global Spices Processing
Facility in Guntur ITC acquires Yoga Bar
ITC sustains AA rating by MSCI for
5th consecutive year ITC’s Chirala factory completes
ITC Hotels announces two new brands, 100 glorious years ITC Hotels launches first
ITC’s Solid Waste Management
Mementos and Storii Mementos property in Udaipur
programme including WoW, covers ITC’s Trichy plant employs around
ITC Foods business launches India’s 1 Fruit
st
5 million households 75% women in its workforce
Beverages with goodness of clinically proven
ITC’s Afforestation Programme greens 10 ITC’s Mysuru factory employs
ingredient that supports immunity
Lakh Acres 50% women in its workforce

Annexures
ITC’s Approach
to Value-creation
Strategic Framework
Vision
Driven by the vision of being an Agile, Future ITC’s Corporate Strategy leverages the Sustain ITC’s position as one of India’s Multiple Drivers of
ready and Consumer Centric enterprise, ITC’s competitive advantages based on strong most valuable corporations through Growth
Corporate Strategy is anchored around 6 key foundation of institutional strengths. The world-class performance, creating
pillars of creating Multiple Drivers of Growth, Company believes that when enterprises growing value for the Indian economy
focussing on Purposeful Innovation and R&D, make societal value creation an integral and the Company’s stakeholders.
bringing in structural interventions across part of their corporate strategy, powerful
each element of the supply chain for Agility, drivers of innovation emerge that make
Mission Innovation and R&D
Resilience and Efficiency, nurturing World-class growth more enduring for all stakeholders.
talent, and crafting new business models at At ITC, this paradigm is called ‘Responsible To enhance the wealth-generating
the intersection of Digital and Sustainability, Competitiveness’ - an abiding strategy that capability of the enterprise in a globalising
leveraging institutional strengths. ITC’s vibrant focuses on extreme competitiveness but in a environment, delivering superior and
and synergistic portfolio of businesses with manner that replenishes the environment and sustainable stakeholder value.
Agile, Resilient and
a growing presence across all three sectors creates sustainable livelihoods. The Company’s
Efficient Supply
of the economy - agriculture, manufacturing innovative business models synergise the
Values Chains
and services, ensures seamless access to building of economic, environmental and
ITC’s Core Values are aimed at developing
institutional strengths resident across various social capital, thus embedding sustainability
a customer-focused, high performance
businesses of the Company to drive synergistic at the core of its corporate strategy. Today, this
organisation which creates value for all its
growth and enhance the competitive power of strategy has not only contributed to building
stakeholders:
the portfolio. strong businesses of the future as well as a
Sustainability 2.0
portfolio of winning world-class brands, but
ITC is actively working towards Sustainability
also in making ITC a global exemplar in Trusteeship
2.0, an agenda which reimagines sustainability,
‘Triple Bottom Line’ performance.
under the pressing challenges of climate
change and social inequity. Sustainability 2.0 ITC’s governance, strategy and business
Excellence
calls for inclusive strategies that can support actions are guided by its Vision, Mission and Harnessing power
sustainable livelihoods, pursue newer ways to Values. Customer focus of Digital
fight climate change, enable the transition to
a net zero economy, work towards ensuring Innovation
water security for all and create an effective
circular economy for post-consumer packaging
Respect for people
waste. It also entails protecting and restoring
World-class talent
biodiversity and ecosystem services through
adoption of nature-based solutions.
Nation orientation

Annexures
ITC’s Approach to Value-creation
Operating Elements of Strategic Pillars of ITC Next - Creating enduring

Environment competitive advantage Future Ready | Consumer Centric | Agile value
Operating in large
World Class Products & Services
consumer market - India Deep consumer insights Multiple Drivers Innovation
Rising disposable income of Growth and R&D ITC’s FMCG products reach
over 200 million households in India
Over 60% working population
Emerging aspiring and affluent class Brand building capability
Agile, Resilient
Evolving Consumer Behaviour and Efficient Digital Consumers & Customers Page 111
Elevated demand for Health & Hygiene,

Innovation and digital focus Supply Chains
Immunity, and Natural products
With growing urbanisation and higher Shareholders Page 48
disposable incomes, discretionary
Extensive rural linkages World-class
consumption gaining momentum Sustainability 2.0
and agri sourcing talent
Preference for responsible and
sustainable products and brands Communities Page 148
Relatively stronger rural demand

Product Packaging excellence
Impacts of Climate Change
Corporate Strategy Environment Page 51
Physical risks on operating assets and Cascades Down to Businesses

value chains, especially agri-value chainst Engaged and empowered teams
Transition risks to business models A vibrant and synergistic Portfolio of Businesses Our People Page 133
Evolving regulatory environment Agility and flexibility

in manufacturing capability
Evolving national and international Paper-boards,
regulations on sustainability issues, Fast Moving Value Chain Partners Page 103
Paper and
including climate change,circularity,
Cutting edge R&D and Innovation Consumer Goods
biodiversity,human rights, among others Packaging
Rising social inequality, economic Six Capitals

disparity amidst geopolitical
Globally benchmarked
instability Financial Capital
manufacturing infrastructure
Agri Business
Emergence of Hotels Manufactured Capital
Division
Stakeholder Capitalism
Efficient trade marketing Intellectual Capital
Investment decisions increasingly
integrating environmental, social and distribution
Human Capital
and governance (ESG) criteria
Natural Capital
Information Technology
Read more in the ITC Report Service Excellence
and Accounts 2023 here Social and Relationship Capital

Annexures
Strategic
Pillars
ITC’s Corporate Strategy
is crafted in response to its
unique operating context,
material issues and stakeholder
expectations, embedding the
key tenets of ITC’s corporate
philosophy.
Multiple Drivers of Growth
Innovation and R&D
Agile, Resilient and Efficient Supply Chains
Sustainability 2.0
Digital
World-class talent

Annexures
Strategic
Pillars
1 2 3 4 5 6
Multiple Drivers Innovation Agile, Resilient and Sustainability 2.0 Harnessing World-class
of Growth and R&D Efficient Supply Chains power of Digital talent
Multiple Drivers Innovation Agile, Resilient and

of Growth and R&D Efficient Supply chains
⬤ Create multiple drivers of growth by adaptive capacity and invest in mitigative ⬤ Focus on agile and purposeful innovation ⬤ Continuously build adaptive, agile and
developing a portfolio of world-class measures to strengthen resilience across the sharply aligned with business strategy resilient supply chains to effectively manage
businesses that best matches organisational value chain; identify global hot spots that could complexities arising from evolving consumer
⬤ Continue to strengthen and leverage
capability with market opportunities potentially provide new vectors of growth preferences, increasing salience of alternate
LSTC platform to build a robust pipeline of
channels, geopolitical dynamics etc.
⬤ Enhance the competitive power of the innovative products, thereby securing long-
Market Standing
portfolio by blending diverse skills and term competitiveness ⬤ Drive cost agility by adopting a multi-
⬤ Build scale and develop economic moats in
capabilities residing across businesses pronged approach centered around ‘3Rs’:
each business to drive sustainable competitive ⬤ Drive cutting-edge innovation to
Remove, Reduce, Re-engineer
⬤ Extend and defend core businesses while advantage and profitable growth scale up portfolio of sustainable products
rapidly scaling up adjacencies such as bio-degradable and recyclable ⬤ Continuously focus on enhancing supply
⬤ Strengthen and expand the Company’s
paperboards, bio-compostable solutions, chain agility, responsiveness and market
⬤ Incubate and build emerging businesses portfolio of brands and multichannel
plastic substitution; focus on the key vectors servicing by leveraging digital technologies
distribution network to serve consumers
⬤ Craft disruptive business models and value of Coating, New Materials, Technology and best-in-class planning, manufacturing,
across market segments
propositions anchored at the intersection Platforms and Packaging Formats to logistics and distribution processes
of Digital and Sustainability leveraging the ⬤ Build a future-ready product portfolio accelerate adoption of sustainable product
Company’s institutional strengths in each business to cater to relevant and portfolio by end-users
emerging segments through continuous
⬤ Proactively pursue acquisition, joint
innovation
venture and collaboration opportunities in
strategic areas towards accelerating growth
and value creation
Business Success ESG Risk Management Innovation Responsible Sourcing
⬤ Map risks and opportunities arising out of
Innovation Sustainable Products and Brands Business Success
climate crisis and other external shocks; build
Material Issues Addressed

Annexures
Strategic Pillars
Sustainability 2.0 Digital World-class talent

⬤ Sustain the Company’s status as a global ⬤ Spearhead water stewardship to address ⬤ Institutionalise a data driven and digital- ⬤ Create a shared mindset across the
exemplar in sustainable business practices water security risks of units located in high first culture across the organisation through organisation where people are inspired,
by pursuing the S2.0 vision through multi- water stress areas; scale up interventions to structural interventions such as Digital Council engaged and aligned to the Company’s
dimensional interventions augment water supply in catchment areas and Young Digital Innovator’s Lab (YDIL) Mission, Vision, Values and Strategic Agenda
− Build climate resilience and adaptive ⬤ Build on the Company’s existing solid ⬤ Build a dynamic ‘Future-Tech’ enterprise ⬤ Reinforce the Company’s standing as a
capacity of value chains waste recycling initiatives and sustain the powered by state-of-the-art digital top employer through the value proposition
− Develop inclusive value chains that ‘plastic neutrality’ status achieved in technologies and infrastructure across the of building diverse businesses, creating
support 10 million livelihoods 2021-22, while also implementing sustainable value chain to create unique sources of winning Indian brands and embedding
packaging initiatives across Businesses competitive advantage sustainability in value chains
⬤ Enhance the Company’s renewable energy
footprint in line with 2030 S2.0 targets of ⬤ Build capacity of value chain partners ⬤ Deploy robust, scalable and secure digital ⬤ Champion the Diversity, Equity & Inclusion
achieving 50% of total energy and 100% of to ensure adoption of sustainable business technologies and infrastructure to enhance agenda through various enabling measures
grid purchased electricity requirements from practices in their operations agility, accelerate innovation and drive and focused actions
renewable sources; improve energy efficiency impactful business outcomes
⬤ Build a high performance, nimble
of own operations.
⬤ Build platforms of insights by harmonising and customer-centric organisation while
⬤ Enhance the Company’s resilience against and integrating large and isolated datasets nurturing a culture of creativity and
climate change; climate proof agri-value powered by AI/ML technologies and ‘human- innovation that enables the organisation to
chains and physical assets based on detailed centred design’ & visualisation tools respond proactively and with agility
risk assessments through climate modelling
⬤ Reimagine consumer engagement using ⬤ Build a pipeline of highly engaged and
digital technologies to deliver delightful brand aligned talent pool across responsibility levels
experiences in an extremely competitive talent market
⬤ Transform supply chain, sourcing, logistics,

manufacturing and warehousing systems
into a resilient and agile next-generation
connected platform
⬤ Continuously strengthen the cybersecurity

practices across the Company’s operations,
Climate Resilient Operations Water Security for All Sustainable Livelihoods assets, devices and network perimeter Diversity and Inclusion
Climate Resilient Agriculture Biodiversity Management Innovation Consumer Experience Learning and Development
Material Issues Addressed

Annexures
ITC
Businesses
ITC ensures that its Corporate
Strategy and Sustainability
2.0 goals are cascaded down
to all of its Businesses, while
leveraging the institutional
strengths of each Business.
Fast Moving Consumer Goods
Paperboards, Paper and Packaging
Hotels
Agri Business
Information Technology

Annexures
ITC Businesses
Multiple Drivers Innovation

Fast Moving of Growth and R&D
Consumer Goods Build a robust FMCG Business anchored on Build purpose-led brands powered by agile
strong growth platforms and a future-ready innovation
portfolio, focused on categories with significant • Leverage deep consumer insights and
addressable market expansion potential cutting-edge R&D capability to fuel growth
• Fortify the Core: Scale-up and strengthen by addressing present and emergent
market standing in existing categories and consumer need spaces.
expand to newer regions/channels. • Anchor innovation on the vectors of Health
• Address adjacent opportunities by & Nutrition, Hygiene, Protection & Care,
leveraging powerful mother brands. Convenience & On-the-Go, Indulgence etc.
• Incubate/validate business models and • Drive purposeful innovations that fulfil the
establish ‘right to win’ in newer categories needs of the Indian consumer through
prior to full-scale roll out; build categories of superior offerings leveraging the Company’s
the future by progressively scaling up select Life Sciences and Technology Centre.
nascent businesses.
• Proactively pursue value accretive
acquisitions, Joint Ventures and
Agile, Resilient and Harnessing power
collaboration opportunities towards
Efficient Supply Chains of Digital
accelerating growth and value creation.
• Rapidly scale up exports as a potential Leverage multi-channel Go-to-Market Leverage the power of digital and cut-through
vector of growth leveraging the equity of its capability to drive penetration and accessibility communication to drive superior consumer
world-class brands; explore opportunities by strengthening core channels, winning in insights & innovation, deepen consumer
for organic/inorganic growth in proximal emerging channels, scaling up D2C & ‘Digital engagement and enhance brand loyalty.
markets. First’ brands, enhancing omni channel capability
Drive structural competitive advantage
and pioneering new routes to market .
by leveraging world-class distributed
Sustain improvement in profitability infrastructure, multi-channel distribution
through multiple levers of margin network, delayering operations, smart buying &
Sustainability 2.0
expansion – purposeful innovation, portfolio value engineering and smart manufacturing.
premiumisation, supply chain efficiencies and
Invest in smart & agile value chains anchored
Approaching the Sustainability 2.0 targets, by power of digital.
on best-in-class digital technologies to
sourcing responsibly, focusing on sustainable
drive operational efficiencies in planning,
agriculture, optimising operational efficiency,
manufacturing, distribution and delivery.
integrating principles of circularity in
packaging, progressively reduce agriculture
related carbon emissions, among others.

Annexures
ITC Businesses
Multiple Drivers
Paperboards, Paper of Growth
Sustainability 2.0
and Packaging Sustain market leadership and competitive In the Paperboards Business, strengthen the Reduce the carbon footprint of operations
advantage by augmenting the value-added end-user reach with key customers by offering • Leverage investments in green boiler, solar
portfolio. differentiated and innovative products. and wind energy.
• Leverage the recently commissioned
Focus on growing exports leveraging value Pioneer several innovative solutions towards state-of-the-art and future-ready high
added portfolio, sustainability credentials and ‘Reducing, Reusing and Recycling’ of plastic pressure recovery boiler to enhance share
strong customer relationships. substrates and continue to invest resources to of renewable energy and reduce fossil fuel
develop sustainable packaging solutions. consumption.
Pursue Greenfield/Brownfield expansion
opportunities to create viable growth options • Continuously scan and identify technologies
for the future; explore value accretive inorganic to decarbonize operations, enhance
opportunities to accelerate growth. Agile, Resilient and resource efficiency, reduce emissions
Efficient Supply Chains intensity and scale up carbon sequestration.
Foray into the fast-growing premium Moulded
Fibre Products (MFP) space.
Build sustainable competitive advantage
Scale up bio-degradable and recyclable through structural interventions across the
Harnessing
paperboards; bio-compostable solutions; value chain
power of Digital
plastic substitution. • Focus on expanding plantations of new and
superior clones.
In the Packaging and Printing Business, focus Leverage digital technologies such as Industry
• Enhance productivity through introduction
on accelerating growth in sustainable product 4.0 to enhance operational efficiency,
of high yielding and, pest and disease
portfolio, while continuing to leverage world productivity, reduce wastage and costs.
resistant clone.
class infrastructure to grow existing lines of
• Augment value added paperboard and in- Leverage digital and emergent technologies
business.
house pulp manufacturing capacity. towards enhancing operational efficiency,
• Scale-up capacity utilisation of the recently reducing wastages, enabling cost optimisation
commissioned Nadiad Printing Factory. and improving safety across the value chain.
Innovation Continue to practice the principles of Total
Productive Maintenance (TPM), Lean and Six Leverage multi-dimensional digital
and R&D
Sigma reaping substantial benefits through interventions encompassing Industrial IoT for
Business Excellence initiatives. Smart Operations, Integrated Data Platform,
Drive cutting-edge innovation towards
AI/ML algorithms for optimisation in the
developing differentiated paperboards and
Leverage comprehensive Digital manufacturing process, AI/ML based image
packaging solutions for specific end-user
Transformation Programme across the vectors analytics and IoT based crop monitoring &
segments leveraging LSTC capability and
of manufacturing, supply chain and support advisory, computer vision-based solutions to
external collaborations.
services to achieve operational excellence and improve workforce safety.
drive improvement in profitability.

Annexures
ITC Businesses
Multiple Drivers Agile, Resilient and

Hotels of Growth Efficient Supply Chains
Offer a host of curated propositions across Focus on sweating existing assets and creating
accommodation, dining and banqueting to additional revenue streams to enhance capital
augment revenues across properties. These productivity and profit pool.
include, introduction of special packages
Maintain extreme cost focus and continue to
offering distinct value propositions and
deploy structural interventions across all nodes
flexibility, targeting short getaways/staycations,
of operations towards enhancing profitability
revamped packages for the MICE (Meeting,
and returns.
Incentives, Conferencing, Exhibition) &
wedding segments and extension of exclusive
privileges to members of the Club ITC Loyalty
programme.
Sustainability 2.0
Strengthen the positioning of ‘ITC Hotels’ and
‘Welcomhotel’ brands in their respective market
Leverage Green credentials of ITC hotels.
segments.
Continue being a leader in ‘Responsible Luxury’
Adopt an ‘asset-right’ strategy to accelerate
with focus on green buildings, achieving zero
growth while reducing the capital intensity of
carbon certifications for hotels, and sustain
the business
efforts on waste management and water
• Drive growth through management
security.
contracts.
• Leverage recently launched brands, ‘Storii’
and ‘Mementos’.
Harnessing
power of Digital
Innovation
Leverage state-of-the-art digital infrastructure
and R&D
and capability with a view to enhancing guest
experience and servicing, increasing brand
Be at the forefront of presenting gastronomical
awareness, deployment of loyalty programmes,
delights to food connoisseurs leveraging
augmenting distribution and enabling agile
culinary excellence, illustrious brands, dishes
revenue management.
and concepts revolving around indigenous
ingredients and signature dining experiences Continue to promote full stack ITC Hotels App
• Expand the range of millet-based gourmet for Food Delivery, Room & Table Reservations,
cuisine across its signature restaurants. Loyalty Benefits, Exclusive Offers and more.

Annexures
ITC Businesses
Harnessing
Multiple Drivers Agile, Resilient and
power of Digital
Agri Business of Growth Efficient Supply Chains
ITCMAARS: create a robust 'phygital' eco-

Develop a future ready portfolio of value Re-engineer commodity sourcing through
system anchored by FPOs to seamlessly deliver
added agri products to accelerate growth and a robust network of Farmer Producer
customised solutions to farmers, while creating
enhance value capture Organisations (FPOs) – facilitate efficient price
new revenue streams, strengthening sourcing
• ‘Produce the Buy’ - strengthen and discovery for farmers, reduce transaction costs,
efficiencies and powering the Company's
customise supply chains for traceable drive supply chain efficiency and higher levels
world-class FMCG brands.
and identity preserved sourcing of agri- of traceability in the supply chain.
commodities. Leverage smart / digital technologies to
Deliver sustainable competitive advantage
• Enhance scope of operations to include deliver hyperlocal / personalised solutions to
to ITC’s FMCG Businesses straddling multiple
fresh, processed and branded products. the farming community (e.g. access to inputs,
agri value chains through high quality and
• Build scale and improve profitability in niche market linkages, advisory services etc.).
cost competitive agri-sourcing leveraging the
segments.
Company’s strong farm linkages, focused crop
• Leverage the multi-dimensional capabilities
development programmes and agile supply
of the new state-of-the-art value-added
chain operations.
spices processing facility in Guntur.
Innovation
Sustainability 2.0
and R&D
Leverage ITC LSTC’s expertise in the Agri- Strengthen rural engagement and farmer Continue to make focused investments
sciences domain to address future demand for linkages to enhance societal value and build across the tobacco value chain
food security, improving yields & quality and competitive & sustainable platform. anchored on the key vectors of
developing new varieties. Quality, Consistency, Compliance and
Leverage strong customer relationships, deep
Sustainability.
Focused crop development initiatives to enable domain knowledge and stellar Sustainability
expansion of crop size across both FCV and credentials to address opportunities emanating
Burley crops to meet internal and export from global supply chain re-alignment
requirements leveraging climate resilient crop on account of climatic change, focus on
production techniques. sustainable supply chains and geopolitical
developments.

Annexures
ITC Businesses
Multiple Drivers
Information
Agile, Resilient and
of Growth Efficient Supply Chains
Technology Continue to sharpen focus on the strategic Strengthen industry-defining ‘ITC Infotech
pillars of Customer Centricity, Employee Work From Anywhere’ (IWFA) framework which
Centricity and Operational Excellence, while provides employees the flexibility to work from
building differentiated offerings around the anywhere, with a sustained focus on client
strategic areas of Cloud Technologies, Digital priorities and security.
Workplace Solutions, Digital Manufacturing,
Customer Experience and Data Analytics.
Harnessing
Pursue opportunities identified in strategic power of Digital
priority areas including Cloud, Data/Analytics,
Industrial IOT. Leveraging Industry 4.0 solutions, Global In-
house Centre services and Digital Experience
Strategic partnership with PTC Inc., (US-
using data analytics and Infrastructure services.
headquartered, global technology company)
to start new Service Line, DxP Services, Forging new alliances and strengthening
comprising a global ecosystem of PLM-led existing relationships with Independent
Digital Thread and SaaS experts. Software Vendors (ISVs) in focus areas
such as Digital Workplace Solutions, Digital
Manufacturing and Data analytics.
Innovation
and R&D Taking a leadership role in enabling the Digital
Transformation and Software as a Service
Build Business friendly solutions and new (SaaS) adoption of its clients.
age capabilities especially in the areas of
Amplifying new-age Digital capabilities with
automation, digital workplace and digital
sustained Analyst recognition across CPG
manufacturing to drive cost efficiencies while
Digital Services, Digital CX Services, Digital
sustaining growth momentum, for clients.
Workplace Services, Manufacturing Digital
Continue to make client and employee-focused Solutions and Intelligent Automation Services.
investments to enable clients accelerate 1
ITC Infotech provides business-friendly solutions to help
journey of growth and differentiation. clients succeed and be future-ready and sustainable,
by bringing together digital expertise, strong industry
Capability-led differentiation through portfolio specific alliances and the unique ability to leverage
of client and industry-led capabilities including deep domain expertise from ITC Group businesses.
PLM-led Digital Thread Solutions, Digital Strategic Pillar on ‘World-class Talent’ is implemented
and driven through corporate policies and each business
Manufacturing, Open Hospitality, Cloud, and has a plan to nurture talent and provide platforms for the
Sustainability. right skill sets as per the sectoral requirements.

Annexures
Value creation model

Inputs Business Activities Outcomes
Financial capital Manufactured capital Strategic Pillars of ITC Next Financial capital Human capital
₨67,594 crores 200+ ₨24,678 crores 94 %*

Shareholders’ funds Manufacturing units PBT Employee
Satisfaction score
₨48,000+ crores 120+
Revenue Expenditure Hotels Multiple Innovation Agile, Resilient Digital World-class Sustainability ₨18,753 crores 0.019
Drivers of and R&D and Efficient talent 2.0 PAT
Injury rate
₨10,400+ crores Growth Supply Chains
Capital expenditure over last 5 years 22.7 % *proud to be associated with ITC
Outputs Total Shareholders’
Intellectual capital Human capital Business Segments Return CAGR over the Social capital
last 2 decades
₨806 crores 23,725
R&D Spend in last 5 years(cumulative) Full Time Employees* Intellectual capital
6 million+
Contributing to UN SDGs
Sustainable livelihoods
800+ ₨3,569.46 crores 90+ supported
Patents filed Employee benefits expense Agri Business Division Hotels
400+ *ITC Standalone Sourcing and supply operations in 22 states 120 Properties and
New Product Launches
190 million
Scientists
encompassing over 20 agri-value chain clusters
No.1 Leaf Tobacco exporter in India
over 11,500 rooms 25+ Person days of
World Class Indian employment generated
Brands through social and farm
forestry initiatives
Social capital Relationship capital
₨365.5 crores ₨17,500+ crores

CSR Expenditure across, more Spend on indegenous procurement Natural capital
Fast Moving Paper-boards, Information
than 300 districts in 27 states/ of raw materials, stores & supplies
Consumer Goods Paper and Packaging Technology
Union territories (86% of total procurement)
Cigarettes In-house pulp Global technology
5,993 kilo tCO2e 49.83 million KL
GHG Removals Rainwater Harvesting
15,400+ 160,000+ Branded packaged foods
Personal Care Products
manufacturing
Value-added
services and solutions
with presence in 40 Potential created
Grass-root institution/ Markets-Distribution Network Incense Sticks paperboards countries
Community-based
Organisations(CBOs) created ~7 million
Safety Matches Specialty Papers Business and 99% 60,000+ tonnes
Education and Stationery technology consulting of the total solid waste Post-Consumer Plastic
Retail Outlets Products generated in ITC units was Waste, sustainably
either reused or recycled managed by ITC’s
programmes - Achieved
Natural capital Business Activities ‘Plastic Neutrality’
26,885 TJ 2.7 million tonnes Sustainable Sourcing R&D Manufacturing

Total energy consumed Raw materials processed with 97% from
agri/forestry based renewable sources
Transportation and Logistics Warehousing and Distribution
14.5 million KL
Net water consumption 11,505 TJ Delighting Customers Marketing End-of-life Management
Total energy from renewable sources

Annexures
Strengthening Relationships
with All Stakeholders
As an Enterprise of Tomorrow, ITC The engagement approach
acknowledges its responsibility in meeting ITC’s key stakeholder groups include:
takes into cognisance the fact
stakeholder expectations in today’s evolving
1 2 3 that each stakeholder group is
business and regulatory landscape. An
increasing stakeholder awareness on effective Shareholders Central & State Governments, Customers unique and has a distinctive set
engagement with stakeholder groups plays an Regulatory Authorities of priorities. Insights gathered
important role in ensuring that ITC continues to
from stakeholder engagements,
create larger societal value. 4 5 6
help validate the Company’s
In line with the Board approved Policy on Employees Value Chain partners Media performance and shape new
Stakeholder Engagement, ITC has evolved including Farmers, Suppliers
a structured framework for engaging with perspectives.
and Service Providers
its stakeholders and fostering enduring
relationships with each one of them. ITC’s
7 8 9
engagement approach is anchored on the
principles of materiality, completeness and Civil society Local communities Experts &
responsiveness. Knowledge Partners
ITC’s Process of Stakeholder Engagement
Identification of key Consultation with the Identification and Addressing the

stakeholders key stakeholders prioritisation of prioritised concerns
who are directly/indirectly impacted by with due weightage given to each concerns and needs and needs
business activities as well as directly/indirectly stakeholder based on the nature of in a consistent and transparent manner
influence business activities engagement with the organisation
Periodic review of action taken
Transparency and accountability

Annexures
Strengthening Relationships with All Stakeholders
Consultation with Key Stakeholders

for Sustainable Solutions Customers Ongoing
Creating enduring value for the stakeholders research organisations and communities. Such
in accordance with the triple bottom line multi-disciplinary engagement processes
⬤ Market surveys
approach has been ITC’s core strategy. To stimulate deeper and nuanced understanding
⬤ Direct connect/ visits
understand the stakeholder needs and evolving of challenges and enable the emergence of
Government ⬤ Personalised lifestyle privilege programme
expectations of stakeholder, ITC engages in customised solutions which help in creating
regular interactions with various stakeholders enduring value.
and regulatory Ongoing ⬤ Customer satisfaction surveys
including Governments, development agencies, authorities ⬤ Key account management
⬤ Product/ service quality and safety

⬤ R epresentation on policy issues through ⬤ Adequate information on products
industry associations and other bodies ⬤ Transparent communication
Providers of financial capital/Shareholders Ongoing ⬤ Participation in policy advocacy ⬤ Product/ service availability
discussions at various forums ⬤ Timely delivery of product/ service
⬤ Periodic meetings related to ⬤ Maintenance of privacy/ confidentiality
⬤ Annual General Meeting ⬤ A nnual General Meeting of the Company collaborations and Public Private ⬤ Fair and competitive pricing
⬤ Exclusive section in Corporate Website on held on 20th July, 2022 through virtual mode Partnership (PPP) programmes
‘Investor Relations’ which serves to inform ⬤ Communicating quarterly performance
⬤ D edicated Consumer Response Cell for
and service shareholders takeaways through press releases,
capturing customer complaints, queries,
⬤ Exclusive e-mail id: isc@itc.in for direct followed by presentations and post-result ⬤ Regulatory compliance feedback and suggestions
interaction with shareholders and for calls with analysts. ⬤ Sound corporate governance ⬤ Rapidly evolving consumer needs are
receiving investor complaints ⬤ Key performance highlights shared with mechanisms constantly being monitored through social
⬤ Regular interaction with institutional all shareholders via e-mail. ⬤ Tax revenues listening, in-depth immersions and are
investors ⬤ More than 200 meetings with analysts ⬤ Improvement in use of natural resources being carefully synthesised to transform into
representing institutional equity ⬤ Transparency in disclosures relevant solutions
investors, fund/portfolio managers in ⬤ Livelihood generation ⬤ Collaborative engagements on sustainability
⬤ Improved profitability and growth of the top FIIs, Domestic Mutual Funds, FPIs,
with key B2B Customers
organisation Private Insurance Companies etc. were
⬤ Sustainable Tobacco Programme (STP 2.0)
⬤ Transparent and effective communication organized in FY 2022-23 in physical and
⬤ R epresentations on policy issues Assessments by Global Tobacco Majors,
⬤ Investor servicing virtual mode.
submitted to regulatory authorities Participation in ‘Thrive’ programme with
⬤ Sound corporate governance mechanisms ⬤ The Company engaged on one-on-one
through industry associations and other British American Tobacco (BAT), and Leaf
⬤ Providing deeper insights into the basis with ESG specialists of fund houses/
bodies Partnership Programme with Imperial
Company’s Corporate Strategy and brokerage firms covering, inter alia,
⬤ 86 PPPs signed till date of which 25 Group – 5,043 beneficiaries under Energy
operating segments progress towards achieving its ambitious
were operational in 2022-23. Conservation & School Infrastructure up-
⬤ Sustainability 2.0 Sustainability 2.0 goals by 2030.
gradation programme
26 | Sustainability Report 2023 Frequency of engagement Consultation Mechanism Key issues Select stakeholder engagements conducted during FY 2022-23
Annexures
Employees Ongoing Farmers Continuous
⬤ Induction programmes/ trainings/ ⬤ Caring and empowering work environment ⬤ Regular formal/ informal conversations ⬤ M ore than 8,200 Farmer Field Schools
workshops ⬤ Personal development and growth ⬤ Farmer training programmes and and over 2,300 Choupal Pradarshan
⬤ Individual performance appraisal ⬤ Health and safety workshops Khets were capacitated to disseminate
⬤ Employee engagement survey ⬤ Grievance resolution ⬤ Agreements for all procurement activities Knowledge to farmers
⬤ Grievance handling processes ⬤ Competitive compensation ⬤ e-Choupal and Choupal Pradarshan Khets ⬤ 916 Agri-business Centres, and over 1,150
⬤ Trade union meetings (demonstration farms) Farmer Producer Organisations (FPOs)
⬤ Participatory rural appraisals to identify were created or strengthened to facilitate
needs and challenges extension services to farmers, equipment
hiring, aggregation of produce, collective
⬤ Studio One Chairman’s townhall ITC Annual Sustainability 2.0 (S2.0)
procurement and sales, etc
⬤ Studio One Xchange – Personalised Strategy Meet
⬤ S ustainable and accelerated growth in ⬤ Aimed at boosting agricultural and allied
interactions of employees with senior In January 2023, ITC organised Sustainability
livelihoods and farm incomes activities in 81 districts of 17 states benefitting
leadership 2.0 Strategy Meet in Kolkata which had
⬤ Know-how on improvement of productivity over 7.4 lakh farmers. Out of these districts,
⬤ Townhalls with Business Heads and participation from senior leadership,
and profitability 27 are the Aspirational Districts programme
Leadership Teams functional experts and sustainability
⬤ Capacity development for enabling further in 8 states where the engagement is in
⬤ Grievance redressal platforms practitioners from across ITC Businesses.
investment partnership with NITI Aayog
⬤ Skip level meetings The meeting served as a collaborative
⬤ Easy, affordable and reliable access to ⬤ Over 10 lakh farmers have been trained
⬤ ITC’s employee engagement survey, platform for brainstorming, and jointly
inputs such as quality seeds, fertilizers, using physical mode as well as leveraging
namely iEngage working towards devising short-medium
pesticides etc. digital modes through over 8,000
⬤ Interactions with Employee Resource term strategies and action plans for all S2.0
⬤ Regeneration and replenishment of WhatsApp groups, in collaboration with
Groups, Diversity Councils, Reflections priority areas.
common resources like water, village NITI Aayog. Farmers have been covered
360o feedback system
commons, biomass and biodiversity through physical trainings as well
⬤ Trade Union Meetings
⬤ Comprehensive induction programmes for ⬤ Building resilience against emerging Refer ‘Sustainable
new employees sustainability risks like climate change and Page 148 Agriculture’ and ‘Mission
water stress. Sunehra Kal’
⬤ Ongoing Sustainability 2.0 culture building section of this Report
efforts for engaging employees on
dedicated days of national & international
significance like World Water Day, Global
Recycling Day, and World Wetlands Day.
⬤ ITC Annual Sustainability 2.0 Strategy
Meet Sustainability Strategy Meet -2023 at Kolkata
Annexures
Value chain partners Ongoing Media Ongoing Civil society Need Based
(Suppliers and Service Providers)
⬤ O
ne-on-one media interviews with the ⬤ P artnerships for implementation of CSR
Senior Management programmes under ‘Mission Sunehra Kal’
⬤ Manufacturers’ meets ⬤ ITC has a robust process of evaluating
⬤ Press conferences by Senior Leadership ⬤ Discussions on community issues with
⬤ Vendor meets its Suppliers and Service Providers
⬤ Press releases civil society organisations
⬤ Pre-agreement negotiations before engaging with them, proactively
⬤ Advertisements
⬤ Procurement agreements making them aware of its expectations /
⬤ Media Partnerships & Campaigns
⬤ Reporting of Breaches requirements, and seeking commitment
⬤ Capacity Building Programme for compliance through contractual ⬤ F
inancial support for community
⬤ Assessment of sustainability risks agreements. development programmes
⬤ ITC’s Sustainable Supply Chain ⬤ T ransparent and accurate disclosure to ⬤ Managerial support
Programme is focussed on working stakeholders ⬤ Environmental impacts
closely with the set of identified critical ⬤ Awareness on ITC’s Businesses, Brands & ⬤ Safe products and services
⬤ Knowledge and infrastructure support
suppliers. Accordingly, all ITC businesses Sustainability initiatives ⬤ Responsible corporate citizenship
⬤ Resource-use efficiency, including
have identified Critical Tier-1 suppliers ⬤ Enhancing Corporate Reputation
sustainable natural resource management,
based on factors like ITC’s buy value, ESG
greenhouse gas reduction and sustainable
risk exposure, importance to business
waste management
continuity, among others. ⬤ ITC’s Social Investments Programme has
⬤ Regular communication and updates on Details of latest press releases, media
⬤ Various tech-enabled avenues have been established implementation partnerships
business plans reports and senior management interviews
deployed to constantly receive feedback with 78 NGOs for execution of the 129
⬤ Inclusion of local medium and small-scale are available on the ‘Media Centre’ section
and ideas from value chain partners. projects pan-India.
enterprises in vendor base of ITC portal.
⬤ ITC facilitated 4 capacity building ⬤ Two engagements were organised
⬤ Competency development of local vendors
workshops covering ~ 60% of the identified https://www.itcportal.com/media-centre/ during the year in Vijayawada and
⬤ Stability/ tenure of relationship
Critical Tier-1 vendors on Environmental index.aspx Jaipur for capacity building of 102
⬤ Ordering and payment routines
Compliance, Fair Business Practice, representatives from NGO partners in
⬤ Purchase prices
Corporate Governance and Ethics, Telangana, Andhra Pradesh, Rajasthan
⬤ Corrective action plans to address the
Occupational Health and Safety and Fair and Madhya Pradesh states on
sustainability risks
Labour Practices and Human Rights. company’s Financial Systems
⬤ Supplier sustainability assessments for & Procedures, due diligence
Critical Tier 1 suppliers (across Businesses) requirements, etc.
are being conducted.
Annexures
Local communities Continuous Experts & Knowledge Partners Need Based
⬤ C ommunity needs assessment activities ⬤ C omprehensive needs assessment ⬤ Expert Forums & Knowledge Platforms ⬤ T o plan and collaborate for undertaking
undertaken in collaboration with exercise was revisited in 2021-22, referred ⬤ Events & Conferences need-based studies, planning
independent parties/ civil society to as Core Area Perspective Plan (CAPP ⬤ Collaborative Platforms like the India interventions, providing technical support
organisations 2.0) in 21 factory and 7 agri catchments. Plastics Pact, CII- ITC Centre Of Excellence in guiding an intervention plan, design,
⬤ Formation of village institutions and As a continuation to CAPP 2.0 exercise, For Sustainable Development, Global validation of impacts and outcomes.
regular meetings thereon 26,000 household surveys were taken up Reporting Initiative (GRI), Alliance for ⬤ Engagement with the agencies for various
⬤ Public hearings for greenfield/ expansion in 14 states by SIP team members and Water Stewardship (AWS) activities including field assessments,
projects NGO partners to estimate the household ⬤ Ongoing Discussions & Scoping Meetings capability building of Government, ITC
⬤ Assessment of direct and indirect impacts level gaps that need to be addressed. for developing projects aligned with and partner NGO teams and beneficiaries.
of ITC’s social investments on communities ⬤ In addition to the other community Sustainability 2.0 ⬤ Knowledge partnerships are with Indian
interactions and stakeholder Agri Institutes – Tamil Nadu Agricultural
engagements, 66 community University, Indian Institute of Rice
⬤ C ommunity development programmes engagements were held across 14 Research, Indian Institute of Soyabean
⬤ Sustainability 2.0 priority areas like
based on local communities’ needs states where ITC’s Social Investments Research and Vasant Dada Sugar Institute
climate change, water security, sustainable
⬤ Strengthening of livelihood opportunities Programme (SIP) is implemented to etc. and with Krishi Vigyan Kendras in
packaging, biodiversity and human rights.
⬤ Improvement of social infrastructure for discuss and capture views, issues and the districts where Climate Smart Agri
hygienic and healthy living environment complains, if any, of the community programmes are implemented.
⬤ Dignity of life through economic and social members. ⬤ Partnerships are also with CRISIL for
empowerment ⬤ Over 15,400 grassroots institutions have women financial literacy, CGIAR for
been strengthened so far including Water Climate Smart Village and IWMI for
User Groups, Vanikaran Sanghas, Self- drought proofing framework.
help groups, Agri-business Centres, School
Management Committees, etc.
Refer Mission Sunehra Kal
Refer Mission Sunehra Kal Page 148
Page 148 section of this Report
section of this Report for details
Annexures
ITC’s Materiality
Analysis
The process of materiality assessment involves Disclosures on Material Topics
periodic scan of stakeholder expectations Material issues are one of the key inputs
across Businesses and validation with senior for medium and long-term planning. The
10
management in line with business priorities. sensitivity of an issue to stakeholders and to
ITC, in terms of importance, forms the basis of
5 the materiality analysis, which in turn guides
ITC’s materiality analysis is based on 6 the processes for identifying, managing and
the following three-pronged approach
18 devising specific action plans for addressing
1
them. ITC’s approach towards managing each
Identification of Material Topics and
material issue has been presented through-
Assessment of Impacts
out this report. A mapping of all the material
Importance to Stakeholders
⬤ Periodic testing of existing relevance of 14
issues with respective sections of the report is
material topics in terms of boundary of
impacts 2 available in the table below:
⬤ Periodic scan of sector specific issues 1 Ethics and Governance
using formal and informal processes 2 Business Success
⬤ Evaluation of relevance to stakeholders 7
3 Innovation
9
Determination of Material Topics 4 ESG risk Management
15
⬤ Evaluation of stakeholders’ perception of 8 5 Climate Resilient Agriculture
3
ITC’s impact with respect to material topics 11 6 Water Security for all
⬤ Prioritization of a particular topic
4 7 Sustainable Packaging
(as high, medium or low) based on 12 17
stakeholder engagement 8 Biodiversity management
13
⬤ Significance of a material topic to ITC’s 9 Climate Resilient Operations
business based on corporate strategy, 10 Consumer Experience
policies, risks and opportunities identified
16 11 Sustainable Products and Brands
⬤ Periodic consultation with the internal
and external experts 12 Responsible Marketing
⬤ Organisational level aggregation and 13 Responsible Sourcing Practices

prioritization of material topics 14 Health and Safety
Validation of material topics 15 Human Rights

Importance to ITC
⬤ Periodic Review by Management on 16 Learning and Development
mitigation strategy and its impact on 17 Diversity and Inclusion
stakeholders High Importance Medium Importance Low Importance
18 Sustainable Livelihoods

Annexures
Strategic Risk
Management
contemporary. He is also invited to the meetings
As a diversified enterprise, ITC continues management policy, plans and systems of the This year three additional Divisions/SBUs have
of the Risk Management Committee of the
to focus on a system- based approach to Company. been assessed for compliance with the ISO
Company, whenever matters relating to cyber
business risk management. The management 31000 Risk Management Standard. This is in
⬤ The Corporate Risk Management Cell, security are considered. For more information
of risk is embedded in the corporate strategies addition to the nine Divisions/SBUs which were
through focused interactions with businesses, on the Risk Management Framework, please
of developing a portfolio of world-class previously assessed for compliance with the
facilitates the identification and prioritisation refer to the Risk Management section of the
businesses that best match organisational ISO 31000 Standard. This intervention provides
of strategic and operational risks, development Report of the Board of Directors forming part of
capability with market opportunities, focusing further assurance on the robust nature of
of appropriate mitigation strategies and ITC’s Report and Accounts 2023.
on building distributed leadership and risk management practices prevalent in the
conducts periodic reviews of the progress on
succession planning processes, nurturing Company.
the management of identified risks. CSR and Sustainability Committee
specialism and enhancing organisational
The centrally anchored initiative of conducting
capabilities through timely developmental ⬤ The annual planning exercise requires all
external independent reviews of key business Refer to ESG and Sustainability
inputs. businesses to clearly identify their top risks and Page 47 Governance in Governance
processes with high ‘value at risk’ continued
set out a mitigation plan with agreed timelines section in this Report
during the year.
Accordingly, management of risk has always and accountabilities. Businesses are required
been an integral part of ITC’s ‘Strategy of to confirm periodically that all relevant risks
Corporate IT Steering Committee
Organisation’ and straddles its planning, have been identified, assessed, evaluated and
The Corporate IT Steering Committee
execution and reporting processes and that appropriate mitigation systems have been
(CITSC), is the apex committee across
systems. Backed by strong internal control
systems, the current Risk Management
implemented.
the Company for key matters related to Business Continuity
Management (BCM)
Information Management Governance, Risk
Framework consists of the following key
elements: Risk Management Management, Compliance and Cyber Security.
The Committee is chaired by the Wholetime Designed to address the threat of disruptions
⬤ The Corporate Governance Policy System Director on the Board of ITC and Chief to business activities or processes, Business
approved by the Board, clearly lays down the Financial Officer of the Company. continuity and resilience planning validates the
ITC endeavours to continually sharpen its
roles and responsibilities of the various entities Risk Management systems and processes adequacy of the existing systems and processes
in relation to risk management covering a Cyber Security Committee to prevent and recover from potential threats.
in line with a rapidly changing business
range of responsibilities, from the strategic to A Cyber Security Committee, chaired by
environment. In this regard, it is pertinent It ensures continuity of delivery of products
the operational. the Chief Information Officer, is in place
to note that some of the key businesses or services at pre-defined acceptable levels
to provide specific focus on cyber security
⬤ The Risk Management Committee, of ITC have adopted the ISO 31000 Risk following a disruptive incident.
related risks, with the primary responsibility of
constituted by the Board, monitors and reviews Management Standard and accordingly, the
tracking emerging practices and technologies Business Continuity Plans have been made
the strategic risk management plans of ITC as Risk Management systems and processes
and provide suitable recommendations for comprehensive to include all facets of
a whole and provides necessary directions on prevalent in these businesses have been
enhancing security of the IT systems and operations and are being tested at pre-
the same. It also reviews the implementation, independently assessed to be compliant with
infrastructure. The Chief Information Officer is determined intervals. These Plans have been
effectiveness and adequacy of the risk the said global Standard on Risk Management.
responsible for ensuring that the Cyber Security duly approved by the Management Committee
systems of the Company remain effective and of the Businesses.

Annexures
Strategic Risk Management
Key Risks Climate Change & Sustainability

Risk Description
Climate Change & Climate related physical and transitional disruptions may impact business operations, sourcing, supply chain and increase compliance costs.
Sustainability
Potential impact Risk Mitigation Strategy
Cyber Security and Information
⬤ As average temperatures rise, extreme weather Physical Risk Management:
Technology Systems events are expected to grow in terms of severity ⬤ Climate risk modelling for identifying high- − Adoption of water stewardship approach to
and frequency which could have significant impact risk/vulnerable sites and agri value chains, and achieve water security for all stakeholders
Talent Management on the Company’s operations, its physical assets undertaking detailed assessments for developing within the defined catchment areas of units
and agri value chains. These may lead to complete locally contextual adaptation plans, risk mitigation located in high water stress areas.
Discriminatory taxation and or partial outage of operations. Further, these strategies and undertaking measures for improving
⬤ Diversifying the supply chain, and contingency
stringent regulations on legal events may also adversely impact the availability climate resilience.
planning in supply chain.
and quality of agri raw materials and consequently, ⬤ Promotion of climate smart agriculture, and
cigarette industry the production and sales of the Company’s development of heat/drought tolerant and high
⬤ Map risks arising out of climate crisis, build
adaptive capacity and invest in mitigative measures
products. yielding varieties to improve productivity by
Innovation and Consumer/ ⬤ Vagaries of weather caused by climate change adopting micro region-specific agronomic practices.
to strengthen resilience across the value chain.
Brand Preference impact crop cycles, output and productivity − Micro segmentation of growing zones and
Transition Risk Management:
resulting in disruption of operations / supply chain. developing appropriate package of practices
⬤ Continue to focus on energy conservation,
Corporate and Brand ⬤ Availability of water for own operations as well and precision farming techniques to mitigate
improving energy productivity and enhancing
as farm value chains also get impacted by erratic impact of weather.
Reputation precipitation patterns. − Enhancing climate resilience of farmers through
the share of renewables in ITC’s total energy
requirement as part of ITC’s Sustainability 2.0
⬤ Besides physical risks, there are also transition capacity building programmes including
Heightened uncertainty in risks associated with climate change, that can leveraging ITCMAARS app together with
targets. Strengthen enterprise sustainability and
governance mechanisms for reviewing performance
the macro-economic and impact the Company’s operations: the FPO (Farmers’ Producer Organisation)
and progress against Sustainability 2.0 targets
operating environment − Additional levies may be imposed by ecosystem, and supported by field
through the Sustainability Compliance and Review
regulatory authorities for emission/water demonstrations under Choupal Pradarshan
Committee (SCRC).
intensive industries to address climate change, Khets.
Black Swan Event this will lead to higher cost of compliance, and − Comprehensive programmes on social forestry,
Adopt the life-cycle assessment (LCA) approach for
potential regulatory penalties and reputational soil and moisture conservation and biodiversity
Diversified business portfolio risk in case of non-compliance. conservation.
identifying environmental impact across a product’s
lifecycle; leverage the same for sustainable design
and product innovation.
Product and Plastic Packaging

Annexures
Cyber Security & Information Technology Systems Talent Management

Risk Description Risk Description
Significant disruption of business operations and loss of data integrity due to increase in sophisticated Inability to attract and retain high quality talent in a highly competitive market.
cyber-attacks resulting in non-availability of Information Technology systems and Information Assets.
Potential impact Potential impact
With accelerating adoption of new digital technologies ⬤ Unavailability of IT Systems and Infrastructure ⬤ Lack of requisite quality of management ⬤ Talent attrition beyond acceptable levels may
such as Cloud, AI, ML, Robotic Process Automation causing significant disruption to business operations personnel could adversely affect operations and impact ability to effectively fulfil Organisational goals
along with increasing inter connectedness with ⬤ Theft of personal information of customers thereby long-term business performance. and Customer expectations.
partners and remote working, the Company’s eroding consumer confidence
operations are vulnerable to cyber attacks, the impact ⬤ Data destruction resulting in shutting down of Risk Mitigation Strategy
of which can be on multiple dimensions: business activities
⬤ Strengthening and communicating ITC’s talent ⬤ Energising and nurturing pride in membership
⬤ Regulatory non-compliance
proposition about ‘Building Winning Businesses. through frequent leadership outreach to managers.
⬤ Reputational damage and financial loss.
Building Business Leaders Creating Value for India’. ⬤ Engaging with the country’s premier academic
Risk Mitigation Strategy ⬤ Providing meaningful and challenging roles which institutions to communicate the Company’s talent
⬤ Comprehensive Information Policy detailing network, cloud, email, web and data centres to enrich individual capability and act as a powerful proposition through case-study competitions,
practices and procedures for acquisition, deployment, ensure threats are detected and responded to incentive to stay, learn and grow. knowledge-sharing programmes by senior managers
use and retirement of all information assets with appropriately. ⬤ Building a robust talent pipeline across and the annual internship programmes creating a
specific focus on access authorizations, data storage ⬤ Vulnerability Assessment and Penetration responsibility levels through requisite quality in key compelling proposition for the best candidates to
and backups, incident response and recovery. The Testing by independent third party for all Internet roles, depth of bench and reliable succession plans. aspire for a career with the Company.
policy is reviewed on a regular basis to align with facing applications and IT infrastructure including ⬤ Investments in capability building of managers ⬤ Promotion of Diversity, Equity and Inclusion
contemporary and evolving best practices, standards assessment of security architecture and controls of through access to the best-in-class upskilling through supportive polices based on principles of
and technologies. Industrial control systems (IT-OT). programmes and development interventions. equity,
⬤ Identification of critical IT systems and information ⬤ Intensify Cyber security awareness campaigns ⬤ Recognising and nurturing Specialism so that ⬤ Implement measures to ensure sufficient
Assets, and establishing robust IT Continuity Plans and training for all users across the organization. employees who wish to focus on niche, business representation of women in selection pools and
along with periodic review and testing thereof. ⬤ Policies covering the protection of personal critical skills can continue to grow in their area of deployment of the differently-abled across suitable
⬤ Dedicated security team under the leadership information of consumers, employees and business expertise. opportunities in the value chain towards meeting the
of Chief Information Security Officer (CISO) to track partners are in place. ⬤ Benchmarking compensation to the relevant diversity and inclusion goals of the organisation.
operations, learn from ecosystem on emerging ⬤ Periodic assessment of ITC’s IT security posture market periodically, ensuring strong alignment with ⬤ Agility in adjusting HR practices and providing
threats & mitigations and fine tune the practices, by an independent third-party expert specialising in short term and long-term performance, particularly contemporary and relevant work policies to
technologies and skills to ensure security of the Information Security to validate adequacy of policy, at senior levels and ring- fencing top talent. employees such as flexible work arrangements.
information assets. practices and controls. ⬤ Ensuring the talent quotient in the Company
⬤ Centralized supervision of software updates, ⬤ ISO 27001 certification of ITC Corporate Data remains healthy and vibrant through annual
advanced threat intelligence and continuous real- Centres providing an independent third-party segmentation supported by differential rewards and
time security monitoring, enabled by best-in-class assurance of the effectiveness of the Company’s progression opportunities for industry leading talent.
security technologies and tools, across end points, Information Security Management System (ISMS).

Annexures
Discriminatory taxation and Innovation and Consumer/Brand Preference Corporate and

stringent regulations on Risk Description Brand Reputation
legal cigarette industry Risk Description
Failure to adequately anticipate evolving consumer preferences and inability to proactively
Risk Description innovate and remain competitive. Risks arising due to inadequate protection
Inequitable and high taxation coupled with against malicious attacks, misinformation,
Potential impact trademark infringement, misrepresentation
stringent regulations adversely impacts the
legal cigarette industry. Failure to track consumer trends and innovate may lead to the inability to meet changing consumer or fraudulent activity, including those on
requirements with consequential decline in market share / demand for Company’s products and services. digital and social media. This can impact
Potential impact ITC’s customer loyalty/consumer franchise
Risk Mitigation Strategy
⬤ Discriminatory and punitive taxation on cigarettes and reputation.
leading to progressive migration from consumption of ⬤ Deep understanding of consumer preferences ⬤ Contemporary brand marketing interventions
Risk of the Company’s brands and reputation
duty-paid cigarettes to other lightly taxed/tax evaded and needs by synthesising information from multiple to deepen consumer engagement and sharply
getting impacted if it is construed that the
forms of tobacco products leading to sub-optimisation sources & crystallising the same for agile marketing communicate brand proposition and purpose.
Company’s operations/products & services
of revenue potential of the tobacco sector. actions, product development and innovation. These are supported by micro segmentation and
are inconsistent with the expectations of
⬤ Fillip to contraband cigarette trade in India due to ⬤ Focus on agile and purposeful innovation sharply sharp targeting the consumer cohorts with hyper
stakeholders.
attractive arbitrage opportunities; significant loss of aligned with business strategy; strengthen and personalised content.
revenue to the exchequer. leverage ITC Life Sciences and Technology Centre ⬤ Geographical analytics (at a pin code level of
⬤ Subdued demand for Indian tobacco due to (LSTC) science platforms to build a robust pipeline granularity) of consumer buying preferences for each Potential impact
pressure on legal cigarette industry volumes; adverse of innovative products, thereby securing long term product category to offer the right portfolio to the ⬤ Reduced stakeholder confidence on the
impact on farmer earnings and livelihoods dependent competitiveness. right micro market. Company due to misleading or malicious
on tobacco value chain. ⬤ Future-ready portfolio to address existing and ⬤ Leverage Customer Relationship Management information on social media/other media channels
Risk Mitigation Strategy emergent consumer needs anchored on purpose-led (CRM) platform for capturing customer complaints, regarding the Company’s operations and activities
⬤ Engagement with policy makers for equitable, brands. queries, feedback and suggestions received across ⬤ Reduced customer confidence due to posts/
non-discriminatory, pragmatic, evidence-based ⬤ Leverage digital technologies and platforms channels. articles relating to quality and performance of
regulations and taxation policies that balance the to deliver personalised brand experiences. The ⬤ Leverage multi-channel go-to-market Company’s products and services leading to
economic imperatives of the country and tobacco Company’s ‘Sixth Sense’ Marketing Command capability to drive penetration and accessibility by tarnishing of image and reputation with consequent
control objectives, cognising for the unique tobacco Centre and Consumer Data Hub (an AI powered strengthening core channels, winning in emerging revenue loss.
consumption pattern in India; highlighting the growing personalised platform) gains insights on market channels, scaling up D2C and digital first brands. ⬤ Loss of time and resources on dispute resolution.
threat of illegal and smuggled cigarettes. trends and consumer behaviour and synthesises the ⬤ Focus on product safety to ensure world-class
⬤ Regular interaction with enforcement authorities for same to craft personalised brand communication quality standards across the portfolio.
actions against illicit trade such as seizure operations of and product development. ⬤ Continuous monitoring (using Machine
counterfeit/smuggled/duty evaded cigarettes.
⬤ Continuous measurement of performances Learning & Natural Language Processing based
⬤ Counter illicit trade and reinforce market standing related to brand inputs, against set objectives and tools) of trademark infringement, brand safety and
by fortifying the product portfolio through innovation,
relative to competition, using a host of data scraping advertisement frauds to protect the brands and
democratising premiumisation across segments and
and social listening tools. business.
enhancing product availability backed by superior on-
ground execution.

Annexures

Heightened uncertainty in Black Swan Event
⬤ Structured and targeted media-engagement the macro-economic and
plan in place.
operating environment Risk Description
⬤ Effective engagement and responsible
Risk Description Disruption across the value chain arising out of unforeseen events like the COVID-19 pandemic.
advocacy with stakeholders on issues relating to
ITC’s products, services, initiatives, and business Heightened uncertainty in the macro-
practices. Potential impact
economic and operating environment resulting
⬤ Leveraging publicly available web applications in fluctuation in demand for the Company’s ⬤ Disruption in supply chain including volatility in ⬤ Business loss due to change in composition of
and dedicated brand advocacy platforms to products and services, inflationary pressures, commodity prices, non-availability of raw materials consumer consumption basket including decline in
disseminate information about ITC and its brands volatility in financial and commodity markets. and challenges in product manufacture and demand for discretionary products.
digitally. distribution leading to stock-outs and inability to
⬤ Sustained communication of ITC’s commitment Potential impact service the market.
to the protection of the environment and well-being ⬤ In a globalised environment, economic/
of society and stakeholders. geopolitical developments may lead to inflationary Risk Mitigation Strategy
⬤ Mechanisms to respond to any fake or malicious pressures, supply chain disruptions, volatility in
⬤ Learnings from the Covid pandemic have capacities to supplement existing facilities.
posts (including social media) impacting the interest and exchange rates, and commodity prices.
been seamlessly incorporated in the day-to-day ⬤ ITC Agri Business’s wide geographical spread,
reputation of ITC, its businesses and brands. These could also cause significant fluctuation in the
procedures as part of the ‘new normal’. Processes multiple sourcing models, extensive sourcing and
⬤ Compliance to best practice guidelines laid demand for the Company’s products and services.
and protocols have been institutionalised including supply chain network and associated infrastructure
down by Advertising Standards Council of India. ⬤ Government actions such as imposition of price
safety and security of personnel across all nodes of in key growing areas coupled with deep-rooted
⬤ Familiarisation programs and periodical controls, ban on import/export of raw materials/
operations to deal with the outbreak of the pandemic farmer linkages.
updates for employees on ITC’s Code of Conduct. finished products related to the Company, or
situation. ⬤ Leveraging alternate channels of distribution to
The governance framework continuously reinforces other similar restrictions could impact business
operations and profitability. ⬤ Cross-functional Crisis/Contingency assist in uninterrupted supply of Company’s products.
and helps realise highest standards of ethical and
Management Teams, both at the Business as well ⬤ Agile innovation and dynamic manufacturing
responsible conduct to create enduring value for all Risk Mitigation Strategy
as at the corporate level for continually reviewing capacities to quickly launch product offerings in line
stakeholders. ⬤ Continuously build adaptive, agile and resilient strategic, operational, and financial matters. with the changing consumer requirements.
⬤ Capacity building workshops for key value chain supply chain to effectively manage complexities
⬤ Business continuity plans for securing key ⬤ Close monitoring of emergent consumer trends
partners to educate, and create shared awareness arising from geo-political dynamics.
material supplies including usage of substitute backed by robust innovation and research platforms
on key areas like human rights, labour practices and ⬤ Regular scanning of the environment to track
materials, increasing safety stock levels, identification of ITC’s Life Sciences & Technology Centre (LSTC)
sustainability. key macro-economic developments.
of alternate/domestic vendors, identification and along with strong product development capabilities
⬤ Ensure marketing claims made by the ⬤ Measures taken to ensure continuity in
operations and servicing the customers include activation of potential alternative manufacturing at the Business level.
organisation are backed by adequate
increasing safety stock levels, leveraging alternate
substantiation and credible research.
channels of distribution.
⬤ Stringent product performance checks prior to
⬤ Broad-base pool of vendors and activating
launch in the market. alternate suppliers of key materials and thereby
⬤ Detailed Standard Operating Procedures/ increase the resilience of supply chain.
process guidelines to ensure uniformity of services/ ⬤ Ensure that supply chain is not concentrated in
products and adherence to quality standards. any single region or supplier.

Annexures
Diversified business portfolio Product and Plastic Packaging

Risk Description Risk Description
Increasing complexity of operations in the context of a Inability to comply with current or future regulation on plastic packaging and/or failure to
highly diversified business portfolio meet commitments on packaging and the environment.
Potential impact Potential impact

⬤ Diversified portfolio may lead to inadequate focus on key businesses. ⬤ Non-compliance to plastic waste management ⬤ Disruptions in the supply chain for recycled
regulations could lead to imposition of plastic or plastic packaging substitutes as required
environmental compensation, that may negatively by law, can impact the Company’s ability to comply,
⬤ ITC’s Strategy of Organisation and three-tier ⬤ ITC believes that the right balance between impact Company’s reputation. Additionally, stricter produce and distribute products.
governance structure ensure that: freedom of management and accountability to government laws around usage of plastics including
⬤ Inability to provide sustainable alternatives could
− Strategic supervision (on behalf of the shareholders can be achieved by segregating bans may give rise to multiple challenges such as
have a negative impact on consumer sentiment.
shareholders), being free from involvement strategic supervision from strategic and executive redesign of product packaging, shelf life-related
in the task of strategic management of the management. issues and product distribution issues.
Company, can be conducted by the Board of ⬤ The governance framework of the Company
Directors with objectivity, thereby sharpening enables each business to focus on its operating
accountability of management; segments, while harnessing the diversity of the ⬤ Going beyond compliance wherever possible: ⬤ Partnering with upstream players and suppliers
− Strategic management of the Company, Company’s businesses to create unique sources of − Ensuring plastic neutrality ahead of for ensuring supply of recycled plastic for meeting
uncluttered by the day-to-day tasks of competitive advantage; empowered and integrated regulatory targets through source segregation regulatory/market demand for increasing recycled
executive management, remains focused and teams have been formed, where applicable, to focus programmes, creating replicable, scalable and content in plastic packaging.
energised; and on specific product markets enabling enhanced sustainable models of solid waste management, ⬤ Harnessing the enterprise strengths of ITC (Life
− Executive management of the divisional consumer centricity and agility, whilst providing and developing viable recycling options for Sciences and Technology Centre, Paperboards &
business free from collective strategic undiluted attention to each segment. multi-layered plastic (MLP) packaging. Specialty Paper Division and Packaging and Printing
responsibilities for ITC as a whole, remains ⬤ Drive synergistic growth and enhance the − Ensuring that 100% of packaging is reusable, Division) in driving cutting-edge innovation to offer
focused on enhancing the quality, efficiency competitive power of the portfolio by blending the recyclable or compostable/biodegradable. sustainable alternatives to single use plastics. Pursue
and effectiveness of the business to achieve diverse skills and capabilities residing in the various sustainable packaging initiatives like reduction in
best-in-class performance. Businesses of the Company. plastic packaging intensity, improving recyclability of
plastic packaging.
Please refer to write-ups on each operating Segment in the

Report of Directors & Management Discussion and analysis for further details.

Annexures
Sustainability 2.0
Management Framework
Transparency and
Vision Foundation Sustainability 2.0 Priorities
Stakeholder Disclosures
Sustain ITC’s position as one ITC’s ‘Nation First: Sab Saath
Engagement
ITC's Sustainability Report
of India’s most valuable Badhein’ Philosophy
Page 25 Climate Change Water Security Aligned to GRI Standards,
IIRC Framework
corporations through ITC’s Triple Bottom Line Approach
world-class performance, ITC’s Sustainability Policies ITC’s Business Responsibility &
creating growing value for the Sustainable Sustainable Packagin Sustainability Report (BRSR)
Indian economy and the Agriculture and Circular Economy Aligned to SEBI’s Framework
Company’s stakeholders. ESG Frameworks

Materiality Sustainable
Assessment Livelihoods Sustainable Supply
Mission Management Systems Chain and Responsible
Page 30
Sustainabiliy 2.0
Sourcing Ambitions
To enhance the Guidelines, Standards & Assurance Biodiversity
wealth-generating System for Sustainability
Page 38
Management
capability of the enterprise
Product Sustainability Human Rights
in a globalising environment, Sustainability Performance
Monitoring & Management System
delivering superior and across Businesses Risks and Occupational Health Learning and
sustainable stakeholder value.
Opportunities and Safety Development
Values Page 31
Diversity and Inclusion
ITC’s Core Values are aimed at developing a
customer-focused, high performance organisation
which creates value for all its stakeholders: Page 38
Trusteeship Innovation
Excellence Respect for people
Customer focus Nation orientation
Enablers
ESG and Sustainability ITC-wide ITC’s Sustainability Partnerships and Innovation

Governance Sustainability Culture Centres of Excellence Collaborations and Digital
For superior ‘Triple Bottom Line’ ITC’s long standing focus on ‘Triple Over the last two decades, combining In order to drive systemic change, ITC’s Life Sciences and Technology
performance, ITC’s Governance Bottom Line’ and its strategy of deep-rooted insights, perspectives and sustainable processes and create impact Centre (LSTC) works continuously to
processes ensure that sustainability ‘Responsible Competitiveness’ has on-ground managerial expertise at scale, ITC leverages the power of churn out game-changing,
principles are embedded in business embedded sustainability deep into the with meaningful collaborations and partnerships and collaborations with science-led innovative products and
strategies and execution plans. organisation’s culture. partnerships, ITC has created internal relevant stakeholders. other business solutions. ITC’s businesses
centers of excellence across critical areas are also deploying cutting-edge digital
like renewable energy, water stewardship, technologies for driving smart and
sustainable agriculture, inclusive business sustainable impact.
models and material sciences.

Annexures
Sustainability 2.0 Ambitions:

2030 Targets
ITC’s Corporate Strategy is crafted in response Climate Plastic Waste &
to its unique operating context, material issues
and stakeholder expectations, embedding the
Change Circular Economy
key tenets of ITC’s corporate philosophy. 50% of Total Energy Consumed 30% reduction in 100% of Packaging to be
from Renewable Sources Specific Energy Consumption Reusable, Recyclable or
% of Total Energy Consumed from Renewable Sources % Reduction in Energy Consumed per Unit of Compostable/Bio-Degradable
Production % of Plastic Packaging Utilised that is Recyclable,
Performance (2022-23) 43% Reusable or Compostable/ Bio-degradable
Baseline year 2018-19
Target (2030) 50% Performance (2022-23) 99.9%
Performance (2022-23)
Paperboards & Specialty Papers Business 9% ↓ 99.9% (less than 0.1% of Packaging Portfolio is
100% Purchased Grid Electricity Non- Recyclable or Hard to Recycle – Phase out
Branded Packaged Foods Businesses 25% ↓
Requirements1 from Renewable Sources plans in place).
Agri Business Division 6% ↓
% of Total Electrical Energy (Grid Purchased) ITC is also actively working to increase the
from Renewable Sources Hotels 13% ↓
collection and recycling rates for Multi-Layered
Performance (2022-23) 47% Packaging and Printing Business (PPB) 16% ↓ Plastic (MLP) packaging waste by implementing
FMCG Cigarettes 12% ↓ replicable, scalable and sustainable models of
Target (2030) 100%
Target (2030) 30% solid waste management.
Target (2028) 100%
50% reduction in
Specific GHG Emissions2 Sustain and enhance carbon
sequestration by expanding forestry
% Reduction in GHG Emissions (Scope 1, 2)
projects on wastelands through ITC’s Plastic Neutrality: Enable Sustainable
per Unit of Production
Social and Farm Forestry programmes Management of Waste in Excess of the
Baseline year 2018-19 Amount of Packaging Utilised
and other such initiatives
Performance (2022-23) % of Plastic Packaging Waste Sustainably Managed
Area under Social and Farm Forestry (Acres)
Paperboards & Specialty Papers Business 11% ↓
Performance (2022-23) 1 million acres* Performance (2022-23) >100%
Branded Packaged Foods Businesses 38% ↓
Achieved Plastic Neutrality
Agri Business Division 2%↑ Target (2030) 1.5 million
Target (2021) >100%
Hotels 9% ↓
Packaging and Printing Business (PPB) 41% ↓
FMCG Cigarettes 15% ↓ 1

This includes all electricity sources except onsite
Target (2030) 50% power from co-generation plant.
↑ Decline in KPI, ↓ Improvement in KPI
2
38 | Sustainability Report 2023 On Track (OT) KPI *Cumulative

Annexures
Sustainability 2.0 Ambitions: 2030 Targets
Water Stewardship Sustainable Agriculture

All Sites in High Water Stressed Areas
40% reduction in Promote climate smart village approach
to be certified as per the International
Specific Water Consumption3 in core agri-business catchments
Water Stewardship Standard by AWS
% Reduction in Water Consumed per Unit of Production (Alliance for Water Stewardship)
Area Covered (Acres)
Baseline year 2018-19 No. of AWS Certified Sites
Performance (2022-23) Performance (2022-23) Performance (2022-23) >1 million acres
Paperboards & Specialty Papers Business 9% ↓ 2 Sites-Food Factory in Malur, Karnataka and Paper
Mill at Kovai, Tamil Nadu, have received Platinum- Target (2030) 3 million
Branded Packaged Foods Businesses 31% ↓ level certification.
Hotels 17% ↓ Certification of other Units in Progress.
FMCG Cigarettes 24% ↓ Target (2035) 8 sites by 2024 Biodiversity Conservation
Target (2030) 40% All high-risk sites by 2035
Revive and Sustain Ecosystem Services
Ensure Water Security for All Stakeholders Provided by Nature and Provisioning of
Creation of Rainwater Harvesting through Watershed Development & Products through Adoption of Nature-
Potential equivalent to over 5 times the Managed Aquifer Recharge based Solutions and Biodiversity
Net Water Consumption from Operations Conservation.
Watershed Area (Acres)
Ratio of Rainwater Harvesting Potential created and
Area Covered (Acres)
Net Water Consumed in Operations. Baseline year 2016-17
Performance (2022-23) 1,470,000* Baseline year 2016-17

Performance (2022-23) 3X
Target (2030) 2,200,000 Performance (2022-23) 290,000 acres*
Target (2030) 5X
Target (2030) 1 million
Water Harvesting Structures (Nos)
Improve Crop Water Use Efficiency in
Agri Value Chains through Demand Baseline year 2016-17
Side Management Interventions
Million KLs of Potential Water Usage Saved
Performance (2022-23) 28,300*
Sustainable Livelihoods
Target (2030) 50,000
Supporting sustainable livelihoods for
Performance (2022-23) 780
10 million people by 2030
Storage Potential (Million KL)
Target (2030) 2000
Sustainable Livelihoods supported (no.)
Performance (2022-23) 48.9* Performance (2022-23) 6 million
↑ Decline in KPI, ↓ Improvement in KPI

3
Target (2030) 60 Target (2030) 10 million
39 | Sustainability Report 2023 On Track (OT) KPI *Cumulative

Annexures
Governance
ITC’s Corporate Governance Philosophy
Anchored on the values of
trusteeship, transparency, The practice of Corporate
Governance in ITC takes place at
ethical corporate citizenship,
three interlinked levels:
empowerment & accountability
and control.
Strategic supervision
ITC believes that since large corporations by the Board of Directors (the Board)
employ societal and environmental resources,
governance processes must ensure that
they are utilised in a manner that meets Strategic management
stakeholders’ aspirations and societal by the Corporate Management Strategic Supervision by the Board of Directors
expectations. For superior Triple Bottom Line Committee (CMC)
performance, ITC’s Governance processes Name Designation
ensure that sustainability principles are Mr. Sanjiv Puri Chairman & Managing Director
embedded in its business strategies and Executive management
Mr. Nakul Anand Executive Director
execution plans. by the Chief Executives / Chief Operating
Mr. Supratim Dutta Executive Director & Chief Financial Officer
Officers of Divisions, Strategic Business
Units, Business Verticals and Shared Mr. Sumant Bhargavan Executive Director
ITC’s Corporate Governance Services, assisted by their respective Mr. Shilabhadra Banerjee Independent Director
structure, systems and processes are Management / Executive Committees.
Mr. Hemant Bhargava Independent Director
based on two core principles:
Mr. Peter Rajatilakan Chittaranjan Non-Executive Director
Mr. Arun Duggal Independent Director
01
ITC’s governance framework
Mr. Mukesh Gupta Non-Executive Director
Management must have the executive enjoins the highest standards of
Mr. Shyamal Mukherjee Independent Director
freedom to drive the enterprise forward ethical and responsible conduct
Mr. Anand Nayak Independent Director
without undue restraints. of business to create value for all
Mr. Sunil Panray Non-Executive Director
stakeholders.
Ms. Nirupama Rao Independent Director
02 Mr. Ajit Kumar Seth Independent Director
For more details on ITC’s governance structure, refer
This freedom of management should be to the Company’s Report and Accounts 2023 and the
Ms. Meera Shankar Independent Director
exercised within a framework of effective Company’s corporate website.
accountability. Mr. David Robert Simpson Non-Executive Director
Data as on 31.03.2023

Annexures
Governance
Strategic Management Executive management

by the Corporate Management by the Chief Executives / Chief Operating Officers of Divisions, Strategic Business Units, Business Verticals and Shared Services, assisted by their
Committee Members respective Management / Executive Committees
Name Designation Business Divisions Name Designation

Chairman & India Tobacco Division Mr. Devraj Lahiri Divisional Chief Executive
Mr. Sanjiv Puri
Managing Director Mr. Hemant Malik Divisional Chief Executive
Mr. Nakul Chief Operating Officer - Staples, Snacks &
Executive Director Mr. S. Ganesh Kumar
Anand Meals
Mr. Supratim Executive Director & Mr. Sanjay Singal Chief Operating Officer - Dairy & Beverages
Dutta Chief Financial Officer
Foods Division Mr. Ali Harris Shere Chief Operating Officer - Biscuits & Cakes
Mr. Sumant
Executive Director Ms. Kavita Chaturvedi Chief Operating Officer - Snacks
Bhargavan
Chief Operating Officer - Chocolates,
Group Head - India
Mr. Anuj Kumar Rustagi Coffee, Confectionery and New Category
Tobacco Division, Matches
Mr. Sandeep Development
and Agarbatti Business,
Kaul Personal Care Products Division Mr. Sameer Satpathy Divisional Chief Executive
Start Up-Ventures, LSTC &
Quality Education and Stationery Business Mr. Vikas Gupta Divisional Chief Executive
Mr. Hemant Divisional Chief Executive - Matches and Agarbatti Business Mr. Gaurav Tayal SBU Chief Executive
Malik Foods Business Division Hotels Division Mr. Anil Chadha Divisional Chief Executive
President, Packaging and Printing Business Mr. S. N. Venkatraman SBU Chief Executive
Mr. Anil Rajput
Corporate Affairs
Divisional Chief Executive and SBU Chief
Group Head - Agri Business (including Agri Business SBU) Mr. Rajnikant Rai
Executive – Agri Business SBU
Agri & IT Businesses,
Agri Business - Tobacco SBU Mr. H. N. Ramaprasad SBU Chief Executive
Sustainability & CSR
Mr. S. Paperboards and Speciality Papers Division Vadiraj Kulkarni Divisional Chief Executive
and Chairman of the
Sivakumar
Management Committee Trade Marketing & Distribution (TM&D) of
Mr. Sandeep Sule Chief Executive Officer - TM&D
of the Social Investments ITC FMCG
Programme Chief Scientist & Head of
Life Sciences & Technology Centre Mr. Suresh Ramamurthi
Secretary to the Corporate Corporate R&D (LS & T)
Mr. R. K. Singhi
Management Committee Central Projects Organisation (CPO) Mr. Sandeep Chandrashekar Head - CPO
Data as on 31.03.2023 Data as on 31.03.2023 Read more about our Divisional

Management Committees here

Annexures
Governance
Governance Structure Board of Directors

The ITC Board is a balanced Board, comprising competencies, experience and diversity of per-
Board of Directors Executive and Non-Executive Directors. The spectives appropriate to the Company. For this
Non-Executive Directors include independent purpose, diversity is considered from a number
professionals. of aspects including, but not limited to, educa-
CSR and Divisional Management Committee
The primary role of the Board is that of
tional & cultural background, nature of profes-
Businesses include sional, administrative & industry
Sustainability Committee trusteeship to protect and enhance shareholder
FMCG, Hotels, Paperboards & Specialty experience, skills, knowledge, and gender rep-
value through strategic supervision of ITC and
Papers, Paper & Packaging, and resentation. The skills, expertise and competen-
its wholly owned subsidiaries. As trustees, the
Audit Agri Business
Board ensures that the Company has clear
cies of the Directors as identified by the Board,
Committee along with those available in the present mix of
goals aligned to shareholder value and its
the Directors of the Company, are provided in
Corporate Functions including growth.
the Company’s Report and Accounts 2023. The
Planning & Treasury, Accounting, Taxation,
Nomination & Risk Management, Legal, Secretarial,
The Board sets strategic goals and seeks said skills, expertise and competencies include
Compensation Committee Internal Audit, Sustainability, EHS,
accountability for their fulfilment. The Board also the ability to contribute towards creating an
provides direction and exercises appropriate inspiring Vision for the Company with superordi-
Human Resources, Social Investment
control to ensure that the Company is managed nate societal goals and appreciate the Com-
Programme, Corporate Communications,
Corporate Management in a manner that fulfils stakeholders’ aspirations pany’s Triple Bottom Line philosophy of building
Corporate Affairs and IT Support Services
Committee and societal expectations. The Board, as part synergy between serving the society and creat-
and parcel of its functioning, annually reviews its ing economic value for the Company.
Shared Services including role, and evaluates its performance and that of
Securityholders Life Sciences & Technology, Central Projects the Board Committees & the Directors.
In terms of the applicable regulatory require-
ments read with the Articles of Association of
Relationship Committee Organisation and Trade Marketing &
your Company, the strength of the Board shall
Distribution Selection of Directors
not be fewer than six nor more than eighteen.
The Corporate Governance Policy of the
Independent Directors Company, inter alia, requires that Non-Executive
Directors are appointed / re-appointed with
the approval of the Shareholders for a period of
Committee Directors be drawn from amongst eminent
three to five years or a shorter duration, in ac-
professionals, with experience in business
cordance with retirement guidelines and as may
/ finance / law / public administration and
be determined by the Board from time to time.
enterprises. The Nomination & Compensation
All Directors, other than Independent Directors,
Committee has laid down the criteria for de-
are liable to retire by rotation, unless otherwise
termining qualifications, positive attributes and
approved by the Shareholders.
independence of Directors (including Indepen-
dent Directors). In the opinion of the Board, the Independent
The role, powers and composition of the Board, Board Committees and the CMC are available on the
Company’s corporate website. Directors fulfil the conditions prescribed under
The Policy on Board Diversity of the Company
Reference to Division includes Strategic Business Unit, Business Vertical and Shared Services the statute and are independent of the
requires the Board to have balance of skills,
management of the Company.

Annexures
Governance
Composition of the Board Board Committees

The strength of the Board as on 31st March, 2023 was sixteen comprising the Chairman & Managing Director, three Executive Directors, eight
Non-Executive Independent Directors, of which two are Women Directors, and four other Non-Executive Directors. The composition of the Board, CSR and Sustainability
including other Directorship(s)/Committee Membership(s) and tenure of the Directors as on 31st March, 2023, was as follows:
Committee
No. of Membership(s)/Chairmanship(s) of
Tenure on
No. of other Audit Committee/Stakeholders Relationship
Director Category the Board
Directorship(s) Committee of other Indian public limited Audit
(years) *
companies Committee
S. Puri Chairman & Managing Director 5 7 Nil
N. Anand Executive Director 8 12 Nil
S. Dutta Executive Director & Chief Financial Officer 9 1 2 [also as Chairman]
Nominational &
B. Sumant Executive Director 2 4 Nil
Compensation Committee
S. Banerjee Independent Director Nil 9 Nil
H. Bhargava Independent Director 5 1 3 Securityholders
A. Duggal Independent Director 3 9 3 Relationship Committee
S. Mukherjee Independent Director 2 2 2
A. Nayak Independent Director Nil 4 Nil
N. Rao (Ms.) Independent Director 3 7 2 Independent
A. K. Seth Independent Director Nil 4 Nil Directors Committee
M. Shankar (Ms.) Independent Director 3 9 1
The composition and the terms of reference
Non-Executive Director
P. R. Chittaranjan Representative of the General Insurers’ 1 … Nil of the Board Committees are determined by
(Public Sector) Association of India as Investor the Board from time to time, other than the
Non-Executive Director Independent Directors Committee the terms
M. Gupta Representative of the Life Insurance Corporation of 2 1 1 of reference of which have been adopted as
India as Investor
prescribed under the statute.
Non-Executive Director
Representative of Tobacco Manufacturers (India) The role and composition of these Committees,
S. Panray Nil 1 Nil
Limited (‘TMI’), a subsidiary of British American including the number of meetings held during
Tobacco p.l.c., as Investor
the financial year and the related attendance,
Non-Executive Director are provided in the Company’s Report and
D. R. Simpson 4 6 Nil
Representative of TMI as Investor
Accounts 2023.
* Tenure of the Directors has been computed on the basis of period served on the Board since their appointment. In case of Independent Directors, such period has been
reckoned from the date from which their initial appointment was approved by the Shareholders of the Company under statute. Fractions, if any, have been rounded off.
6 meetings of the Board were held during the year ended 31st March, 2023.

Annexures
Governance
Ethics and Integrity Chair of the highest Performance of the

The ITC Code of Conduct, as adopted by the governance body highest governance body
Board, is applicable to the Directors, senior
management and employees of the Company. Chairman ITC believes that a Board, which is well performance, the primary evaluation platform
The Code is derived from three interlinked The Chairman is the Chief Executive of the informed / familiarised with the Company is that of collective performance of the Board
fundamental principles viz., good corporate Company. He is the Chairman of the Board and its affairs, can contribute significantly to as a whole. Board performance is assessed,
governance, good corporate citizenship and and the CMC, and also presides over effectively discharge its role of trusteeship inter alia, against the role and responsibilities
exemplary personal conduct in relation to the General Meetings of Shareholders. in a manner that fulfils stakeholders’ of the Board as provided in the statute and the
Company’s business and reputation. aspirations and societal expectations. Company’s Governance Policy.
His primary role is to provide leadership to the
The Code covers ITC’s commitment to CSR Board and the CMC for realising Company In pursuit of this, the Directors of the The parameters for Board performance
and sustainable development, concern for goals in accordance with the charter Company are updated on material changes evaluation have been derived from the
occupational health, safety and environment, a approved by the Board. He is responsible, / developments in the domestic / global Board’s core role of trusteeship to protect and
gender friendly workplace, transparency and inter alia, for the working of the Board and corporate and industry scenario including enhance shareholder value as well as to fulfil
auditability, legal compliance, avoidance of the CMC, for ensuring that all relevant issues those pertaining to statutes / legislations expectations of other stakeholders through
conflict of interest and the philosophy of leading are on the agenda and that all Directors and & economic environment and on matters strategic supervision of the Company. These
by personal example. The Code is shared with all CMC Members are enabled and encouraged significantly affecting the Company, to parameters include securing alignment of the
new employees at the time of joining the Company to play a full part in the activities of the Board enable them to take well informed and timely Company’s goals with the nation’s economic,
and a copy thereof is signed by them affirming and the CMC, respectively. He keeps the decisions. The Directors are also kept abreast ecological and social priorities, ensuring that
compliance with the Code. In addition, all Directors Board informed on all matters of importance. on all business related matters including risk the Company has a clearly defined strategic
and senior management affirm compliance He is also responsible for the balance of assessment & minimisation procedures, CSR & direction for realisation of its vision, and
with the Code on an annual basis. Further, the membership of the Board, subject to Board sustainability interventions, and new initiatives supporting the Company’s management to
Code is also shared with the existing employees and Shareholder approvals. proposed by the Company. Visits to Company meet challenges arising from the operating &
periodically and their affirmation is taken to facilities are also organised for the Directors policy environment in the country.
The Company has a diversified business
reinforce the Code and ensure its Company-wide from time to time. During the year, the
portfolio, which demands that the senior Evaluation of functioning of Board Committees
implementation. Directors attended a ‘Strategy Session’ where
leadership has in-depth knowledge and is based on discussions amongst Committee
the Company’s overall strategy, including
The Head of Human Resources (HR) of the understanding of the functioning of members and shared by the respective
ITC Sustainability 2.0 vision and goals, were
respective Business / Head of Corporate HR, as the Company, so as to enhance the Committee Chairmen with the Board. Individual
discussed / reviewed.
applicable, has been empowered to address any value-generating capacity of the organisation Directors are evaluated in the context of the role
queries from employees pertaining to the ITC and contribute significantly to stakeholders’ The Nomination & Compensation Committee played by each Director as a member of the Board
Code of Conduct. Any violation of the Code by an aspirations and societal expectations. The has formulated the Policy on Board evaluation, at its meetings, in assisting the Board in realising
employee renders the person liable for disciplinary Chief Executive is therefore generally chosen evaluation of Board Committees’ functioning its role of strategic supervision of the functioning of
action. from amongst the executive management of and individual Director evaluation, and also the Company in pursuit of its purpose and goals.
the Company. specified that such evaluation will be done by The peer group ratings of the individual Directors
For more details on ITC Code of Conduct, the Board on an annual basis. In keeping with are collated by the Chairman of the Nomination &
Corporate Governance at ITC and other ITC ITC’s belief that it is the collective effectiveness Compensation Committee and made available to
Policies, refer to the Company’s corporate website. of the Board that impacts Company’s the Chairman of the Company.

Annexures
Governance
Code of Conduct Remuneration Policy

Avoidance of conflict of interest ITC’s Remuneration strategy is performance
In terms of the ITC Code of Conduct, Directors, based, competitive and values led. It is
senior management and employees must designed to reward holistic performance
avoid situations in which their personal that is in congruence with the Company’s
interests could conflict with the interests of Triple Bottom Line approach to business, to
the Company. The Code, inter alia, clarifies attract and retain high quality talent and is
that conflict of interest may arise when (a) an anchored on ITC’s values, all of which are
employee or a family member (family member integral in pursuit of ITC’s vision and mission
includes spouse, children, siblings and parents) of enhancing the wealth generating capability
has a material interest in an entity that has a of the enterprise in a globalised environment,
business relationship with the Company or is while delivering superior and sustainable
being evaluated for a commercial transaction, stakeholder value.
The Company also has a Whistleblower Policy All transactions of the Company with related
or (b) an employee is in a position to benefit
which encourages Directors and employees to parties and their subsequent modifications are It is the Company’s Policy to encourage
someone with whom he / she has a close
bring to the Company’s attention, instances of approved by the Audit Committee in terms of collective ownership and drive achievement
relationship, in relation to the Company’s
illegal or unethical conduct, actual or suspected the applicable regulatory provisions. Further, of the Sustainability goals, which have been
business. However, this is an area in which it is
incidents of fraud, actions that affect the transactions with related parties which are included as a factor in assessing Business
impossible to provide comprehensive guidance
financial integrity of the Company, or actual not in the ordinary course of business or not performance, which, in turn, contributes in
but the guiding principle is that conflict, if any,
or suspected instances of leak of unpublished at arm’s length also require the approval of determining remuneration of the employees of
or any potential conflict must be disclosed to
price sensitive information that could adversely the Board or Shareholders, as applicable. the Company.
higher management for guidance and action
impact the Company’s operations, business Disclosures of related party transactions, as
as appropriate. The Company’s Policy on remuneration of
performance and/or reputation. required, are made in the Company’s Report
Further, where situations of conflict of interest Directors, Key Managerial Personnel and other
& Accounts 2023, and also to the regulatory
The Directors and Key Managerial Personnel are employees, as approved by the Board, may be
arise, the same is required to be immediately authorities on a half yearly basis.
required to disclose to the Board whether they, accessed on its corporate website. The Board
brought to the notice of the Head of Finance
directly or indirectly or on behalf of third parties, The Company also has a code of conduct for determines the remuneration of the Chairman,
and Head of Human Resources (HR) of the
have material interest in any transaction or prevention of insider trading in the securities other Executive Directors, Key Managerial
respective Business / Chief Financial Officer
matter directly affecting the Company. of the Company. The ITC Code of Conduct Personnel and Senior Management (i.e. CMC
and Head of Corporate HR, as applicable.
Senior management is also required to confirm for Prevention of Insider Trading - 2019, inter Members), on the recommendation of the
In such scenarios, apart from informing the
on an annual basis that no material transaction alia, prohibits trading in the securities of the Nomination & Compensation Committee;
relevant managers, the ITC Code of Conduct
has been entered into by them which could Company by the Directors and employees further, the remuneration of the Chairman
requires the concerned employee to maintain
have potential conflict with the interests of while in possession of unpublished price and other Executive Directors is subject
objectivity in his / her decision making, carry
the Company at large; such disclosures and sensitive information in relation to the to the approval of the Shareholders. Such
out rigorous due diligence, and always
confirmations are placed before the Board Company. remuneration is linked to the performance of
maintain the primacy of the Company’s
annually. the Company inasmuch as the performance
interests.

Annexures
Governance
Anti-Competitive Behaviour
bonus is based on various qualitative and Remuneration to Non-Executive Directors, The Company does not engage in any One legal proceeding under the Competition
quantitative performance criteria. Apart from including Independent Directors, is by way anti-competitive behaviour. The Company Act, 2002 is pending as follows:
fixed elements of remuneration and benefits of commission for each financial year; such expects the highest standards of ethical The Competition Commission of India has
/ perquisites, the Chairman, other Executive commission is determined by the Board within conduct in all its endeavours. In terms of the registered two cases against 22 paper
Directors, Key Managerial Personnel and the limit approved by the Shareholders. Their ITC Code of Conduct, the Company believes in mills / paper manufacturing companies
Senior Management are also eligible for Long remuneration is based, inter alia, on Company conducting business in a transparent manner including the Company, on the allegation
Term Incentives, including Stock Options, performance and regulatory provisions and of simultaneous increase in prices of few
and does not indulge in bribery or corruption.
as may be determined by the Nomination is payable on a uniform basis to reinforce the varieties of paper. The increase in price was
& Compensation Committee and / or the principle of collective responsibility. Further, in terms of the Company’s Code of
market led and mainly related to increased
Board; such incentives are linked to individual Conduct for Suppliers and Service Providers,
Non-Executive Directors are also entitled to cost of wood pulp, the primary raw material.
performance and the overall performance of all Suppliers and Service Providers of the
coverage under Personal Accident Insurance The Company is contesting the matter.
the Company, including Sustainability goals. Company are required:
and sitting fees for attending meetings of the
⬤ to avoid any actual or potential conflicts Basis legal advice, the Company believes
The aforesaid elements of compensation Board and its Committees, the quantum of
of interest in their business dealings with the that the aforesaid proceeding is without
design facilitate alignment of the priorities which is determined by the Board.
Company that could create a perception of substance.
of the Chairman, other Executive Directors,
The ratio of remuneration of the highest paid unfairness or lead to uncompetitive favours;
Key Managerial Personnel and Senior
employee to the median remuneration for the ⬤ to disclose any such situation of conflict
Management with the long-term interests of
year 2022-23 was 326:1. During the financial of interest, including involvement or interest
stakeholders.
year 2022-23, the total remuneration of the of any employee of the Company or his/her
There is no separate provision for payment of highest paid employee increased by 52%,
immediate family members in their business;
severance fee under the resolutions governing while the median remuneration of employees
⬤ not to indulge in any form of bribery
the appointment of the Chairman and other decreased by 3%.
or corruption that is intended to induce or
Executive Directors who have all been drawn
reward improper conduct or influence any
from the management cadre. The statutory
decision.
provisions will however apply.

Annexures
Governance
ESG and Sustainability Governance at ITC

For superior Triple Bottom Line performance, sustainability practices towards fulfilling its Triple presently comprises seven senior members Policy on Freedom of Association,
ITC’s Governance processes ensure that Bottom Line objectives. The Committee seeks to of management, with its Chairman being a Policy on Diversity, Equity and Inclusion,
sustainability principles are embedded in its guide the Company in crafting unique models member of the CMC. The role of the Committee, Policy on Prohibition of Child Labour and
business strategies and execution plans. to support creation of sustainable livelihoods inter alia, includes monitoring and evaluating Prevention of Forced Labour at the Workplace,
together with environmental re-generation. compliance with the Sustainability Policies of Policy on Environment, Health and Safety,
Sustainability Governance Structure
Formulation and monitoring of the CSR Policy, the Company and placing a quarterly report Code of Conduct for Suppliers and Service
the Sustainability Policies and the annual CSR thereon for review by the CMC. Providers, Policy on Biodiversity Conservation,
Board of Directors Action Plan, including making recommendation Policy on Deforestation, Policy on Resource Efficiency,
Headed by Chairman & Managing Director During the year, four meetings of the SCRC were
to the Board as necessary, form part of the role Policy on Tax, and Policy on Animal Testing.
held to review the sustainability performance of
of the Committee. The Committee also reviews
the Company. The aforesaid Policies are aimed at
Board Committee on CSR the Business Responsibility and Sustainability
strengthening the mechanism of engagement
and Sustainability Report of the Company and recommends the
Chief Sustainability Officer with key stakeholders, identification of
Headed by Chairman & Managing Director same to the Board for adoption, and approves
The Chief Sustainability Officer (CSO) of the material sustainability issues and progressively
the Sustainability & Integrated Report of the
Company is, inter alia, responsible for periodic monitoring and mitigating the impact along the
Company.
Corporate Management review of material issues, scanning the external value chain of each Business.
The CSR and Sustainability Committee environment for evolving sustainability trends
Committee Please check the following link for details |
comprises the Chairman of the Company and and regulations, monitoring the progress
Headed by Chairman & Managing Director ITC’s Sustainability Policies.
seven Non-Executive Directors, three of whom on sustainability targets and facilitating
are Independent Directors. The Chairman of the the Businesses & Corporate Functions in
Sustainability Compliance Company is the Chairman of the Committee. implementing sustainability initiatives. The CSO Implementation
Review Committee The Company Secretary is the Secretary to the reports to the Group Head of Sustainability who In line with ITC’s sustainability roadmap,
Chaired by Group Head - Sustainability, Committee. During the year, three meetings of is also a CMC Member and the Chairman of the Businesses are moving ahead in a phased
and CMC Member the Committee were held, inter alia, to review SCRC. The CSO provides progress reportbacks manner to implement the Sustainability
the CSR and sustainability initiatives of the on the Company’s sustainability initiatives to the Policies. The overall responsibility for ensuring
Company. senior leadership at ITC. implementation of these Policies resides with
Divisional CEO & Divisional the Divisional / Strategic Business Unit (SBU)
The names of the members of the Committee
Management Committees Sustainability Policies Chief Executives and the Heads of Corporate
and the details of meetings held during the
ITC has adopted a comprehensive set of Board Functions who work with their respective
year are provided in the Company’s Report &
Unit Level Responsibility Accounts 2023.
approved Sustainability Policies that are being management teams. Various committees
implemented across the organisation in pursuit designated with specific responsibilities have
Sustainability Coordinators across Divisions
of its Triple Bottom Line agenda. These Policies also been constituted for operationalising the
Sustainability Compliance Review
are Policy on Stakeholder Engagement, Sustainability Policies of the Company.
CSR and Sustainability Committee Committee (SCRC)
Policy on Responsible Advocacy, Policy on
The CSR and Sustainability Committee of the The Corporate Management Committee
Product Responsibility, Policy on Sustainable
Board, inter alia, reviews, monitors and provides (CMC) has constituted the Sustainability
Supply Chain and Responsible Sourcing,
strategic direction to the Company’s CSR and Compliance Review Committee (SCRC), which

Annexures
Creating Sustained Economic Value
Value Creation Track Record of ITC
EBITDA margin expansion

Non – Cigarette 25 World Class Shareholder
in FMCG – Others
Businesses Indian Brands Returns
Segment
Grown ~ 31x in last 2 decades (over two-thirds Annual consumer spends ~ K 290 Billion and
CAGR ~ 22.7% p.a. in last 2 decades 620 bps over the last five years
of Net Segment Revenue) reach over 230 million households in India
The Company’s ‘Triple Bottom Line’ philosophy multi-dimensional contribution to societal value Key Developments & Outlook Amidst a challenging operating environment,
has over the years spurred the creation of creation, and remains committed to making a After two years of pandemic-led disruptions, the Company’s consumer-centricity, agility
innovative business models that synergise the meaningful contribution to the Nation’s future FY 2022-23 marked a return to normalcy in in seizing market opportunities, focus on
building of economic, environmental and social while retaining its status as a sustainability operations. However, geopolitical tensions, execution excellence and proactive strategic
capital. The superordinate goal of serving exemplar. continued supply chain dislocations and interventions enabled it to post strong
larger national priorities and creating value climate crisis resulted in unprecedented performance across all its operating segments.
for all stakeholders has evolved into a new inflation and volatility in global commodity
paradigm - ‘Responsible Competitiveness’ - ITC aims for and energy prices. Central Banks across the ⬤ The FMCG-Others Segment registered
that focuses on extreme competitiveness but in world responded swiftly with sharp increase strong growth amidst subdued demand
a manner that replenishes the environment and 1 in interest rates within a relatively short time conditions. Robust growth was witnessed
supports sustainable livelihoods. frame. across all major categories of Branded
Strengthening its position as one of India’s Packaged Foods viz. Staples, Biscuits, Snacks,
The strategic Vision of creating multiple drivers The Indian economy remained a bright spot in
most valuable corporations. Noodles, Beverages.
of growth through the pursuit of market FY 2022-23 amidst the global slowdown. Real
opportunities that best match institutional GDP growth for the year is estimated at 7.0% ⬤ FMCG-Cigarettes Segment witnessed
2
strengths, has resulted in the development of (first half: 9.6%; second half: 4.8%) with Nominal sustained claw back of volumes from illicit trade
strong Businesses of the future anchored on a Achieving leadership in each of the GDP growth at 15.9% (first half: 22.3%; second on the back of deterrent actions by enforcement
portfolio of purpose-led brands, future-ready business segments within a reasonable half: 10.5%), reflecting the inflationary pressures agencies and relative stability in taxes.
products and world-class quality. time frame. in the economy. While Agriculture grew by 3.3%
⬤ The Hotels Segment witnessed a stellar
in real terms, Services and Industry sectors
The Company is actively working towards recovery during the year, clocking robust growth
Sustainability 2.0, an agenda which reimagines 3 grew by 9.4% and 3.6% respectively, on a soft
in Revenue and Profits buoyed by weddings,
base. With steep inflation eating into household
sustainability under the pressing challenges leisure and MICE (Meeting, Incentives,
Achieving a Return on Capital Employed budgets, consumption demand remained
of climate change and social inequity. With Conferencing, Exhibition) segments along with
(ROCE) in excess of the Company’s cost of subdued in rural markets and for discretionary
its bold Sustainability 2.0 ambitions, the progressive pick-up in business travel.
capital, at all times. categories in urban markets.
Company is setting the bar higher with a

Annexures
Snapshot
⬤ The Agri Business Segment delivered
KEY ECONOMIC INDICATORS (₹ Billion) FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
a resilient performance despite Segment
Revenue getting impacted by restrictions Total Income 482.69 498.21 517.76 623.35 726.89
imposed on wheat & rice exports. Profit Before Interest and Taxes (PBIT) 184.78 192.23 172.12 198.71 247.19
⬤ The Paperboards, Paper & Packaging Cost of Bought out Goods and Services 229.64 232.47 251.02 326.76 369.12
Segment demonstrated strong performance Employee Benefits Expense 27.28 26.58 28.21 30.62 35.69
during the year on the back of robust growth Payments to Providers of Capital 110.50 151.92 130.79 151.00 188.16
across end-user segments.
- Dividend/ Interest to Providers of Capital 70.83 125.32 132.78 142.13 192.97
- Retained Profits 39.67 26.59 (1.99) 8.86 (4.81)
Financial Assistance received from Government due to be paid
(Outstanding Balance of Deferred Sales Tax for Paperboards
0.11 0.08 0.06 0.05 0.05
ITC Financial performance and Specialty Papers Business, by State of Andhra Pradesh -
For FY 2022-23, Gross Revenue at K 694.81 interest free deferral period of 14 years)
billion increased by 17.6%, while EBITDA Financial Assistance received from Government
1.00 1.20 0.43 2.59 3.01
increased by 26.5% to K 239.44 billion. Profit (on account of fiscal and export incentives etc.)
Before Tax and Exceptional items at
K 246.78 billion grew by 24.4% over previous Total assets and returns national brands to maximise value capture
year and Profit After Tax stood at K 187.53 The net capital employed stood at H692 Billion in India, accelerating growth in tourism, Net Capital Employed
billion (previous year K 150.58 billion). Total as at 31st March, 2023 (previous year H631 increasing Indian agri exports and promoting and PBIT (₹ Billions)
Comprehensive Income for the year stood billion) generating profit before interest and sustainable business practices. Investments
at K 187.83 billion (previous year K 156.32 taxes (PBIT) of H247 billion (previous year made are guided by the national objectives of 2022-23 247 692
billion). Earnings Per Share for the year H199 billion). ‘Make in India’ and ‘Doubling Farmers’ Income’
2021-22 199 631
stood at K 15.15 (previous year K 12.22). and the overarching theme of ‘Atmanirbhar
ITC’s diversified portfolio of businesses, position 2020-21 172 607
Bharat’ that seeks to make the country
it to contribute meaningfully to the growth
stronger, resilient and more competitive. 2019-20 192 657
and development of the country, spanning
across all the three sectors of the economy: In recent years, the strategy in respect of Hotels 2018-19 185 600
agriculture, manufacturing and services. ITC’s Business has been reset to pursue an ‘asset-
interventions across operating segments are right’ growth path and augment revenue
aligned to the national priorities of enhancing streams while simultaneously leveraging the Net Capital Employed
competitiveness of Indian agriculture and Company’s world-class properties and iconic PBIT
industry, generating large-scale employment cuisine brands to drive growth.
opportunities and supporting sustainable
For more details, refer to the Management Discussion livelihoods, driving import substitution, creating
and Analysis section of the ITC Annual Report 2022-23

Annexures
Shareholder returns & earnings Per Share

In the last two decades, ITC’s non-cigarettes
businesses have grown over 31-fold and
presently constitute over two-thirds of Net
Segment Revenue. Earnings Per Share stood at
₹ 15.15 for the FY 2022-23 (previous year ₹ 12.22).
Total Shareholder Returns, measured in terms of
increase in market capitalisation and dividends,
have grown at a compound rate of 22.7% per
annum during this period, placing the Company
Dividend Employee benefits Human Capital
amongst the foremost in the country in terms of
A Special Dividend of ₹2.75 per Ordinary Share The employees are entitled to retirement Investment (₹ Billion)
efficiency of servicing financial capital.
in addition to the Final Dividend of ₹6.75 per benefit schemes which include employee
Ordinary share for the financial year ended pension, provident fund and gratuity. 2022-23
EPS (₹) 2 3 29
31st March, 2023 (Final Dividend for the All statutory payments, as applicable,
financial year ended 31st March, 2022 - ₹6.25 e.g., Provident Fund and Family Pension 2021-22
2022-23 per Ordinary Share) has been recommended contributions, are deposited with the
15.15 22021-22
2 26
2021-22* 12.22 by the Board of Directors. Government in a timely manner. The pension
2020-21
plans and other applicable employee benefits
2020-21* 10.59 Together with the Interim Dividend of ₹6.00 2 2 24
obligations are determined and funded in
per Ordinary share (previous year ₹5.25 per
2019-20 12.33 accordance with independent actuarial 2019-20
Ordinary share), the total Dividend for the
valuation. The assets of the trust funds are 22019-20
2 22
2018-19 10.19 financial year ended 31st March, 2023 amounts
well diversified and investments are made
to ₹15.50 per Ordinary share (previous year 2018-19
*Financials for FY 2020-21 & FY 2021-22 were within the prescribed statutory pattern with the
₹11.50 per Ordinary share). 22018-19
2 21
impacted by unprecedented disruptions in certain objective of protecting capital and optimising
operating segments of the Company due to the returns within acceptable risk parameters.
COVID-19 pandemic. Interim & Proposed
Dividend (₹ Billion) Contribution to Provident & Other Funds
Value addition and contribution to the The Company is committed to enhancing
Workmen & Staff Welfare
National Exchequer (incl. Dividend Distribution Tax, gender diversity and participation of the
wherever applicable) differently-abled in the workforce. The Salaries & Wages
Over the last five years, ITC’s value addition, i.e.
the value created by the economic activities of the Company’s policy on Diversity, Equity and
2022-23 193
Company and its employees, aggregated over Inclusion articulates and institutionalises
₹2,710 billion of which over ₹1,830 billion accrued to 2021-22 142 this conviction. The Company’s endeavour
the Exchequer. Including the share of dividends paid to enhance Diversity, Equity and Inclusion
and retained earnings attributable to government 2020-21 132 are founded on the conviction that a diverse
owned institutions, ITC’s contribution to the Central workforce contributes to rich discourse,
and State Governments represented over 75% of its 2019-20 125
promotes holistic perspectives, fosters creative
Value-Added during the year. ITC remains amongst solutions and is integral to serving customers
2018-19 85 Refer to Workforce for tomorrow
the Top 3 Indian corporates in the private sector in better while creating value for all stakeholders. Page 133
section in this Report
terms of Contribution to Exchequer.

Environmental Management 52
Environmental
Climate Change 53
Sustainable and
Climate Resilient Agriculture 63
Stewardship
Biodiversity Management 73
Water Security 81
Towards Circularity 93
Chemical Safety Management 101
Air Emissions Management 101
Climate change is a reality, and the world is at

the receiving end of its debilitating impacts.
In developing and emerging economies
such as India, comprising a higher share
of vulnerable population, climate risks are
even more pronounced. The global call for
concerted efforts needs to match on-ground
implementation, to cap global warming within
safe levels.
Quicker responses to mitigate the imminent

and future effects of climate change,
and strategies to adapt to the newer
environmental realities, are the mainstays
of responsible enterprises, governments,
and societies alike. Conscious actions and
attention need to be directed towards issues,
such as water security, sustainable and
regenerative agriculture, and scientific waste
management, among others.
Annexures
Environmental
Management
In pursuit of its EHS Policy commitments,
ITC’s Approach the Company has established management
systems, certified by accredited agencies in
ITC nurtures a culture line with international standards like ISO 14001
of conservation that and OHSAS 18001. An integrated sustainability
database management system implemented
emphasises on prudent
across the Company ensures monitoring
resource use, and and reviewing of sustainability performance
encourages innovations through defined key performance indicators.
that aid in reducing the Standard operating procedures are in place
to define, collate and support audits of
dependence on natural
data for ensuring accuracy and verifiability.
also been constituted for operationalising the
resources. ITC is joining Furthermore, the Company continues to focus
Sustainability Policies.
forces with some of the on raising internal and external stakeholders’
Policies The Corporate Sustainability department
like-minded stakeholders awareness of environment management
ITC is guided by a comprehensive set of is responsible for reviewing and updating through ongoing training programmes. Some
to spearhead large-scale policies, approved by its Board. These policies corporate standards, verifying compliance, and of the aspects covered as part of training
interventions, such as social outline the Company’s commitment to high providing guidance and support as required. programmes carried out during the year
and farm forestry, integrated standards on environmental stewardship. The progress and compliance of different include:
They also provide the necessary framework businesses against the agreed roadmap
watershed development, ⬤ Alliance for Water Stewardship Standard
to address the direct environmental impacts are reviewed regularly by the Sustainability
and sustainable agriculture of the Company’s own operations as well as Compliance Review Committee (SCRC)
⬤ Climate Risk Assessments
practices, to name a few. progressively extend the efforts to ITC’s supply constituted by the Corporate Management
⬤ Life Cycle Assessments
chain. ⬤ Environment, Health & Safety Management
Committee (CMC).
⬤ Sustainable Supply Chain
In line with its Sustainability 2.0 ambitions, ⬤ Human Rights
Practice
ITC’s Businesses have targets for key
In line with ITC’s sustainability roadmap,
specific performance indicators like energy In 2022-23, 36,948 man hours of training were
Businesses are moving ahead in a phase-wise
consumption, greenhouse gas emissions and provided to employees on EHS related matters,
manner to implement the aforementioned
water intake. All ITC units have established and around 60% of the identified Critical
policies. The overall responsibility for ensuring
management systems, which entail regular Tier-1 suppliers received training on aspects
implementation of Policies and Standards on
monitoring of environmental KPIs, development like environmental compliance, fair business
environmental performance rests with the
of an environmental management plan, and practices, corporate governance and ethics,
Divisional/ Strategic Business Unit’s (SBU) Chief
reviewing of progress on a regular basis, occupational health and safety and fair labour
Executives, who work with their respective
to ensure that businesses are on track with practices and human rights.
management teams. Various committees
respect to the agreed roadmap.
designated with specific responsibilities have

Annexures
Climate
Change
The sixth Assessment Report (AR6) by
Highlights
40 12
United Nation’s Intergovernmental Panel on
With investments over the
Climate Change (IPCC) states that the global
years, ITC has installed
43%
temperatures have already increased by 1.1
178 MW
degree Celsius resulting in significant increase in
both frequency and severity of extreme weather buildings of the Hotels and one
events globally. This is further corroborated Company are data centre are
of ITC’s energy is
by the fact that in 2022, India experienced Platinum rated certified as LEED of renewable energy assets
an extreme weather event in one or more from renewable green buildings Zero Carbon across States
parts of the country on 314 out of 365 days5. sources
Consequently, Climate Change has emerged by USGBC-LEED/ buildings (as on
as an existential risk requiring coordinated IGBC (as on 31st 31st March, 2023)
March, 2023)
>1 million
efforts from all stakeholders. Industry needs
to accelerate its actions towards not only
12
decarbonizing faster, but also adapting to the
acres
worst impacts of climate change.
ITC’s operations including factories,

warehouses and hotels are spread across the
country, and depend on agri and forestry- ITC units met under forest cover with
based value chains for sourcing key raw more than more than 90,000 acres
materials. Accordingly, Company’s approach 90% of their of plantation being added
focusses on mitigation of both transition risks
electrical energy during the year that
as well physical risks of climate change, and
effective climate risk management also offers requirements resulted in:
opportunities for ITC to become a future-ready from renewable
climate-resilient organization. sources in
ITC is pursuing a multi-pronged climate FY 2022-23 ~6 million tonnes
strategy as a part of its Sustainability 2.0 CO2 sequestered
vision. This strategy addresses transition risks
through extensive decarbonisation across 100%
the value chain, and physical risks through renewable electricity
implementation of location-specific adaptation consumption at Bollaram
strategies for vulnerable sites and value chains. Paper Mill
5
India’s Atlas on Weather Disasters by Centre for Science and Environment (CSE) and Down to Earth (DTE)
Annexures
Climate Change
ITC’s Approach: Summary of ITC’s strategies and major interventions:

Managing Climate Upstream Operations Downstream
Risks Across the
Value Chain Material Sourcing and Transportation Manufacturing
Outsourced Manufacturing, Downstream
Logistics and Product Sustainability
ITC remains committed to steering its course
towards a low carbon pathway. ITC has Addressing Transition Risk of Climate Change: Decarbonization Approach Across Value Chain
mapped its greenhouse gas (GHG) emissions
ITC’s key upstream emission sources, and Approach for mitigating Scope 1, 2 GHG ITC’s key downstream emission sources, and
(Scope 1,2 and 3) across the entire value chain,
the corresponding mitigation approach emissions across ITC’s own premises includes: corresponding mitigation approach includes:
and is in the process of developing its Net
includes: • Investment in energy efficiency measures. • For third party manufacturers, ITC will work
Zero plan to reduce the risk of transition to low
• Promotion of regenerative agriculture in • Accelerated adoption of renewable energy. towards facilitating adoption of cleaner
carbon economy. In addition, ITC continues
key agri value chains. • Building future-ready green infrastructure technologies.
to work on improving the resilience of its own
• Sustainable packaging initiatives. with low energy and emissions attributes. • Green logistics and optimising ‘distance-to-
Units as well as value chain to minimise the risk
• Green logistics and optimising market’ in downstream transportation.
of disruption due to acute and chronic impacts
‘distance-to-premises’ in upstream • Sustainable product innovation based on
of climate change.
transportation. life cycle assessments (LCA) for identifying
• Large scale forestry programme that emission hotspots.
sequesters carbon. • Sustainably managing post-consumer
In addition, ITC is undertaking a detailed plastic packaging waste in excess of
study to understand its value chain GHG packaging utilised by ITC.
emissions, and identifying levers for
mitigating the same.
Addressing Physical Risk of Climate Change: Building Climate Resilience Across Value Chain
• Continue to expand coverage of • Conduct detailed assessments based on • Conduct detailed climate risk assessments
regenerative and climate smart climate science for understanding long term for value chain assets like warehouses, third
agriculture programmes. climate risks for ITC’s operating assets, and party manufacturers and franchisee Hotels.
• Conduct detailed farm level climate identifying high risk sites. • Engage with value chain partners for
risk and vulnerability studies to identify • For high-risk sites, conduct site-specific undertaking adaptation strategies.
major climate risks. studies, and develop contextual and
• Integrate region and crop-specific location-specific adaptation plans and
adaptation strategies within the strategies.
regenerative and climate-smart
agriculture programmes for addressing
the identified risk.

Annexures
Climate Change
Decarbonization Own Units Greenhouse Gas (GHG) Emission -

ITC’s 2022-23 Performance Performance
Across the Value Chain Energy
For 2022-23, ITC’s Scope 1 and Scope 2
emissions (market-based) are 1,354,662 tCO2e
Governments around the world are actively During the year, ITC Units consumed 26,885 Terra Joules (TJ) of total energy and 241,113 tCO2e respectively. In addition,
working towards transitioning their economies with 43% energy coming from renewable sources. location-based Scope 2 emissions, which
to a low carbon state, and India is no exception. excludes the contribution of purchased
India has significantly enhanced its Nationally Break-up of Break-up of renewable electricity, are 251,236 tCO2e.
Determined Contributions (NDC), which Energy Sources Non-Renewable Sources
includes even more ambitious renewable ITC’s Scope 1 and 2
4.4%
energy targets, transitioning to Net Zero by GHG emission performance
1%
2070 and introduction of a domestic carbon 6% 2022-23
market for incentivising and accelerating 1,355 241
decarbonisation of Indian industries. ITC,
2021-22
through its ambitious Sustainability 2.0 4%
commitments, is well positioned to address the 1,258
2021-22 193
53%
Net Zero challenge. The Company is focussing
88.6% Scope 1 (in kilo tonnes of CO2e)
on enhancing its understanding of value
Scope 2 (in kilo tonnes of CO2e)
chain emissions, and identifying appropriate
levers for facilitating the Net Zero transition.
ITC ‘s large scale value chain decarbonisation Coal HSD Share of Scope 1+2 GHG emission
programmes are a testament to this FO Others across ITC Businesses
commitment.
Business-wise breakup of GHG emissions
Break-up of
5%
Renewable Sources
2%
5%
1.5% 0.2%
8%
6.8%
43%
80%
Biomass
Energy from fossil fuels Wind

PSPD ITD
Energy from renewables Solar FBD Others
Electricity from Grid 91.5% Others Hotels

Annexures
Climate Change Decarbonization Across the Value Chain
Managing GHG emissions carbon technologies. Over the years, ITC has Renewable Energy Adoption offsite solar power plant in Tamil Nadu from
Managing Scope 1 and 2 emissions require taken major measures like installation of Vapour ITC has been investing in renewable energy 14.9 MW to 17.9MW. With investments over the
investment in energy efficiency, adoption Absorption Machines (VAM), automation of projects for both renewable electricity and years, ITC has increased its renewable energy
of renewable energy, and building green HVAC tube cleaning system, and installation renewable thermal requirements. In FY 2022- capacity to 178MW. Based on the investments
infrastructure with low energy and emissions of energy efficient equipment such as boilers, 23, ITC commissioned five biomass boilers, in renewable electricity and renewable thermal
attributes. chillers, AHUs, motors, fans, pumps and primarily in Foods Business, for replacing projects, ITC has been able to its increase
agitators. In FY 2022-23, investments in energy existing fossil fuel fired boilers. In addition, ITC its renewable energy share to 43% despite
Energy Conservation Measures conservation equipment resulted in savings has also invested in several solar electricity significant expansion in scale.
ITC Units focus on energy efficiency through of more than 200 TJ, equivalent to more than projects including capacity augmentation at
process improvements, and investing in low ~24,000 tonnes CO2e emissions.
Renewable Energy
adoption at ITC Foods
ITC’s Paperboards Business adopts Cutting Edge
Industry 4.0 Technologies to Drive Sustainability & Foods factories require electricity for running from 4.7MW to 32.7MW in the last five years,
Competitiveness the equipment, and steam for various thereby increase the share of renewables
process requirements. Earlier, electricity in electricity consumption from 28% to 34%
was primarily sourced from the grid, and despite significant expansion in scale of
In line with ITC’s focus on accelerating limiting further increase in biomass share.
steam was supplied mainly from fossil fuel operations. For steam, fossil fuel boilers are
digitalization across businesses, Using historical data, the Unit team linked
fired boilers. In line with the Sustainability getting replaced with biomass ones with
Paperboards & Specialty Papers Business the control parameters such as fuel feed
2.0 agenda, ITC’s Foods Business has been four new boilers getting commissioned in
is implementing several transformative rates and tertiary air flow with various
transforming its operations by shifting to FY2022-23 alone, resulting in increase of the
projects leveraging Industry 4.0 technologies process parameters like superheater tube
renewable energy in a big way. renewable thermal share to 45% from 22% in
across key business areas, to enhance temperature and flue gas temperature for
the previous year.
productivity, reduce carbon footprint, better feed management. This initiative For electricity, the focus has been on
achieve strategic cost efficiencies and resulted in improving biomass consumption augmenting solar capacity which has grown
superior product performance. by more than 22,000 tonnes, and avoiding
over 14,000 tonnes CO2e emissions.
One such project implemented at PSPD
Progress: Share of Renewable Energy
Bhadrachalam during the year focused
on leveraging data for enhancing biomass
26,885
share in the green boiler that uses both 223,156 23,824 22,366 24,394
biomass and coal. Typically, frequent 43%
Energy (in TJ)
41% 41% 41% 42%

variation in biomass attributes like size 11,505
9,530 9,806 9,247 10,213
and ash content are difficult to adjust
by the operator thereby resulting in high 2018-19 2019-20 2020-21 2021-22 2022-23
temperatures in the superheater and
Total Energy Renewable Energy Renewable Energy Share

Annexures
Sustainability 2.0 – Climate Change Targets

As part of its Sustainability 2.0 vision, ITC is
targeting 50% share of renewables in total
energy, and 100% of purchased grid electricity
requirements from renewable sources by
2030. Accordingly, all ITC Businesses are
progressively working towards improving their
performance and achieving these targets.
All ITC businesses are pursuing renewable

energy initiatives across their operations. Energy and emissions efficiency performance of key ITC businesses is presented below:
% Purchased % Reduction in
% Share of Specific Energy Specific Energy
Grid Electricity Business Specific Energy % Share in Total Energy
Business Renewables in Consumption (2018-19) Consumption (2022-23)
from Consumption from 2018-19
Total Energy
Renewables Paper Business 9% 26.0 GJ/tonne 23.6 GJ/tonne 86%
Paper Foods Business 25% 4.1 GJ/tonne 3.0 GJ/tonne 6%
61% 44%
Business
Hotels6 13% 0.9 GJ/m2 0.8 GJ/m2 3%
Foods
32% 41% FMCG Cigarettes 12% 5.7 GJ/MNC 5.0 GJ/MNC 1.4%
Business
MNC: Million Cigarette
Hotels 45% 38%
FMCG
67% 57% % Reduction in
Cigarettes Specific GHG (Scope 1+27) Specific GHG (Scope 1+28) % Share in GHG emissions
Business Specific GHG Emissions
Others 47% 27% Emissions (2018-19) Emissions (2022-23) (Scope 1+27)
from 2018-19
In addition to renewable energy targets, ITC Paper Business 11% 1.5 tCO2e/tonne 1.3 tCO2e/tonne 80%
Businesses are also targeting a reduction Foods Business 40% 0.4 tCO2e/tonne 0.2 tCO2e/tonne 8%
of 50% in Specific GHG Emissions and 30%
Hotels8 9% 0.1 tCO2e/m2 0.09 tCO2e/m2 5%
reduction in Specific Energy Consumption by
FMCG Cigarettes 15% 0.4 tCO2e/MNC 0.3 tCO2e/MNC 1.5%
2030 (FY2018-19 baseline).
6
From FY2022-23 onwards, specific GHG emissions and specific energy 7
Scope 2 market based GHG emissions
consumption for Hotels Business will be reported relative to ‘built-up 8
From FY2022-23 onwards, specific GHG emissions and specific energy consumption for
area’ instead of ‘per room nights sold’ used earlier. This is in line with Hotels Business will be reported relative to ‘built-up area’ instead of ‘per room nights sold’
reporting under India’s Performance, Achieve and Trade (PAT) scheme, used earlier. This is in line with reporting under India’s Performance, Achieve and Trade
and industry standard practice. (PAT) scheme, and industry standard.

Annexures
Developing Green Infrastructure its new facilities as well as designing facilities

for a Net Zero Future with globally benchmarked energy efficiency
Globally, the buildings sector contributes to 39% attributes in line with Standards like LEED®.
Building Low Carbon Infrastructure
of all energy-related GHG emissions, and will This approach is operationalised by ITC’s
therefore play an essential role in the global in-house team through best-in-class value
Based on Life Cycle Assessments (LCAs), products as construction material, and
net zero transition. This will entail mitigating engineering and sustainability practices. These
the recently constructed warehouse at building for longevity.
emissions during use-phase of buildings as practices include optimising design, designing
Kapurthala and foods factory at Khorda
well as the embodied carbon of materials used buildings for longevity, and using recycled
have been built with a lower carbon • Footprint of warehouse at Kapurthala
during construction. materials for construction and interiors. As a
footprint (pertaining to civil, structural is 531 kgCO2e/m2 against a global
result, ITC is pioneering the green building
ITC’s growing footprint requires rapid and architectural works) as compared to benchmark of 625 kgCO2/m2 ,
movement in India. This is reflected in the fact
development of new infrastructure like new similarly benchmarked global facilities. This • Footprint of Khorda factory is
that currently, 40 ITC buildings are platinum
factories, expansion of existing factories, new is on account of adoption measures like 452 kgCO2e/m2 against the global
rated green buildings. In addition, the first
Hotels and offices. Accordingly, Company’s value engineering principles for reducing benchmark of 575 kgCO2/m2.
twelve LEED® Zero Carbon hotels in the world
approach towards built infrastructure focuses material consumption, using recycled waste
are ITC properties, and ITC Sankhya is the first
on reducing embodied carbon footprint of
LEED® Zero Carbon data centre in the World.

Annexures
Value Chain (Scope 3)

GHG Emissions
Managing Value Chain GHG Emissions
ITC remains focused on measuring and ITC is also working with its value chain
managing its environmental footprint across partners, both upstream and downstream,
the value chain. In FY2022-23, 3,792 TJ for decarbonizing their operations, improving
of energy was consumed outside the efficiency and working towards progressively
organisation. Further, Scope 3 GHG emissions including their emissions in the reporting
stood at 295 kilo tCO2e which includes boundary. Some of these initiatives are listed
emissions from the sources listed below: below:
129,470 145,737 Decarbonising Agri Value Chains

Inbound Outbound
Agri based raw materials embody significant
transportation of transportation of
GHG emissions owing to on-farm operations
raw materials products and wastes
as well usage of inputs like fertilisers. This is
especially a challenge in the Indian context
5,903 2,141 as small landholdings result in farm level
Employee Employee business inefficiencies with respect to input usage, and
commuting travel by air often limits the application of low-carbon Sustaining and Enhancing Carbon
Comparing ITC's GHG emissions
interventions. Sequestration
with sequestration
510 The social and farm forestry programme by
ITC directly works with farmers to address in kilo tonnes of CO2e
Pick-up and drop of guests in ITC Hotels ITC’s Paper Business was started for promoting
some of these challenges by transferring
sustainable forests management practices
11,669 technical know-how related to regenerative
and climate-smart agriculture practices, and
in the value chain, and securing the supply
Exclusive third-party manufacturers of pulpwood for its paper mills. Apart from
enabling aggregation of small farmers by
(TPMs) catering to notebooks segment sequestering carbon, this programme provides 1,030
working with Farmer Producer Organisations
of the Education and Stationery Products significant environmental benefits such as
(FPOs) and leveraging digital platforms like 295 5,993
Business and Cigarette Business. improving productivity of wasteland. The 241
ITCMAARS. ITC’s large-scale programmes
programme also helps in de-risking poor rural
Associate companies: ATC Limited and Gujarat help farmers adopt and scale up regenerative 1,355
Hotels Limited households by diversifying farm portfolios
agricultural practices, like zero tillage, soil
through the promotion of tree-based farming. Scope 1 Biogenic
*Above figures are in tonnes of CO2e and moisture conservation and nutrient
For details, refer “Sustainability Agriculture” and Scope 2 Net Sequestration
management, that not only help in reducing
“Mission Sunehra Kal for Sustainable & Inclusive Scope 3
The standards, methodologies, tools and GHG emissions but also contribute significantly
Growth” Chapters of this report.
assumptions used for quantification of the towards enhancing their income levels. ITC’s Biogenic emissions:
GHG emissions and removals by various farm level interventions for major crops Scope 1 - 1,007,890 tCO2e
cover over 1.6 lakh acres. For details, refer Scope 2 - 21, 578 tCO2e
sources, have been explained in detail in the Scope 3 - 100 tCO2e
‘Quantification Methodologies’ annexure. “Sustainable Agriculture” chapter of this report.

Annexures
Sustainable Packaging Transportation

Third-Party Manufacturing Partners
As part of its ITC’s Sustainability 2.0 vision, ‘ITC One Supply Chain’ initiative aims at optimization routes, deploying higher capacity vehicles
ITC has been working towards progressively
ITC’s approach focusses on ensuring 100% and shifting to lower emissions modes like rail, waterways and sea routes to reduce transportation
increasing the coverage of key third-party
of packaging is reusable, recyclable or related GHG emissions. ITC has also strategically located its Integrated Consumer Goods
manufacturing facilities in its Scope 3 emissions
compostable/biodegradable. This entails Manufacturing and Logistics (ICML) facilities of FMCG businesses closer to the market, allowing
boundary, as this enables benchmarking their
improving recyclability of multi-layer laminate direct shipments to customers. The Company has also been working on introducing electric vehicles
key performance indicators and develop action
packaging by reducing the complexity of the for last mile delivery.
plans. In addition, ITC also provides technical
structure, phasing-out hard to recycle plastics
guidance to its key third-party manufacturing
and identifying alternative packaging material
Case Study: Scaling Up Adoption of Electric Vehicles (EV) partners for identifying and implementing
with lower environmental impact including
improvement areas.
bio-based compostable plastics. ITC is also
exploring potential applications of refillable/ ITC has been piloting EVs for last mile delivery of FMCG products. This leg of the value chain For details related to ITC’s
reusable models. has been prioritized as it requires relatively smaller sized vehicles for shorter travel distances. Page 103 engagement with its suppliers,
refer “Sustainable Supply
Currently, pilots are active in seven metro cities with EVs covering ~3,200 trips annually. Based Chain” chapter of this Report
Another element of the approach is
on the current market scenario, carrying capacity and range remains a challenge, and may
optimising packaging in a way that reduces
require reworking route plans for future scale up. Based on these learnings, the current pilot End-of-life Management of Post-Consumer
the environmental impact arising out of
will be gradually scaled up. Packaging Waste
post-consumer packaging waste without
ITC collects and sustainably manages
affecting integrity of the product. This includes
Product Sustainability postconsumer plastic packaging waste across
progressive reduction in plastic packaging
ITC leverages Lifecycle Assessment (LCA) studies identifying product level footprint including India. Through these programmes, ITC has been
intensity over time, examining the possibility
hotspots where interventions are required for making the product more sustainable. This may able to collect and sustainably manage over
of introducing recycled content in plastic
include changing product formulations, product packaging and product delivery models. 60,000 MT of plastic packaging waste which is
packaging, wherever permitted by regulations,
more than the plastic packaging of its products.
and evaluating the life cycle impacts of Page 93 For details, refer to “Towards Circularity” Chapter of this report
packaging and identifying opportunities For details, refer to “Towards
Page 93 Circularity” Chapter of this
for improvement using tools like Life Cycle
Report
Assessment studies. Case Study: Slashing Product Footprint by
As a leading Paperboards, Paper & Packaging Two-Thirds - Savlon Powdered Handwash
company, ITC is also leading the way by
introducing more recyclable and sustainable ITC’s Savlon powdered handwash has a much lower footprint compared to conventional
packaging solutions in the market including liquid handwash. This handwash comes in concentrated form and hence requires less
innovative paperboard-based plastic packaging. This format also results in lower transportation related emissions as compared to
substitution solutions. equivalent liquid handwash.
Refer “Towards Circularity” As per LCA studies carried out with third party experts, the lifecycle emissions of powdered
Page 93
chapter of this Report handwash are only one third of the equivalent liquid handwash, thereby representing a two-
thirds reduction in footprint on a lifecycle basis.

Annexures
Climate Change
Managing Physical
Risk of Climate Change:
Building Climate Resilience
Across the Value Chain
Some of the worst impacts of climate change Own Assets
are already being felt around the world ITC’s extensive manufacturing base including
and are expected to further intensify even factories, warehouses and hotels are exposed
as the world readies to moves towards Net to climate change risks on account of extreme
Zero. Therefore, even for businesses, the weather events, precipitation, and temperature
unprecedented and unpredictable climate variation, and other factors. Appropriate
change-linked extreme weather events investments have been made towards
necessitate a focus on building resilience with strengthening climate resilience covering
respect to physical impacts of climate change. the Company’s operational units including
ITC is systematically working towards building those located in coastal areas. Business
climate resilience across its physical assets as continuity plans are also in place to mitigate
well as key agri value chains. any operational interruption due to extreme
weather events.
Additionally, in order to identify long-term

physical risks of climate change, ITC is working
Value Chain
with climate experts to conduct comprehensive
Similarly, factors such as rise in extreme key agri-value chains. These risk assessments
climate risk and vulnerability assessments using
weather events, varying climatic parameters help further calibrate the climate resilience
climate models across its operating locations
and dependence on rainwater for irrigation measures that are being implemented across
(like factories, hotels and warehouses). These
make agriculture in India quite vulnerable to your Company’s value chains. Some of these
assessments consider impact of climate
climate change. For major crops like wheat, interventions include developing climate
hazards related to changes in temperature,
pulp-wood and leaf tobacco among others, tolerant seed/seedling varieties, agro-chemical
precipitation, sea level rise, flooding and
there is significant and sustained work being management, and propagating micro zone-
other extreme weather events over different
done by ITC on the development of climate- specific agricultural practices.
time frames under various Representative
tolerant varieties as well as dissemination of
Concentration Pathways (RCP)/ Shared
climate-resilient and regenerative agronomic
Socioeconomic Pathways (SSPs) scenarios.
practices in the growing areas. For more details, refer
In line with the findings of these assessment, Page 63 “Sustainable Agriculture”
detailed site-specific assessments are then Detailed farm-level studies have been chapter for this Report
undertaken for developing contextual location- conducted to understand the potential adverse
specific adaptation plans and strategies. impacts of climate change on your Company’s

Annexures
Climate Change
Road Ahead
Climate change is undoubtedly the defining issue of the
21st century. ITC is committed to scaling its efforts for combatting
climate change and enabling the transition to a Net Zero
economy. This will involve:
Accelerated Climate Adaptation Disclosures Partnerships and

Decarbonization Strategy Transparently communicate
Collaboration
Accelerating towards achieving Enhance the understanding of ITC’s approach, strategy Promote thought leadership
ITC’s Sustainability 2.0 goals potential impacts of climate and performance on climate and industry-wide
through continued investment change on ITC’s operations and change to key stakeholders collaboration on climate
in green infrastructure and its value chain through science- including investors through change through ‘CII–ITC Centre
energy efficient technologies. based climate risk assessments. disclosures aligned with the of Excellence for Sustainable
Task Force on Climate-Related Development’.
While ITC has already taken Develop and implement robust Financial Disclosures (TCFD)
on ambitious targets, the and inclusive adaptation framework.
Company is working towards strategies for own operations
estimating its full value chain and value chain in consultation
emissions including scope 3, with key stakeholders - farmers,
and developing a Net Zero plan NGO’s and local Governments,
covering all major businesses. thereby ensuring a climate
resilient future for everyone.

Annexures
Sustainable and Climate

Resilient Agriculture
Leveraging the Company’s enterprise strengths degrading the land, and ultimately leading
and its large presence in rural communities, ITC to productive farms, healthy community and Highlights ITC's Climate Smart Agriculture
has, over the years designed and implemented economies.9
programme covered
large-scale programmes on sustainable
2.3 million
Moreover, with the unique set of challenges
agriculture. With the burgeoning evident
that Indian farmers anyway face, farmer
impacts of climate change on agricultural
wellbeing stays at the core of ITC’s portfolio
productivity, and a constant deterioration in
acres
of large-scale farm interventions. ITC works
the state of natural ecosystems, sustainable
towards creating an enabling environment
and climate resilient agriculture for ITC
for farmers by providing technical assistance
entails adoption of science and innovation
and extension services for improving yields,
for conserving natural resources and at the
streamlining access to input markets including impacting over 740,000
same time enhancing climate-resilience and
decarbonising agriculture. For the Indian
credit through aggregation, establishing farmers during the year across
market linkages, and extend assistance to
farmer, this entails supporting sustainable 17 States
transition to sustainable practices. Further ITCMAARS (Meta Market
livelihoods while enhancing their resilience.
for securing farmer livelihoods, ITC’s Agri
ITC is focussed on developing ‘climate- Business Division and the Social Investments
for Advanced Agricultural
smart’ agriculture systems that address Programme (ITC’s Mission Sunehra Kal) focus Services) - a crop agnostic Sustainability 2.0 Target: Promote Climate
Smart Village approach in core agri-business
the environmental and social impacts of on mechanisms to make the dominant sources 'phygital' eco-system has
catchments on
climate change and enable its agri-value of income for farming communities more now been launched in
chains to withstand the changing climatic sustainable.
9 states with
3 million acres
patterns and extreme weather events, such of land by 2030
>500,000
Page 148 For more details, refer “Mission
that the losses to farmers get minimised in Sunehra Kal for Sustainable
a bad year, and they experience relatively & Inclusive Growth” section of
9,458 acres
higher gains in a good year. At the same this Report
time, ITC is also focussing on building new

and diverse farm value chains for crops like
farmers empowered
millets for improving climate adaptability through 1100+ FPOs
and ensuring food security. ITC’s initiatives
of farms across ITC's Agri
for increasing agricultural productivity in a Value Chains covered under
sustainable manner are scientifically planned ITC launched 'Mission Sustainable Certifications like
and follow the key principles of ‘regenerative Millets' for Sustained Food Organic, Rain Forest Alliance
agriculture’. Regenerative agriculture leads
to development of healthy soil, capable of
Security and Enhanced (RFA), Global GAP and
producing high quality nutrient dense food Climate Resilience Fairtrade
while simultaneously improving, rather than Source : Indian Council of Agricultural Research
9

Annexures
Sustainable and Climate Resilient Agriculture
Approach
Conservation of Natural Resources in Agri-Systems Climate Resilience & 'Decarbonisation' of Agriculture
Watershed Management R&D Driven Location-specific, Improved & Climate Resilient Varieties
Soil Health and Biodiversity Conservation Customised Crop & Weather Advisory using Digital Platforms
Integrated Nutrient Management, Soil Testing and Nut.rient Advisory Carbon Sequestration through Practices like Zero Tillage and Balanced Crop Nutrition
Focus Areas
Precision Agriculture Resource Optimisation & Energy Efficient Practices
Integrated Pest Management
Initiatives for Resource Conservation,

Organic Cultivation and Agri-Sustainability Certifications
Creating climate resilient agri-systems
and 'Decarbonising' Agriculture are
Livelihood Diversification: On Farm (Agro and Social Forestry) and Off Farm (Livestock)
closely inter-related.
Enablers
Inclusive Farmer Scientific ITCMAARS - Digital Platform

Partnerships
Farm-systems Collectives Know-how for Farmer Empowerment
Outcomes
Sustainable Farmer Incomes Improved Climate Resilience

Annexures
Conservation of Natural
Resources in Agri-systems Regenerative/Conservation practices are promoted to help farmers comply
with the regulations and requirements as per
With reduced requirement of external inputs ITC promotes practices like Integrated Pest Agriculture Practices in market demand.
and shortened value chains, ‘regenerative Management (IPM) which have multiple Field Crops – Wheat, Rice,
Integrated Pest Management (IPM) – Best
agriculture’ empowers farmers and local benefits. Some of the benefits which farmers
Soybean, Spices practices of managing various pests and
communities. Among other benefits, realised include: reduction in pesticide use,
regenerative agriculture also helps in conservation of underlying natural resource ITC’s Agri Business Division (ABD) promotes diseases are promoted amongst spices farmers
decarbonisation of agriculture by rebuilding base (i.e. soil, water and biodiversity) and various regenerative or resource conservation to optimize the use of various crop protection
soil organic matter and restoring degraded enhanced ecosystem services (i.e. pollination, cultivation practices across key crop value chemicals and to meet the chemical residue
soil biodiversity – resulting in both carbon healthy soils, diversity of species). Moreover, chains such as Wheat, Rice, Soybean, Chilli, level requirements in the final produce.
sequestration and improving the water cycle. other Precision Agriculture practices help Turmeric and Cumin. Following practices help
Crop Diversification – The crops which help in
farmers conserve resources through efficient in optimising the use of resources during crop
ITC adopts several principles of regenerative augmenting the soil such as Summer Moong
programmes. At ITC, multiple initiatives on life cycle thus facilitating the reduction in cost of
agriculture across its interventions and (Green Gram), are promoted amongst the
Agroforestry are being taken through Farm cultivation as well as improving yield.
encourages conservation of natural resources. farmers. This crop also acts as a cover crop and
Forestry and Social Forestry programmes for helps farmers to earn additional income.
Additionally, ITC promotes crop management Varietal Selection – Based on local agro
creating sustainable wood source for pulp,
practices such as use of climate resilient climatic conditions and yield potential, relevant
energy and agarbatti which helps in improving Customized Crop Advisory through ITCMAARS
varieties, biotic and abiotic stress tolerant crop varieties are selected in consultation with
farmer livelihoods. – Crop, location and weather based specific
varieties, soil and moisture conservation, local and State-level agricultural research
crop advisory is being disseminated through
micro irrigation, agricultural practices such as institutes. The high yielding varieties are
ITCMAARS in a ‘phygital’ manner, wherein
zero tillage, direct seeding of rice, broad bed More details can be referred promoted on field through crop demonstrations
relevant information is provided through
furrow method of planting, green manuring Page 73 to in Biodiversity Management to help farmers improve their yield per unit
Section of the Report mobile application, real time query resolution is
etc. among other practices. In addition, area under cultivation.
done through a call centre and on field support
Seed Treatment – In order to improve the is provided through field teams.
germination rate and to reduce incidence of
diseases, seed treatment is promoted amongst
farmers thus positively affecting overall yield.
Nutrient Management – Various practices

such as Soil Testing, use of Leaf Colour Charts
(LCC) are promoted during crop life cycle,
optimizing the quantity of fertilizers used per
unit area. It helps farmers in administering the
required nutrition at crop growth stages and
achieve better yield. In case of spices value
chains, Integrated Nutrient Management (INM)

Annexures
Sustainable and Climate Resilient Agriculture Conservation of Natural Resources in Agri-systems
Regenerative Agriculture
Practices in Tobacco Promoting Certified Sustainable Farm Value Chains:
Farming Organic, Rain Forest Alliance (RFA), Global GAP and Fairtrade
Some of the key Regenerative Agriculture
practices, which help in resource conservation ITC’s Agri Business Division (ABD) helps certifications such as the Rain Forest Alliance
and enhance soil carbon sequestration potential farmers to implement various certification (RFA) certification in Coffee, Chilli and
in ITC’s Tobacco agri value chains include: programmes to sustainably cultivate the Turmeric; Global GAP in Chilli & Turmeric and
⬤ ITC supported Tobacco farmers of Mysore crops with an objective of conserving Fairtrade in Fruit & Vegetable value chains
region of Karnataka in adopting Green resources, adhering to social safeguards and helps build the capacity of farmers around
Manuring initiative in 20,000 acres. This helped increasing the potential of value realization. avoiding child labour, promoting gender
in improving soil structure, increasing water The organic certification in crops like Wheat, equality and non-discrimination. It also
holding capacity, decreasing soil loss by erosion Chilli, Turmeric, Mango helps reduce usage helps optimizing the use of inputs such as
and also reducing the use of inorganic fertilizers. of chemical fertilizers and crop protection fertilizers & chemicals, prevent pollution and
⬤ Sub-soilers are deployed in the identified chemicals, decreases nitrate leaching into manage waste. These certifications also help
regions to break compact sub-soil and ground and surface water, reduce soil in safeguarding the forests and conservation
enabling increased water holding capacity and erosion and improving soil organic carbon. of biodiversity. 9,458 acres of farms across
better root penetration. These encourage soil fauna and flora, thus ITC’s agri value chains are covered under
improving soil formation and structure and these certifications.
⬤ Soil and Moisture conservation work done creating more stable systems. Similarly, other
in Tobacco growing tracks of Andhra Pradesh
and Karnataka to provide irrigation support to
nurseries and standing crop.
⬤ Nearly 20,000 acres of land in West Next-Gen Tech - Agri-Drones: Leveraging Technology
Godavari region of Andhra Pradesh is covered for Driving Efficiency, Product Integrity & Human Rights
with drip irrigation technique which avoids loss
of fertile top soil through run off and enables
ITC deployed drones on large scale covering reduction in labour requirement compared
increased water use efficiency.
5,535 acres across Tobacco farms. A total to conventional method of spraying. Besides
⬤ Tobacco farmers are encouraged to practise of 2350 acres were covered under Drone these, the technology is enabling farmers to
crop-rotation with pulse crops to improve soil Spray in Wheat, Chilli, Cumin across MP, take up prophylactic sprays after extreme
fertility and support soil microbial activity. UP, Bihar, Rajasthan, Punjab, Andhra weather events, even when field conditions
Pradesh and Karnataka in collaboration prevent movement of man and ground
⬤ Responsible usage and safe disposal of
with Agri-Start-ups. The use of drones for machines. The technology ensures farm
agro-chemicals waste is implemented across
Agro-chemical spraying has demonstrated safety by evading direct human exposure to
the Tobacco regions to eliminate contamination
nearly 90% of water savings and substantial Agro-chemicals during spraying activity.
in to local water / soil sources and minimise
adverse impact on human health.

Annexures
Building Climate
Resilience and
‘Decarbonising’
Agriculture
To build adaptive capacity and increase
climate resilience of its agri value- chains, ITC
adopts a systematic approach that includes:
ITC’s Climate Smart Agriculture (CSA) ITC’s businesses build ‘Climate Resilient Farm Value chains’
Climate risk assessment of key programme aims to make agriculture with a short and long-term approach.
crop value chains including regenerative, productive, sustainable, A plethora of measures are undertaken geared towards addressing climate risks in the short term
remunerative and climate resilient which is like impacts of drought and erratic precipitation levels as well as building long term resilience
Pulpwood, Tobacco and Wheat
closely aligned to Indian Government’s PM across key value chains like tobacco, wheat and soya.
for identifying hotspots KUSUM, Sustainable Agriculture, Natural
Farming and Millet Mission programmes which Initiatives for Managing Initiatives for Building Long Term
Page 53 Refer ‘Climate change’ Climate Risks in the Short-term Climate Resilience
section of this report focus on improving farmer incomes, minimizing
climate related risks and decarbonizing • Promotion of climate resilient varieties • Long-term climate risk modelling and
agriculture. The CSA programme covered • Promotion of climate smart practices scenario analysis
Sustained work on promoting
2.3 million acres impacting over 740,000 across crop cycle • Expansion to low climate-risk geographies
climate-resilient practices farmers during the year across 17 States. ITC • Weather forecasting and customised crop • Technology deployment for mitigation of
and crop varieties across key is targeting to cover 4 million acres by 2030 advisory using ITCMAARS climate impact
value chains under this programme. Additionally, in the core • R&D efforts for development of new climate
agricultural catchments, ITC has been working smart varieties in collaboration with national
to convert entire village as Climate Smart and regional agricultural research institutions
Deploying agronomical
Village (CSV). • Scaling up of watershed management
practices to conserve soil and initiatives including river-basin level
More details can be referred
carrying out watershed-level to in Mission Sunehra Kal for interventions
Page 148 Sustainable and Inclusive
conservation measures Growth section.
One of the key climate smart crops identified is Millets. Millets generally thrive in regions with,
warm temperatures, and drier climates and have higher potential for withstanding global warming
conditions. In line with the Government of India’s initiative on millets, ITC has launched an
ambitious plan – ITC Mission Millets, that leverages cross-business synergies for strengthening the
millet farm value chain.

Annexures
Sustainable and Climate Resilient Agriculture Building Climate Resilience and ‘Decarbonising’ Agriculture
ITC Mission
Millets: Addressing Climate Resilience ITC’s Mission Millet Approach
of Millets
Climate Resilience, ITC’s Mission Millets is designed as a
Nutrition & Food transformative and cohesive approach to
Security
build awareness and adoption of Millets and
enhance both the demand and consumption, Educate Empower Encourage
as well as the production and supply aspects Educate consumers Empower farmers with Encourage trials through
In India, Millet is traced back to the on the benefits of the knowledge on soil, crop, various Millet-based
of this smart crop. Not only ‘superfood’, Millets
Yajurveda. The Finger Millet was said to be nutritionally dense production & farming range of products and
crops are known to be inherently climate
a staple of Karnataka in the Neolithic era. A Millets and build techniques, facilitate formats to help build the
resilient. As per the International Crops
large body of scientific research recognises awareness on how better production, build taste; make Millets more
Research Institute for the Semi-arid Tropics,
Millets as superfoods. Nutritionally dense, to consume millets, supply and enhance palatable and tastier by
Millets have higher efficiency in absorbing
low in calories and a fighter against experiment with livelihoods of farmers. sharing healthy recipes,
and utilizing carbon dioxide. Most varieties
21st century lifestyle conditions such as recipes, etc. tips, hacks, etc.
of Millets are well known for their hardiness
diabetes and heart disease, and is hence
and have the capacity to withstand prolonged
recommended by dieticians and medical
periods of drought, high temperatures and still ITC’s engagement in agriculture has, over the ⬤ As a part of developing Millet value chains,
experts. Millets are now seen by the
produce grains and fodder. years, enhanced farm productivity and market ITC's Agri Business has implemented two
scientific community as food of the future.
access, whilst enabling sustainable farming Public Private Partnership (PPP) projects, one
Millets have earned the reputation of being The campaign is inspired by the Company’s
and conservation of natural resources. each in Maharashtra and Andhra Pradesh
‘nutri-cereals’, as they provide most of the Vision to contribute in equal measure to
in partnership with Indian Institute of Millets
nutrients required for normal functioning people, planet and profit. This Vision is
⬤ ITC encourages and supports the Research (IIMR), Hyderabad and Government
of the human body. India is a leading embedded in the Company’s credo of
production of Millets as they are a climate of Andhra Pradesh respectively. In these
producer of millets worldwide. ‘Nation First: Sab Saath Badhein.’
smart crop. projects, improved varieties and knowledge
on crop cultivation practices are disseminated
⬤ ITC’s Agri Business Division with its current
through Crop Demonstrations.
e-choupal and other farmer network including
FPOs, is working with farmers across various ⬤ Similar Millet development initiatives are
crop value chains including Millets. also rolled out in States like Rajasthan and Uttar
Pradesh.
⬤ To cater to the demand for its own
products, ITC is currently sourcing required
Millets (Sorghum, Pearl Millet, Ragi etc.) from
3 key States of Karnataka, Maharashtra and
Andhra Pradesh

Annexures
Sustainable and Climate Resilient Agriculture Building Climate Resilience and ‘Decarbonising’ Agriculture
Climate Smart Practices in

Field Crops - Wheat, Rice,
Soybean, Spices
ITC promotes climate resilient and/or climate
smart practices in key field crop value chains
such as Wheat, Rice, Soybean, Chilli etc. These
practices help farmers to build capability for
mitigating the effect of climate change, help
resource conservation and/or reduce Green
House Gas (GHG) footprint.
Climate Resilient Varieties – Use of climate

resilient varieties in crop value chains such
as Wheat, Rice, Soybean helps farmers to
Broad bed Furrow (BBF) – This technique of Climate Smart Practices
reduce the possibility of reduction in yield due
sowing is promoted in Soybean where it helps
farmers to improve soil moisture, reduces
across Tobacco Farms
to change in weather conditions, especially
possibility of yield loss in case of excess rainfall ITC takes a multi-faceted approach towards agronomic package of practices for various
temperature. The varieties tolerant to various
and overall reduces the water requirement for building climate smart Tobacco production cropping phases within a region to facilitate
biotic as well as abiotic stress are also
the crop. systems. With an integrated ‘Lab to Land’ staggered operations are devised and
promoted.
approach, there are multiple scientific deployed.
Murate of Potash (MoP) spray – The practice
Zero Tillage – In case of Wheat, Zero Tillage interventions which are undertaken for
of foliar application of MoP on Wheat during Scaling up water efficient technologies such
sowing using zero till seed drill or happy improving climate-resilience of Tobacco
crop cycle helps the crop to manage heat stress as, smart irrigation, drone-based spraying, and
seeder is promoted to reduce number of farmers:
especially in January to February months and taking up integrated watershed management
tillage operations compared to conventional
thus reducing the possibility of yield loss. Developing high yield varieties tolerant to programme in ensuring availability of water for
cultivation, thus reducing cost of cultivation,
biotic stress factors such as, pests and weeds, critical irrigation in rainfed regions.
reducing GHG emission without significantly Plant Growth Regulator (PGR) spray – In case
as well as abiotic stress factors such as
affecting the yield. of Sharbati variety of Wheat, the application The deployed resource use & energy efficient
drought and excess moisture.
of PGR helps in controlling the plant height initiatives like drip irrigation, barn insulation
Direct Seeded Rice (DSR) – This practice of
and thus avoiding lodging of the crop. It helps Seed and seedling adequacy for facilitating and turbo ventilators, smart curing, drone
sowing rice seeds directly into the field in lieu
in reducing the potential loss of yield due prompt measures for crop recovery post an spraying potentially reduce carbon emissions
of nursery raising and transplanting, helps
to erratic weather such as wind and excess extreme weather event such as heavy rainfalls. at farm level.
farmers to reduce the duration of crop cycle,
rainfall.
reduces cost of cultivation especially sowing, Climate smart agronomic production
helps reducing water consumption and Mulching – In case of Spices, mulching helps in practices such as, use of intact root seedlings,
reducing GHG emission without significantly increasing water availability, maintaining soil providing starter nutrition to overcome early
affecting the yield. temperature and suppressing weed growth, drought conditions and foliar application of
thus positively affecting the overall yield as well Potassium fertilizers during critical stages of
as mitigating the effect of climate change. crop growth period and micro-zone-specific

Annexures
Creating an Enabling ‘Baareh Mahine Hariyali’: New Horizons in
Environment for Multiplying Farm Incomes

ITC’s Baareh Mahine Hariyaali, a pioneering
Farmers intervention aligned to Government’s Doubling

Farmers’ Income programme, facilitates
Indian agriculture faces some unique farmers to enhance their incomes. This
challenges. Through decades of interventions programme follows a 360°, multipronged
in Indian rural environment, ITC understands approach with interventions ranging from
these unique challenges very well. And has increased cropping intensity with a third crop
created innovative business model, backed during summer, enhancement of productivity
by digital innovation to overcome these through context-specific agronomic practices
unique challenges. A vast majority of small demonstrated through Choupal Pradarshan
landholding farmers, who constitute a key Khets (on-farm demonstrations) and provision
part of ITC farm value chains, face challenges of market linkages with transparency in
of inadequate financing solutions and limited assessment of quality, prices and weighment.
infrastructure. Hence, ITC has created In some regions, taking a holistic approach
mechanisms for reaching out to farmers to income diversification as an adjacency,
with efficient market linkage solutions, livestock development, women empowerment
institutional support, scientific expertise, and agro forestry are also included.
predictive analysis of commodity markets,
and scientifically backed weather related Over 200,000 farmers have already benefited
information, among others. from the interventions under the ‘Baareh
Mahine Hariyali’ programme, out of which over
35,000 farmers who have adopted the package
of practices have reported doubling of their
incomes while others who have implemented
the programme partially reported increase in
their incomes by 30% to 75%. The programme,
which aims to multiply incomes of farmers
through a wide spectrum of interventions in
climate-smart and sustainable agriculture.

Annexures
Sustainable and Climate Resilient Agriculture Creating an Enabling Environment for Farmers
Enabling Market Access

and a Digital Driven Agri-
Transformation
E-Choupal
Launched in June 2000, ITC e-Choupal is today
India’s largest initiative among internet-based
interventions in rural India. The ITC e-Choupal
network leverages information technology to
empower farmers, through a rich repertoire
of agri based interventions. Initiatives like the
‘Choupal Pradarshan Khet’ bring suitable
agricultural best practices to farmers and have
demonstrated significant productivity gains.
These interventions have helped to transform
village communities into vibrant economic
organisations by enhancing incomes and co-
creating markets. Empowerment and building
trust amongst the farming community remains
at the core of this model.
4 million ITCMAARS planning of crop cycles, a ‘Crop Doctor’ services like soil testing to weather forecast,
Farmers served through To power next generation agriculture, ITC function for real-time resolution of crop credit and market linkages – ITCMAARS app
e-Choupal till date has launched ITCMAARS (Meta Market for infestation, real-time soil testing, ‘Fertiliser is ITC’s key contribution towards ‘Next Gen’
Advanced Agricultural Services) to bring in the Calculator’ to optimise nutrition, precision agriculture. ITCMAARS app will progressively
benefits of state-of-the-art digital technologies farming, access to good quality inputs and cover as many as 4,000 FPOs, empowering 10
35,000+ to farmers. This crop agnostic ‘phygital’ eco- market linkages, and so on. It also makes million farmers by 2030.
Villages served through system is embedded with a full stack AgriTech available allied services such as pre-approved
For more information on the above initiatives
internet-based interventions platform with FPOs as the pivot. ITCMAARS loans and over time will also provide insurance,
and the work being done with grassroots
in rural India till date has now been launched in 9 States with over amongst others. The scaling up of ITCMAARS
institutions like Water User Groups (WUGs), Agri
500,000 farmers empowered through 1,100+ will contribute significantly to national priorities
Business Centres (ABCs) and creation of rural
FPOs. of Digital India, Doubling Farmer Incomes and
infrastructure for improving adaptive capacity,
6,100 The digital platform provides farmers with
enhancing livelihood opportunities.
refer to ‘Mission Sunehra Kal for Sustainable &
E-Choupal kiosks spanning AI/ML driven value-added personalised and ITCMAARS provides assorted agricultural Inclusive Growth’ and ITC’s Sab Saath Badhein,
10 States hyperlocal crop advisories. These include and allied services to farmers on the digital ITC e-Choupal and ITC Watershed microsites.
a customised ‘Crop calendar’ for scientific platform. From supply of seeds, farm inputs,

Annexures
Road Ahead
A more sustainable and resilient agriculture sector will be at the
core of India’s net zero roadmap and climate change agenda.
ITC, with its deep linkages to rural India and agri value chains,
and sustained long term interventions with Indian farmers, is
committed to accelerating the sustainable transformation of
Indian agriculture. As part of its Sustainability 2.0 vision, ITC’s
approach will focus on:
Climate Risk Assessments for Key Promotion and Development of Scaling up Sustainable & Climate
Agri Value Chains Climate Smart Varieties Smart Agriculture Programmes
ITC will continue to utilise advanced climate ITC’s state-of-the-art Life Sciences and
for Indian Farmers
modelling tools for identifying hot spots Technology Centre (LSTC), equipped with ITC will strengthen its engagement
and major climate hazards impacting key world class scientific platforms and centres with farmers for conserving natural
crop value chains across various scenarios of excellence including Agroforestry and resources, building climate resilience
and time horizons. Based on the findings, Crop Sciences, is at the forefront of leading and decarbonising the agri sector, while
location-specific and farmer-centric R&D efforts towards building climate focussing on supporting sustainable
solutions will be curated improving the smart varieties. This will be supplemented livelihoods and enhancing national food
adaptive capacity of farm value chains and with collaborations with various national security. ITC is targeting to promote climate
farmers. and international research institutes, and smart village approach in core agribusiness
technology deployment for sustainable and catchments across 3 million acres by 2030.
climate-smart agricultural practices.

Annexures
Biodiversity
Management
Biodiversity provides essential resources and through their operations, can also impact nature and contextual biodiversity management the Board-approved Policy on Biodiversity
ecosystem services for ensuring long-term in many ways and hence bear responsibility plans are developed and implemented across Conservation. As part of ITC’s Sustainability
sustainability of nature-dependent businesses. for its protection. The role of businesses in key locations. Given the linkages between 2.0 Vision, ITC also recognises the potential of
These include resources like water, key raw protecting biodiversity has also been highlighted agriculture and the essential ecosystem services nature-based solutions for carbon sequestration
materials, agri commodities, and ecosystem in the Kunming-Montreal Global Biodiversity that nature provides, ITC recognises that the and building climate resilience, and prioritises
services like recycling of nutrients, ensuring Framework (GBF) adopted at the United Nations preservation and nurturing of biodiversity actions to minimise impacts across realms of
soil fertility, control of local micro-climate, Biodiversity Conference (COP15). is crucial for long-term sustainability of its land, freshwater and atmosphere, and manage
regulation of local hydrological processes and business, and is committed to conducting dependencies in a sustainable manner.
ITC’s operations and value-chains too depend
organisms in the ecosystem among others. its operations in a manner that protects,
on nature, and accordingly location-specific
Besides depending on nature, businesses, conserves and enriches biodiversity in line with
ITC’s framework for managing key biodiversity impacts and dependencies is depicted below:
Management of Impacts Securing Dependencies
Impacts Dependencies
Changes in states of Ecosystem services that a
Approach aligned with Strategies for Ensuring
nature business relies on
UN Mitigation Hierarchy Sustainable Availability
Step 1: Avoid Watershed Management

GHG
No Net Loss
Emissions Materials Sustainable Agriculture

Step 2: Minimise
Waste Water
Step 3: Restore Sustainable Forestry
Business
Noise Operations & Pollination
Value Chains Resource Efficiency
Step 4: Offset Effluents Erosion control
Discharges Flood Protection Ecosystem Restoration

Step 5: Positive Contribution
Land Climate
Eg: ITC's Initiatives like Emissions, Elffluent, Waste & Water Management control Biodiversity, like water, is a site-specific issue i.e.
Management, Extended Producer Responsibility understanding of the local context is necessary to
assess impacts/dependencies
For details, refer to respective sections of this report.

Annexures
Biodiversity Management
ITC’s Approach
Assessing Nature-related Managing Biodiversity Impacts in line Highlights ITC’s Biodiversity Conservation
Risks & Opportunities with the Mitigation Hierarchy
initiative has covered
Conducting Biodiversity
Risk and Opportunity
Implementing Robust
Environmental Management 290,000
Assessments across:
− Operations near key biodiversity &
eco sensitive areas
System across locations
Location-specific and Contextual

acres
− Core agri catchments covering key Biodiversity Management Plans &
of land till date
crop value-chains
Initiatives:
− Large scale ecosystem restoration and
Assessing other biodiversity- sustainable agriculture programmes in Cover 1 million acres
linked risks like: agri catchments Sustainability 2.0 Target (2030)
− Water risk assessment using − Community-based biodiversity
science-based hydrogeological conservation initiatives
studies across sites located in high − Large scale soil & moisture conservation ITC’s Paper and Specialty Higher Carbon Stocks across
water stressed areas programme
− Climate risk assessments
Papers Division committed ITC’s biodiversity conservation
− Sustainable forest management
− Climate change adaptation plans to principles of Forest plots
Stewardship Council (FSC): (As per a study covering 1 lakh+ acres
across different agro-climatic zones):
Deforestation-free value chains
Implementing relevant global >426,000 tonnes

of FSC® certified wood were procured
standards and certifications Above ground carbon stocks were higher
from these certified plantations, in the range of 15% to 148%, and
like Forest Stewardship Council during FY2022-23
(FSC) and Alliance for Water
Stewardship (AWS).
Average soil organic carbon was higher
24% in the range of 20% to 38% (compared to
of the wood consumed by ITC is
control areas)
(FSC®-FM) certified

Annexures
Assessing Managing Biodiversity Impacts

Nature-related The following table summarises a bouquet of sustained initiatives implemented by ITC’s businesses
and under the Social Investment Programme towards managing biodiversity related impacts in line
Risks & Opportunities with the mitigation hierarchy.
For both greenfield and brownfield operations,
processes are in place for assessing any Avoid & Minimise Restore Offset & Positive Contribution
actual or potential biodiversity related risk or
impact including conducting environmental • Robust Environment Management • Catchment treatment work done as part • Expanding forestry projects on
impact assessments wherever required by System across locations covering of water stewardship facilitates control wastelands through ITC’s Social and
environmental regulations. Moreover, location- key impact parameters like GHG, air of top soil run-off. 948,000 acres covered Farm Forestry resulting in sequestration
specific exposure including proximity to Key emissions, water, waste and effluents. through catchment treatment till date of of 5.9 million MT of CO2e during the year.
Biodiversity Areas is assessed periodically. Basis • 43% of total energy from renewable which over 61,900 acres was done during • Creating rainwater harvesting potential
these assessments, key nature-related risks that sources, and focus on reducing specific the year. equivalent to over 3 times the net water
are material to ITC businesses/locations are
energy, GHG and water consumption. • No till / Zero tillage practices to add crop consumption in operations.
identified, and mitigation plans are developed
• Climate smart agriculture practices over stubble back to soil helps in retaining soil • Enabling sustainable management of
and implemented. Location specific risks covered
2.3 million acres. moisture and reduces soil erosion. During more than 60,000 MT of plastic waste
in these assessments include water stress,
• Recycling 99.9% of waste generated the year, as part of MSK interventions, in excess of the amount of packaging
climate risks including extreme weather events
across operations. 6.6 lakh acres of wheat was covered utilised.
like droughts and floods, land-use changes,
• Sustainable packaging strategy that through zero tillage cultivation. • Focus on recycling ~100% waste
soil quality and productivity, among others.
entails ensuring 100% of packaging is • Community driven biodiversity efforts generated at ITC Units combined with
Comprehensive set of measures are undertaken
reusable, recyclable or compostable/ have conserved more than 290,000 acres utilisation of externally generated paper
to optimise the use of natural resources, as
biodegradable, optimising packaging till date. waste as a source of fibre at PSPD Kovai,
well as, minimise emissions and effluents, by
and introducing recycled plastic content • ITC’s Farm and Social forestry enabled ITC to recycle 112% of the waste
deploying Environmental Management Systems
for replacing virgin plastics. programmes have together greened over generated across ITC.
in line with global standards like ISO 14001.
• Improving crop water use efficiency 1 million acres till date.
Biodiversity Risk and across 1.18 million acres land covering
Opportunity Assessment 15 crops resulting in potential annual
savings of 780 million kl of water usage.
The Biodiversity Risk and Opportunity Assessment • Grow your own fuel programme for
(BROA) tool was deployed by ITC’s Agri Business energy plantations over 73,000 acres
Division in its core crop growing regions to in Karnataka, creating potential for
identify impacts and dependencies of business 2.41 million MT of sustainable wood
operations on biodiversity of a given agricultural generation, thus reducing pressures on
landscape. Based on the risks identified, ITC’s forests and other unsustainable wood
programmes on micro-irrigation, agro-chemical sources.
management, soil protection and conservation,
energy conservation etc. were introduced.

Annexures
Biodiversity Management Managing Biodiversity Impacts
Promoting Sustainable ITC’s Paperboards and Specialty Papers

Agriculture through Business is committed to Forest Stewardship
Recognised Standards Council® (FSC®) principles. Till date, ITC has

received Forest Stewardship Council® - Forest
During FY 2022-23, ITC’s Agri Business Division Management (FSC®-FM) certification for
increased the scale and scope of crops covered over 1.49 lakh acres of plantations involving
under various sustainability certifications. over 25,000 farmers, as per which all rare,
Crops such as chilli, cumin, turmeric, celery, threatened and endangered species are
coffee and mangoes were covered under Rain conserved in the areas considered under
Forest Alliance (RFA), Global GAP and Fairtrade the scope of certification. It also provides
certifications. Several of these crops are also assurance that methods for enhancing the
certified as organic under Indian and US biodiversity potential of the planted areas like
standards. Under these certifications, the farms retention of old growth / snag trees, retention
are audited regularly to verify that farmers are of large woody debris, creation of water
compliant to the standard’s comprehensive bodies, and agro-chemical management etc.,
requirements, which require continuous are being practiced. During FY 2022-23, over
improvement on the journey to sustainable 426,281 tonnes of FSC® certified wood were
agriculture. The farmers follow the principles of procured from these certified plantations.
sustainable farming, which include Biodiversity
conservation, improved livelihood and human
well-being, and natural resource conservation.
With support from ITC, the farmers in

Deforestation-free Wood Value Chain
Andhra Pradesh, Karnataka, Rajasthan and
ITC has implemented forestry programmes
Punjab undertook effective planning and
for sustainable cultivation of wood as a fibre
farm management systems that benefit
source. In this programme, high yielding
communities, forests, native vegetation,
clonal saplings are provided to farmers
ecosystem services and wildlife.
along with technical support and extension
services for tree farming. This helps alleviate
risks to farmers by providing alternate tree-
based revenue. For ITC, it ensures supply of
deforestation free wood fibre for Paperboards
and Specialty Papers Business, which is in turn
supplied to ITC’s printing and packaging as
well as FMCG businesses. The entire value
chain is mapped using tech-based solutions to
ensure full traceability.

Annexures
Enabling a ‘Deforestation free’

Leaf Tobacco Value Chain
Smart Curing Technology
The Business is promoting adoption of Smart
ITC Agri Business is committed to ensuring ‘Zero ⬤ Energy conservation measures (Barn Roof ⬤ To embrace a self-sustaining model for fuel
Curing technology by the farmers which saves
Deforestation’ across the leaf tobacco value Insulation and turbo ventilators) which can sourcing, ITC has encouraged the planting of
around 40% fuel in curing and substantial
chain. The Business has implemented a three- reduce nearly about 27% of energy requirement trees that cover 194,600 acres till date. Grow
reduction in labour requirement during
pronged approach towards conserving energy during curing are being deployed on a large your own fuel models are deployed, wherein
tobacco post-harvest management. The
and ensuring sustainable fuel management scale, spanning 39,815 barns till date in farmers are encouraged to grow wood in farm
technology uses digital sensors and control
in tobacco curing. This entails the introduction Andhra Pradesh and Karnataka. In addition, bunds and agro forestry models.
panel in making tobacco curing user-friendly,
of fuel-efficient technologies, promotion of close to 100 farmers were supported with
⬤ Encouraging farmers to use alternate efficient and environmentally sustainable.
self-sustenance in meeting fuel requirement ‘Venturi Furnace’ which helps in improving fuel
fuels for curing like coffee husk, coffee stems, Till date, 100 smart curing barns have been
through energy plantations and use of efficiency during the year.
coconut fronds and eucalyptus roots. deployed across tobacco growing regions.
alternative fuels.

Annexures
Conserving and Restoring

Biodiversity
Restoration and rehabilitation of
degraded plots - Mosaic restoration
ITC under Mission Sunehra Kal implements
community driven biodiversity conservation to
revive and sustain ecosystem services provided
by nature through adoption of Nature Based
Solutions which is also an integral component
for supporting climate resilient agriculture.
ITC focusses on biodiversity conservation
at landscape level by restoring degraded
village commons, promoting native species
tree plantation and reducing pressures on
forests. Commons restoration is currently the
major component and the work includes,
social protection by communities to expedite
in-situ native root stock regeneration, soil and
Revival of ecosystem services provided pollinators and predator birds (on crop pests), ITC prepared soil and moisture conservation
moisture conservation work to enable growth
to agriculture by nature – Sustainable improving soil microbial health, and enabling plan for the forest and fringe areas and trained
of biomass, and plantation of native species
Agriscapes food, fodder and fuelwood to the dependent department staff in implementing the work.
trees in highly degraded patches where in-situ
In addition to the work done on biodiversity local communities. Sustainable Agriscape was Post training, forest department took up soil
regeneration is not possible.
conservation in plots, ITC has also collaborated first piloted in Munger district (Bihar) and is and moisture conservation work and tree
with the International Union for Conservation now being scaled-up across other catchments. planting directly.
of Nature (IUCN) to develop a template for
Till date, ITC has taken up revival and These two partnerships aim to cover around
‘Sustainable Agriscape for Future’. As part
conservation work in more than 5,100 79,000 acres under forest conservation
of Sustainable Agriscapes, the eco-system
biodiversity plots covering 2.9 lakh acres planning by Forest Department. Planning has
services provided by nature for the benefit
spread across 12 States by involving famers and been completed for over 14,100 acres, and
of agri and other livelihoods are mapped
community members. ITC has partnered with planned activities completed in over 3,700
and the key issues that are, and will in future,
various Government agencies to replicate the acres till date. In Rajasthan, ITC has partnered
affect those ecosystem services are assessed.
mosaic restoration and Sustainable Agriscape with Wasteland Development Board to revive
Subsequently, plans to revive those services
templates. In Maharashtra and Telangana, and conserve 2.5 lakh acres of degraded
are designed and implemented. The typical
ITC has partnered with Forest Departments to village commons through village pastureland
eco-system services provided by nature include
improve green cover and biodiversity in forest committees (Charagah Vikas Samitis), of which
regulating hydrological cycle to ensure water
and fringe areas. As part of the partnership, 70,000 acres has been conserved so far.
flows throughout the year in streams, hosting

Annexures
Institutional
Impacts of ITC’s Biodiversity Conservation Efforts
Partnerships
ITC is a member of the India
Two technical studies were done during the Overall, the studies have recorded starting from Rajasthan to Karnataka and
year through The Energy and Resources improvement in carbon stocks as well as because of the wide variety of tree and grass
Business and Biodiversity
Institute (TERI) & IORA Ecological Solutions. floral and faunal biodiversity compared to species planted across regions. In total, 91 tree Initiative (IBBI), which is a
These studies covered over 1 Lakh Acres control areas. and grass species were planted based on the multi-stakeholder initiative
of biodiversity conservation work done by nativity of the species to that particular region.
Above ground carbon stocks were higher in with leading Indian businesses
ITC in two years spread over seven States.
The studies assessed carbon stocks and
the range of 15% to 148%, and average soil The Simpson index (Homogeneity of species) making commitment for
organic carbon was higher in the range of 20% for flora was close to 10 and Shannon Index
biodiversity health in ITC’s conservation plots biodiversity conservation and
to 38% across different agro-climatic zones (Diversity of species) was in range of 2.55 to
and has set baselines for measuring futuristic
compared to that in control areas. The wide 3.87 (measurement range is 0.1 to 5). Presence
sustainable resource use. As a
improvement and also assess the impact in
range of impact is because of the work being of wide variety of fauna was also documented member of IBBI, ITC is actively
comparison with control plots in the vicinity.
spread across different agro-climatic zones in the conservation plots. involved in consultations and
piloting of The Nature-related
Financial Disclosure (TNFD)
framework and is proactively
working towards aligning its
reporting, and calibrating its
practices in line with the evolving
stakeholder expectations.
Biodiversity Plot_Pre Biodiversity Plot_Post

Annexures
Sustainable and
Climate Resilient Agriculture
Road Ahead
In the backdrop of the landmark COP 15 of the Convention on
Biodiversity and the 2030 targets adopted by nations, ITC is
committed to:
Managing Biodiversity Impacts Meeting 2030 Sustainability 2.0 TNFD aligned Nature-related
and Dependencies Commitments Disclosures
ITC will systematically map the impacts Continue to expand ITC’s large-scale ITC will adopt the Locate, Evaluate, Assess
and dependencies including the underlying programmes for conserving and and Prepare (LEAP) approach enshrined in
nature-related risks and opportunities replenishing nature by expanding the the upcoming Task Force on Nature-Related
across key locations and value chains. The climate smart village approach to over Financial Disclosures (TNFD) framework for
Company will continue to manage the 3 million acres, watershed development strengthening its nature-related disclosures.
impacts in line with the mitigation hierarchy. to over 2.2 million acres, social and farm
forestry programmes to over 1.5 million
acres, and biodiversity conservation to over
1 million acres by 2030.

Annexures
Water
Security
Factors like rapid growth in population,
urbanisation and water-intensive patterns of Highlights ITC is working on 4 Water Use Efficiency Improvement.
growth coupled with climate change have a
significant impact on availability, quality as well River Basin Revival All Businesses progressing towards
as access to water around the world. In India, Programmes to achieve meeting S2.0 target of 40% reduction
the situation is further exacerbated on account Water Positive Status in in specific water intake by 2030
of dependence on an increasingly erratic
those River Basin/ Sub
monsoon, rapidly depleting groundwater
Basin Areas spread
resources driven by growth in population as
46%, 18%, 18% reduction
>11 Lakh
well as over consumption across agricultural
in water intake (2022-23 vs. 2018-19) across Foods,
and industrial sectors, and rampant changes in
Total rainwater harvesting Paper and Hotels Businesses respectively, which
land-use patterns.
Acres
constitute ~98% of ITC’s total water consumption
ITC’s operations, spread across the country, potential (RWH) of nearly
50
have dependency on continuous availability
of water for continuous operation of its
manufacturing units. Besides direct water across 4 States
million kl
consumption, ITC’s operations are also
dependent on multiple agri-value chains.
Hence, ensuring water availability not only
ITC’s Foods unit at
for its own operations but also for catchments
from where agri commodities are sourced, (cumulative) Malur - First foods
is of utmost significance. Accordingly, ITC’s created, which is over processing facility in
Sustainability 2.0 approach endeavours to 3 times the net water Asia to be awarded
ensure water security for all stakeholders in its
consumed by ITC’s the Alliance for
catchments. Farmers constitute a vital part of
operations in FY 2022-23 Water Stewardship Integrated Watershed Development
ITC’s supply chain, and the Company facilitates
farmers to conserve and replenish water (AWS) Platinum level Projects across 45 districts of 16
by promoting water-efficient agronomical certification, the States in India benefiting
ITC Mughal & ITC Sonar -
>1.47 million
practices like micro irrigation techniques
highest recognition for
that save water during cultivation along with First two hotels in the world
working with them for creating infrastructure
water stewardship in
to receive the LEED ZERO
acres
for harvesting rainwater. the world
Water certification by US
Green Building Council

Annexures
Water Security
ITC’s Integrated Water Stewardship Approach in Action
Upstream- Agri Value Chains Operations – Physical Assets (like Manufacturing Units, Hotels)
Supply Side Management Demand Side Management
Supply-Side Augmentation through Managed Demand-Side Measures to Maximise Water Use Efficiency across Operations
Aquifer Recharge, and Soil & Moisture Improve Water Use Efficiencies in including Key Value Chain Partners
Conservation Measures Agriculture (Third Party Manufacturers)
Identification of high water stressed Improving crop water use ITC Units focus on optimising use to minimise withdrawal, at the
areas, implementation of integrated efficiency in agriculture by operating plant level as well as the sub-catchment or micro-watershed
watershed level programmes at promoting water efficient level where it is located.
river basin level to augment water agri practices that save
availability in the entire catchment. water, and also helps Improving water-use efficiencies by adopting the latest technologies,
improve yields. and increasing reuse and recycling practices in operations.
Working with farmers for creating
rainwater harvesting structures for Continual improvement in specific water intake, adoption of
enhancing the availability of water in benchmarked practices and rainwater harvesting.
core agri catchments
Making water security assessments an integral part of greenfield/
brownfield project design and development.
The Alliance for Water Stewardship (AWS) framework has been adopted by ITC to ensure water
security for all stakeholders at the catchment level, and continuously monitor and review the efficacy
of its water stewardship programmes. As part of its S2.0 target, ITC is targeting AWS certification of 8 sites in
high water stressed areas by 2024, and all such sites by 2035.

Annexures
Water Security
Demand Side Management

Water Performance in own Operations
In FY 2022-23, ITC’s total water intake was
around 34.5 million kilolitres (kl)), a marginal
increase of 3% from previous year due to delay
in stabilisation of turbo-generator system
at Bhadrachalam Paper Unit, resulting in a
temporary increase in water required for
steam generation, and commissioning of new
factories and a Hotel.
Total Water Intake by Source

In FY 2022-23, out of the total water intake of
34.5 million kl, around 79% was sourced from
surface water, 16% from ground water sources
and the remaining 5% from municipal and other
Sustainability 2.0 Targets
water sources. In order to drive continuous
Business wise water consumption To pursue continuous improvement in water performance in line with the Sustainability 2.0
improvement, all ITC units have systems to
ambitions, ITC Businesses are targeting a reduction of 30% in Specific water consumption by 2030
monitor specific water intake (total water intake
compared to an FY 2018-19 baseline.
per unit of product/service). 1% 3%
5% Specific Water Consumption Performance
3%
Sources of water ITC Business* % Reduction as compared Business’ Share (%) in ITC’s
to a FY 2018-19 baseline Total Water Consumption
5% Paperboards and Specialty Papers 9% ↓ 88%
Foods 31% ↓ 3%
16% Hotels 17% ↓ 5%
88%
Tobacco 24% ↓ 1%
↓ Improvement in KPI , ↑ Decline in KPI

PSPD *Smaller businesses such as Personal Care, Matches & Agarbatti, Education and Stationery, Agri Business,
79% Packaging and Printing businesses in total contribute to around 3% of total water consumption.
FBD
For the Foods Business, improvement in specific water consumption was driven by water conservation
Surface water Hotels
measures, productivity enhancement interventions and changes in product mix.
Ground water ITD For the Hotels Business, improvement in specific water consumption was primarily driven by water
conservation measures.
Municpal water & others Others

Annexures
Water Security Demand Side Management
Case Study: Water Use Efficiency Improvement at Case Study: Recovering Water from Air
Bhadrachalam Paper Mill at ITC Grand Chola
The paper unit at Bhadrachalam contributes several pumps where freshwater is utilized for ITC Grand Chola is located in Chennai, a moisture to water. The collected water is
to nearly 76% of ITC’s total water intake. gland sealing and cooling of mechanical seal. water-stressed metropolis with ongoing then filtered through a multi-stage filtration
In line with Sustainability 2.0 targets, the The return water from this process was earlier water-related challenges. The hotel has process to ensure purity and maintain pH.
Unit continuously looks for opportunities to getting discharged to the Effluent Treatment identified a unique technology to condense
Additionally, essential minerals are added
improve its specific water intake. During the Plant (ETP). The Unit has been utilizing the moisture from atmospheric air using an
back to produce healthy drinking water
year, several initiatives were undertaken for return sealing water from pumps in cooling energy-efficient process. The atmospheric
which is used by the Hotel. At present, the
reusing discharge water from one process in towers thereby reducing freshwater intake by air is circulated through an atmospheric
hotel has deployed this technology with an
another. For instance, Bhadrachalam Unit has around 1,500 kl/day. water harvesting system, where surface
installed capacity to condense about 2,000
temperature is dynamically maintained
liters/day.
below the ambient dew point for condensing
Effluent Discharge Water Performance of Select

Case Study: ITC Mughal Resort & Spa, All ITC units met their regulatory requirement Supply Chain Members
related to effluent discharge quality and
Agra - World’s First LEED ZERO Water Certified Hotel In FY 2014-15, ITC had initiated the process
quantity in FY 2022-23. In FY 2022-23, around of accounting for water intake of supply
20 million kl of treated effluent was discharged chain members10. In line with ITC’s Policy on
ITC Mughal Resort & Spa, Agra received the between total potable water consumption outside the premises by ITC units. Sustainable Supply Chain and Responsible
LEED Zero Water certification by US Green and sum of total alternative or recycled Sourcing, the Company continues its efforts
Treated Effluent Discharge
Building Council, becoming the first hotel water and water returned to its original to enable sustainability practices along the
by Destination
in the world to be awarded the landmark source. ITC Mughal follows a sustainable value chain. In FY 2022-23, total water intake
certification. The recognition validates approach which ensures that water 0.2% 0.5% by supply chain members is 105,062 kl (vs.
its ‘Responsible Luxury’ ethos that seeks requirements for its buildings and processes 150,000 kl reported in FY 2021-22). ITC intends
to integrate planet positive experiences are primarily met by harvesting rainwater 41.1% to progressively include more supply chain
in various facets of hotel operations. In through recharge pits, and reuse of treated members in the reporting boundary. Capacity
LEED Zero Water, a balance is maintained waste water for appropriate usage. building and regular review of performance
data will be continued with key supply chain
partners in coming years.
58.2%
Common Effluent Treatment
Plant or third parties
Irrigation outside the premises
Surface water bodies
Municipal sewers
10
Details of supply chain members is included in the
reporting boundary in ‘About this Report’ section

Annexures
Water Security
Supply Side Management

Integrated Watershed Development Reviving India’s River Basins: Targeting
Objectives of the River Basin
Over the years, ITC has created rainwater million acres of land. So far, the Company Water Positivity at Scale
Revival Programme
harvesting potential through extensive has created over 28,300 water harvesting Increasing demands on water resources
investments in its Integrated Watershed structures in agri-catchments. As on 31st March, from various sectors including agriculture,
Development Projects. The programme 2023, a total rainwater harvesting potential and global warming induced patterns Create an eco-system wherein,
promotes the development and management (RWH) of nearly 50 million kl has been created, are impacting many of India’s river basins at basin level, all stakeholders
of local water resources in moisture-stressed which is over three times the net water by turning water balance negative, thus are aware of available water
areas by facilitating community participation consumed by ITC’s operations in FY 2022-23. impacting agriculture and leading to water
resources, competing demands
in planning and implementing such measures, stress and depletion in groundwater tables in
ITC is targeting the creation of rainwater and future risks to make
whilst building, reviving and maintaining water- catchments including where ITC’s production
harvesting potential equivalent to over 5 times
harvesting structures. units are present. Over the years, ITC has informed decisions to ensure
the net water consumption from operations by
created rainwater harvesting potential that current and future needs
The coverage of the Integrated Watershed 2030. To achieve this, ITC’s Mission Sunehra
through extensive investments in its Integrated
Development projects extends to 45 districts Kal will create a total rainwater harvesting of all stakeholders are equitably
Watershed Development Projects. However,
across 16 States in India, covering over 1.47 potential (RWH) of 60 million kl by 2030. addressed.
given the scale of adverse impacts and the
velocity of change, ITC has redesigned its
strategy to accelerate the achievement of Augment supply through
Water Balance
scale and impact by working at the river rainwater harvesting and
basin level as river basins are independent
Million kl enhanced groundwater
49.83 hydrological units, and work done at the basin
46.29 level is designed to be sustainable over a recharge i.e. managed aquifer
42.95
38.95 longer period. ITC has now embarked upon recharge.
35.35 an ambitious plan of achieving water positive
status at river basin level. Enhancing agricultural water
Accordingly, ITC has initiated four exclusive use efficiency.
14.48 river basin revival programmes to achieve
10.34 10.89 11.69 water positive status in river basin/ sub basin Achieve water positive status,
9.95
areas spread over 11 lakh acres across 4
ensure environmental flows in
States where ITC has business presence. The
Company has commissioned hydrogeological the basin and aim at river basin
2018-19 2019-20 2020-21 2021-22 2022-23
studies to estimate water balance and revival.
Net Water Consumption = Fresh Water Intake - Treated Effluents Discharged map high potential recharge zones, and
accordingly implemented rainwater harvesting,
Total RWH potential created for the year = RWH potential created within ITC units + RWH
potential created through watershed projects managed aquifer recharge and demand side
interventions.

Annexures
Water Security Supply Side Management
Details of River Basin level work:
Sub River Basin

Main River Basin Districts ITC’s Presence Catchment Area Ongoing Impact Created
(where ITC is working)
Ghod (Tributary of Bhima-
Bhima-Krishna
Krishna river)
Pune and Ahmed Nagar ~ 8.8 Lakh
Supply side augmentation
Page 87 district, Maharashtra Cigarette Factory and Foods Acres area ITC has till date created
Factory in Pune
Read more about this 5.28 million cubic metre of
water storage in these four
basins as part of supply side
augmentation interventions.
Godavari
Murreru (Tributary of Bhadradri Kothagudem, ~ 2 Lakh
Acres area
Kinnerasani - Godavari) Telangana Paperboards and
Specialty Papers Division in
Bhadrachalam Demand side management
Water use efficiency in
agriculture is promoted in
Upper Bhawani Coimbatore district, Tamil
~ 0.51 Lakh 1.52 lakh acres of agricultural
Kaveri
(Tributary of Kaveri) Nadu Paperboards and Specialty
Acres area land, which has created
(Upper Bhawani) potential water saving of
Papers Division in Kovai
around 210 million kl in crops
such as paddy, soyabean,
sugarcane, onion, banana
Kolans
Catchment of Upper Bhopal Sehore and Bhopal district, ~ 0.49 Lakh and coconut.
lake Madhya Pradesh
Agri Business Division Acres area
Catchment

Annexures
Water Security
Outcomes of Interventions in
Case Study: Ghod River Basin Water Stewardship Programme Ghod River Basin
In a span of 5 years from 2016,
ITC has two manufacturing units in harvesting and ground water recharge − Over 22,300 acres under onion practices
the Ghod River Basin has turned
Ranjangaon, Pune which is an Industrial structures. – raised bed plantation with drip Water Positive
Zone with presence of multiple Industries. The − Surface storage: Check dams, irrigation.
industrial area gets water from Ghod River
basin which is dominated by water intensive
percolation tanks in recharge zone.
− Catchment treatment: Water absorption Knowledge partnership: Vasantdada Sugar
8.8 Lakh Acres
Ghod Basin Area
sugarcane and onion as key crops. trenches and core-wall gabion – 78,000 Institute & Krishi Vigyan Kendra (KVK)
acres covered.
62 Million kl
Public Private partnership: Water Resources
Actions taken to make the Ghod River − Green cover improvement: 49,600 acres
Dept., Forest Dept. & State Rural Livelihood
Basin ‘Water Positive’ under biodiversity conservation.
Mission (MSRLM) Ghod Basin Water Balance Gap in 2016
Supply Side Management: Focus on
(Demand Vs. Supply)
‘Managed Aquifer Recharge’ interventions Demand side management: Focus on Stakeholder Engagement: Engagement
for replenishing groundwater and conserving improving water use efficiency in agriculture. with external stakeholders like sugar mills for
biodiversity.
− Deep recharge pit, sub surface barriers
− Over 73,600 acres under sugarcane
practices – seedling plantation with drip
adoption of water efficient practices
166 Million kl
and well recharge - Over 2,400 water and trash mulching. Demand Management: Potential Agri Water
Savings (post monsoon)
Community at the Core
64 1 Million kl
Supply Side: Rain Water Harvesting Potential
Women Groups Created
127 ~167 Million kl

Water User Associations vs. ~62 million kl gap i.e. 169% higher than the gap
Total Net Water Addition: Demand + Supply

38
Joint Forest Management
Committees

Annexures
Water Security
Spearheading ITC has adopted the AWS framework, a globally

acknowledged gold standard for assessment
for eight sites by 2024. Till date, two sites - Paper
Mill at Kovai (Tamil Nadu) and Foods Factory
Adoption of of water stewardship approach and initiatives.
The framework cognizes for interventions
at Malur (Karnataka) have been assessed, and
both sites have been awarded the ‘Platinum
Alliance for Water undertaken both within the fence, as well and Rating’ based on an independent assessment by
Stewardship (AWS)
outside the fence at the catchment level. a third party.
ITC is committed to undergoing AWS assessment

Approach of all its high water stressed sites by 2035, and
River Demand Side Management

Supply Side Management:
ITC Site Catchment & Water Efficiency Catchment level WASH and Water Governance Water utilized
Catchment level interventions
Project Scale Measures at ITC units Interventions
Paper Mill at Site lies in the Created 201 water harvesting Optimisation of fresh water Promotion of Split dose and 350 Awareness campaigns
Kovai, Tamil Upper Bhawani and ground water recharge utilisation in process through drone spray application done on WASH.
Nadu River Basin. structures to harvest kaizen approach leading to a across more than 3,100 acres Withdrawal:
Created 45 Water User
rainwater, increase filtration daily saving of roughly 85 kl. to address high level of
Groups to strengthen water 10 Million kl
Over 51,000 rate & improve quality of phosphorous and nitrate in the
governance in the catchment.
acres covering water. catchment.
149 villages. Discharge:
Total water storage potential Total potential water savings 0 kl
created: in agricultural practices in
~1.02 million kl. 2022-23: ~18 million kl.
Foods Factory Site lies in the Created a cumulative of 468 Implementation of Roof top Adoption of climate-smart and 36 schools and 30 Anganwadis
at Malur, South Pennar water harvesting and ground Rain Water Harvesting system good agriculture practices covered under WASH
Karnataka River Basin. water recharge structures. leading to an estimated has reduced fertiliser and interventions. Withdrawal:
annual water saving potential pesticide application, leading
Created 18 Water User 59 Thousand kl
Over 40,200 Total water storage potential of 15,900 kl. to a decrease in agriculture
Groups to strengthen water
acres covering created: return flows into the aquifers.
governance in the catchment. Discharge:
168 villages. ~0.5 million kl.
Total potential water savings 0 kl
in agricultural practices in
2022-23: ~2.5 million kl.

Annexures
Water Security Spearheading Adoption of Alliance for Water Stewardship (AWS) Approach

ITD Factory Site lies in the Created a cumulative of 119 Reduction in water Adoption of climate-smart and 21 schools and 12 Anganwadis
at Bangalore, South Pennar water harvesting and ground consumption through aerated good agriculture practices covered under WASH
Karnataka River Basin. water recharge. nozzles, using recycled and has reduced fertiliser and interventions. Withdrawal:
treated water for cleaning and pesticide application, leading 94 Thousand kl
Over 24,700 Total water storage potential gardening, and recovering to a decrease in agriculture
acres covering created: ~0.6 million kl. condensate from various return flows into the aquifers.
64 villages. processes for reuse. Discharge:
Total rain-water harvested in

Total potential water savings 0 kl
FY23 was about ~200,000 kl.
2022-23: ~0.78 million kl.
Leaf Threshing Site lies in the Created a cumulative 191 Treatment of primary RO Various demand side 41 schools and 39 Anganwadis
Unit at Mysuru, Kabini River water harvesting and ground reject water, controlling water interventions undertaken have covered under WASH Withdrawal:
Karnataka Basin. water recharge. flow for domestic usage,
installing foot operated and
led to an annual (2022-23)
potential water savings in
interventions.
33 Thousand kl
38,000 acres Total water storage potential sensor-based taps. These agricultural practices of about:
covering 61 created: ~0.8 million kl. interventions resulted in a total ~2.5 million kl.
villages. daily water saving of 28 kl. Discharge:
Total rain-water harvested in 0 kl

FY23 was 3,774 kl.
Integrated Site lies in the Created 1,915 recharge Daily water savings of 2,900 kl Promotion of Split dose and 150 Awareness campaigns
Paper Mill at Mureru River structures to harvest achieved through recovering drone spray application across done on WASH.
Withdrawal:
Bhadrachalam, Basin (Tributary rainwater, recharge ground and reuse of water in plant over 4,900 acres to address
Telangana of Kinnerasani- water, increase filtration rate processes. high level of phosphorous and
Created 104 Water User 26.1 Million kl
Groups to strengthen water
Godavari). and improve quality of water. nitrates in catchment.
Discharge:
1.4 Lakh Acres
covering 104
Total water storage potential
created: 1.8 million kl.
Total potential water savings
18.4 Million kl
villages. 2022-23: 11 million kl.

Annexures

1) ITD and Site lies in the Focus on ‘Managed Aquifer Cigarettes Factory: Focus on improving water use 136 Awareness campaigns
2) Foods Ghod River Recharge’ interventions for efficiency in agriculture. done on WASH with the
Improvement in water use
Factories at Basin. replenishing groundwater and coverage of over 12,700
efficiency and reduction Over 73,600 acres under
Ranjangaon, conserving biodiversity. children.
in freshwater consumption sugarcane practices –
Maharashtra 9.68 Lakh Acres
Constructed over 2,500 water through mechanised cleaning seedling plantation with drip Trained 127 Water User
covering 461
harvesting and ground water processes, condensate and trash mulching. Associations on efficient water
villages.
recharge structures to harvest recovery, reusing RO reject utilisation to strengthen water
Over 22,300 acres under
rainwater, increase infiltration and ETP treated water, and governance in the catchment. Foods factory
onion practices – raised bed
rate and improve quality of various other interventions. Withdrawal:
plantation with drip irrigation. Around 84 Child Cabinets
water.
Total rain-water harvested in and Water & Sanitation 174 Thousand kl
Total potential water savings
Total water storage potential FY23 was ~58,000 kl. (WATSAN) Committees and
created: ~1.1 million kl. 58 School Development and Discharge:
Foods Factory: 2022-23: ~166 million kl.
Catchment treatment: Water
Various interventions for
Management Committees
(SDMCs) strengthened.
60 Thousand kl
absorption trenches and core-
improving water use efficiency
wall gabion – around 78,000 Over 110 Mohalla Committees
like using backwash and ETP
acres covered. formed ITD factory
treated water for gardening,
Withdrawal:
Green cover improvement: flushing and cleaning Around 331 Household
over 49,600 acres under purposes, reusing RO reject in toilets, 35 School toilet blocks 27 Thousand kl
biodiversity conservation the process line for cleaning and 75 hand washing units
raw material and in utilities. constructed in schools
Discharge:
Rainwater Collection system Over 20,100 Households
0 kl
has been installed and will be covered under Solid Waste
used to replace raw water. Management

Annexures

ITD Factory at Site lies in the Renovated and constructed 52 Improvement in water Various demand side 88 Toilets and 75 Handwash
Saharanpur, UP Hindon River water harvesting and ground use efficiency using high interventions undertaken have stations have been
Basin. water recharge structures. pressure-low volume cleaning led to a constructed in schools as part
machines, reusing water in total potential water savings in of WASH initiatives.
1.07 Lakh Acres Total water storage potential RO plant and ETP, condensate agricultural practices in 2022-
4,098 programmes promoting Withdrawal:
covering 74 created: 0.31 million kl. recovery, Scale and Bio 23: ~3.6 million kl.
villages. Removal in cooling tower and
WASH undertaken.
35 Thousand kl
various other interventions. Trained 42 Water User Groups
on efficient water utilisation.
Total rain-water recharged in Discharge:
FY 22- 23 was ~11,300 kl 1.49 lakh household 0 kl
covered under solid waste
management program.
FY 23 was ~14,000 kl.
Foods Factory Site lies in the Rejuvenated 117 water Installation of additional Various demand side 321 WASH awareness Withdrawal:
at Kapurthala, Kali Bein River. harvesting and ground water piezometers and flow meters interventions undertaken campaigns undertaken
236 Thousand kl
Punjab recharge structures. for improving water level and have led to a total potential and 30,579 households
Over 95,800 water balance monitoring. water savings in agricultural covered under Solid Waste
acres covering Total additional water storage practices in 2022-23: Management programme. Discharge:
Using Rain water in utilities like
133 villages. created: ~0.4 million kl.
cooling towers and boiler feed
~38 million kl.
Created 73 Water User 0 kl
water. Groups to strengthen water
FY23 was about ~103,000 kl.

Annexures
Water Security
Road Ahead
Demand side Management: Supply Side Management: Continuous Assessment for

Continued efforts to minimise fresh water Strengthen the integrated watershed
Validating the Efficacy of
consumption, while maximising reuse and management programme, and further
Interventions:
recycling of treated effluent across all expand coverage in line with S2.0 targets. Expand coverage of Alliance for Water
manufacturing units and hotels. Stewardship (AWS) Certification for all
facilities in high water-stress areas by 2035.
Working with farmers to reduce water
consumption through water efficient
irrigation and farm practices.
Periodic site-level vulnerability assessment

to identify high water stressed sites, and
deployment of interventions for mitigating
water stress.

Annexures
Towards
Circularity
According to the latest Circularity Gap Report,
the global economy has achieved only 7.2%
ITC’s Approach
circularity. Which means, of the 100+ billion As part of its Sustainability 2.0 vision, ITC takes a holistic approach towards enabling
tonnes (World Resources Institute) of resources the circular economy for waste by focussing on the entire waste value chain.
that enter the global economy every year, more
than 90% of materials is either wasted, lost or Sustainable Waste Management Sustainable Process Waste
Sustainable Packaging Strategy
remain unavailable for reuse. Even in India, & Plastic Neutrality Management across Operations
waste generation has risen considerably due
to increasing population, rapid urbanisation
Ensuring 100% of packaging Running behavioral change Segregation of waste at source,
and rising consumption levels. This coupled
with inadequate source segregation and lack is reusable, recyclable or programmes to ensure and channelizing it to suitable
of infrastructure has culminated in a massive compostable/ biodegradable segregation of waste at source. recycling streams.
waste management problem especially with − improving recyclability of multi-layer
respect to plastic waste. laminates. Creating replicable, scalable & Reducing specific waste
− exploring sustainable alternatives
Given ITC’s significant presence in the FMCG sustainable models of solid waste generation at all ITC Units
− piloting refillable/reusable models
space, plastic packaging is utilised for safely management. through constant monitoring
delivering Company’s world-class products
Optimising packaging, and improvement of material
to its consumers. Therefore, in addition to
− progressive reduction in plastic Enabling the creation of viable utilisation efficiency.
sustainably managing waste generated within
manufacturing facilities, management of packaging intensity, recycling options for post-
post-consumer plastic packaging waste and − introducing recycled content in plastic consumer multi-layered plastic Utilisation of Post-consumer Waste
packaging
making packaging more sustainable are also packaging waste. Paper as Raw Material at ITC’s
key elements of ITC’s Sustainability 2.0 Vision. − Leveraging Life Cycle Assessments
Paperboards and Specialty
As a leading Paperboards, Paper & Packaging
company, ITC is also leading the way by Exploring sustainable Papers Units.
introducing more recyclable and sustainable alternatives to plastics
packaging solutions in the market including − Complete or partial substitution of
innovative paperboard-based renewable plastics with sustainable alternatives.
plastic substitution solutions. − Exploring paper as a substrate for
packaging.

Annexures
Towards Circularity
ITC’s Sustainable
Packaging Strategy
ITC’s Packaging Footprint Sustainable Packaging Strategy
ITC’s annual packaging footprint, from its As part of its sustainable packaging strategy,
FMCG businesses, across primary, secondary ITC is leveraging its unique in-house
and tertiary packaging formats is around capabilities and expertise in the form of:
210,000 tonnes and is primarily composed of
paper/paperboard-based packaging (73%), ⬤ Centre of Excellence in material Sciences
followed by plastic packaging (27%). Glass, and recycling at Life Sciences and Technology
wood and metal form a small portion of the Centre (LSTC), ITC’ Research & Development
overall packaging footprint, contributing to Centre.
less than 1%. Around 21% of paper packaging
⬤ Sustainable and Circular Design Expertise
is FSC certified and another 56%, in the form
of packaging experts from Paperboards &
of Corrugated Fibre-board Cartons (CFCs),
Specialty Papers Division, Packaging and
is made from recycled material. In terms of
Printing Division and FMCG businesses.
plastic packaging, around 88% is in the form of
multi-layered/thin film plastic packaging and ⬤ Consumer insights of FMCG businesses.
the balance is composed of PET and other
⬤ Sustainable Waste Management experience
rigid plastics.
developed within the Company through the
WoW initiative.
⬤ Leveraging synergies between LSTC, paper

and packaging, and FMCG businesses for
developing solutions that enable complete or
partial substitution of plastics with sustainable
alternatives.
⬤ Exploring paper as a substrate for

packaging.

Annexures
Towards Circularity
Sustainable Packaging Initiatives
Select Highlights from 2022-23 Aashirvaad Iodized Salt:

Transitioned to 100% Mono
Material PE Laminate
from Multi Layered PET/PE
Laminate in select variants
ITC MasterChef Frozen

Savlon Glycerine Fiama Handwash Vivel Ved Vidya Snacks: Transitioned to 100%
Soap Wrapper Portfolio with Soap with Mono Material PE Laminate
with 70% PCR in 50% PCR in PET 100% Recyclable from Multi Layered PET/PE
PET Layer Bottles Packaging Laminate in select variants
Engage Cologne in B Natural Juices with 25%

100% Paper-based Recyclable Recycled Content Shrink Wrap
Cartons after complete in Secondary Packaging
elimination of 12-micron
Metallized PET Film Layer
Sunfeast Yippee! Power Up
Noodles: Transitioned to 100%
Bundling Shrink Wrap used Mono Material PP Laminate
for Secondary Packaging (Outer Pack and Inner Sachet)
Applications in Personal Care from Multi Layered PET/PE
Business with 50% Recycled Laminate Outer Pack and
Plastic Content PET/Met PET/PE Inner Sachet.
PCR - Post-consumer recycled plastic

Annexures
Towards Circularity Sustainable Packaging Initiatives
Sustainability Meets Innovation: ITC’s

Paperboards, Paper and Packaging Business
50% R-PET in Fiama Shower Gel Bottles
During the year, ITC Personal Care Business Plastic used in earbuds and lollypop sustainable across both laminates
successfully enhanced the PCR (post-consumer sticks is used only once and then and fibre-based packaging
recycled plastic) content in Fiama Shower discarded by the consumer leading formats. Several initiatives on
Gel bottles from 30% to 50% R-PET, thereby to widespread plastic pollution. substituting plastics with paper,
resulting in reducing virgin plastic use without To address this challenge, ITC’s reducing plastics and reducing
affecting product integrity and consumer paperboards business has launched complexity of multi-layered
experience. food grade paper sticks that are plastics were undertaken during
alternative to the single use plastic the year. The business jointly
sticks. Unlike plastic sticks, these are worked with LSTC for developing
fully biodegradable. This alternative next generation coatings and
is specially designed to meet the new laminate structures and has
functional requirements of the launched innovative products
product like food grade quality and like Bioseal, Germfree for Tea
wet strength. Envelopes and QSR segments.
Aashirvaad Organic Atta in
For instance, the business worked
Paper-based Packaging ITC’s paperboards business also
with its customer, a leading tea
ITC Foods Business launched Aashirvaad offers other unique solutions
brand and eliminated plastic
Organic Whole Wheat Atta (1kg Pack) in a that help substitute plastics in
(which was 30% of total packaging
paper-based bag made from 55% paper packaging. For example, its fully
by weight) in tea envelope by
compared to the earlier format of 100% plastic recyclable paperboards, ‘FiloPack’
introducing Bioseal, a heat sealable
pack with PET/PE Laminate. The special paper and ‘FiloServe’ for the food
compostable coating. The business
for this application was developed by ITC’s delivery and food service segments
has won three prestigious World
Paperboards & Specialty Papers Business, a respectively and paperboards,
Packaging Organisation awards
perfect example of intra-ITC synergies being ‘OmegaBev’ and ‘OmegaBev Vio’,
(WPO) selected by an international
leveraged for sustainability. Overall, this which are industrially compostable
jury, for developing sustainable
packaging has enabled replacement of 25% alternatives to plastic coated
packaging for beverages and Ice-
plastic with paper. This is the first paper-based containers, cups, bowls and other
cream segments.
pack launched in the Indian Branded Atta deep freeze applications.
industry with atta packed on machine, and
ITC’s printing and packaging
was developed after extensive trials involving
business works with its customers
achieving requisite barrier properties, drop
to help make their packaging more
tests and shelf life studies.

Annexures
Towards Circularity
Sustainable Waste
Management &
Plastic Neutrality
ITC’s Holistic Approach for
Plastic Waste Management
The collection and recycling for multi-layered
laminates/ plastic packaging has always
been a challenge in India due to improper
segregation of waste at source, inadequate
collection and recycling infrastructure and
lack of market incentives. Accordingly, ITC
is actively working on behavioural change
programmes to ensure source segregation
and implementing replicable, scalable
and sustainable models of solid waste Running Behavioural Change Programmes Creating Replicable, Scalable and
management. This ensures higher collection to Ensure Source Segregation Sustainable Models of Solid Waste
and recycling of solid wastes including multi- ITC’s initiatives encompass instilling Management
layered laminates/plastic packaging, thereby behavioural change and door-to-door ITC creates replicable, scalable and sustainable
Sustaining Plastic Neutrality
enabling a more circular economy for plastic awareness programmes for citizens in models of municipal solid waste management
for 2nd Year in a Row
waste as well as creating opportunities for collaboration with various stakeholders like that can be implemented across the country to
ITC achieved Plastic Neutrality in FY 2021-22
supporting sustainable livelihoods in the waste Urban Local Bodies, Civil Society and the ensure that zero waste goes to landfill. These
by implementing an integrated solid waste
economy. informal sector of waste collectors. The focus is models are centred on the following pillars:
management programme that incorporates
on educating citizens on segregating waste at ⬤ Partnering with Urban Local Bodies (ULBs)
unique and multi-dimensional initiatives
source into dry and wet streams and ensuring and Panchayats for facilitating door-to-door
including the Company’s flagship waste
that value is derived from these resources and collection of segregated waste.
management initiative ‘ITC WOW – Well Being
in the process support sustainable livelihood for
⬤ Supporting sustainable livelihoods for waste Out of Waste’. In FY 2022-23, the Company
waste collectors and rag-pickers.
collection workers. collected and sustainably managed more
ITC’s programmes have reached out to more than 60,000 tonnes of plastic waste across 36
⬤ Identifying and implementing suitable end-
than 8 million households till date. Additionally, States and Union Territories. The amount of
of-life solutions for each waste stream
ITC also leverages its brands to raise plastic waste managed exceeded the amount
consumers awareness on responsible waste of plastic packaging utilised by ITC during the
management. year, enabling the Company to maintain the
milestone of Plastic Neutrality.

Annexures
Towards Circularity Sustainable Waste Management & Plastic Neutrality
From sprawling metros to small and medium Enabling the Creation of Viable Recycling extrusion and using compression moulding
towns, different models of waste management Options for Post-consumer Multi-layered techniques for developing other articles of utility
were implemented under ITC’s flagship ‘Well- Plastic Packaging Waste like recycled plastic lumber for boards, benches
Being Out of Waste’ (WOW) programme. ITC’s LSTC, with its research capability in etc., plastic rods, stationery items among others.
During the year, the programme continued to material sciences and recycling, has been ITC, through its various partners, has collected
be executed in Bengaluru, Mysuru, Hyderabad, helping recycling partners by providing and managed around 60,000MT of plastic
Coimbatore, Chennai, Delhi, major towns of knowledge and technical support to recycle waste during the year, with approximately 46%
Telangana and several districts of Andhra MLP packaging and enable multiple end uses. getting channelised for recycling, and remaining
Pradesh, collecting about 64,000 MT of dry These include conversion into granules through being sent for energy recovery.
waste from 1,270 wards.
WOW’s outreach spans over 5.5 million

households, 5.7 million school children and source segregation and home composting
over 2,100 corporates since its inception. was practised by over 2 million and 0.5 million
The programme has supported sustainable households, respectively. In the current year,
livelihoods for over 17,750 waste collectors and about 160,000 tonnes of wet-waste was
has also created 150 social entrepreneurs. In composted and 64,000 tonnes of dry-waste
Pune, ITC is supporting a circular economy was recycled. As a result of this decentralised
based first-of-its-kind Multi-Layer Plastic model, 87% of the total waste was avoided from
(MLP) collection and recycling programme. going to landfills.
ITC’s Mission Sunehra Kal programme has Based on the above programmes, ITC has been
SWM models for Towns, Villages and Temples. able to collect and sustainably manage more
The intervention manages both wet and dry than 320,000 MT of total waste.
waste, close to the generator. The programme
spanned 18 districts across 10 States covering
2.53 million households and collected 260,000+
MT of waste during the year. This programme Refer to "Horizon I - Strengthen
Page 160 Current Dominant Source(s)
focuses on minimising waste to landfill by of Livelihoods" section of this
managing waste at source. During the year, Report

Annexures
Towards Circularity
Sustainable Management of
Process Waste across Operations Recycling Post-Consumer Waste Paper
In addition to segregation of waste at source, Focus on recycling ~100% waste generated
Within ITC’s own operations, waste is minimised through systematic monitoring and improvement
and sending it to authorised recyclers, ITC’s at ITC Units combined with utilisation of
of efficiencies in material utilisation as well as by maximising recycling.
Kovai Unit utilised nearly 84,000 tonnes of externally generated paper waste as a source
ITC’s performance external waste paper as raw material in FY of fibre at PSPD Kovai, enabled ITC to recycle
During the year, ITC units generated around 714 kilo-tonnes of waste. 2022-23. 112% of the waste generated across ITC.
Further breakup of waste is mentioned in below figures.
Hazardous Waste Non-hazardous Waste Creating an Overall Waste Positive Circular Footprint
During the year, ITC generated about During the year, ITC generated about Efforts at ITC units to recycle 100% of waste consumer plastic packaging waste in excess of
19 kilo-tonnes of hazardous waste, and 695 kilo-tonnes of non-hazardous waste, generated, utilisation of externally generated packaging utilised in its operations, contribute to
96% of this was sent for recycling*, and and close to 99.9% of this was sent for paper waste as a source of fibre at PSPD Kovai, ITC’s endeavours of enabling a circular economy
the remaining was treated in line with recycling*. amount of waste sustainably managed through and an overall waste positive footprint. Through
authorised norms. ITC’s large scale solid waste management these efforts, the total waste managed by ITC
* The waste was sent for recycling within the
premises as well as outside to recyclers programmes like WOW and MSK’s decentralised far exceeded the waste generated directly at
waste management models, and ITC becoming ITC Units and indirectly through ITC’s overall
plastic neutral by sustainably managing post- packaging footprint.
Hazardous waste Non-hazardous waste
4% 0.1% Non-hazardous waste

99.9%
96%
Kilo Tonnes
19 kilo tonnes of 695 kilo tonnes of ~1,150

84 External Waste
hazardous waste non-hazardous Paper Utlilised at
~925 ITC Kovai Unit
generated during waste generated
2022-23 during 2022-23
Waste sent for Recycling
from ITC Units
Waste Generated at
ITC Units
713 Wet and Dry waste Sus-
Recycled End of Life Recycled End of Life tainably Managed by ITC
714 Programmes - WOW, MSK
ITC's Total including 60 kilo-tonnes of
* Total waste sent for processing = waste generated + carry forward from last year – In-house storage
Packaging Footprint 210 348 plastic waste.
ITC has systems in place to ensure that all waste - Hazardous and non-hazardous, is sent to Waste generated Waste sustainably
authorised agencies only, in line with relevant regulatory requirements. In addition, ITC also tracks managed
the end application of all waste, both hazardous and non-hazardous.

Annexures
Towards Circularity
Road Ahead
According to Ellen Macarthur Foundation, the road to net zero
is intrinsically linked to achieving a more circular economy.
While switching to renewable energy would only address 55% of
global emissions, remaining 45% emissions will get addressed
by adopting principles of circular economy i.e. eliminate waste
and pollution, circulate products and materials, and regenerate
nature. For ITC, this means:
Accelerating the Implementation of Sustaining Plastic Neutrality and Continue to

Sustainable Packaging Strategy Recycle more than 100% of the Waste Generated
Ensuring that 100% of Packaging is Reusable, Recyclable or
across Operations
Compostable/Biodegradable Continue to scale up ITC’s sustainable solid waste management
models
Utilise internal synergies to develop and utilise sustainable
packaging alternatives Continue to redesign processes and eliminate waste to the extent
possible
Leverage life-cycle approach for evaluating alternative packaging
solutions Continue working on segregation of waste at source, and recycling
more than 100% of the waste generated in operations.
Scale up ITC’s innovative sustainable packaging solutions portfolio.

Annexures
Chemical Safety Air Emissions

Management Management
ITC’s Approach ITC’s Approach (SOx) on a regular basis to ensure compliance
ITC follows a proactive approach to across its businesses. For PSPD business as Air pollution, primarily caused by vehicular and with applicable norms and regulations
managing hazardous chemicals by actively well as the Packaging and Printing business, industrial emissions, has become a major public including meeting prescribed limits and
looking for alternatives which not only helps in such systems are particularly important. health issue in recent times. Despite sustained other requirements stated in Units’ consent
keeping the operations safe but also are safer efforts by the government in the form of stricter to operate like monitoring mechanism and
Managing hazardous chemicals is not only
for its customers. emission norms in industries and improving frequency to be followed.
important within ITC factories but also in the
vehicular emissions standards, air pollution
This approach is demonstrated in pioneering supply chain. Within the supply chain, farmers
continues to remain a challenge in India. Other significant Air emissions
practices like elemental chlorine free (ECF) working with hazardous pesticides is an area
Addressing the challenge of air pollution will
bleaching and then ozone bleaching in India of special attention. ITC’s approach is firstly
require concerted efforts by multiple stakeholders. Tonnes
as a part of Paper business, and switching to eliminate or reduce the use of hazardous
2022-23 2,382
from solvent-based inks to water-based ones pesticides. Intensive training is conducted on For ITC Units, relevant air emissions include
in its Packaging and Printing business. Integrated Pest Management (IPM), which Particulate Matter (PM), Nitrogen Oxides 3,602
helps advocate a holistic approach in reducing (NOx), Sulphur Oxides (SOx) and Ozone 825
Environment friendly and safer alternatives
pesticide usage as well as substituting such Depleting Substances (ODS). PM, NOx and SOx
are continuously sought by ITC for improving
pesticides with nature-based solutions. emissions are generated from the combustion
existing processes and chemicals safety. In 2020-21 1,799
of fuel, and ODS are used as refrigerant gases
addition to substitution of less hazardous The training programmes also cover the 3,203
in refrigerators, chillers and air conditioners.
chemicals, ITC has deeply entrenched Process safe handling of pesticides used and the
637
Safety systems to ensure the correct handling, responsible management of wastes generated. ITC’s approach of proactively pursuing
usage, storage and disposal of such chemicals energy conservation through audits and
benchmarking against industry standards, and NOx SOx PM
increasing the share of alternate energy in its
Above emissions levels are well within the applicable
energy portfolio contributes to a reduction in prescribed regulatory limits.
ITC’s Approach is demonstrated air emissions. ITC also appropriately invests in
in pioneering practices in the state-of-the-art pollution control equipment Ozone Depleting Substances (ODS)
and a robust system of monitoring, measuring
implementation of elemental and reporting is in place to ensure conformity
During FY 2022-23, the total consumption of ODS
across units stood at 85 kg of CFC-11 equivalent.
chlorine free (ECF) bleaching, with environmental standards. For ODS ITC is working at phasing out ODS from its
and ozone bleaching technology management, ITC will phase out the use of operations through the following interventions:
in India as part of its Paper ODS well before the timelines stipulated under
Replacement of all existing equipment using ODS
business, and switching from International agreement on ODS.
well before the stipulated phase-out period.
solvent-based inks to water- Performance
Ensuring disposal of equipment undergoing
based ones in its Packaging and All ITC units monitor significant air emission
Refer to ‘Sustainable parameters, such as Particulate Matter (PM), replacement to authorised recycler which will
Page 63 Agriculture’ chapter of this Printing business. lead to safe disposal of ODS as well.
Report Nitrogen Oxides (NOx) and Sulphur Oxides

Social
Sustainable Supply Chain and
Responsible Sourcing 103
Product Sustainability 111
Stewardship
Product Sustainability in Action 125
Workforce for Tomorrow 133
Human Rights 142
Sustainable and Occupational Health and Safety 143
Inclusive Growth
In a dynamic, connected yet defragmented

world, the need to strike a delicate balance
between economic prosperity, social
inclusivity and environmental impact has
never been so apparent. It also calls for
conserving resources for the future generation
while emphasising the need to ensure that
the benefits of economic advancements are
shared among all, including the vast segment
residing on the margins. Social inclusivity
encompasses access to quality education,
affordable healthcare and livelihood
opportunities. For that to have a meaningful
impact, the world needs concerted efforts,
collaborate and partner at a scale never
imagined, and build resilient communities that
can withstand external shocks and thrive.
Annexures
Sustainable Supply Chain

and Responsible Sourcing
Global supply chains continue to evolve
across industries with rising digitalisation,
ITC’s Approach
integration of sustainability and strong
emphasis on responsible sourcing. Massive Advocate Assess Address
supply chain disruptions experienced around
the world in recent years, some of which Continuous engagement with Identification of sustainability Implementing measures for
were rooted in unprecedented climate
value chain partners for raising risks and opportunities through addressing identified risks and
change-related events, have brought supply
chain sustainability even more to the fore. awareness and building their ongoing assessment of key value opportunities:
Additionally, the global movement towards net capacity on ITC’s sustainable chain partners. • Technical support for adoption
zero, and the underlying thrust on mapping supply chain philosophy, of management practices as per
and mitigating Scope 3 emissions is also driving
expectations and compliance Conducting third party International Standards such as ISO
massive supply chain transformations. Given 9001, ISO 14001, OHSAS 18001 and ITC's
requirements, and emerging assessments in line with
the complexity and scale of supply chains, Corporate Environment, Health and Safety
technology is emerging as a key enabler for and relevant sustainability international standards and
(EHS) Guideline.
exercising oversight, demonstrating traceability topics. obtaining certifications like • Implementing a bouquet of regenerative
and driving meaningful action across the value Sustainable Tobacco Programme, and sustainable agriculture interventions
chain. Addressing these trends is therefore across agri-value chains that support ITC's
Rain Forest Alliance and Forest
key to building resilience and embedding leading brands.
sustainability in the supply chain. Stewardship Council®.
• Providing grievance redressal mechanism
ITC, with its diverse and expanding portfolio for suppliers, and addressing their
Implementing systems and grievances, if any.
of businesses, is working towards scaling
up its sustainable supply chain initiatives as processes for enabling supply
part of its Sustainability 2.0 Vision. ITC has a chain oversight, transparency and
Board-approved Policy on ‘Sustainable Supply traceability.
Chain and Responsible Sourcing’ that lays
down the foundation for ITC’s engagement
with its suppliers including farmers, third party
manufacturers, service providers, transporters,
suppliers of agriculture/non-agriculture
materials and capital goods, franchisees,
dealers and distributors.

Annexures
Sustainable Supply Chain and Responsible Sourcing
~84% >86%
Highlights Sustainable Farm
Certifications in Place for Key
Agri Commodities:
of the fibre produced in Raw materials and Stores &
Bhadrachalam is from Wood Spares Locally Procured over
sourced from ITC's Social Rainforest Alliance, Forest Stewardship the Years, consistently
Council, Global G.A.P. (Good Agriculture
and Farm Forestry initiatives. Practices), Union for Ethical Bio Trade
All four manufacturing (UEBT), Fairtrade, Certified Organic and
Processes in Place for
units of the PSPD have NPOP, NOP and EU certifications
Ongoing ESG Assessment
obtained the FSC ® Chain
of identified Critical Tier-1
of Custody certification and
ITCMAARS (Metamarket for Suppliers
have complied with all the
Advanced Agriculture and
requirements during the
Rural Services) – ‘Phygital’
year, thereby sustaining
Eco-system for Empowering
ITCs position as the leading
Farming by Delivering
supplier of FSC® – certified
During FY 2022-23, ITC Hyperlocal and Personalised
paper and paperboards in
processed around Solutions by Synergistically
India
2,732 Kilo
integrating NextGen Agri-
technologies
Tonnes 60%
of ITC’s identified Critical
of raw materials, out of Tier-1 Suppliers were trained
which around 97% were on ESG and ITC’s Code of
from agro/forestry based Conduct in FY 2023
renewable sources

Annexures
ITC’s Supply Chain

Upstream ITC's own operations Downstream
FMCG (B2C)
Farmers/Mandis/ Agri Business FMCG Cigarettes Institutional
Industrial supplies
Auction Platforms (Leaf Tobacco)
and exports (B2B) Customers,
(Agri-raw materials) ITC Own
Services Warehouse Exports
Agri Business Foods

Other Suppliers
(Other raw materials)
Leased Distributors,
Warehouse Institutional
Value Chain
Key Agri Produces Paperboards Retailers

Personal Care
& Speciality Products
Papers
Retailers
Wheat Potato Pulpwood Spices Education &

Hotels Stationery Products
End
Information Matches & Packaging & Consumers
Milk Fruits Bamboo Leaf Tobacco Technology Agarbattis Printing
Elements of Sustainable Value Chain

Responsible Sustainable Sustainable Sustainable Logistics Delighting Cons-
1 2 3 4 5
Sourcing Manufacturing & Services Packaging & Warehousing umers and EPR*
Regenerative & Climate- Optimal Resources Commitment to Highest Improving Recyclability Strategically Located Sustainable Models for
Value Created
Resilient Agriculture Climate Resilience & Standards of Quality & of Packaging Manufacturing Units: managing Post-Consumer
Sustainable Forestry Water Risk Management Product Safety Optimising Distance to Packaging Waste
Phasing our Hard to
Cutting-Edge R&D Market Responsible Marketing
Investments in Recycle Plastics
Sustainable Bamboo and Innovation
Renewable Energy & Sustainable Packaging Strategically Located Consumer Satisfaction &
Plantations
Energy Efficiency ITC Hotels ‘We Assure’ Solutions for the industry: Automated Warehouses Feedback Management
Responsible Sourcing
Green Buildings Focus on Health, Hygiene Omega & Filo Series
in line with ITC’s Code
& Safety F5C® Certified Paper and
of Conduct for Suppliers Health & Safety, &
and Service Providers Managing Talent, Parperboards for Packaging
Employee Well-Being
Upholding Human Rights
*EPR - Extended Producer Responsibility & Fostering Diversity

Annexures
As a conglomerate with diversified Sustainable Supply

presence across agriculture,
manufacturing and services, ITC
Chain Initiative at
Advocate
maintains a vertically integrated supply
chain for most of its businesses, which
ITC
To enable effective implementation of − Environment
ITC has a Board approved Policy on
facilitates optimum utilisation of raw ITC’s policies on sustainable supply chain, − Human Rights
‘Sustainable Supply Chain and Responsible
materials, as well as efficient logistic the Company facilitates capacity building − Business Integrity - Conflict of Interest, Anti-
Sourcing’. In line with this policy, ITC engages
operations. It also builds on intra- workshops for its key supply chain partners to Bribery and Corruption, Hospitality and Gifts
with its supply chain members to assess
group synergies, which further adds to educate, and create shared awareness on key ITC engages with its supply chain partners
their sustainability risks, and support them
organisational efficiency. The vertical areas like human rights, labour practices and periodically to build awareness on the Suppliers
in building resilience against such risks. The
integration not only provides competitive environmental sustainability. Code of Conduct.
policy also encourages suppliers to work
advantage but also enables effective
towards resource-use efficiency, including In addition to the Policy on ‘Sustainable Supply Moreover, during the year training on ESG
control and oversight over majority
sustainable natural resource management, Chain and Responsible Sourcing’, ITC also aspects of suppliers' programmes were
of upstream value chains for driving
GHG emission reduction and sustainable has a ‘Code of Conduct for Suppliers and conducted by external expert agencies for the
sustainable practices like sustainable
waste management. ITC’s approach towards Service Providers’. This requires suppliers to procurement and sustainability practitioners of
sourcing, transparency and traceability,
building a sustainable supply chain is comply with applicable laws, labour standards, the Company.
and sustainable packaging. Particularly in
summarised below. environmental regulations, and uphold human
the FMCG segment, ITC is powered by:
rights and principles of ethics and integrity in Identification and Engagement with
their operations. All Suppliers are expected to Critical Tier-1 Suppliers
meet the requirements of this Code. ITC also For focussed engagement with key suppliers,
Building of digitally-powered expects its Suppliers to hold their business ITC has created a framework for identifying
and climate-smart agri value associates to the same standards as enshrined its critical Tier-1 suppliers based on multiple
chains in this Code. The Code also reflects ITC's criteria like value of the business with these
commitment to respect human rights across the suppliers, ESG risk exposure, substitutability of
supply chain. It upholds the spirit outlined in the the supplier, among others.
Next generation, smart and
International Labour Organisation Guidelines
agile supply chain and United Nations Guiding Principles on
Business and Human Rights.
Distributed manufacturing and
The code addresses key supply chain
sustainable operations sustainability issues like:
During FY2022-23, the ESG
− Labour Practices - Child Labour, Anti- focussed training programmes
Resilient, technology-driven Discrimination and Fair Treatment, organised by ITC covered around
and robust sales & distribution Forced Labour, Safe and Healthy Working 60% of the identified Critical Tier
Conditions
network -1 Suppliers across Businesses.

Annexures
Sustainable Supply Chain and Responsible Sourcing Sustainable Supply Chain Initiative at ITC
Assess and Address

ITC’s approach entails identification of its key supplier chain partners, assessment of their material
sustainability risks, and further collaboration with the suppliers for mitigating the identified risks. ITC
conducts structured ESG assessment of identified critical tier-1 suppliers by a third party. Findings
from these assessments further guide implementation of corrective action plans in consultation with
respective supply chain partners.
Select supply chain sustainability practices across ITC’s major businesses are summarised below:
Supplier Category Interventions
Third-party • Continuous engagement and assessment on

manufacturers applicable labour laws, quality standards
• Environment, Health and Safety guidelines with
sectors specific requirements
• SA8000 standards for select businesses
Raw material/ • Monitored for applicable industry certifications

packaging producers or standards (e.g. IFRA standards for fragrance
manufacturers, FSC certified wood and paper,
Organic Farm produce, among others)
• Preference given for onboarding suppliers with
established environmental, safety management
systems
Farmers • Large scale sustainable agriculture programmes

across key value chains
• Certifications like Rainforest alliance (RFA), Forest
Stewardship Council (FSC), Global Agricultural Agri-Sourcing Practices
Practices (G.A.P) for identifying and addressing Agri Business Division (ABD) primarily engages rural linkages and extensive sourcing expertise
environmental risks and human rights related issues in sourcing of agri-commodities like wheat, towards strengthening and customising supply
coffee, spices, maize, soybean, mustard, rice, chains for traceability.
Service Provider Employees/ • Assessed for compliance to applicable labour laws maida, fruits, prawns. The portfolio continues
For more information, Refer to
Contract Workers • Trained for health and safety practices to be rapidly scaled up, leveraging ITC’s deep Page 63 the ‘Sustainable Agriculture’
section of the Report

Annexures
Leaf Tobacco Supply Chain Human Rights Impact Assessment in ITC implements strategic initiatives and
ITC collaborates with farmers in implementing Leaf Tobacco Supply Chain programmes in Tobacco regions focussing on
international sustainability certification and ITC conducts human rights due diligence in human rights compliance on farm:
verification programmes such as Sustainable Integrated Adarsh Gram Programme farm supply chain to identify the human rights Training and Awareness on Human Rights:
Tobacco Programme (STP 2.0), Thrive (Model Village Programme) challenges and impacts covering farmers, 350 Village level training programmes
programme, Compliance to Agriculture Labour Ensuring Human Rights in the Supply Chain labours and communities in Tobacco regions. were conducted covering subjects such
Practices (ALP) Code, where the production is a part of ITC’s Integrated Adarsh Gram Customized action programmes are devised as Farm Safety, Child Labour, Wages, Fair
practices are in alignment with defined Strategy (Model Village Approach). The and implemented to support human rights and Treatment, Freedom of Association, WASH, No
environment and labour standards. programme focuses on building economic, social development through engagement with Discrimination and other areas pertaining to
environment and social capital in 350 villages rightsholders & stakeholders across the farm Human Rights.
The global Sustainable Tobacco Programme
of Andhra Pradesh & Karnataka. ITC’s agri- supply chain.
(STP 2.0) has been implemented across the leaf Farm Safety: ITC undertakes a holistic
extension and field teams play a critical role
producing regions. The programme focussed Through structured unannounced visits by crop approach that address the farm safety
in understanding the needs and grievances
on 8 themes demanding leaf suppliers’ development managers, Prompt Actions (PA) challenges in Indian Farming. Close to 1000
of farmers and supply chain partners. ITC
commitment on – Water, Human Rights, related to farm safety, labour rights and crop farmers have been provided with Personal
conducts human rights due diligence in farm
Crop, Soil, Climate Change, Natural Habitats, management are identified and highlighted Protective Equipment (PPE) kits for safe
supply chain to identify the human rights
Livelihoods and Governance. The Business which require immediate attention and action. spraying of chemicals and Secured Storage
challenges and impacts covering 28,814
deployed the required systems, process, project During 2022-23, 12 Prompt Actions were Box for safe storage of chemicals were
farmers, associated farm workers and
and reporting mechanism in alignment with the identified on farm and closed with appropriate provided to 2,000 farmers. Drone Technology
communities in Tobacco regions.
Customer requirements. remedial actions. was scaled up covering 5,535 acres minimizing
human interference while chemical spraying
besides increasing the efficacy of operation
and water saving.
Drinking Water: For drinking water access, ITC

set up community level water plants which are
operated on a self-sustaining model. 9 new
Reverse Osmosis plants were established in
FY 2022-23 taking the total current operational
plants to 160 units, which provide safe drinking
water to over 2.1 lakh rural people.

Annexures
Responsible Sourcing of Fibre by Engaging with Third Party Manufacturers This ‘phygital’ eco-system will empower the Managing Logistics-related Impacts
Paperboards and Specialty Papers Division The Company’s suppliers, both local and farming community by delivering hyperlocal To further mitigate value chain impact, steps
The Paperboards and Specialty Papers Division international, constitute one of its important and personalised solutions by synergistically are being taken for reducing energy consumed
(PSPD) processed 2.03 million tonnes of raw stakeholder groups. Critical value chain integrating NextGen agri-technologies. in transportation of raw materials, finished
materials (about 74% of the total raw material partners like third party manufacturers are goods and waste. ITC has strategically located
procured by ITC), out of which over 99% were encouraged to adopt management practices its Integrated Consumer Goods Manufacturing
from renewable sources. The Kovai unit of the detailed under International Standards such Raw Materials, and Logistics (ICML) facilities for FMCG
Paperboards and Specialty Papers Business as ISO 9001, ISO 14001, OHSAS 18001 and ITC's Stores & Spares Consumed businesses closer to the market. This allows
utilised nearly 84,000 tonnes of post-consumer Corporate Environment, Health and Safety for making direct shipments to customers,
in I Billion
paper waste as raw material in FY 2022-23. (EHS) Guidelines. Contract manufacturing thereby avoiding intermediate movements and
agreements provide for compliance with optimising distribution logistics.
Approximately 59% of the total fibre
accepted standards on issues related to EHS,
requirements of ITC's PSPD is met by pulp, ‘ITC One Supply Chain’ initiative covering ITC’s
human rights and labour practices.
manufactured at the Bhadrachalam unit. total network in India has resulted in route
Another 14% comes from recycled fibre optimization, Improving the share of Higher
Supporting a Local and an
processed at the unit in Kovai. The balance 27% capacity vehicles and utilization thereby
Inclusive Value Chain 176
is imported pulp used at Bhadrachalam and lowering total kilometres traversed by ITC’s
ITC encourages competency development
Tribeni units. 144 Products. This combined with shipments
among local vendors and its vendor base 124
113 119 through rail and sea routes have helped to
In terms of traceability: includes medium and small-scale enterprises
reduce GHG emissions.
⬤ Approximately 84% of the fibre produced in that are proximate to its manufacturing
Bhadrachalam is from wood sourced from ITC's locations. These initiatives are aligned ITC has deployed Electric vehicles (currently
Social and Farm Forestry initiatives. to national priorities of ‘Make in India’, available are small sized vehicles) for shipping
‘Atmanirbhar Bharat’, enrichment of farmers 16 15 15 20 27 material to the distributors. These vehicles are
⬤ The fibre used at the Kovai unit is either
through promotion of Farmer Producer running in 7 metros covering about 3,200 trips
recycled or reclaimed fibre. 2018-19 2019-20 2020-21 2021-22 2022-23
Organisations (FPOs) as the core catalyst of annually. This initiative will be further scaled up
⬤ Overall, 100% of the fibre used by ITC's agricultural transformation. ITC also works Imported along with adoption of larger size vehicles.
PSPD is of known and legal origin. All four in close partnership with small-scale units
Indigenous
manufacturing units of the PSPD have obtained in businesses such as Safety Matches, and
the FSC ® Chain of Custody certification and Education and Stationery Products. These
86%+
have complied with all the requirements during partnerships have significantly enhanced
the year, thereby sustaining ITCs position as the survival and competitiveness of a number
leading supplier of FSC® – certified paper and of units in these sectors. In line with its
paperboards in India. commitment to bring the power of cutting-
edge digital technologies and unlock the Raw materials and stores
potential of India's farmers, the Company & spares have been locally
has launched ITCMAARS (Metamarket for procured over the years,
Advanced Agriculture and Rural Services).
consistently

Annexures
Road Ahead
ITC’s sustainable supply chain and responsible sourcing initiatives
focus on integrating evolving sustainability requirements
across the value chain for both de-risking as well leveraging
opportunities for building a more resilient value chain. Going
forward ITC will focus on scaling up its efforts towards:
Building Capacity of Conducting Structured Partnering with Key Suppliers on

Value Chain Partners Sustainability Assessments of Key their Sustainability Journey
ITC Businesses will scale up their
Suppliers Jointly working with suppliers for
engagement with their respective Periodic due-diligence and third-party progressively implementing identified
partners including suppliers, third-party assessments enabled by tech-based corrective and preventive measures,
manufacturers and farmers through solutions for ensuring effective tracking and and enabling sustainability across their
focussed trainings on material sustainability implementation of corrective actions. operations.
aspects.

Annexures
Product Sustainability
Addressing Emerging Consumer
Needs with Agility ITC’s Approach
Consumer trends around the world are Identified as a fundamental driver of future
Sustainable Product Innovation Product Responsibility & Stewardship
signalling a shift towards a rise in the uptake of growth, sustainable product innovation is a
sustainable products across existing (B2B, B2C) key pillar of ITC’s Sustainability 2.0 Vison. As
as well as emerging channels (D2C). While India’s leading conglomerate operating across Fuelling Innovation – Quality, Safety & Transparency
the COVID-19 pandemic brought about major various consumer segments, ITC continues Leveraging ITC’s Life Sciences • Global quality, and health & safety
and rapid changes in consumer behaviour to leverage its Life Sciences and Technology and Technology Centre (LSTC) standards and certifications for delivering
and lifestyles, resulting in heightened demand Centre’s (LSTC) strong innovation engine to world-class products and services.
for hygiene, health, immunity and well-being build a robust portfolio of world-class products • Building purpose-led brands powered
• Best practices related to product
related products and services, numerous and purpose-led brands that address evolving by agile innovation platforms of LSTC.
information, labelling, responsible
consumer surveys over the last few years consumer needs and trends. Company’s marketing, data privacy and compliance
suggest that these, and other trends related to endeavour has been to introduce innovative Leveraging Life Cycle management.
environmental and social attributes of products and sustainable products and services that Assessment Approach • Consumer feedback management
are expected to sustain and amplify even after integrate sustainability across the life cycle
the pandemic. – from sustainable design, formulation and • Building a sustainable product
sourcing to sustainable manufacturing, portfolio.
According to a 2022 Bain & Company survey
packaging, and responsible use-phase and
of Asia-Pacific region, consumers surveyed
end-of-life management. As a steward of
in fast-growing markets like India emerged
product responsibility, the Company follows
as more sustainability conscious than their
stringent global standards of quality, safety
counterparts in more mature markets.
and transparency. ITC manufacturing units
However, at the same time, consumer
and hotels have state-of-the-art facilities
behaviour is also exhibiting a very evident
with internationally benchmarked quality
‘say-do’ gap between what consumers say
management systems.
or believe versus what they buy, primarily
driven by factors like awareness, availability,
affordability and trust. Therefore, closing the
‘say-do’ gap by addressing all these obstacles
will be key to leveraging this emerging
opportunity. Even the road to net zero will
necessarily require businesses to integrate
sustainability in their products and services,
and empower their consumers to make more
sustainable choices.

Annexures
>90
Highlights ITC Hotels' guest satisfaction Packaging and Printing
level/Index, known as ‘WoW Business - Adjudged winner
Ratio’ for FY 2022-23 stood at at the prestigious WorldStar
new products anchored
90.78%
Global Packaging Awards
on the vectors of Health
& Nutrition, Hygiene,
Protection & Care, and ITC’s Nutrition First
ITC Hotels was recognised as
Convenience & On-the-Go strategy of Help India Eat
the best Luxury Hotel Chain
were launched across target Better to deliver on key
for the 4th consecutive year at
markets during the year commitments on developing
‘Travel + Leisure India’s Best
Healthier Product Portfolio,
Awards 2022’
Affordable & Accessible
~95% Product Strategies, Food

System Transformation
(98 out of 103) of the initiatives under Sustainable
ITC’s vibrant portfolio of
manufacturing locations Development and Employee
over 25 world-class Indian
(including third party Wellness initiatives
brands represents an annual
consumer spend of over manufacturing units) are
₹29,000
certified as per recognized Promotion of ITC’s Mission
global standards like Millets – a transformative
FSSC 22000/ ISO 22000/ and cohesive approach
crores HACCP. Certification of the

remaining 5 units is planned
in FY 2023-24
to build awareness and
adoption of millets
in FY23. The Company’s
products reach over 230
million households in India

Annexures
Sustainable Product Innovation

LSTC - ITC’s Innovation LSTC’s Centres of Excellence in Biosciences,
Engine Agri-sciences & Materials sciences, and future-ready
ITC’s state-of-the-art Life Sciences and Technology platforms such as Beauty & Hygiene, Health & Wellness,
Centre (LSTC) in Bengaluru is at the core of
Agro-forestry, Crop Sciences, Consumer and
driving science-led product innovation to support
and build ITC’s portfolio of world-class products Sensory Sciences and Sustainable Materials &
and brands. The LSTC team comprising of over Packaging continue to drive world-class innovation.
400 highly qualified scientists has a mandate to
work on future ready science platforms, design
differentiated products to address unique Branded Packaged Foods Personal Care Product Business Paperboards & Specialty Papers
consumer needs and deliver superior benefits.
Innovative science-based PCPB R&D-Product Scientific platforms in
Future Ready Platforms for Driving
programmes continue to be Development team at LSTC agroforestry have led
Innovation across ITC Businesses
LSTC is equipped with world-class scientific leveraged to drive systematic continues to leverage science to pioneering work in
infrastructure and state-of-the-art facilities reduction in salt, sugar and fat and technology led capabilities development of new clones in
to create deep knowledge base and build from packaged food products to build future product pipeline
intellectual property for ITC through research, tandem with Paperboards &
recipes without compromising readiness in Health & Hygiene, Specialty Papers Business to
rapid prototyping and process development.
Over 800 patents have been filed till date, on sensory attributes. Personal Wash, Fragrances, enhance wood productivity,
bearing testimony to LSTC’s innovation Home Care and Skin Care build climate resilience, and
capabilities. In line with ITC’s relentless focus LSTC, in collaboration with the categories.
on operational excellence and quality, each pulp quality for sustainable
Agri and Branded Packaged
Business is mandated to continuously innovate raw materials and farmer
Foods Businesses, endeavours Further, LSTC has been
on materials, training, processes and systems profitability.
to enhance their competitiveness. LSTC actively to ensure that contemporary developing “Green Products”
collaborates with and supports the Businesses science-based outcomes are with sustainable formulation,
to drive their innovation agenda and accelerate fully integrated across key agri efficient processing and
growth. ITC has been a forerunner in
value chains from farm to fork sustainable packaging, which
introducing first-to-market innovative products
for Indian consumers. Over 90 new products including wheat, potato and are bio-degradable and eco-
anchored on the vectors of health & nutrition, spices. friendly, covering products
hygiene, protection & care, and convenience under Personal Care and Home
& on-the-Go were launched across target
Care categories.
markets during the year.

Annexures
Product Sustainability Sustainable Product Innovation
Leveraging Digital Capabilities for Next-Gen R&D

As a future-ready innovation engine, LSTC is developing and deploying advanced tools for quality
performance analytics and competition benchmarking leveraging Artificial Intelligence and
Machine Learning (AI-ML) technologies. Robust risk management practises are in place to ensure
that ITC’s intellectual properties remain adequately protected at all times. Going forward, LSTC will
continue to identify opportunities to address emerging trends by leveraging R&D insights powered
by digital capabilities and based on contemporary sciences and ITC’s diverse core competencies.
Packaging & Printing Agri
LSTC’s unique competencies in LSTC has an ambitious R&D

material sciences have enabled programme on improving yield
innovative recyclable flexible and quality, given the shrinking
packaging and compostable plantation acreage in the
packaging solutions in line country.
with ITC’s environmental
sustainability agenda. Ongoing research on climate
resilient crops seeks to address
the security of raw material
supplies across ITC’s value
chains.

Annexures
Life Cycle Assessments (LCA) Driven Innovation

Case study: Using LCAs for Demonstrating Environmental
In line with the overall strategy to embed Studies conducted on the selected products Benefits of ITC’s Innovative Personal & Home Care Products
principles of sustainability into the various also provided valuable insights which are duly
stages of product or service life cycle, ITC considered for new product development and
initiated life cycle assessments (LCA) of its design. Several sustainable products were The Personal Care Products Business PCPB also redesigned the manufacturing
products and services in 2010 with an objective developed during the year. (PCPB) launched the Savlon powdered process of Nimyle floor cleaner wherein the
to evaluate the impacts and identify areas handwash, an innovative concentrated need for additional heating is eliminated
In FY 2022-23, LCAs on Classmate Notebook, handwash format. A life cycle assessment and the product is manufactured without
for improvement in the value chain. LCA
Savlon Powder Handwash, Nimyle Floor (LCA) was conducted to understand and heating. An LCA was conducted for
studies have been carried out for some of the
Cleaner and Paperboards were initiated. compare the environmental benefits of quantifying the environmental benefits of
Company’s key products from Paperboards
Additionally, during the year, capacity building Savlon powdered handwash with a regular the process change, and as per the results,
and Specialty Papers Business, Personal Care
programmes were conducted for practitioners liquid handwash of comparable volume the process modification resulted in 34%
Products Business, and Branded Packaged
across ITC businesses and LSTC in order to when diluted, across all life cycle stages less CO2 emissions as a result of reduced
Foods Businesses for identifying additional
further strengthen the application of LCAs of the product (from formulation to end electricity requirements. The cold process
opportunities to reduce environmental impact
at product design stage itself including of life, or cradle to grave). Based on the also resulted in 27% less water depletion
across the value chain. These assessments
interventions related to using alternative LCA results, the overall carbon footprint than the earlier hot process.
have enabled identification of concrete
raw materials/formulations, manufacturing of Savlon powdered handwash is 67%
solutions towards more efficient packaging The above LCA studies have further helped
processes, and packaging, and minimising use less than regular liquid handwash. The
designs, loading efficiencies in transportation. identify additional opportunities for reducing
phase and end-of-life impacts. powdered variant uses less emission-
the environmental footprint of these products.
intensive ingredients, reducing the carbon
footprint at the formulation stage by 31%,
and requires minimal packaging, thus
LCAs Conducted in 2022-23 (Boundary) reducing the amount of packaging material
by over 92% (by weight), and thereby
reducing the carbon footprint of packaging
by 87% compared to liquid handwash.
Classmate Savlon Powdered Savlon Liquid Nimyle floor

Notebook Handwash Handwash cleaner
Cradle-to-grave Cradle-to-grave Cradle-to-grave Cradle-to-gate

Annexures
ITC’s Sustainable Product Portfolio – A Snapshot
Sustainable Formulations Sustainable Sourcing Sustainable Operations
FSC® Certified
ITC MasterChef ITC’s Paper Mills at Bhadrachalam
Paperkraft Notebooks
‘IncrEDIBLE’ and Kovai
supported by Paper
Plant Based Meat are CII GreenCo PLATINUM + certified,
Businesses FSC® Forest
Alternative Range the highest rating in the system, and
Management Certified
Bolaram Unit runs on 100% Renewable
plantations & FSC® Chain
Electricity
of Custody Certification of
Sunfeast Farmlite
all four Units
Super Millets Cookies
made from a Blend of
ITC Spices Value Chain
Millets including Ragi,
Sustainable farm The First 12 Hotels in the World to Receive
Jowar (Sorghum) and
certifications like Rainforest LEED Zero Carbon Certification are
Contains No Added Maida
Alliance, Global G.A.P, ITC Hotels
(Refined Flour)
Fairtrade and USDA Organic
Engage L’amante Luxury Aashirvaad Organic

Perfume Sprays Products
with Unique Bag-on-Valve Certified Organic Wheat
Technology, an Ecofriendly, and Pulses
Technology enabled Units of ITC’s Packaging & Printing
Propellant Business are SA8000 Certified (Social
Mangaldeep Incense
Accountability)
Sticks
are Manufactured using
Fiama Shower Gel International Fragrance
‘Happy Naturals’ Range is Resource Association (IFRA)
made of 97% Natural Origin Approved Chemicals
Content*
ITC Mangaldeep
Leaf Tobacco Business 'Sixth Sense' Panel
Complies to Global Tobacco Sustainable an Inclusive Initiative that has recruited
Tobacco Programme (STP 2.0) covering Visually Impaired Fragrance Testers
farm value chain
*As per applicable standards

Annexures
ITC’s Sustainable Product Portfolio – A Snapshot
Sustainable Packaging Use Phase Sustainability Responsible ‘End of Life’ Management
Aashirvaad Organic Mangaldeep Lo Smoke 'OmegaBev', 'OmegaBarr.' ‘OmegaBowl’

Whole Wheat Atta Incense Sticks & ‘OmegaBev Vio’
1kg Pack in a Paper- release up to 85% Less Compostable Paperboard Alternatives
based Bag, Reducing Smoke when Burning to Plastic-coated Containers and Cups
Plastic Usage by 25% as compared to Normal including Deep Freeze, and Hot & Cold
Incense Sticks Applications
Savlon Powder
Handwash BIOSEAL
allows Consumers to Reuse Compostable Coating with Excellent Oil &
Empty Bottles at Home Grease Resistance and Heat Sealability for
QSR Segment (Tubs & Lids), Tea Envelopes.
Fiama Shower Gel Bottles

with 50% Post-Consumer Recycled
OXYBLOCK
Plastic Content
Patented Barrier Coating that provides
oxygen barrier and helps in converting
Savlon Glycerine Soap non-recyclable packaging into recyclable
Wrapper utilizes 70% post- in segments such as oil, ketchup.
consumer recycled plastic
in its PET layer
Aashirvaad Atta
with Multigrains' Happy Tummy
website - Content Hub on Digestion for
Consumers with Certified Expert Blogs, ITC sustained its Plastic Neutral Status for
Engage Cologne
Videos, High Fibre Recipes, Free One- 2nd Year in a Row
shifted to 100% Paper-
on-one Consultation, and tools like Fibre
based Recyclable Cartons
Meter, My Meal Plan & Ask an Expert

Annexures
Product Responsibility
& Stewardship A summary of some of these practices is provided below:
Quality and Safety
B2B Businesses
Branded Packaged Foods Personal Care
ITC has put in place stringent processes (Agri, Packaging & Printing)
and systems to ensure that its products and
services are in compliance with relevant • All Units are being periodically • Co-creation of products with • Various tests for product quality
regulatory requirements. The Company evaluated against Global Food Safety consumers is accomplished through during the life cycle of agri-
is committed to providing products and standards- internally by Central state-of-the-art labs and facilities. commodities namely procurement,
services that offer best-in-class quality and Quality Team as well as externally by It entails generation of scientifically processing, storage and shipment,
user experience. Manufacturing Units and Third Party certification bodies for evaluated objective evidence-based as per the customers’ requirements
Hotels are also housed in state-of-the-art ISO/FSSC accreditations. robust product claims through various with accredited laboratories are
facilities and internationally benchmarked • 98 out of 103 of the manufacturing National, International standards and undertaken prior to shipment/
quality management systems have been locations (including third party customized methods. dispatch.
implemented. The Company adopts stringent manufacturing units) are certified as • Partnership with renowned accredited • Stringent processes and systems are
hygiene standards, globally benchmarked per recognized global standards like National & International Testing in place to ensure that the products
manufacturing practices and robust quality FSSC 22000/ ISO 22000/ HACCP. Laboratories for independent third- and services are in compliance with its
assurance systems for its products. • Suppliers undergo periodic evaluation party validation of product claims. customer requirements.
to ensure process robustness and • A peer-reviewed formal
Food Safety compliance. documentation and approval process
• Dashboard on Online Product Quality is in place for substantiating product
Rating system are in place for analysis claims.
of product defects. • A mandatory safety evaluation
• Targeted training programs are process for the product at third-party
provided to the employees. Central accredited independent Contract
Quality team also anchors training Research Organisations (CROs) is also
sessions depending upon training undertaken and safety of the products
needs identified. are ensured before commercial
The detailed ITC Foods Quality and Food launch.
Safety Policy can be referred on https:// • Continual review of products for
www.itcportal.com/about-itc/policies/itc- certification / endorsements by
foods-quality-food-safety-policy.aspx various National / International bodies
for efficacy / safety is undertaken for
independent verification & enhancing
credibility.

Annexures
Product Sustainability Product Responsibility & Stewardship
Customer Health and Safety

Hotels
The Company's uncompromising commitment to providing world-class products and services to
• Robust food safety management systems • The Hotels Business continued to reinforce customers is supported by its concern for the safety of its customers/ consumers. ITC's commitment
(complying with FSSAI/HACCP/ ISO its commitment towards health & towards ensuring compliance with applicable standards of health and safety commences at the
22000) are in place at all ITC Hotels. The hygiene with ‘WeAssure’ – a programme design stage. Risks during procurement, manufacturing and delivery stages are also mapped and
Standard Operating Procedures are designed in collaboration with medical evaluated, based on which necessary control measures are deployed.
laid down to comply with the norms. The professionals & disinfection experts to
luxury collection Hotels and WelcomHotels reassure guests and to provide best-in-
(Owned Hotels) periodically undergo class experience in hygiene and safety
Case Study: Aligning with Global Standards for Food
assessment by third-party auditors. at the Company’s iconic Hotels. The Safe Paper & Paperboards
• ITC Hotels adhere to Good Hygiene programme has received a Platinum Level
Practices (GHP) and Good Manufacturing certification from M/s. DNV. ITC’s Paperboards & Specialty Papers • Some renowned standards that ITC
Practices (GMP). • The Company’s Hotels Business has also Division monitors international and PSPD follows in the testing of its products
• All ITC hotels adhere to the ITC Fire and demonstrated high levels of resource national food safety norms governed by to meeting Food Safety Standards
Life Safety management guidelines that efficiency by achieving the LEED® US FDA, BRCGS, EU Laws, German BfR & are USFDA 21CFR, EC Regulations
are based on the National Fire Protection Platinum certification for its luxury BIS/FSSAI rules to ensure the compliance (EU) No.10/2011, Regulation (EC)No.
Association (NFPA) codes and other collection hotels and LEED Zero Carbon with food safety. To meet the food safety 1907/2006 of REACH.
international best practices. certification for 12 properties. regulations, the Division has established
a practice of annual compliance testing
of Paper & Paperboard materials from
Cigarette all four manufacturing plants from third
party laboratories. All paper & paperboard
product intended for direct food contact
• New product creation in the Business • The manufacturing facilities adopt
compulsorily goes for food safety testing.
involves consideration of global and stringent hygiene standards,
Indian industry developments and is benchmarked manufacturing practices
• Vendor evaluation & selection of input
supported by comprehensive research and robust quality assurance systems on
raw material happens only when all
and testing facilities at the ITC Life which employees are continually trained.
the documents regarding Food Safety
Sciences & Technology Centre, where
Certifications are provided by the vendor.
laboratories conform to ISO/IEC 17025
• The latest Material Safety & Datasheets
standards and are certified by NABL.
with proper guidelines of usage, storage
conditions & disposal/recycling to the
consumers is maintained.

Annexures
Product Information and Labelling

As an organisation committed to high As an integral part of ITC's customer place. During the year, no incident of non-
standards of transparency and good satisfaction philosophy, adequate systems with compliance concerning product and service
governance, ITC's Business operations comply respect to product information and labelling, information and labelling was reported.
with applicable laws of the nation. and customer engagement have been put in
Some glimpses of practices have been detailed below:
Branded Packaged Foods Personal Care Agri Business Education & Stationary Products
• Products are primarily sold by the • Labelling on all ESPB products

• All information about ingredients • Products comply fully with the
Agri Business on a B2B basis, and are follows the statutory requirements
and nutrition of food products has Standards of Weights and Measures
labelled as per customer requirements including standards specified by Legal
been published on the product Act (Packaged Commodities Rules),
on quality, shipping marks or in line Metrology acts.
packaging as per relevant statutory Drugs & Cosmetic Act, Bureau of
with the labelling requirements of the • For products where plastic packaging
requirements. Indian Standards and the applicable
importing country. is used, statutory guidelines regarding
• All claims and nutritional information Trade Marks Law.
• The Business also provides phyto- minimum thickness is followed. Also,
are provided to consumers in line with • The product labelling in addition to
sanitary certificates, surveyor relevant information on type of
current applicable laws and in line instructions for safe and effective
quality and quantity reports, as Plastic (LDPE/PP etc.), name of the
with ITC Foods Division’s Labelling usage, calls out specific product
well as Chamber of Commerce manufacturer is given.
Policy and ITC Foods Division’s sustainability features such as:
certificates etc., as necessary. The • For art stationery products, EN
Marketing & Communication Policy. − Bottle made with 50% recycled
Business complies with the statutory 71 certification is followed by the
• Furthermore, to avoid ambiguity plastic, Wrappers made with 70%
requirements for exports. manufacturer which complies with
w.r.t sensitive food additives, source PCR film, 90% Natural Origin Content,
• Products sold through Choupal Child Safety norms. Also, erasers
name declaration for all sensitive Recyclable Packaging etc
Saagars are labeled as per statutory sold by ESPB follow a phthalate-free
emulsifiers used in ITCs products is − No Paraben, No Silicon, No TCC etc.
requirements. formula focussed on child safety.
being declared upfront on the product − Skin Friendly pH, Skin type suitability
labels. For all products, RDA values etc. • In Leaf Tobacco Strategic Business
have been revised basis ICMR RDA Unit, the products are labelled
2020. • All fragrances used in products comply in accordance with customer
• The product nutritional attributes with IFRA standards. In line with specifications. Unique identity (label
viz., source or richness of a particular statutory requirements, any allergens with a bar code) is maintained for
nutrient in a product are being in the product are mentioned in the every product across the value chain,
communicated to consumers wherever ingredient list. right from raw material sourcing (from
applicable in a responsible manner. farmers) till it is packed and shipped
out.
PCR - Post-consumer recycled plastic

Annexures
Packaging & Printing

Responsible Marketing Data Privacy data transfer, penetration testing, etc. Clear
guidelines are provided for data backup,
⬤ The Company’s communications are aimed Data privacy is relevant to ITC's Information retention periods, the media on which backups
• The products are labelled in accordance at enabling customers to make informed Technology Business. Systems and procedures have to be maintained and storage at remote
with customer specifications. purchase decisions. The Company also makes have been established to ensure that there are locations. In addition, stringent risk assessments
• Every package has a unique identity efforts to educate customers on responsible no instances of non-compliance resulting in are carried out to identify vulnerabilities and
(label with a bar code) with traceability usage of its products and services. a breach of data privacy. The Business has a threats to assets and determine the controls
information available right from the privacy policy, developed in line with the IT Act, that need to be put in place.
⬤ ITC's Consumer Goods Businesses adhere
time of purchase of raw material till it is 2000, that covers all aspects of data privacy
to voluntary and legal codes of conduct During the year, no complaint related to breach
packed and shipped to the customers with respect to sensitive information.
and follow the ASCI (Advertising Standards of data privacy or loss of data was received.
destination.
Council of India) Code for its marketing Network architecture and information security
communications. ITC’s Hotels Business follows
a self-regulated marketing communications
controls of the Business, driven by industry best
practices, ensure compliance to the privacy
Compliance
Safety Matches & Agarbatti approach, guided by the ISA (Indian Society of policy. The Business has also formulated an All businesses/divisions of ITC have
Advertisers) rules and guidelines. Information Management policy catering to established systems, procedures and review
• Business prioritizes consumer safety IT security aspects of ISO 27001 Information mechanisms to identify and comply with
⬤ The Cigarettes Business is governed by
and environmental protection by using Security Management System (ISMS). The IT the laws and regulations concerning their
the Cigarettes and Other Tobacco Products
fragrances that comply with IFRA operations arm of ITC Infotech Limited is ISO products and services. Every business and
(Prohibition of Advertisement and Regulation of
regulations, ensuring the exclusion of 27001 certified. Documented procedures are corporate functions periodically submit
Trade and Commerce, Production, Supply and
harmful chemicals in the fragrance. available and practised to control physical statutory compliance report to the CMC/
Distribution) Act (COTPA).
• Product specific claims on packs in access to information, e.g. the defined and Board on regulatory, product specific, finance/
select SKU’s for consumer awareness restricted access rights to IT Room/ Server revenue, personnel, technical/process and
During the year, no incident of non-compliance
such as Room and User Access Management based on environmental statutes, and other applicable
concerning marketing communications was
− Communication on long lasting ISO 27001 and as agreed upon with customers. laws and regulations. This is done on the basis
reported.
fragrances of updated checklists backed by appropriate
The Business has also put in place measures
− Charcoal free Agarbatti monitoring and control systems maintained by
at various control areas to meet customers'
− Number of quality checks performed each unit/ business/corporate function.
requirements for data security. These include
on the product
desktop access, server access, network
− Awareness on safe disposal of packs.
access, operating system, application security,

Annexures
Consumer Feedback
Management
ITC’s endeavour has been to developing long- FMCG Paperboards and Specialty Papers B2B Businesses
term relationship with consumers through (Agri, Packaging & Printing)
robust consumer engagement. As an integral A well-established system Customer satisfaction survey
part of ITC's consumer satisfaction focus, As an integral part of ITC's
is in place for dealing for paperboard converters in
attention is paid to product information and
labelling and consumer engagement by the with consumer feedback. India was conducted during customer satisfaction
Businesses. ITC’s Businesses have established Consumers are provided the year. Close to 90% of the philosophy, where applicable,
system for monitoring customer satisfaction, multiple options to connect respondents were satisfied adequate systems for customer
and it ensures that the feedback is addressed in engagement have been put in
with the Company through with the Division, and around
a systematic manner. In addition, the Company
has an online reputation management team email, telephone, website, two third of the respondents place.
which interacts with consumers via social social media, feedback forms, selected PSPD as the Best
media channels, and responds to their queries Customer feedback for B2B
etc. In addition, the Company’s Supplier.
in a real time manner. businesses like Agri Business
Businesses have dedicated
A Customer Relationship Management (CRM) and Packaging and Printing
consumer response cells
platform has been implemented for capturing is obtained through different
to respond to their queries
complaints, queries, feedback and suggestions channels.
received across channels. The CRM platform and receive feedback on
also provides consumer insights for bringing products to enable continuous
about process related changes and system
For Packaging and Printing
improvement of its products
enhancements for improving the CSAT Business, close to be 50% of
and services.
(Customer Satisfaction) scores. Some glimpses the customers were found to
of practices have been detailed below: be promoters (i.e. a score of 9
/ 10 out of 10) and around 45%
gave a score of 7 / 8 out of 10).
Overall, the satisfaction score
was 79.9%.

Annexures
Hotels Trade Marketing and Distribution Information Technology
The Hotels Business has a The Retailers Satisfaction The survey is conducted among 'Sixth Sense' - ITC’s AI Powered Tool for
well-established system for Audit was done among 1,200 Chief Executives and Senior Gaining Deep Consumer Insights
Additionally, ITC Businesses continue to
monitoring guest satisfaction ITC Loyalty Program Retailers Management of client firms,
leverage the power of digital to drive superior
levels across all properties across 8 major metros. The and is based on a structured consumer insights & innovation, deepen
through a proprietary index study was done to determine questionnaire customised for consumer engagement and enhance brand
called WoW Ratio. The three- their satisfaction level with the stakeholder. loyalty, the Marketing Command Centre and
Consumer Data Hub - an AI-powered hyper-
tiered process followed by ITC ITC vis-à-vis leading peer
personalised platform backed by a robust
Hotels ensures that the guest companies. Multiple parameters and
partner ecosystem for content and data, is
feedback is addressed in a business outcomes, including being increasingly utilised to gain insights
systematic and satisfactory As per the study, ITC is the most satisfaction, loyalty, advocacy on market trends and consumer behaviour,
preferred company amongst and value for money, are as well as synthesise the same to craft
manner.
contextual and hyper-personalised brand
leading FMCG players on measured.
communication and product development.
Report Analysed performance & perception.
• Scores are generated for the hotel and The outcomes and insights from
individual departments
the survey are utilised to drive
• Scores are compared against the
target set customer engagement and
Improvements Identified and improve service delivery at the
Implemented organisation, business unit and
• Data is analysed to identify areas of
account level.
improvement
Monitored and Verified
• Scores are monitored to ensure that
corrective action has been effective
• Audits are conducted to check efficacy
of the changes
As per the Customer Feedback System,
guest satisfaction level/Index, also known
as WoW Ratio for 22-23 is – 90.78 %

Annexures
Road Ahead
As part of its Sustainability 2.0 Vision, ITC is committed to:
Sustainable Product Innovation Product Responsibility & Stewardship

Continue to drive world-class innovation by leveraging LSTC’s Continue to implement global best practices and standards on
Centres of Excellence in Biosciences, Agri-sciences & Materials quality, safety and transparency.
sciences, and future-ready platforms such as Beauty & Hygiene,
Health & Wellness, Agro-forestry, Crop Sciences, Consumer and To further establish Food System Transformation leadership across
Sensory Sciences and Sustainable Materials & Packaging. key areas of management.
Expanding ITC’s sustainable product portfolio by leveraging LCAs

across key categories, and deep consumer insights gathered using
new age technologies.

Annexures
in Action
ITC Foods Business: Pillar 1 Pillar 2
Nutrition Strategy
Help India Eat Better
Read more at: https://nutrition.itcportal.com/
HelpIndiaEatBetter/index.html
Under the thought leadership of “Nutrition For Value-added Sustainable

Nation”, ITC Foods Business Division developed Product Portfolio Food Ecosystem
a 4-pillar model that uniquely combines the
strategic commitments to deliver on its nutrition
strategy - “Help India Eat Better”. The strategy
has been developed to create an ecosystem
and guide the organisation towards supporting
the dream of a healthier nation via value-
added products, responsible policies, target
oriented projects and empowered people,
through its 4-pillar model. The strategy is also
in line with Government of India initiatives Pillar 3 Pillar 4
such as Mission Poshan 2.0, Anemia Mukt
Bharat, Kuposhan Mukt Bharat, Surakshit
Matritva Abhiyan and the Aspirational Districts
Programme.
To deliver credibly on ITC’s Nutrition Strategy,

the 4 pillars are identified as individual key
indicators reflecting the various targets and Healthy Consumer &
actions which are further mapped to specific Communities Employee Awareness
outcomes. (on Nutrition & Wellbeing)

Annexures
Product Sustainability in Action ITC Foods Business: Nutrition Strategy
Pillar 1: Value-Added
Product Portfolio
The emphasis has been to create and nurture The strategy and its core components drive Products with a Special Focus on Goodness of Protein & Fibre
world-class Indian packaged food brands that the focus on reducing all forms of malnutrition
enable consumers to make informed choices including obesity, diet related diseases and
that are influenced by myriad factors such as micronutrient deficiencies especially amongst 100% 94% 96%
taste, health, attitudes, beliefs, price, product vulnerable populations. In alignment with of Staples (Atta, RTC of Biscuits are of Snacks are
safety and quality. this ideology, ITC commits on the following Chapati, Organic Dals) source of Protein source of Fibre
‘Enhanced Nutrition Commitments’*, to be are source of Protein
achieved by 2025. & Fibre
Product Formulation &
Reformulation strategy
Core components of Product formulation
⬤ To provide Goodness of Protein from 90% of 100% 100%
100%
the current portfolio. of Papads are of Snacks are
& reformulation strategy are:
source of Protein source of Protein
⬤ To provide Goodness of Fibre from 75% of
of Noodles & Pasta are
Nutrition Profiling System the current portfolio.
source of Protein
R&D platforms
⬤ To double the % of product portfolio that
provides Goodness of Iron. 95% 95%
99%
of Fruit beverages are of Ready to Eat are
⬤ To keep per serve calorie delivery below 100 source of Fibre source of Protein
Responsible Policies kcal for chocolates & confectionary. of Noodles & Pasta are
⬤ To keep per serve calorie delivery below 100 source of Fibre
The Eat Right Movement
Commitment
kcal for products targeted to children.
94%
⬤ To increase the product portfolio with of Fresh Dairy products are source of Protein
goodness of whole grains, nuts, legumes, fruits
Enhanced Nutrition
& vegetable by 50%.
Commitment
*basis volume sales, unless specified
These commitments will continue to support ITC

Foods Division's larger belief to deliver healthier
food choices.

Annexures
Products with a Special Focus on Goodness of Micronutrients, +F and Organic Portfolio Specially Formulated Products
⬤ Sunfeast Kids Daily Shake Nutrilite –
Launched in collaboration with Amway,
23% 28% 100% Sunfeast Nutrilite Kids Daily shake given 5 in 1
of total portfolio is of Biscuits are source of of Dals are Organic support (Gut health, Brain function, Immunity,
source of Micronutrients Micronutrients Energy metabolism, Bone health).
⬤ Sunfeast Farmlite Digestive: The biscuits are

100% enriched with High fiber along with goodness
98% 98% of salt is Iodised
of whole wheat.
of Fruit beverages Dairy based beverage + ⬤ Sunfeast Marie Light Active: A specially
including soups are Fresh Dairy is source of formulated biscuit that provides goodness of
source of Micronutrients Micronutrients
100% Iron & 6 vitamins.
of Fresh Milk portfolio ⬤ B Natural Select Tender Coconut Water:

Naturally fat free and helps in hydration.
9%
is +F (source of Vitamin
97% A & D)
⬤ Aashirvaad multimillet mix with Quinoa:
of Noodles are source of of Confectionery is
Enriched with the wholesome nutrition of jowar,
Micronutrients source of Micronutrients
bajra, ragi, navane and Quinoa.
17% ⬤ Sunfeast Farmlite Super Millets Cookies: The
of Biscuits are source Multi- Millet and Choco chip cookies contain
of Iron goodness of millets (Ragi & Jowar). They are a
source of Protein, Fibre and Iron.
⬤ Aashirvaad Ragi Vermicelli: Packed with the

Micronutrients include Vitamin A,
goodness of iron, calcium and fibre.
Vitamin C, Vitamin D, Iron, Zinc, B Vitamin etc.
Products with Value-Added ingredients

Certain products in Snacks, RTE (Ready to Eat), Sunfeast Farmlite, ITC Master Chef Range contains
value-added ingredients like nuts, jaggery, vegetables, meat, pulses & dals etc.
In support of National Iodine Deficiency Disorders Control Programs (NIDDCP), ITC foods also uses
iodised salt as ingredient in all its relevant products across categories like biscuits, snacks, noodles
& pasta, ready to eat foods, instant mixes, frozen snacks etc.

Annexures
Reductions
In 2018, ITC embarked on the journey to support FSSAI’s The Eat Right Movement (TERM) with a
pledge to reduce the nutrients of concern in different categories, while still delivering on the taste
profile of ITC Foods Division's products. This is made possible due to tremendous efforts of product
development teams by using latest technology, ingredients, and research & development.
Nutrients of Concern Commitment Status Serve Size & Portion Control and Voluntary
Front-Of-Pack (FOP) Labelling
ADDED SUGAR 2020
Knowing portion sizes is important to plan
5% reduction in current 3/4th portfolio - Biscuits & Achieved
a day’s balanced diet. In line with this and
Beverages
the Company’s belief to provide transparent
2023 communication to consumers to help them
Further 5% reduction in current 3/4th portfolio - Achieved make informed choices, ITC Foods Division
Beverages had implemented the incorporation of serve
SALT/SODIUM 2020 size and number of servings on all packs, in
5% reduction in current 3/4th portfolio - Snacks & Achieved full compliance to food regulations from an
Instant Noodles early stage. Besides this, ITC Foods Division
2023 also supports other ways to help consumer
Further 5% reduction in current 3/4th portfolio - In Progress understand portion recommendation and
Snacks & Instant Noodles do mindful eating like individually wrapped
portions, resealable packs (bottles with caps),
TFA (HVO All Food Products are "trans-fat free" on per-
Achieved discrete units, demarcations on products, has
ORIGIN) serving and per 100g basis
been adopted across different products under
TOTAL FAT 2022 Farmlite, Dark Fantasy, Fabelle & Jelimals range.
Achieved
5% reduction in current 3/4th portfolio - Snacks
2023
Further 5% reduction in current 3/4th portfolio – In Progress
Research & Development: Leveraging New Science
Snacks
ITC LSTC has taken up concrete projects to deliver not only tasteful but science-based healthy
SATURATED FAT 2022
Achieved products. State-of the- art research along with ITC’s outreach from farm to fork has been
5% reduction in current 3/4th portfolio - Snacks
leveraged to deliver differentiated and nutritionally sound products. ITC Foods was the first
2023 company to launch juices with a clinically proven ingredient to support immunity. ITC LSTC & Foods
Further 5% reduction in current 3/4th portfolio - In Progress Division are working on emerging research areas like gut health, nutraceuticals, vital ageing
Snacks and millets, especially as per the needs of Indians, to make nutritious choices available for them.
ITC’s LSTC team also works with the Foods Division on some critical public-health impacting CSR
Going forward Foods Division will continue to evaluate the appropriate product portfolio for
initiatives like Project SAMPOSHAN.
applicable reductions in specific nutrients of concern and extend its efforts across categories, which
will be reflected in FY 2023-24. This specific commitment is of very high importance to the Foods
Division and will remain to be a critical element of its nutrition strategy.

Annexures
To provide the low-income consumers a Planet Friendly
Pillar 2: Sustainable Food wider access to healthier and affordable

food products, this strategy encompasses
ITC supports the purpose of ‘Healthy Planet,
Healthy You’ by helping reduce the carbon
Ecosystem key vectors of: footprint through green and efficient
ITC Mission Millets
ITC has put millets at the heart of its health
Affordability & Accessibility Strategy manufacturing, and locally sourcing agriculture
offerings. ITC’s Mission Millets is designed as
Being a responsible leading food organisation, Innovation & Renovation produce such as fruits for B Natural juices.
a transformative and cohesive approach to
ITC Foods Division fully understands and The Business recently launched Plant based,
pipeline encouraging use of build awareness and adoption of millets and
supports the role of balanced diets and Vegan- Meat alternates for consumers without
enhances both the demand and consumption
locally available nutritious compromising on taste.
healthier food products that influence the as well as the production and supply aspects
nutritional and health status of the consumers ingredients, fortification of of this smart & nutritious crop. The Millet
These have been launched under ITC Master
by helping address the challenges of all forms healthier portfolio at affordable Chef IncrEdible range of Plant based-Nuggets Mission is inspired by the company’s vision to
of malnutrition (obesity, diet-related diseases pricing etc and Patty. Plant Protein Platform will be one of contribute in equal measure to people, planet
and micronutrient deficiencies). Pricing is its key science & technology focus areas in the and profit. This vision is embedded in the
one of the key concerns and lesser known coming year. company’s credo of ‘Nation First: Sab Saath
Mapping of specific price
factors that contribute to undernutrition and Badhein.’ This approach is in consonance with
micronutrient deficiencies, as many low- points to enable wider adoption the Government of India’s overall focus on
Food Loss & Waste Management
income consumers lack access to affordable ITC Foods Division strives to reduce Foods Loss nutrition and its Seven Sutras to celebrate the
nutritious food. Thus, providing consumers with Efficient Operational and Waste Intensity (food waste per tonne of magical golden grain in the International Year
better priced healthier product options that capabilities e.g. local production) in its own operations in line with of Millets.
are easily available will naturally encourage the sustainability goal of 12.3. This initiative is
manufacturing, closer to Recognising that millets are climate resilient
healthy eating patterns. integral to its overall Farm to Fork strategy.
market production units, lean and nutritionally superior and are critical
ITC Foods Division Affordability & Accessibility Over 100 vendors have been trained on Food
for ensuring both food and nutrition security
processes, digital stores etc Loss & Waste management.
strategy includes mapping of healthier ‘ITC’s Mission Millets’ was launched. The
products basis compliance with internal NPS initiative included development of millet-
(Nutrition Profiling System). The category Improved local & wide Biofortification
based product portfolio under its flagship
specific thresholds for compliance with NPS spread distribution system With an endeavour to develop a sustainable
brands of Aashirvaad Natures Super Foods
also includes positive contribution through and science backed nutritional platform
via traditional (e.g. Chaupal (Ragi flour, multi millet flour), Sunfeast
protein, fibre, micronutrients like vitamin A, within the agri-nutrition framework, ITC is
Farmlite Super Millets cookies amongst other
Sagars) and digital means exploring biofortification of wheat with zinc
C, D, Zinc, Iodine, iron, whole grains, fruits, products under the value-added innovation
vegetables, nuts, legumes etc, which cater to (e.g. ITC Store) to improve and potentially millets with iron, to explore the
portfolio and a dedicated Millet microsite
special nutrition needs at various life stages accessibility long-term benefits of these on the health of
that will host authored articles, blogs, videos
to address all forms of malnutrition especially consumers and the planet.
and recipes that give credible information on
amongst vulnerable population. benefits and use of Millets.
This strategy applies across portfolio
and all categories.

Annexures
YiPPee! Better World Program

Pillar 3: Healthy With the aim of supporting the National
Communities Commitments towards a cleaner, greener
and healthier tomorrow (as outlined in United
Project Samposhan Nations Sustainable Development Goals,
India faces a major health concern of especially SDG 12 (Responsible consumption
Prevalence of Anaemia among all age groups. and production), a unique program “YiPPee!
Considering the high prevalence of anemia in Better World” was launched by ITC. In
the country, the government of India launched partnership with NGO Way for life, the aim
the Anemia Mukt Bharat program in 2018. To was to create awareness on plastic waste,
contribute towards the government’s efforts it’s impact on health & environment and
and help achieve the goals of UN SDG 2030 bring behavioural change in school children
Goal 2 – Zero Hunger, ITC has initiated ‘Project around Plastic usage and disposal through
Samposhan’ under its CSR Initiatives. The various awareness sessions. The objective
project was initiated in collaboration with was to instil awareness on sustainable waste
MAMTA Health institute and partner agency management and create an active community Project Swasthya Bengal The program extensively covered facilitation
CII, with extended support from the Bahraich of Sustainability Enthusiasts through various The initiative is aimed at strengthening of physical on-spot quick tests for detection
medical college, BHU ethical Committee, awareness sessions on plastic waste awareness and educating homemakers / of food adulterants and distribution of
village leaders and anganwaadi workers management in a sustainable manner. Around decision makers of households, Retailers, educational material like FSSAI DART books,
and was supported by a scientific advisory 2.5 lakh kids were reached & 1,000 recycled Whole sellers, Consumers, Students about labelling mandatories by FSSAI, common
committee. In this holistic initiative aimed to benches were deployed. adulteration in spices and its ill effects in the adulterants in foods etc.
reduce the prevalence of anemia in the districts districts of Bardhaman, Howrah and North
The program also facilitated health camps for
of Bahraich & Chandauli, Uttar Pradesh a total 24 Parganas. This project is being done in
participants. A School Contact Program was
of ~2,700 adolescent girls, adult women and partnership with Food Industry Capacity &
also designed that consisted of workshops to
pregnant & lactating women were provided Skill Initiative (FICSI) & Rajabazar Education &
creatively engage students for awareness on
nutrition education coming from a total Awareness Development Society (READS). A
Food adulteration and safety quality aspects
of 43 villages. Scientifically designed food baseline survey was done to understand the
of Packaged foods and a Science fair where
and education-based intervention was also awareness on food adulteration, followed by
students, teachers and parents participate.
conducted in Chandauli to improve critical physical sensitization meetings, awareness
The overall direct reach was ~13,000 people
biomarkers via an RCT, post a successful sessions, nukkad nataks, talk by local leaders
(including students) from 10 schools through
sensory evaluation of the product (Double on food safety, adulteration in spices & it’s ill
the program and many more through radio
Fortified Salt). Statistically significant results effects. The sessions also covered the food
jingles, IEC material and Swasthya Bengal
were achieved for the almost 6-month safety aspects that are complied by packaged
pledge sign offs.
interventional study on serum Iron markers & licensed food sellers. The awareness sessions
amongst few other positive indicators. were conducted by certified FOSTAC trainers.

Annexures
Project Balposhan sessions by experts on food quality, financial by an average of ~1200 rupees, improvement
The objective of the initiative was to create literacy, entrepreneurship, nutrition awareness in hygiene and quality parameters up to
awareness on malnutrition (wasting, stunting & session and health camps. 100%. The women under this project have
undernutrition) in children below 5 years, very received FoSTac training and FSSAI Food
As a part of the initiative with the focus only
crucial within the 1st 1,000 days of life (800 U-5 Safety Supervisor certificate and a Skill India
on sustainable livelihood, hygiene, education,
children and their mothers, including Pregnant certificate. One of the biggest achievements,
finance, working conditions etc., these 55
& lactating women), through behaviour change of this programme is that, for the first time in
women have been trained on independently
communication and development of relevant Bikaner, women experienced independence
picking dough and delivering papad from
IEC materials, currently under-going in Valsad in their role as Aagewan ben and have
and to the factory. The results from end line
district of Gujarat. This project was done in themselves started going to the factory for the
to baseline has seen reduced papad rejection
partnership with MAMTA Health Institute. collection dough and papad delivery.
rate from 8.5 to 0.58, improved monthly income
The aim of the project is to improve the
nutritional status of under 5 in Valsad district
of Gujarat. The key outcomes included
assessment of the nutrition status, intakes, and
practices of under 5 children and their mothers
and development of the education material
for education on infant and young child
Case Study: Project Samarthya
feeding practices. The results on prevalence of
malnutrition indicators amongst children were
both alarming and also in alignment to the
Mrs. Baby Ramesh Kanwar, a 39-year-old is a very pleasant and gracious woman. Her life
latest NFHS-5 data e.g., 16% wasting in subjects
revolves around her husband and her two children. But as we say it always strikes bad when
(22% as indicated in NFHS-5).
you expect it least, Baby Kanwar's husband dies a sudden death. All of sudden, the whole
family's burden lay on Baby ben's shoulders. To support her family's needs, she started rolling
Project Samarthya
papad on dally basis. She collected dough from middlemen where she received ₹26 per 100
This initiative is aimed at creating sustainable
papads. On average, she rolls 2,000 papads daily to sustain her livelihood.
livelihood opportunities for women in Bikaner
(who roll papad) by developing an institution She was introduced to SEWA Rajasthan through Self Help Groups (SHG) where she started
through local leaders who volunteer to mobilize to make savings, borrowed a loan when needed, became financially literate, and with the
communities, have a deep understanding of savings she managed to build her own home. Baby ben, now is a very active member of the
local culture and values help them identify Programme Samarthya, her papads are one of the finest among all the members. She is
gaps, and facilitate the development of locally also teaching other papad rolling members how to efficiently roll the papad. Because of her
contextual solutions. The project was executed enthusiasm, all the members have appointed her as Treasurer of Samarthya SEWA Samiti
in collaboration with SEWA Bharat and FICCSI. with the trainings and upskilling programmes she participated through Samarthya, her
The activities included a Baseline survey, papad quality improved drastically. She was paid ₹26 per 100 papad and currently she is paid
Capacity Building Training Sessions, training ₹44 and makes around ₹15,000 per month.

Annexures
Pillar 4: Employee and

Consumer Awareness
Workforce Wellness Program
ITC Foods Division undertakes multiple Some of the key indicators of the Workforce
initiatives to empower its entire workforce with Wellness Program include:
right nutrition knowledge and provide access
to various facilities to enable them to make Nutrition Education
informed choices.
Consumer Awareness Initiatives
Under its ‘Workforce Wellness Program’, ITC Celebrating National Nutrition ITC Foods Division ensures availability of online Policies & Systems
Foods has been working on various employee Month nutritional information for all its packs on In order to ensure continuous alignment
centric wellness initiatives and continues
various platforms like ITCstore, Brand websites with national health priorities and statutory
to review and work towards enhancing the
Access to Nutrition related or E-commerce stores. ITC Foods Division requirements, ITC Foods Business Division has
overall health and wellbeing of its workforce,
will further enhance its communication with certain policies in place –
across locations. For the same some specific wellbeing indicators such as
consumers through web portals and share
commitments have also been in place, namely: BMI, Blood pressure etc., for all credible science-based information.
ITC Limited's Food Division Nutrition Policy
⬤ 100% workforce to be trained towards (https://www.itcportal.com/about-itc/policies/
employees, workers & extended
nutrition, health and wellness to encourage itc-food-division-nutrition-policy.aspx),
workforce ITCstore: Nutricorner
them to adopt healthy diets and active lifestyle.
ITC has worked towards enhancing its ITCstore Food Products Policy
⬤ 100% workforce to have access to affordable interface, and has introduced a user-friendly, (https://www.itcportal.com/about-itc/policies/
Nutrition and Wellness
& healthier food options at work. easy to understand information on nutritional itc-food-product-policy.aspx),
Seminars/Webinars for all properties of food products like goodness of
⬤ 100% workforce to be provided free health ITC Limited Foods Division’s Marketing And
employees, workers & extended protein, fiber, millets, vitamins and minerals
checks including (not limited to) nutrition Communication Policy
workforce through a dedicated tab – Nutricorner.
(https://www.itcportal.com/about-itc/
focused indicators such as weight, BMI, BCA,
Blood pressure etc. policies/itc-food-division-marketing-and-
ITC Nutrition Portal
Nutritious Food at Work communication-policy.pdf),
⬤ 100% of workforce to have access to ITC has created a dedicated Nutrition portal
healthcare experts and nutritionist (24*7) via a which is an easily navigable site that holds ITC Limited Foods Division’s
Physical Wellbeing credible information on Nutrition basics, Nutrition Profiling System
dedicated and free app.
health and lifestyle management and general (https://www.itcportal.com/about-itc/policies/itc-
Supporting Breastfeeding for wellbeing to help its consumers make informed foods-division-nutrition-profiling-system.pdf).
Mothers at Workplace choices and deepen their knowledge on
nutrition and wellbeing.

Annexures
Workforce for
Tomorrow
ITC's Approach Focus Areas
ITC believes that sustained long-term value
is created through organisational vitality Nurturing Leaders of Tomorrow
manifested through the power of innovation,
connectedness with consumers and customers
Fostering Employee
and execution excellence. Such vitality is
best nurtured in an enabling environment of Engagement: The ITC Way
empowerment and accountability to harness
the full potential of ITC’s human capital. Upholding Human Rights
In a volatile, uncertain and intensely
competitive environment, it is ITC's human Embracing Diversity, Equity and
resources that provide the thrust in ensuring Inclusion
that ITC continues to deliver world-class
performance and enhances its reputational
capital. ITC, therefore, directs its efforts and All of this coalesces into a collective vitality Nurturing Talent team management capabilities. Such roles
human capital investments towards sustaining
its position as one of India's most valuable
as evidenced through excellence in strategy
formulation and execution. ITC's Human
for Tomorrow facilitate deep functional expertise early in
one’s career through immersion in complex
employers, strengthening engagement of the Resource systems and processes governing ITC's vision of building winning businesses
problem-solving assignments requiring the
workforce, fostering a competitively superior, talent selection, performance management, and nurturing business leaders, reflects its
application of domain expertise. Such talent
performance-driven culture and building capability building, employee relations, commitment to creating new engines of
is provided the opportunity to work closely
a Future-Tech enterprise with investments recognition, rewards, employee well-being, all growth while strengthening existing businesses,
with, and be mentored by, senior leadership
in purposeful consumer-centric innovation, play a critical role in enhancing this vitality and building a deep talent bench of high-quality
on strategic projects and assignments through
technology, a digitally-enriched smart delivering the unique talent promise of ‘Building leaders, and remaining rooted in creating value
a variety of programs such as 'Launch Pad' &
ecosystem and sustainability. Winning Businesses, Building Business Leaders for all stakeholders. The talent development
the 'Young Manager Committee’. The ’Studio
and Creating Value for India’. ITC's approach practices help create, foster, and strengthen
One Xchange’ forum enables personalized
of distributed leadership, which combines the capability of human capital to deliver
interaction of young managers with senior
empowerment with accountability enables it to critical outcomes on the vectors of strategic
leadership providing them an opportunity
pursue multiple drivers of growth, in a manner impact, operational efficiency, and capital
to share suggestions and appreciate the
that remains true to the Company's values productivity while reimagining consumer
Company’s strategic intent, facilitating
while encouraging an entrepreneurial spirit, experience, business model transformation,
their development journey. Supporting this
promoting execution excellence and attracting and employee experience.
approach is ITC’s remuneration strategy which
the finest quality of talent.
Talent sourced from premier Institutes is is performance-led, market competitive and
positioned in high-impact roles which offer long-term oriented, rewarding exemplary
opportunities to build functional mastery and contributions and promoting careers.

Annexures
Workforce for Tomorrow
Fostering Employee
Engagement: The ITC Way
Performance and Retention Learning & Development
To strengthen a culture of accountability ITC has assiduously built a culture of continuous
and performance, the principles of learning, innovation and collaboration
'management by objectives' are reflected by providing leading-edge learning and
in ITC's performance management system. development support to managers which is
Clearly defined objectives, result areas vital to strengthening competitive advantage
aligned to Business Plans, and assessments and helping employees realise their full
based on measurable outcomes provide potential. The emphasis is on providing
a sound foundation to drive and sustain experiential learning through on the-job
high performance. Market-competitive and assignments, an enabling & supportive
Marketing in a Digital World, Business In FY 2022-23, there were over 11 lac hours
performance-linked remuneration reinforces environment and promoting learning agility.
Planning, Development programmes for of formal training provided to permanent
a culture of meritocracy and harmonises the The Company has a structured Developmental
women managers, Recruiting Right, Gender and other than permanent employees,
rewards strategy with the delivery of results. Planning System that dovetails with the guiding
Sensitization and Unconscious Bias workshops collectively, across the Company.
principle of ensuring equal opportunity for
Access to the best capability-building etc. (refer Annexure 1 for more details). In pursuit of strengthening its competitive
all employees to access skills and capability-
interventions through customised programmes vitality, the Company has made significant
building investments at the workplace. Various online programs on functional skills
conducted by reputed international and investments in recent years in building digital
were rolled out to scale up learning. This
domestic faculty, enriching roles, and the social, ITC has identified four capability vectors capacity, recognising its transformative
approach ensures the assimilation as well as
physical and community infrastructure made relevant to making its businesses future-ready potential across value chains of its various
application of learning for superior business
available to employees contributes to building – Business Critical Strategic Competencies, Businesses. The utility of all these investments
results.
a culture of high performance coupled with a Leadership Development, Organisation Identity was amplified during the pandemic, enabling
relational contract and enduring commitment. and Pride, and Diversity, Equity and Inclusion. To promote learning anytime and anywhere, superior responsiveness and agility in our
ITC encourages employees to use the engagement with consumers, various
During FY 2022-23, 125 women employees were Employees are offered best-in-class learning
Company’s subscription arrangements with stakeholders, and managing our supply chain.
due to return from maternity leave, and 125 of and development support comprising a blend
various online course curators. These resources
them re-joined work after their leave ended, a of learning formats - classroom, gaming, The Digital Council, continues to provide strategic
encourage employees to re-skill and upskill
return to work rate on maternity leave is 100%. online, coaching, mentoring and on-the-job direction by ideating, seeding, and sponsoring
themselves, at their convenience.
training. Programme content often spans high impact digital interventions and harnessing
multiple formats supported by business-critical Based on Career Conversations with Managers the power of synergy for cross-fertilisation of ideas.
application projects. and their development needs, every Business The ‘Young Digital Innovators Lab’, mentored
puts together a development plan and a by a senior manager, provides opportunities for
Some key capability development programs
training calendar to address the desired managers with a passion for applying the power
undertaken during the year include the
capability-building objectives of the business. of technology to build competitive advantage and
Business Leadership Program, Full Funnel
solve business challenges.
Marketing, Data Science and Analytics,

Annexures
Workforce for Tomorrow Fostering Employee Engagement: The ITC Way
Employee Well-being Employee Voice and Engagement

ITC's full-time employees receive benefits ITC continued with the practice of periodically
such as periodic preventive health check-ups, assessing employee engagement through a
medical assistance (including hospitalisation), Company-wide survey in 2022. Since 2016,
group accident insurance, annual leave along ITC made a concerted effort to assess and
with leave encashment, flexible working improve engagement. The impact was visible
policies, maternity leave and child care leave in the consistent improvement of Engagement,
for women employees, paternity leaves for Performance Enablement, and Managerial
employees, retirement benefits, employee Effectiveness measures over the years. The
assistance programmes and employee recent survey in 2022 points to continued high
counselling programmes among others. engagement levels and consolidation of the
gains achieved in the past.
To prevent occupational diseases and
accidents, the Company creates awareness Highlights of the Survey
During the year, a range of engagement- Intensive employee communication, explaining
through various initiatives and ensures good
95%
building programmes were designed and ITC’s strategies and approach on key issues,
ergonomics and safe practices at all its
implemented which included the strengthening was carried out through various employee
workspaces. Most of ITC’s Units have a health
I work beyond what is required of initiatives such as leadership outreach outreach programmes such as ‘Town Halls’
centre and resident doctor.
to help ITC succeed through extensive communication, recognition by the Chairman, CMC Members and by
As part of the response to the pandemic, programmes acknowledging exceptional Chief Executives within Businesses, skip-level
94%
the Company provided comprehensive care contributions of employees and teams, career meetings and interactions in small groups.
and support to employees and their families, conversations, and development planning for
Career Conversations are now an integral
instituted various risk mitigation measures such I am proud to be associated with ITC robust positioning and progression decisions
part of the performance management system
as vaccinations for employees, their families and investments in employee wellbeing.
and provide clarity and help employees shape
93%
and value chain partners, promoted mask Employee recognition programmes, extensive
their careers. ‘Reflections 360’, a development
usage and adopted hybrid working wherever leadership outreach through Town Halls,
intervention seeking feedback on managerial
feasible. I believe strongly in the goals and skip-level meetings, periodic interactions of
work styles from a manager’s internal eco-
objectives of ITC managers with senior leaders, reinforcement
“Wellbeing on the Web”, an online Employee system, was sustained and covered leaders
of career dialogues and a performance
Assistance Programme to promote holistic across the Company base.
wellbeing of employees and their families
has been offered as a part of the employee
91% management system around well-defined
objectives aligned to Business Plans have The year also witnessed the Hotels Business
I am optimistic about the future of ITC all contributed to improving the levels of winning the W.E. Global Employees Choice
wellness initiative.
engagement across the Company. Award 2022 by W.E.-Matter where ~1000 of
ITC employees invest time and are engaged
with ITC's Social Investments Programmes in
91% Recognition platforms such as ‘GEM’, ‘IGNITE’,
our managers were surveyed and presented
their perceptions independently. ITC’s Foods
Our senior leadership is committed to ‘Excellence in Marketing Awards’, Achievers’
the catchment areas of their business units. Business was recognized at the Economic
providing high-quality products and Award ‘Momentous’ and ‘TM&D Unbeatables’
These avenues help individuals achieve their Times Human Capital Award for Excellence in
sevices to external customers acknowledged the exemplary contributions of
life goals. HR Business Partnership.
employees in idea generation and execution.

Annexures
Workforce for Tomorrow Fostering Employee Engagement: The ITC Way
What some of ITC's trailblazers have

to say about their experience
ITC has made a very large contribution From providing equitable opportunities The most striking thing about working ITC has been progressively working to
to Nation Building. As an individual, what to rewarding calibre to encouraging within the ITC family is how personally usher in NextGen Agriculture, primarily
is inspiring is when we see the lives that enterprise-wide value addition, ITC has fulfilling the experience is. They make one focusing on Farmer's livelihood. I have
have got transformed on ground. That truly enabled my growth in toto. feel seen and appreciated, irrespective got opportunity to work closely with the
gives us an immense sense of pride. of designation or role, and ensure that farmers and impact their lives positively.
the opportunities and support required Along with that, my role enables me
to realise one’s potential are made easily to work closely with government
accessible to all. representatives, which has expanded
both my strengths and my perspectives.
Nandini Basu Humaira Fatima Antara Roy Usha Rani

Vice-President – Corporate Associate Scientist - ITC Life Sciences and Assistant General Counsel, Chief Manager, Plantations, ITC Paper &
Communications Technology Centre Corporate Legal Specialty Papers Division
ITC has helped me connect with the Whether by focussing on serving larger ITC Hotels has provided me an equal
larger purpose and empowered national priorities, driving customer opportunity to achieve my goals and
me with untethered opportunities focus, through cutting edge innovation simultaneously work on the food
to translate science into consumer- or by providing its employees ample sustainability which helps in individual
oriented innovations. With ITC, each opportunities and support. ITC truly takes well-being and conservation of
day is an opportunity, each month a action to manifest its ethos of ‘Sab Saath resources. The organization prioritizes
novel endeavour and every year is an Badhein’. employee well-being, diversity and
invaluable learning experience. inclusion which makes the workplace
equitable and supportive.
Deepti Kaushal Nandini Ramasubramaniam Manisha Bhasin

Lead Scientist - ITC Life Sciences and Manager, Human Resources - ITC Central Corporate Executive Chef,
Technology Centre Projects Organisation ITC Hotels

Annexures
Diversity,
Equity & Inclusion
The Company is committed to enhancing
gender diversity and participation of the
differently-abled in the workforce, and where
needed, will undertake supportive actions
in the spirit of equity at the workplace. Such
concerted actions span three vectors, namely:
Representation
Inclusion & Enablement
Commitment and Assurance
ITC believes that diversity at workplace creates based on caste, religion, disability, gender, promotes holistic perspectives, fosters creative
an environment conducive to engagement, sexual orientation, race, colour, ancestry, solutions, and is integral to serving our
alignment, innovation and high performance. marital status or affiliation with a political, customers better while creating value for all
This is achieved by a policy that ensures religious or union organisation or majority/ stakeholders. ITC is committed to enhancing
diversity and non-discrimination across the minority group. ITC is an equal-opportunity gender diversity and participation of the
Company. employer, and recruitment at ITC is solely differently-abled in the workforce, and where
based on merit and ability. ITC’s efforts to needed, will undertake supportive actions in
The Company’s policies ensure a work
enhance Diversity, Equity, and Inclusion are the spirit of equity at the workplace.
environment that is free from any form of
founded on the conviction that a diverse
discrimination amongst its employees in
workforce contributes to rich discourse,
compensation, training and employee benefits,

Annexures
Workforce for Tomorrow Diversity, Equity & Inclusion
To enhance women representation across With every successive ICML coming on-
Additional Performance responsibility levels, several measures have stream, the representation of women in the
Indicators for Financial Data been initiated: workforce has progressively increased, with
Year 2022-23: ⬤ Current women leaders act as mentors and the recent ICMLs of Pudukottai and Medak
exemplars to others. Women leaders in key having women representation at 79% and 97%,
responsibilities such as a regional operations respectively, amongst the frontline workforce.
Total Attrition in hospitality, category manufacturing ITC’s ICMLs received several prestigious awards
(includes death in harness, management, Category P&L head serve as and accolades during the year from leading
retirals etc.) 12% inspiration to managers in early responsibility industry bodies such as the Confederation of
levels. Further women leaders across pivotal Indian Industry (CII), Union Ministry of Labour
Total Female Attrition 18% roles in Sustainability, Brand Management, & Employment, Food and Agriculture Centre
Manufacturing, Hospitality, Corporate of Excellence, etc. for their high standards
Total Male Attrition 11% Communications, Legal and Human Resources of safety, quality, operational excellence
bear testimony of the company’s commitment and benchmarks in green and sustainable
towards developing and nurturing women in manufacturing.
leadership roles.
Total Permanent Employees Through policies offering flexible work Similarly, ITC’s Hotels Division is amongst the
Number 23,725 arrangements, extended child care leave, ⬤ Tailored development programmes with leading employers in the industry with regard to
travel support for infants and care-givers, particular emphasis on helping women women representation as well as a significant
Total Female Permanent secure transport, paternity leave, same gender managers navigate their careers in the employer of the differently abled. The Life
2,388 partner medical benefits, infrastructure support context of the varied responsibilities on their Science and Technology Centre is another
Employees
coupled with various large-scale sensitization professional and personal front. Our flagship exemplar of gender diversity with 44% of its
programmes, Employee Resource Groups and program on developing women talent creates workforce being women.
the commitment and sponsorship of leaders, transformative experience through immersive
New Hires Total 2,392 ITC provides an enabling environment to further workshops, one on one coaching and guided Related Policies / Steps to Support Diversity,
its Diversity, Equity and Inclusion goals. Amongst practice sessions. Equity & Inclusion:
New Hires Female 498 several positive outcomes, the Company’s Prevention, Prohibition and Redressal of Sexual
⬤ Strengthening residency and retention
recruitment of talent from premier campuses Harassment: The Company has put in place
through polices such as alternate location
reflects diversity ratios superior to the prevailing suitable processes and mechanisms to ensure
New Hires Male 1,894 working, travel support, child care leave.
norm in such institutions. issues such as sexual harassment, if any, are
These enabling policies have eased work life
addressed effectively.
*ITC Standalone Gender-sensitization and inclusive hiring integration and have been warmly appreciated.
workshops are being conducted for managers Employees undergo sensitisation on diversity
across the organisation. Comprehensive ITC has provided special impetus to and inclusive behavior at the workplace and
development programs for women managers programmes directed at enhancing gender internal redressal committees are in place
and women-focused Wellness programmes diversity in the workforce. As an illustration, across Businesses. During the year 2022-23,
bear testimony to the Company’s efforts on the several of ITC’s Integrated Consumer Goods 1 case of sexual harassment was raised and
enablement vector of its Diversity, Equity and Manufacturing & Logistics (ICML) facilities resolved.
Inclusion Strategy. represent industry-leading gender diversity.

Annexures
Encouraging Women
in Manufacturing Inclusion of the
ITC’s food manufacturing units have been designed equipment to enable women A number of communication forums and Specially-abled
engaging an increasing number of women participation on the shop floor. As a participation platforms such as employee Apart from gender, employment of the
on the shopfloor. With more than 1,500 confidence-building exercise, on the day of committees, town halls, access to special differently-abled is a priority area in ITC’s
women, ITC’s ICML in Pudukkottai in Tamil joining, women employees, as well as their welfare assistants have been established to diversity agenda. In several of our Businesses,
Nadu engages a workforce with 75% women family members, are provided an extensive address employee concerns and address employees and associates who are differently-
representation. Similarly, ITC's ICML at Mysuru orientation to the workplace. The factory grievances, if any. ICML’s have also been abled are engaged across the value chain,
in Karnataka is the first FMCG factory in the leadership team engages with them about the organizing well-being initiatives and with the necessary infrastructure support
region to deploy women workforce across Companies policies and practices regarding occupational awareness sessions regarding and training. ITC directly as well as through
all shifts. Women constitute close to 47% of health and safety, quality processes and women’s health issues, gender sensitization partnerships with service providers and
the workforce in the Mysuru ICML. The ICML employee benefits. To strengthen morale and POSH (Prevention of Sexual agencies, deploys 295 differently-abled
at Guwahati has women representation at and confidence, visits are organized to Harassment at the Workplace) workshops. persons.
24%. Similarly, the recently commissioned other women-majority ICMLs for training. To educate & inspire young minds, students
ICML in Medak, Telengana has 40% women
representation.
Institutional support is reinforced through
employee welfare amenities such as a creche,
from schools and colleges are invited
to visit ICMLs, with employees acting as
Grievance Redressal
round-the-clock access to the health centre, ambassadors to build a workforce pipeline To address employee concerns and complaints
These factories have state-of-the-art
safe transportation with vehicles equipped with for future requirements for factory visits. pertaining to human rights and decent labour
manufacturing technology with ergonomically
cameras, GPS and panic buttons. practices, a Grievance Redressal Procedure
with appropriate systems and mechanisms
exists across ITC’s units. It aims to facilitate
open and structured discussions on any
grievances, labour practices and human rights.
The implementation is ensured by Divisional/

SBU Chief Executives, through members of the
respective Management Committees.
144 grievances were received from employees
on matters relating to policy, welfare and
administration. Of these, 136 were resolved in
FY 2022-23.

Annexures
Annexure 1
Learning and Development As part of the new talent assimilation process,
The company’s deep commitment to Learning
Programs are delivered through a variety ITC invests in various induction programs
and Development reflects in the interventions
of formats – e-learning material with targeted at different types of recruits – campus
conducted on the four vectors of Business
95%
certifications / tests, on-premise workshops, as well as experienced hires. Programs
Critical Strategic Competencies, Leadership
application projects mentored by senior such as the ‘AUT Induction’ and the ‘Group
Development, Organisation Identity and Pride,
managers. Induction Program’ provide new managers
Functional and Diversity, Equity and Inclusion.
an opportunity to engage with the leadership
Skills The functional capability programs build a
of the Company and hear from them directly Managerial staff find the
strong foundation on contemporary skills
Diversity &
» Strategy
Marketing
about the Companies aspirations, strategies trainings exceeding their
» with a sharp focus on on-the-job application.
Inclusion » Digital
Some noteworthy programmes include:
and storied legacy. Managers superannuating expectations
» Analytics from service attend a program, along with their
Digital Marketing Immersion, Business
spouse, to help them transition to retirement.
Planning Program, Marketing across Full
Funnel of Consumer Journey. 95% of the To expand the learning inclusion while ensuring
participants in these programs have rated the the quality of the interventions, ITC has moved
capability-building interventions as Exceeding to a hybrid learning system, combining live
85%
Expectations, attesting the quality of the and self-paced curated courses. ITC Centre
programs. ITC Gurukul, a centre of excellence of Learning, the Companies Digital Learning
in technical training has delivered more than Platform, is accessible to our managerial
70 intensive programs covering over 700 population, providing rich content anytime,
employees. The e-learning modules on Digital anywhere. In 2022, 2,624 users accessed the Managerial staff find their
and Analytics provided an opportunity to refresh ITC Centre of Learning on an average every performance enabled
the digital quotients of employees at scale. month, demonstrating the leap in scale and
reach enabled by the hybrid approach.
As part of the Leadership Development efforts,
almost 100% of high-potential middle managers Comprehensive offerings across four vectors,
have been covered by the Business Leadership the ease of accessing top-of-the-shelf
program. All senior managers and middle content, and high focus on application have all
20%
Organisational
Leadership managers of teams are invited to participate in contributed to consistently high organizational
Awarenesss
the Reflections 360 survey which provides them learning effectiveness metrics.
» Managerial Skill
with rich feedback about their operating style
» 360-degree
and is a source of insight for self-improvement.
feedback Increase in L&D Coverage
» Business
leadership ITC also partners with institutes of global over pre-pandemic years
prominence such as INSEAD, and Rice University
and domestic and international experts to
customize programs for its managers.

Annexures
Employee Engagement Survey

Methodology: The Engagement Survey is Remuneration Philosophy People Analytics: Strategic
conducted on a biannual basis for ITC’s ITC’s Remuneration strategy is performance Workforce Planning
Management Employees. Engagement Surveys based, competitive and values led. It is The Annual Business Plan serves as the ⬤ One of the businesses has also explored
for other employees’ is conducted locally at designed to reward holistic performance that foundation for Human Resource Plans, and implemented a Stability Index of employee
varying frequencies. The engagement survey is in congruence with ITC’s Triple Bottom Line which are aligned to deliver strategic value based on employee profile parameters such
for managers had a total of 56 questions approach to Business, to attract and retain and enable the execution of such Plans. The as duration in role, educational background,
with a 5-point response scale. 96% of ITC’s high quality talent and is anchored on ITC’s planning & execution of HR processes, including potential etc & experimented with this to
managers responded to the survey. Within values, all of which are integral in pursuit of key decisions involving Human Capital, entails enhance employee retention.
this index 94 % of respondents were proud to ITC’s vision and mission of enhancing the extensive analysis of data, both quantitative
⬤ Significant emphasis is given to attrition
be associated with ITC. The survey findings wealth generating capability of the enterprise and qualitative. Some of the people's processes
analytics. Feedback of exiting employees
form a part of focus group discussions across in a globalising environment while delivering where the analytics has been leveraged
is monitored and insights generated from
Businesses, where results are shared and superior and sustainable stakeholder value. extensively are illustrated below:
feedback forms and exit interviews. Such
action plans constructed to address any gaps ⬤ The organization uses SAP SuccessFactors
Remuneration is therefore a function of feedback is an input to decisions on policies,
or improvement areas. for talent analytics. The detailed data
performance, potential, market conditions and talent development and acquisition, career
architecture enabled by SAP SuccessFactors
Formal mechanisms to promote an open the employee’s grade. planning and renewal of various organizational
provides the foundation for real-time employee
feedback culture: iEngage is one amongst systems.
Performance includes Business and insights upon which talent decisions are made.
several methods to harness the voice of the
Company performance, at middle and senior ⬤ Deployment of ‘dipstick’ surveys through
employee. Other platforms include Town Halls ⬤ Biennial Company-wide Employee
responsibility levels, apart from individual tools such as HR Chatbots helps assess
conducted by leadership teams in Businesses Engagement survey provides rich data
performance. Pay differentials, consequently employee sentiment, understand micro-
and Corporate, the Studio One Xchange regarding employee perceptions of
are a function of the employee’s track record, cultures and take targeted actions and pre-
interaction between the Chairman, Corporate engagement, performance enablement, and
potential and business performance. ITC emptive measures to address any attrition risks.
Management Committee Members and managerial effectiveness. This data is analysed
operates across sectors and pay is specific to
young managers, several pulse surveys, skip- extensively by Businesses to take targeted ⬤ To assess manpower productivity,
sectors for a vast majority of employees.
level meetings, Business Plan Cascades, exit actions to address any improvement areas effectiveness and utilization, Businesses deploy
interviews, the performance appraisal process, across these dimensions. an assortment of measures such as manpower
career conversations and development cost ratios relative to gross margins and
⬤ Scientific assessments of jobs & roles in
planning discussions and grievance redressal turnover or manpower leverage ratios such as
the organisation is carried out periodically
process. sales per employee, or manpower productivity
through a globally recognized Job Evaluation
ratios in relation to industry. These indices are
framework focussing on the content of the role,
a key input to the Business’ human capital
accountability, nature of problem-solving and
strategy.
impact. The evaluation defines the relative
complexity of a role, brings out efficiency in
organizational structures and supports with
career planning decisions.

Annexures
Human Rights
ITC has a long-standing commitment to
human rights and it is reflected in its Code
Respecting and ITC’s Policies on Fair
of Conduct for its employees and Suppliers’ Remediating Human Labour Practices
and Service Providers’ Code of Conduct. The
Company has policies on human rights which Rights Prohibition of Child Labour
and Forced Labour Road Ahead
are applicable to its employees, suppliers Within ITC Operations In line with ITC’s unflinching commitment
and service providers. The said Policies and The Company continues to work towards to good labour practices, it is ensured that
their implementation are directed towards strengthening and introducing systems to ITC will continue its efforts
no person below the age of eighteen years
adherence to applicable laws and upholding ensure sound implementation of ITC’s policies is employed by any Business. Forced or on capacity building of all
the spirit of human rights, as enshrined in on human rights and ensuring an inclusive compulsory labour is strictly prohibited in all concerned internal and
existing international standards such as the workplace. All ITC contracts for the construction
Universal Declaration and the Fundamental
ITC units and so is the association with vendors external stakeholders
and upgrade of hotels, factories, ITC and suppliers who employ child and/ or forced
Human Rights Conventions of the International warehouses, housing colonies, incorporate the on Human Rights. ITC's
labour.
Labour Organisation (ILO). environment, health, safety and human rights due-diligence processes
The Company is committed to Respecting and clauses, including workplace environment Freedom of Association for vendors and supplier
and compliance of labour practices, and
Remediating Human Rights for employees ITC recognises and respects the right of its partners on Human Rights
and workers within its operational premises are supervised by ITC managers for 100% employees to exercise or refrain from exercising
adherence. issues will be further
and beyond its fence. There are oversight the freedom of association and collective
mechanisms, and preventive measures for its bargaining. During the last year, over 10,700 strengthened for mitigating
suppliers and vendor partners, also. ITC also ITC Suppliers’ and Value-chain Partners employees were covered under the collective any potential human rights
ITC’s Code of Conduct for Vendors and Service
has in place, dedicated policies and channels bargaining process across India. issues. ITC aims to further
for handling grievances of its key stakeholders. Providers enshrines the Company’s unwavering
focus on fair treatment, human rights, good build upon the expertise
Related Policies
labour practices, environmental conservation, • ITC’s Code of Conduct on field engagement
health and safety. This Code is shared and • Policy on Freedom of Association with farmers and follow
accepted by all supply chain partners and • Policy on Prohibition of Child Labour international standards
service providers. In FY 2022-23, ITC engaged and Prevention of Forced Labour at the
1,304 service providers (within and outside for fair practices in our
Workplace
premises) and all contracts with the service • Policy on Diversity, Equity & Inclusion agri practices. Moreover,
providers included clauses that conformed to ITC is also strengthening
ITC’s Human Rights Policies and EHS guidelines.
its grievance redressal
Page 103
Refer ‘Sustainable Supply Chain
and Responsible Sourcing’
systems for all value-chain
Section for more details. partners.

Annexures
Occupational
Health and
Safety
Promoting a Culture
of Safety
ITC continues to believe that a safe and healthy
work environment is a prerequisite for employee
well-being, and the adoption of best practices
in occupational health and safety have a direct
impact on its overall performance. It helps in
attracting and retaining quality talent, besides
being the duty of the Company as a responsible
corporate citizen. for continual risk identification, assessment and material flows, etc. are evaluated in of keystone behaviours by individual units
and mitigation with active participation of detail at the design stage and the necessary to demonstrate collective commitment and
ITC endeavours that Environment, Health
the workforce. Several national awards and requirements as per best in class Standards create a shared vision of safety and discipline,
& Safety (EHS) standards at all its units are
certifications acknowledge ITC’s commitment and practices are incorporated. Compliance within the Unit. Design thinking methodologies
ahead of legislation, regulations and codes
and efforts towards providing a safe and with these Standards are then verified have also been used to reinforce behavioural
of practice and are benchmarked against
healthy workplace to all. by conducting audits during the project based safety initiatives which has resulted in
international best practices. ITC's approach
implementation and before the project is signifi¬cant positive changes.
to occupational health & safety standards is To incorporate safety deeper into ITC's
formally commissioned.
articulated in the Board approved EHS Policy. operational practices and achieve the 'Zero In addition, all ITC Units undergo periodic
It is based on an EHS management system that Accident' goal, the Company’s Safety strategy Environment, Health & Safety audits at the
Safety by Culture: From 'Compliance Focus'
emphasises on enhancing EHS performance by rests on two pillars: ‘Safety by Design’ and business level as well as Corporate, to verify
to 'Behaviour Centric' safety culture
setting objectives and targets and continually ‘Safety by Culture’. compliance with standards.
ITC’s journey in safety has evolved from
monitoring key performance indicators.
‘compliance driven by standards and
Further, it promotes a culture of safety through Safety by Design: From 'Drawing Board' to EHS Digitization
guidelines’ to a ‘behaviour centric – safety
behaviour change programmes and by 'Operations' Digitisation of EHS Management with the
culture’. ‘Safety by Culture’ looks at driving
providing appropriate training to employees ITC follows ‘Safety by Design’ by integrating objective of improving integration of safety
behavioural changes so that safety is ingrained
as well as service providers’ employees, best-in-class engineering standards in the with operation, was implemented through an
in the culture of the organisation across
while continually investing in state-of-the-art design and in project execution stage of all enterprise wide roll out of a versatile software.
operating units. Accordingly, behaviour-based
technology and in developing human capital. investments in the built environment. This Its usage is well underway at all ITC’s operating
safety initiatives are being implemented across
helps in reducing potential hazards as well as units and upon its stabilisation, it will bring
ITC has identified the EHS risk management several operating units. To drive the safety
optimise operational costs. in better ownership at shop floor level and
framework as one of the integral steps towards culture, ITC is making use of tools such as a
overview at all levels.
building a robust safety management system. Aspects such as fire safety, electrical safety, structured conversation with workers on ‘Safe
This framework consists of a set processes material handling, machine safety, people and Unsafe’ acts, supplemented by adoption

Annexures
Occupational Health and Safety Promoting a Culture of Safety
Organisational EHS Framework

The key activities carried out to ensure integration of robust EHS standards across the project life-cycle are depicted below:
Drawing Board Stage Execution Stage Operations Stage
EHS requirements integrated at the design stage Compliance with EHS standards Compliance with Corporate guidelines during the operation phase of all ITC units, Hotels,
for all new investments to minimise hazards with during the construction phase is Warehouses and Offices is ensured through established EHS management systems with
potential risk of Injuries ensured by implementing project EHS designated roles and responsibilities for competent resources
Design Reviews management systems
• Building and structural stability EHS management systems
• Fire and life safety measures Project EHS management systems • A well-defined EHS Management structure
• Electrical systems • Training of all employees including • Quarterly Meeting of the EHS Committee in every ITC unit to review EHS performance
• Machine safety service providers’ employees • Engagement with the workforce to jointly assess risks in the operations and accordingly
• Work place lighting • Enforcement of the use of safe improvise the Safe Work Practices (SWPs)
• Ventilation and hygiene requirements equipment / tools / tackles • Coverage of health and safety aspects in long-term agreements with trade unions
• Noise and dust controls • Development of and adherence • Awareness sessions for employees, their families and surrounding communities on
• Water and energy use optimisation to safe work procedures (SWPs) / Covid-19, HIV/AIDs, hepatitis, dengue, malaria and other wellness related issues
• Waste management method statements
• Traffic safety • Observing good housekeeping Monitoring compliance through:
• Segregation of man-material movement and storage practices • Internal audits of ITC units at Divisional as well as Corporate level on a periodic basis
• Usage of Personal Protective • Accident reporting and investigation to identify the root causes and subsequent
Equipment (PPE) implementation of corrective and preventive measures
Advantages of incorporating
• Accident investigation findings with corrective and preventive measures form part of the
EHS in the design phase
report presented to the Corporate Management Committee (monthly) and the Board
• Helps in eliminating and reducing hazards Pre-commissioning audits of all
(quarterly)
• Optimises operational cost and overall large projects done by Corporate
• Ensure effective dissemination of learnings from each incident/accident across the
infrastructure EHS (CEHS) department
organisation to prevent recurrence.
• Create assets that are aligned to organisational • To ensure that infrastructure
goals including plant and machinery
have been procured and installed
in conformance with defined
standards

Annexures
Occupational Health and Safety
Safety Performance
2022-23
ITC reports its safety performance on two
fronts – ‘on-site’ - referring to the place of
work i.e. factory, hotel, office, etc. which is
under direct operational control of ITC and
‘off-site’ - defined as places other than on-site
while on official duty, which includes to and
fro commute between residence and place of
Lost Day Rate
work.
Lost Day Rate (LDR) is a measure to evaluate
safety performance and it does so by Injury Rate
On-site Safety
comparing the number of person-days lost for Injury rate (IR) is defined as the frequency of High Consequence Work Related Injury Rate
In 2022-23, the total on-site Lost Time Accidents
every 200,000 man-hours worked. LTAs, for every 200,000 man-hours worked. This is the rate of High Consequence Work
(LTA) were at 14, same as in 2021-22.
Related Injuries (excluding fatalities), for every
Out of these 14 accidents, 6 pertain to ITC
Lost Day Rate Injury Rate 200,000 manhours worked.
employees**, and the balance 8 relate to
service providers’ employees. These accidents High Consequence Work
involved 14 male employees. During the year, 29.4 0.024 Related Injuries (HCWRI) = 1
one unfortunate fatality involving service 0.022
provider employee (male) was reported. 0.019
0.018
0.019 0.0014
HCWRI Rate in 2022-23
Further, detailed investigations are carried out
for all accidents, including LTA*, to identify the 15.6* Note: Being tracked from 2022-23
root causes and to understand the measures
which requires implementation, to prevent 9.8
recurrence. The learnings from all accidents 8.39
are disseminated across the organisation and a
formal compliance obtained. 2.02
*Lost Time Accident (LTA) is defined as an accident 2018-19 2019-20 2020-21 2021-22 2022-23 2018-19 2019-20 2020-21 2021-22 2022-23
due to which the injured is not able to come back to
work in the next scheduled shift.
Lost Day Rate is for the combined workforce i.e. ITC The injury rate shown is for the combined workforce
** Includes two trainees employees and service providers’ employees. i.e. ITC employees and service providers’ employees.
Loss of person-days accounted for as per IS
3786:1983 due to fatalities/ amputation.
* The decreased lost day rate in 2022-23 as
compared to 2021-22 is due to the reduction in fatal
accidents from 2 to 1

Annexures
Occupational Health and Safety Safety Performance 2022-23
Zero Accident Units Off-Site Safety

The following 68 units achieved ‘Zero On-site In 2022-23, the total number of off-site LTAs
Lost Time Accident’ status in 2022-23. Also, increased to 16 compared to 11 in 2021-22 and
amongst all operational units as of March 2023, all of these were road accidents. One fatal road
45 units held on to the “Zero On-site Lost Time accident was reported in 2022-23.
Accident” performance, since 2018-19.
As a standard practice, off-site accidents
are duly investigated and learnings from
these accidents are disseminated across the
Manufacturing Units Hotels Offices and Others
organisation. The Businesses are advised to
sensitise employees on the perils of unsafe road
• ABD (Agri-commodities) DHQ • Fortune Resort Bay Islands • R&D Rajamundry
conditions and there is constant reinforcement
• ABD (Leaf Tobacco) DHQ Guntur • ITC Gardenia • Corporate (HO), Calcutta
of the message to exercise extreme care,
• GLT Anaparti • ITC Grand Bharat • CPO
caution against over speeding and being
• GLT Chirala • ITC Grand Central • ITC Green Centre, Gurgaon
vigilant on the road.
• KGLT Mysore • ITC Grand Chola • ITC Green Centre, Manesar
• FBD, Haridwar • ITC Grand Goa • ITC LSTC
Road Accidents’ Trend
• SNPL - Simra Unit • ITC Kakatiya • ESPB DHQ
Though road infrastructure and traffic
• FBD, Malur • ITC Kohenur • FBD DHQ, Bangalore
management outside the units’ premises
• ICML Guwahati (FBD) • ITC Maratha • Hotel Projects
are well beyond ITC’s control, the Company
• ICML Mysore • ITC Maurya • I3L Bangalore
believes that improved awareness and
• ICML Panchla • ITC Mughal • I3L Pune
adoption of ‘defensive road safety techniques’
• Munger Dairy • ITC Rajputana • ITD DHQ
help to reduce the risks. ITC has accordingly
• NENPL, Mangaldai • ITC Sonar • Classic Golf & Country Club
strengthened the ongoing training and
• ITD (F) Bangalore • ITC Windsor • PCPB DHQ
awareness enhancing sessions for its
• ITD (F) Kidderpore • ITC Narmada • PPB DHQ
employees and service providers.
• ITD (F) Pune • Sheraton New Delhi • PSPD, DHQ
• ITD (F) Saharanpur • WelcomHotel Bengaluru • Technico HQ, Chandigarh A majority of the road accidents in the recent
• MAB • WelcomHotel Chennai • Technico R&D Centre, Manpura past have involved two-wheeler riders.
• PCPB, Guwahati • WelcomHotel Coimbatore • TM&D DHQ Accordingly, a user interactive two-wheeler
• PCPB, Haridwar • WelcomHotel Amritsar rider safety training programme is provided to
• FBD Medak • ITC Royal Bengal all employees including ITC’s Trade Marketing
• PPB Nadiad • WelcomeHotel Bhubaneshwar & Distribution (TM&D) supply chain members.
• G3 Spices • Welcomehotel Guntur The user interactive modules have also been
• PPB (F), Munger translated into vernacular languages to ensure
• PSPD, Tribeni wider coverage and adoption. A similar user
• SNPL - Pokhra Unit interactive training module for four-wheeler
users is also made available to employees.

Annexures
Occupational Health
A healthy workforce is an important contributor Committed to Achieve the ITC will continue to undertake efforts for
to ITC’s competitiveness and sustainability. All
‘Zero Accident’ Goal creating a safe working environment and a
strong safety culture by:
units maintain a conducive work environment
in line with Indian/International standards In line with the Company’s EHS policy, the ⬤ Integrating safety at the design stage itself
on hygiene, lighting, ventilation and effective approach is to institutionalise safety as a value- and ensuring it through design reviews, stage
controls on noise and dust. Units are led concept by inculcating a sense of ownership inspections and pre-commissioning audits,
equipped with Occupational Health Centres Ensuring Wellness at all levels and driving behavioural change, thereby strengthening of engineering control
with adequate medical staff to monitor in the Workforce leading to the creation of a cohesive safety measures through ‘design for safety’ principles
occupational health and provide immediate culture.
ITC remains committed to protecting its ⬤ Conducting pre-commissioning and
relief as required. In addition, at least 2% of
employees from the threat posed by serious ITC has put in place comprehensive health and periodic operational audits during construction
total employees are professionally trained as
diseases including Covid-19, HIV/AIDS, safety protocols for the safety and well-being of and operational stages respectively
first aid providers.
hepatitis, dengue, malaria etc. During its stakeholders. ITC continues to strengthen its
⬤ Progressively covering businesses under
As part of ITC’s preventive medical programme, 2022-23, 99 awareness camps/ programmes safety processes, adopting globally recognised
various behaviour-based safety initiatives to
various categories of employees based on age were conducted and 6,712 employees attended best practices including digital transformation
facilitate engagement for collaborative work on
and exposure to occupational hazards undergo them. Awareness sessions were also conducted of EHS management systems, ensuring that
improving safety performances
periodic medical check-ups. In 2022-23, a total regarding off-the-job safety aspects such as facilities are designed, constructed, operated
of 15,521 employees underwent preventive oxygen cylinder safety, home safety, safe use of and maintained in an inherently safe manner. ⬤ Studies will continue to be conducted
medical examinations. LPG in the kitchen and road safety. to assess the safety culture and efficacy of
behaviour-based safety interventions
⬤ Adoption of keystone behaviours by

individual units to demonstrate collective
commitment and create a shared vision of
safety and discipline
⬤ Leveraging the digital landscape for safety

management system.
ITC will continue to assess its safety

performance by tracking both leading and
lagging indicators, and identify solutions for
strengthening the safety culture accordingly.
With this approach, ITC will endeavour to
achieve the organisation-wide goal of “Zero
Accidents”.

Mission Stakeholders, Spread
Sunehra Kal
and Coverage 149
MSK's Approach 149
Long-term Plans 2030 158
for Sustainable and Inclusive Growth

Way Forward 179
Creating Enduring Institutions 180
‘Mission Sunehra Kal’ (MSK) MSK aims to transform lives including those The Company’s CSR Policy, approved by
from the most marginalized amongst its the Board of the Company, guides the
is the umbrella brand for the
stakeholder groups. On the one hand, it programmes, projects and activities that the
mosaic of mutually reinforcing addresses livelihood challenges of today Company undertakes to create a significant
interventions under ITC’s and tomorrow through a holistic approach positive impact on its identified stakeholders.
Social Investments Programme to create healthy, educated, skilled and These programmes fall within the purview of
engaged communities which look to the future Schedule VII of the provisions of Section 135 of
(SIP) and is managed by a
with confidence and determination and live the Companies Act, 2013 and the Companies
dedicated team spread across a life with dignity. On the other hand, it also (Corporate Social Responsibility Policy) Rules,
regions of India. Additionally, enables transformation of landscapes through 2014.
various CSR programmes are interventions aimed at conservation of natural
resources and adoption of climate resilient
also implemented by business
agriculture practices.
divisions in their areas of
expertise.
Annexures
Mission Sunehra Kal for Sustainable and Inclusive Growth
Stakeholders,
Spread and Coverage MSK’s Approach
Key stakeholders based on the material aspects of ITC’s businesses comprise of: Stakeholder Needs
and Priorities
Rural communities in agri-catchments Communities in factory catchments
A comprehensive community needs assessment 6,771 Household surveys, 169 Key Informant
was earlier undertaken in 2015-16, in ITC’s core Interviews, 656 Focus Group Discussions and
Rural communities with whom ITC’s agri- Communities residing in close proximity
areas, that is, factory and agri-catchments. 168 Participatory Rural Appraisal exercises.
businesses have forged long and enduring to all ITC’s manufacturing units. These
Needs were identified, prioritized and
partnerships through crop development communities derive considerable benefits Stakeholder engagements undertaken with
Core Area Perspective Plan (CAPP 1.0) was
and procurement activities. While such from the multiplier effects arising from the community, civil societies and Government
developed. Whilst we keep revisiting the needs
economic linkages have generated wealth Company’s operations. Nevertheless, there is presented in detail in the Stakeholder
basis regular stakeholder engagements, CAPP
for rural households on a sustained basis is an expectation that the Company will also Engagement section of this report.
2.0 was taken up in FY 2021-22 which focussed
for decades, they also look to the Company build capabilities and facilitate the creation
on ITC’s core catchments across 21 factory and Further, national priorities of relevance were
to help find viable solutions to combat of necessary socio-economic eco-system
7 agri locations. identified and the Government schemes and
extreme weather episodes that threaten the to enable significant improvements in their
programmes that help in addressing the issues
sustainability of their production systems Human Development Indices (HDIs). The objectives of CAPP 2.0 were to:
were also mapped (details given in Table 1
and hence their livelihoods. They also seek ⬤ Revisit coverage and community needs in
presented ahead).
support for their well-being, especially for the changed external context;
their children, and a healthy habitat. Besides the periodical need assessments,
ssess reasons for not achieving the earlier
⬤ A
regular third-party impact assessments,
planned outcomes (if any); and
baseline & mid-term evaluations, and
⬤ R
e-strategize MSK themes and approach engagements to ascertain feedback &
based on the findings understand grievances if any, are also
undertaken to guide the programmes. Details
CAPP 2.0 exercise had covered around 3,700 of impact assessments pertaining to key
villages and urban habitations through programmes have been shared on www.
community participatory approach with itcportal.com and in ITC’s Annual Report 2023.
ITC’s CSR footprint is spread across 27 States / Union Territories

(UT) covering more than 300 districts predominantly focussing
on the above-mentioned key stakeholders.

Annexures
Mission Sunehra Kal for Sustainable and Inclusive Growth MSK’s Approach
The Two Horizon Approach

for Holistic Development Horizon Objectives Initiatives & Interventions
From the revisit of community needs

assessment survey and priority mapping,
Horizon I: Climate Smart Agriculture for
Farmer capability building through Farmer Producer Organizations, Farmer
climate change adaptation,
it was clear that ITC’s stakeholders are Field Schools & Choupal Pradarshan Khets, digital outreach and exposure visits
Strengthen increased resilience and actions
confronted with multiple, but inter-related for awareness, and large-scale adoption of Sustainable and Climate Smart /
current for sustainable improvement of
issues, at the core of which are the twin Resilient Practices
dominant yields and incomes
challenges of securing sustainable livelihoods, source(s) of
today and tomorrow. The findings reinforced livelihoods • Water stewardship for water positive catchments through supply
the need for continuing the Two Horizon
augmentation and demand management initiatives coupled with river basin
approach put in place a few years earlier,
level interventions
comprising an integrated response to
Natural Resources Management • Biodiversity conservation through restoration of commons, reducing
development.
to conserve and replenish natural pressures on forests, and native species greenery improvement at landscape
ITC’s Two Horizon approach focuses on resources critical for agriculture level
inclusive growth and holistic development • Soil health improvement through conservation agriculture and other
of households keeping women and other practices like green manuring, field application of compost, tank silt and
poor & vulnerable communities at the core, toilet manure (circularity)
who are an integral part of all interventions.
Women are not only beneficiaries of many of Livelihood Diversification to
• On-farm diversification through multi-purpose tree plantations
the programmes, but are also influencers and improve incomes and de-risk
• Off-farm diversification through livestock-based livelihood strengthening
active participants in grassroots institutions. livelihoods from climate change
Several progressive women beneficiaries also
assume the responsibilities of acting as change • Link farmers with Government programmes in the area of credit, insurance
makers in the society. Institutional Support for risk and marketing
The Two Horizon approach comprises mitigation and reduction of costs • Promote farmer institutions like Farmer Producer Organizations (FPOs) and
an integrated and affirmative response of cultivation Agri Business Centres (ABCs) to leverage the power of collectives for sale of
to development with Horizon I focusing agri-produce and access to credit, inputs, equipment, etc
on strengthening current livelihoods of
communities, primarily agriculture and allied
sector livelihoods, and Horizon –II focusing
on building capabilities and capacities to
empower them for a better life tomorrow.

Annexures
Horizon Objectives Initiatives & Interventions
Horizon II: Support to Education for

• Improve quality of learning in schools through teacher training and activity-based learning
improving quality of education
• Mainstream out of school children by providing support through Supplementary Learning Centres
Create and creating conducive learning
• Provide infrastructure support to schools and Anganwadi centres for conducive learning environment
capabilities for environment
tomorrow
Skilling of youth for enabling
gainful employment • Promote and develop skills aligned to market demand among unemployed youth
• Infrastructure support for sanitation through community toilets and individual household toilets
Provide access to sanitation, • Promote decentralized Waste Management and public hygiene
waste management and • Improve Maternal Health and reduce malnutrition among children under age of five. Build capacity of frontline workers like ASHA
healthcare services to improve and Anganwadi cadre and create awareness and social behaviour change among community
habitats and reduce mortality • Improve access to healthcare services in rural areas through doorstep delivery of curative and preventive healthcare services with
as well as ensure a healthy Mobile Medical Units, improvement of health infrastructure and other relevant interventions
community
• Inclusion of girls and women in education and skilling programmes

Empowering women for • Financial inclusion of women through financial literacy and government scheme linkages
reduction in economic and social • Socio-economic empowerment of women through focused interventions for livelihood through micro-enterprises, nurseries,
discrimination against women custom hiring centers, etc.
and girls • Key role for women in execution of programmes – Yojana Sakhis, Pashu Sakhis, Krishi Sakhis, Village Health Champions, Mother’s
Groups, Mohalla Committees, Water User Groups, Vanikaran Sanghas, Agri-business Centres, etc.

Annexures
Alignment to National Priorities and Table 1: Alignment to National Priorities and UN SDGs
Sustainable Development Goals
Investing in a holistic manner following the Objectives Government Priorities and Programmes of relevance SDGs
Two Horizon approach establishes enabling
conditions for the emergence of habitations Horizon 1: Strengthen current dominant source(s) of livelihoods
with indicators aligned to national priorities
and several Sustainable Development Goals
India's Net Zero Plans, Solar energy in agri, Millet mission,
(SDGs), whether in the area of protection of Climate Smart
Chemical Free farming, Agri biomass for energy needs and Agri
natural resources or the development of human Agriculture
start-ups etc.
capabilities. Table 1 illustrates these linkages for
key interventions.
Natural Resources National Water Mission, Har Khet ko Pani, Atal Bhujal Yojana,
Management River Basin Management, biodiversity conservation etc.
Livelihood Assistance for Agro-foresty, Rashtriya Gokul Mission, National

Diversification Livestock Mission etc.
Farmer Produces Orginsations, Custom Hiring Centers, Soil

Institutional
Health Card, Kissan Credit Card, PM KISAN, Crop Insurance,
Support
Farmer Pension scheme etc.
Horizon 2: Create capabilities for tomorrow
National Education Policy, Samagra Shiksha Abhiyan, Early

Support to
Childhood Care and Education, Swachh Vidyalaya Campaign,
Education
etc.
Skilling of youth Pradhan Mantri Kaushal Vikas Yojana, Skill India Mission etc.
Sanitation, waste
Swatch Bharat 2.0, Saksham Anganwadi programme and
management and
POSHAN 2.0, TB Mukht Abhiyan, National Health Mission etc.
healthcare
Self Help Groups, Producers' Enterprises, Financial literacy to

Empowering women
women, National Rural Livelihoods Mission, etc.

Annexures
Implementation Strategy
based on Key Tenets
ITC’s Social Investments Programme is
committed towards building and adopting
sustainable processes that would lead to
long-term sustainability of the programme
outcomes. SIP’s approach and implementation
strategy focuses on strengthening grassroots
institutions for community ownership, multi-
stakeholder partnerships and fund leverage for
scale and sustainability. The key elements of
the approach and implementation strategy are
explained ahead.
Impact Focused Programme Design

The programmes are designed following a
bottom-up approach, wherein community
needs are identified through needs
assessment and baseline studies, based on
which end outcomes (long-term and short-
term) are decided and initiatives finalized to
achieve those outcomes.
The programmes are designed keeping in

mind the targeted outcomes to be achieved
while having time-bound specific outputs that Capacity building of women farmers
act as short-term and mid-term milestones.
These outputs are related to specific activities Horizon approach. These impact assessments Focusing on Equity & Inclusion these groups to provide them the leverage to
planned under each programme to achieve adopted a combination of quantitative Equity and inclusion form a crucial component be able to achieve gender & social equity. For
the targeted outcomes. Regular and periodical household surveys and qualitative discussions of the ITC Mission Sunehra Kal programmes. instance, during 2022-23, a special batch in
reviews / evaluations / assessments are with community members and other key Same is ensured through targeted focus and by skilling was piloted for persons with disabilities,
undertaken to take stock of the situation and stakeholders. The findings and learnings from encouraging participation and representation and which is planned to be scaled up in the
make course corrections if required. This these impact assessments will feed into the of women, children as well as other vulnerable coming years. A programme is operational
helps in guiding the programmes in the right programmes as relevant. Summary of the and under privileged sections of society in since 2014 that focuses on enhancing the
direction. findings of some of these impact assessments all the programmes. Besides having these social and economic status of women whose
are also mentioned in ITC’s Annual Report 2023 sections at the core of all the programmes, households are dependent totally on them and
During FY 2022-23 also, impact assessments and the reports also available at special interventions are also planned for yet have meagre annual income. (refer Horizon
were undertaken for projects under the Two www.itcportal.com. II section for details).

Annexures
Participatory development through

Empowered Grassroots Institutions Table 2: Grass-root Institutions facilitated (cumulative)
Community behaviour change is the key
through focus on training and capacity building Intervention Institution Nos. Members
and demand generation for all interventions,
thereby enabling participation, contribution
Water Stewardship Water User Groups (WUGs) 4,290 69,631
and asset creation for the community.
Most activities are undertaken through On-farm Livelihood Diversification - Vanikaran Sanghas (VSs) 1,797 44,056
empowered community-based grassroots Social Forestry
organizations (CBOs). Community contribution,
both financial and in kind, is a key element,
Climate Smart Agriculture Agri-business Centres (ABCs)* 916 18,448
which combined with a participatory approach,
generates high ownership and enables
Climate Smart Agriculture Farmer Producer Organizations 1,150 ~265,000
managing their resources independently,
and in a judicious and equitable way, both so
fundamental to long-term sustenance. The Women Empowerment Self-Help Groups (SHGs) 6,545 80,154
members of such institutions also become
change agents and influencers for the larger Education School Management Committees (SMCs)* 781 4,686
community in their respective catchment.
15,479 481,975
*ABCs and SMCs are annual numbers
Along with the grassroots Institutions covered respectively, which comprises of children and
in the table above, several other types of community members. These groups inculcate
community-based activity groups are formed and encourage adoption of good sanitation
and / or strengthened under the programmes & hygiene practices at school and community
to ensure community ownership and level. Mothers groups are formed to support
sustenance of outcomes. Mohalla Committees activity-based learning for children at
are formed under decentralized waste community level. Community institutions such
management programme responsible for day as Charagah Vikas Samitis (CVS), pastureland
to day operations, including user fee collection committees and Biodiversity committees are
and payments to waste collectors. As part of also formed to plan, restore and take-up social
the education programme, Child Cabinets and protection of village commons restored under
Water & Sanitation (WATSAN) Committees the biodiversity conservation programme.
Women Agri-business Centre are formed at school and community level

Annexures
Multi-Stakeholder
Partnerships / Collaborations
Continuous emphasis is laid on building
partnerships of value for -
Technical Collaborations Implementation Partnerships Government Partnerships
being updated with Knowledge Partnerships with national & Implementation Partnerships have been Public Private Partnerships with governments
contemporary knowledge, international organizations / agencies in established with 78 reputed and expert NGOs are an integral part of MSK’s approach to
identifying technological order to remain contemporary and access for execution of the 129 projects across India, enable rapid scale-up of programmes that
the latest knowledge / technical know- which include both thematic experts and have been successfully demonstrated and
solutions and for innovations;
how to continuously improve the quality of grass-root NGOs. The NGO partners with their implemented in ITC’s project locations.
programmes. thematic expertise and grassroots presence
scaling and agile amplification; play a pivotal role in implementation of the
Apart from the regular PPPs aimed at resource
Prominent knowledge partnerships include pooling, focus has also been on partnering
programmes.
those with Consultative Group on International with governments for large scale amplification
efficient programme execution
Agricultural Research (CGIAR), International ITC invests in financial and project management delivered through the Government machinery.
at the field level. Union for Conservation of Nature (IUCN), skills of NGO partners to ensure robust outcomes
Till date, MSK has signed 86 MoUs (25 currently
International Water Management Institute and also enable their capacity building through
operational) with Central and various State
(IWMI), and Agricultural Institutes - Tamil exposure to ITC projects across geographies
governments, of which two were signed during
Nadu Agricultural University (TNAU), Indian and cross-fertilization of learnings.
the year.
Institute of Rice Research (IIRR), Indian
⬤ Collaborated with Department of Drinking
Institute of Soya Research (IISR), Vasant Dada
Water & Sanitation (DDWS), Government
Sugarcane Institute (VSI) and district level Krishi
of India and India Sanitation Coalition
Vigyan Kendras (KVK).
(ISC), FICCI to develop 36 Gram Panchayats
ITC had also entered into a partnership with (GPs) as Light Houses, demonstrating
IIT Delhi in FY 2021-22 to support research best practices in sanitation and waste
in identified STEM (Science, Technology, management, which can then be gradually
Engineering and Mathematics) areas for adopted by other GPs.
accelerating India's journey towards achieving
⬤ MoU with Women & Child Development
its Sustainable Development Goals.
Department, Government of Assam
to expand the Mother & Child Health
and Nutrition programme of MSK to
eight districts of Assam including seven
Aspirational Districts.

Annexures
Snapshot of all the MoUs signed so far is presented in Table 3 below.

Table 3: Government Partnerships
No. of Active in
Theme State Deparment/Programme Completed
MoUs FY 2022-23
Rajasthan, Maharashtra,
» NABARD Tribal Development Fund (TDF)
Agriculture Bihar, Madhya Pradesh, Assam, Jharkhand, 3 2 1
» NITI Aayog
Uttar Pradesh, Odisha
» Mukhyamantri Jal Swabhalamban Abhiyan
» Water Resources Department (WRD),
(MJSA)
Madhya Pradesh, Andhra Pradesh, Government of Maharashtra
» MGNREGA
Maharashtra, Rajasthan, Bihar, Telangana, » Watershed Development Department 46 7 39
Water Stewardship » Integrated Watershed Management
Karnataka Karnataka
Programme/ Watershed Development
» DRDA Munger
Programme
» Rajiv Gandhi Jal Sanchay Yojana
» NABARD
» Forest Department, Govt. of Maharashtra and » Wasteland & Pastureland Development Board
Biodiversity Maharashtra, Rajasthan, Telangana 3 3 0
Telangana (WPDB), Govt. of Rajasthan
Andhra Pradesh,
Livestock » Andhra Pradesh Livestock Development Agency (APLDA), NABARD 2 0 2
Madhya Pradesh
» Department of State Education Research and
Karnataka, Assam, West Bengal, Andhra Training – Karnataka and Assam » Women Development & Child Welfare
Education 6 2 4
Pradesh » District Elementary Education/ Samagra Department, Andhra Pradesh
Shiksha Mission, West Bengal
Vocational Training Madhya Pradesh, Andhra Pradesh NABARD 2 1 1
Sanitation Rajasthan, Punjab Zilla Panchayats under Swachh Bharat Mission 4 0 4
Maternal and Child Health Assam Directorate of Women and Child Development, Assam 1 1 0
» Zilla Parishad, Ranjangaon (Pune);

» Department of Drinking Water and Sanitation
» Guntur Municipal Corporation and Guntur
along with Indian Sanitation Coalition – FICCI
Zilla Parishad;
» Ministry of Urban Development, Uttar Pradesh
» Hindu Religious and Charitable Endowments
Uttar Pradesh, Uttarakhand, Punjab, Bihar, and Saharanpur Municipal Corporation;
(HR&CE), Govt. of Tamil Nadu; Coimbatore -
Waste Management Maharashtra, Andhra Pradesh, Tamil Nadu, » Nagar Palika Parishad, Shivalik Nagar, 15 8 7
Karamadai Panchayat and Greater Chennai
Karnataka, Telangana, West Bengal Haridwar;
Corporation;
» Municipal Council of Kapurthala;
» Zilla Panchayat – Mysuru;
» Lohiya, Swachh Bihar Abhiyan, Bihar Govt.
» District Panchayat Office Bhadradri
and Munger Municipal Corporation;
Kothagudem
Madhya Pradesh, Maharashtra, Bihar, » State Rural Livelihood Mission of Maharashtra

» MGNREGS - Women Initiative for Self- 4 1 3
Women Empowerment Rajasthan and Madhya Pradesh;
employment and Empowerment project
» Bihar Rural Livelihoods Promotion Society;
Total 86 25 61
As a result of these partnerships, the Social Investments Programme was able to raise a total of `465 million during the year by way of local contributions and external funds across projects.

Annexures
Multi-stakeholder Partnerships for Scaling up Development Models to Create Large scale Impact
ITC firmly believes in the strength of Financial Literacy and financial inclusion rural women as Yojana Sakhis. These Sakhis The Financial Literacy Programme has
partnerships for creating and sustaining partnership in Madhya Pradesh (MP) is one helped women to leverage government been successful in achieving such large-
enduring value. ITC’s Social Investments such example, where ITC initially tested a schemes and other financial products as per scale coverage and impact owing to the
Programmes are designed with multi- model with CRISIL Foundation in 2016 in their eligibility and requirements. Public Private Partnership that enabled
stakeholder partnerships as a core Vidisha and Sehore districts. After successful leveraging government machinery under
A Project Management Committee (PMC)
component. Partnerships are formed with demonstration of the pilot, ITC orchestrated MPSRLM while utilizing the grass-root level
was formed with members from MPSRLM, ITC
expert institutions for knowledge input, with a tri-partite Public Private Partnership (PPP) knowledge, capability building and project
and CRISIL, with ITC as a Convenor, to review
NGOs for implementation, with community with Madhya Pradesh State Rural Livelihood management expertise of ITC and technical
progress of the programme against plans and
institutions for ownership & accountability, Mission (MPSRLM) and CRISIL Foundation in knowledge of CRISIL Foundation. ITC has
provide strategic guidance.
and Public Private Partnerships with various 2016-17 to scale-up the Financial Capability formed similar large-scale partnerships with
Central and State Governments for scaling Building programme across 43 districts of Due to this multi- stakeholder partnership, NITI Aayog for Sustainable Agriculture in
up unique models and help in delivering Madhya Pradesh to train over 1 lakh SHGs. over 2.13 lakh SHGs with over 20.7 lakh 27 Aspirational districts; with Uttar Pradesh
government development programmes. members have been trained on financial Urban Development Department covering 60
The scale up of project was planned
literacy till March 2023. 2,400 trained Yojana districts and Lohiya Swachh Bihar Abhiyan in
leveraging existing machinery and groups
Sakhis have helped over 16.9 Lakh women 12 districts of Bihar for Waste Management;
78 15,400+
formed under MPSRLM. The overall objective
of this tri-partite partnership of 4 years was
to connect with various financial schemes and Women and Child Development
NGO and products like opening of bank accounts, Department, Assam for Maternal health and
Community to provide rural women with information,
Partners investment in government savings, insurance Child Nutrition in 8 districts of Assam.
Institutions understanding, access, skills and tools on
and pension schemes. About 25% SHG women
financial products and services. ITC designed
have also reported starting new livelihood
a cascade approach to create a pool of Super
intervention after their training on financial
Trainers from MPSRLM in each block of these
Partnerships for literacy.
districts with the help of CRISIL, who then
contemporary trained Community Resource Persons (CRPs), Based on the experience from Phase-I,
knowledge and who further cascaded it down to the SHGs at in 2022-23, it was decided to extend the
large scale impact community level. partnership to 9 more districts, for providing
training to additional 1.2 lakh SHGs along with
Financial Inclusion of women through
developing the existing cadre of 3,400 Bank
government scheme linkages like Bank
Sakhis of MPSRLM as Yojana Sakhis.
Account Opening, Savings, Insurance,
24 86 Investments, Pension, etc. were the envisaged ITC has always believed in convergence
Knowledge Public Private outcomes of the project that mark the first and building upon the strengths of various
Partnerships Partnerships step towards financial security. To materialize partners and utilizing available platforms
it, ITC developed a self-sustaining cadre of instead of duplicating the efforts.

Annexures
Long-term Plans 2030

Mission Sunehra Kal 2030: Targets & Timelines
Based on the Two Horizon strategy, a number of integrated interventions have been designed to achieve the Company’s ambition of creating habitations with holistic development where people have
access to sustainable livelihoods and / or are future ready for the context of tomorrow. Each objective has its own measurable indices, to achieve the desired goals. These are detailed in Table 4.
Table 4: Performance against Target 2030 for Mission Sunehra Kal Programmes
Objective Initiatives UoM Target 2030 Achieved till FY 2022-23 Balance to achieve
Horizon I - Sustainable Livelihoods Today
Climate Smart Agriculture for Climate Smart Agriculture area1 Lakh Acres 40 23.4 16.6
climate change adaptation,
and actions for sustainable
improvement of yields and Climate Smart Village Area (Sub-part of above)1# Lakh Acres 30 10 20
incomes
Natural Resources Management Watershed Development Lakh Acres 22 14.7 7.3

to conserve and replenish natural
resources critical for agriculture Water harvesting structures (including ground water
Nos. 50,000 28,300 21,700
recharge structures)
Storage Potential# Million KL 60 48.9 11.1
Crop Water Use Efficiency# Million KL 2,000 780 1,254
Bio-Diversity Conservation# Lakh Acres 10 2.9 7.1
Livelihood Diversification to On-farm diversification – Social Forestry# Lakh Acres 6.30 4.56 1.74
improve incomes and de-risk
livelihoods from climate change Household
Off-farm diversification - Livestock-based livelihood
coverage 10 4.68 5.32
strengthening
(Lakhs)
Note:
1 Figures on Climate Smart Agriculture and Climate Smart Village area pertains to scale in that FY # These indicators also contribute to five of the Company’s sustainability 2030 (S 2.0) commitments

Annexures
Mission Sunehra Kal for Sustainable and Inclusive Growth Long-term Plans 2030
Objective Initiatives UoM Target 2030 Achieved till FY 2022-23 Balance to achieve
Institutional Support for risk No. of

mitigation and reduction of costs Link farmers with Government programmes linkages 50 9.5 40.5
of cultivation (Lakhs)
Agri Business Centres Nos. 2,000 916 1,084
Farmer Producer Organizations Nos. 4,000 1,150 2,850
Horizon II - Creating Capabilities for Tomorrow
Support to Education for Improvement in learning outcomes – Children covered No. in Lakhs 15 11 4
improving quality of education
and creating conducive learning Infrastructure support to Government Schools and
environment Nos. 4,000 3,321 679
Anganwadis
Skilling of youth for enabling

Vocational Training – Youth trained No. in Lakhs 2.25 1.00 1.25
livelihood and employability
Provide access to sanitation and Household Toilets constructed Nos. 40,000 39,600 400
waste management services to
improve habitats No. of
Waste Management (SWM) – Households covered, other
Households 45 25.3 19.7
than through WOW intervention
(Lakhs)
Provide healthcare and nutrition Beneficiaries covered under MCH programme including
No. in Lakhs 12 6.8 5.2
services to women and children Swasthya Choupal
Empowering women for

Women covered through livelihood and other
reduction in economic and social No. in Lakhs 2.5 1.2 1.3
microenterprises
discrimination
Note:
1 Figures on Climate Smart Agriculture and Climate Smart Village area pertains to scale in that FY # These indicators also contribute to five of the Company’s sustainability 2030 (S 2.0) commitments

Annexures
Interventions in
High Priority Areas Strengthen Current Dominant
The performance of different programmes Source(s) of Livelihoods
under the Two Horizon approach have
been presented ahead in brief. All these
programmes are undertaken by ITC
independently or through Public-private-
Climate Smart
partnerships with Governments and
implemented by ITC’s NGO partners.
Agriculture (CSA)
The CSA programme aims to make agriculture
regenerative, productive, sustainable,
remunerative and climate resilient which is
closely aligned to Indian Government’s PM
KUSUM, Sustainable Agriculture, Natural
Farming and Millet Mission programmes which
focus on improving farmer incomes, minimizing
climate related risks and decarbonizing
agriculture. CSA focusses on large scale
promotion of proven crop specific practices in its
operational areas aimed at the following: Farmer Field School Training by Krishi Sakhi in Amravati
Strengthen Current Dominant

To ensure large scale promotion of the In the CSA programme, through over 8,200
Source(s) of Livelihoods
Reducing costs, improving suggested practices, farmer capability Farmer Field Schools (FFS), scientific and
yields and incomes and building is a key component. ITC builds farmer technological best practices were disseminated
capabilities by working with Knowledge to over 278,000 student farmers during the
building resilience to climate
partners to identify relevant technologies & year. To encourage participation of women
change induced extreme events practices and by training farmers through farmers in agriculture, in collaboration with
for farmers; Farmer Field Schools and Choupal Pradarshan Maharashtra State Rural Livelihood Mission
Khets. ITCMAARS and WhatsApp platforms (MSRLM), ITC had actively engaged with 6,000
Reducing GHG emissions; and are used for capability building through digital women through 90 Krishi Sakhis of MSRLM
mode and for dissemination of information programme during the year. ITC trained these
including weather forecasts. Post the creation Krishi Sakhis as Master Trainers for promotion
Improving water use efficiency
of farmer awareness, ITC ensures adoption of of Climate Smart Agriculture practices.
and conserving other natural the practices by providing on-field technical
Creating Capabilities
resources assistance to farmers and by linking them with
relevant Government programmes & schemes
for Tomorrow
and with local farmer collectives.

Annexures
Mission Sunehra Kal for Sustainable and Inclusive Growth Horizon I - Strengthen Current Dominant Source(s) of Livelihoods
The CSA programme covered 23 lakh acres

impacting over 7.4 lakh farmers during the
year across 17 States. During the year, major
climate smart agriculture practices that were
promoted through MSK included:
⬤ Sustainable rice cultivation practices -
Direct Seeding of Rice, Pani Pipe method and
alternate wetting and drying in 1.7 lakh acres
⬤ Avoiding paddy stubble burning and

incorporating stubble into soil in 2.35 lakh acres
⬤ Zero tillage method and Broad Bed Furrow

method of sowing in wheat in 6.7 lakh acres
⬤ Broad Bed Furrow method of soyabean

cultivation in 1.5 lakh acres
⬤ Seedling planting, drip irrigation and trash

Training of Farmers on Climate Smart Village components in Andhra Pradesh
mulching in sugarcane in 1 lakh acres
⬤ Raised bed planting and drip in onion in Additionally, in the core agricultural Livelihood Diversification: De-risking Reducing costs of cultivation and insulating
30,000 acres catchments, ITC has been working to convert livelihoods of farmers by promoting from climate risks by ensuring that farmers are –
entire village as Climate Smart Village (CSV). diversification in addition to crop cultivation • Members of Farmer institutions like Agri
⬤ Micro irrigation and mulching in fruit
ITC has partnered with Climate Change and for providing additional incomes to farmers Business Centres (ABC) and Farmer
(banana), plantation (coconut, curry leaf, oil
Food Security (CCAFS) programme of CGIAR through options that have higher resilience Producer Organizations (FPOs) for market
palm), and other crops (vegetable, chilli) in over
for technical support for the same. ITC is to climate change extremes as compared to access of their produce, collective input
44,000 acres
engaging for making villages climate smart by agriculture. procurement, equipment hiring, credit
working on the following components: • On-farm diversification with tree plantation and dissemination of crop advisories and
(fruit/plantation/timber species) in the field. weather forecasts.
Climate Smart Agri Practices for crops:
• At least one significant animal dependant • Linked to Government schemes for
23 lakh acres
Preparation of climate risk assessment at local
livelihood such as major ruminants (cow additional income, institutional credit, crop
cluster level for the crops cultivated in the
and buffaloes), minor ruminants (goat and insurance, soil health card and pension.
village and finalization of an adaptation tool kit
sheep), piggery, poultry and fishery. A village with majority households covered
to be followed by the farmers.
7.4 lakh farmers Natural Resources Management: Access to
through above components and habitations
coupled with Natural Resources Management
irrigation for farmers and at habitation level, becomes a CSV (refer box item ahead for
17 states
ensuring sustenance of natural resources details on CSV).
critical for agriculture like water, biodiversity
and soil health.

Annexures
ITC’s CSV Programme – Coverage, impacts and way-forward
ITC’s CSV programme was initiated in 2016 with HRHY villages increasing by 350% (6 to and Jangalapalli, chilli is a major crop ITC’s CSV programme is majorly spread
with knowledge partnership with Climate 21) and LRLY villages reducing by 50% (40 cultivated in around 3,000 acres by 1,600 in ITC’s core catchments in States of Uttar
Change and Food Security (CCAFS) to 19). This was possible due to concerted farmers. There were untimely rains in Pradesh, Punjab, Bihar, Madhya Pradesh,
programme of CGIAR, which primarily efforts on climate risk assessment, promotion March, when farmers also received regular Rajasthan, Maharashtra, Andhra Pradesh,
focussed on assessing and addressing the of adaptation practices for the crops and updates and basis which 92% farmers acted Karnataka, Telangana, Odisha and Tamil
climate risks of agricultural crops. Over a linkages with schemes like insurance, immediately. They could take up immediate Nadu. In 2023, ITC’s CSV programme,
period, ITC has evolved the CSV template by collective equipment hiring from farmer harvest and kept the covering sheets and which is part of the larger Climate Smart
incorporating the components of livelihood groups and water use efficient practices such drying platform ready which saved around Agriculture intervention reached out to 4,800
diversification, sustainable natural as micro irrigation. Farmers were also linked 7,000 quintals of chilli worth around `110 villages and 10 lakh acres.
resources management and institutional with climate forecasts to get advisories on million. The nearby villages which were
ITC aims to cover 30 lakh acres by 2030
support to farmers. actions to be taken from time to time. not part of the programme as of now,
reaching out to close to 10,000 villages.
unfortunately had to face a loss of around
To understand the progress of villages CSV was being implemented in Northern
`27 million due to quantity and quality Yield and Resilience Quadrangle
towards becoming climate smart, baseline States of Madhya Pradesh, Bihar,
damages. 89 villages of Andhra Pradesh,
assessments are taken up to estimate yields, Uttar Pradesh, Rajasthan, Punjab and
income and GHG releases from current Maharashtra since few years and recently Similarly, in Kataha village of Uttar Telangana and Tamil nadu
cultivation practices and the resilience of extended to Southern States. In North, overall Pradesh, 482 out of 781 farmers adopted Baseline 2021-22 Current Status
village to cope up with climate impacts. extreme rainfall and floods during Kharif zero tillage in wheat. This year in March
LR LY LR HY LR LY LR HY
Based on the assessments, villages are season and early temperature rise during there were untimely rains and when
40 18 19 28
mapped in a Yield and Resilience Quadrant, Rabi were listed out as major climatic risks. weather forecast was being provided to
where in villages are categorized as Low Here the climate smart practices promoted all farmers. Zero tillage farmers could
HR LY HR HY HR LY HR HY
Yielding (LY), Low Resilience (LY), High are direct seeding in rice, broad bed furrow immediately harvest their crop and had
23 6 19 21
Yielding (HY) and High Resilience (HR). The method in soyabean and zero tillage almost no damage. For others also, major
ultimate objective is to move a village into cultivation in wheat. loss was prevented as they at least stopped H-High, L-Low, Y-Yield, R-Resilience
HRHY category and to sustain the benefits irrigating the fields which minimized
The actual endorsement of CSV’s impact
for a longer period, so that villages realize damage. Similar impacts were recorded
in mitigating climate risks was witnessed
better yields in a good year and relatively across the other CSV villages also which
during the year across all programme
lower crop loss in a bad year. witnessed untimely rains.
states which got untimely rains in March
An assessment of 89 villages in three when the crops were in field. In eight The CSV programme has demonstrated
southern States, Andhra Pradesh, Telangana villages of Andhra Pradesh - Uppalapadu, improvement in yield by up to 38% and
and Tamil Nadu where CSV was initiated Gandhinagaram, Pichukulapalem, reduction in GHG emissions by up to 66%
few years back, demonstrated significant Chatragaddypadu, Hasanayanapalem, as documented by CGIAR in its impact Impact of Zero Tillage on early maturity of Wheat
movement in the yield-resilience quadrant Patha Tripura Puram, Kotha Tripura Puram assessment studies. in Uttar Pradesh – Not Ripe plot in control (L);
Ready to Harvest wheat in Intervention plot (R)

Annexures
Natural Resource
Management
ITC works to conserve and replenish three
natural resources critical for agriculture –
Water, Soil and Biodiversity for sustaining
agricultural livelihoods and for environment
protection. The approach for each of these
natural resources is detailed below:
Water stewardship for drought

proofing agriculture and Check Dam in Maharashtra
achieving unit positive status

Water Stewardship
through supply and demand This programme champions water stewardship optimized apart from supply augmentation Rice Research, Indian Institute of Soyabean
management initiatives; for all stakeholders in ITC’s operational areas through rainwater harvesting. ITC focussed Research and Vasant Dada Sugar Institute.
to promote water security through community- on improving crop water use efficiency in ITC has also partnered with international
Soil health improvement based participation in planning and execution agriculture, wherein the practices promoted and other reputed agencies like IWMI, WWF
and scientific water-balance assessments. The reduced water and cultivation costs and at the India, ACWADAM, GEOVALE and others for the
through various practices such
programme is closely aligned to Government’s same time improved the yields. Water efficient interventions mentioned above.
as manure application, tank National Water Mission, Har Khet ko Pani, Atal agri practices promoted by ITC have been
As part of supply side augmentation, in 2022-23,
silt application, conservation Bhujal Yojana, and River Basin Management adopted by farmers in close to 11.8 lakh acres
the Water Stewardship Programme covered
agriculture, green manuring; programmes which focus on providing access during the year across 15 crops such as paddy,
over 1.36 lakh acres, of which over 61,900 acres is
to irrigation to farmers, river rejuvenation and wheat, soyabean, sugarcane, chilly, banana,
and covered through catchment treatment and over
improving groundwater resources. coconut and vegetable crops. These practices
74,800 acres by providing access to irrigation,
have potentially saved around 780 million kl
Biodiversity conservation In the agri-catchments, ITC focusses on
during the year basis calculations done as per
taking the total cumulative area to over 14.7 lakh
drought-proofing agriculture by improving acres spread over 16 States. More than 3,100
through commons restoration various studies.
groundwater status and reducing crop- water harvesting and ground water recharge
and forest fringe development. related demand for water. In factory locations, In pursuit of these objectives, ITC also structures have been constructed during the
ITC aims to achieve water security for all collaborates with reputed institutions and year, taking the cumulative net fresh water-
stakeholders by progressing towards positive thematic expert organizations to improve harvesting potential to 48.9 million kl. The work
water balance through interventions in supply water use efficiency in agriculture, map with community has also contributed towards
and demand side management. zones for managed aquifer recharge and for ITC’s Coimbatore and Maluru units Alliance for
water balance estimation. ITC has partnered Water Stewardship’s (AWS) Platinum rating
Water is a finite source and ITC realizes
with ICAR institutions such as Tamil Nadu certification, of which Maluru unit’s certification
the fact that positive water balance can be
Agricultural University, Indian Institute of was in the current year.
achieved only when water demand is also

Annexures
Soil Health chains to minimize the adverse impacts of creating awareness among communities on contributing for the work and most importantly,
ITC works for improving soil health through agriculture on biodiversity; how biodiversity contributes to their livelihoods getting land released from encroachments.
various initiatives that are specifically aimed by providing eco-system services such as
⬤ Community driven biodiversity conservation During the year, ITC’s community driven
at improving Soil Organic Carbon (SOC) food, fodder & fuelwood, water conservation
at the watershed level through landscape biodiversity efforts have conserved more than
percentage in soil. SOC is the bedrock for soil and hosting of beneficial predator birds
renewal and rehabilitation of degraded plots 1.56 lakh acres of area, taking the total till date
health as it improves soil structure and texture, (that feed on crop pests) and pollinators.
for mosaic restoration; and to over 2.9 lakh acres.
promotes growth of microorganisms in soil, Community institutions such as Charagah Vikas
and increases nutrient intake by crops and ⬤ Revival of ecosystem services provided to Samitis (CVS), Banjar Bhoomi and Charagah For Water Stewardship and Biodiversity
water holding capacity of soil. This focus on agriculture by nature, which has witnessed Vikas Samitis (BBCVS), and Biodiversity Conservation, ITC also has major partnerships
SOC aligns with the principles of regenerative considerable erosion in recent decades Conservation Committees are formed in with State Governments of Rajasthan,
agriculture. The various initiatives by which soil villages with membership from small and Maharashtra, Karnataka and Telangana and
health is improved are: As in case of all MSK programmes, for marginal farmers, landless, shepherds, pastoral with NABARD in Andhra Pradesh.
⬤ Promoting organic supplement application biodiversity conservation programme also, communities and SC & ST communities.
in field – Tank silt, vermi compost, toilet manure community ownership is a key for success. To These groups play a critical role in making
and Green manuring. During the year, 7.89 lakh ensure community’s ownership, ITC works on the programme a success by overseeing and
tons of tank silt was applied in fields, and over
3,600 compost units were promoted.
⬤ Catchment treatment work done as part

of Water Stewardship aids in controlling top
soil run-off. 9.48 lakh acres covered through
catchment treatment till date of which over
61,900 acres was done during the year.
⬤ No till / Zero tillage practices to add crop

stubble back to soil helps in retaining soil
moisture and reduces soil erosion. During the
year, 6.6 lakh acres of wheat was covered
through zero tillage cultivation under MSK.
Biodiversity Conservation
In the agri catchments, ITC works for
biodiversity conservation along with soil and
water, as these three are essential natural
capitals vital for sustainability of agriculture. As
part of its biodiversity conservation efforts, ITC
has focussed on the following:
⬤ Biodiversity conservation in agri-supply Soil & Moisture conservation work in Biodiversity Conservation Plot to encourage tree growth

Annexures
Community driven encroachment eviction for commons restoration
The major challenge in restoration of village Collector to take necessary action for
commons is to get the lands cleared from freeing the land. As a result, the committee
encroachments. The community institutions members could get entire
facilitated by ITC successfully get land 39.5 acres released and works worth
released from such encroachments and `1.46 million were initiated during the year.
subsequently complete the soil and moisture This work will benefit 1,300 families of 5
conservation works and plantations. villages by providing fodder, fuel and timber,
apart from improving green cover and
Rajasthan and Andhra Pradesh (AP) are two
biodiversity.
important States under the ITC’s biodiversity
conservation programme. In Rajasthan, Similarly, in Abbayapalem in Andhra
ITC has a formal partnership with the State Pradesh, the committee found 146 acres
Government, and in AP, it works closely with under encroachment by 16 families (in a
the Government to leverage resources. For 3,103 acres plot) and got it released by
community ownership in these two States, getting unanimous support and resolution
3,820 community institutions are formed by the Gram Panchayat. As a result,
including reactivation of some defunct conservation work could be taken up in 123
groups. acres worth `2.2 million which will benefit
1,080 families of 2 villages.
Two such community groups were formed
during the year in Googor village (Baran In a similar way, committees in 65 other
district) of Rajasthan and Abbayapalem villages could get encroachments released
village (Palnadu district) of Andhra Pradesh. to a tune of 2,080 acres in Rajasthan and
During the planning process, Googor AP during the year and took up biodiversity
village committee found that out of 52 acres conservation work worth `60 million.
village commons, 39.5 acres was under
encroachment by 25 families for more than
10 years. As the group was convinced with
the potential benefits from conservation
work, they decided to get the land released
for the larger good of the village by
convincing, influencing key members of
the society and through administrative
processes like approaching the District
Demarcated Encroached Land in Abbayyapalem Andhra Pradesh

Annexures
Livelihood Diversification On-farm Livelihood silvery oak and bambusa tulda. Considering and tribal community farmers. ITC’s Farm and
Diversification: Social Forestry the interests of small farmers, plantations are Social forestry programmes have together
ITC focuses to improve farmer incomes and de-
Social Forestry: Pulp, Energy and Agarbatti through agro-forestry and bund plantation greened over 10.4 lakh acres till date. Farmers
risk livelihoods from climate change through
Bamboo wood plantations are promoted models, both of which enable cultivation of trees are also helped in getting their plantations
both on-farm and off-farm diversification. ITC
at scale to help farmers realize the market and crops together, thus ensuring incomes and certified under Forest Stewardship Council
works with households to promote:
opportunities available in their catchments and also contributing to food & wood security for the Certification (FSC) which ensures sustainable
to meet their own wood requirements. These nation. Till date, the Social Forestry programmes cultivation and also provides premium for the
Social Forestry with tree
plantations are done with suitable species like have greened over 4.56 lakh acres benefiting wood sold by farmers.
plantation in fields through eucalyptus, casuarina, subabul, melia dubia, 1.76 lakh households, most of whom are small
pulp, fruit or other multi-
purpose species; and Energy Plantations for Additional Income and Cost Savings
ITC promotes large scale energy plantations Till date, 0.73 Lakh Acre plantations have been done in Karnataka, creating potential for
At least one livestock-based in Andhra Pradesh & Karnataka to meet the 24.09 lakh tons of sustainable wood generation, thus reducing pressures on forests and other
livelihood option outside fields requirement of farmers so that, on harvest, unsustainable wood sources.
farmers get an additional income and also
– cow & buffalo, goat & sheep, meet their own fuel requirements.
Energy plantations on bunds
poultry, fishery and piggery.
In Karnataka, plantations were initiated around
10 years back in Mysuru and Hassan districts
with majority of plantation done with Melia
dubia and Silver Oak species. These trees are
generally harvested after 4 to 5 years and in
2022-23, 1,800 farmers harvested wood.
As per internal study of 127 farmers, on

an average, each farmer sold around
14.56 tons (52%) of harvested wood in the
market and consumed 13.18 tons wood for their
own requirements. The increase in average net
income of family was close to `0.1 million, with
54 % coming from wood sale, and rest from
savings as they didn’t purchase wood for post-
harvest operations.
While there were significant gains for

farmers, plantations also helped in creating
employment in the area because of the
demand for plant material (62.94 lakh
saplings/year). Aerial View of Energy Plantations in Mysuru

Annexures
Other fruit and commercial tree plantations: IAHP is implemented with two approaches: various animal husbandry practices spread services in the villages and demand is generated
In all core catchments, ITC also encourages ⬤ Promoting adoption of relevant best across the animal sectors mentioned above. for their services by creating awareness among
farmers to take up fruit tree or other practices related to breed improvement, village households. Currently, 126 Artificial
⬤ Promoting self-employed village cadre such
commercial species plantations, either in part feed and fodder, housing and healthcare Insemination technicians and over 400 Pashu
as Artificial Insemination technicians and Pashu
of their field or as an agro-horti model (both cum vaccinations. This is done by training the Sakhis are providing services which have
Sakhis (cadre of women) who provide advisory
crops and trees cultivated together). households in practices, providing technical benefited over 4.46 lakh animal owners (cattle,
and input services to households at their
During the year, over 1,700 acres of fruit tree support for adoption and linking with relevant goat & sheep) cumulatively.
doorstep. Rural youth and women are provided
plantations were promoted. Government schemes. During the year, over
structured training to be able to provide these
79,400 households were covered through
Off-farm Livelihood Diversification:
Improved Animal Husbandry Practices
The Integrated Animal Husbandry Programme
(IAHP) provides an opportunity for farmers to
diversify their livelihood portfolio from primary
dependence on agriculture to animal-based
income source, which is more climate resilient
compared to agriculture and is also a regular
income source for households. It is closely
aligned with Government’s priorities like
National Livestock Mission for improving farmer
incomes from animal husbandry. IAHP aims
at quantitative and qualitative improvement
in livestock production systems and capacity
building of all dependant households. The
categories covered include major ruminants
(cow & buffalo), minor ruminants (goat & sheep),
poultry, piggery and fishery.
Pashu Sakhi visiting Household with Goats in Madhya Pradesh

Annexures
Institutional Support
Majority of Indian farmers fall in small and ⬤ F armers are also linked to select Government Farmer Producer Organizations helping farmers
marginal category due to their smaller land schemes which helps them to cope up with
holding which limits their capacity to invest and credit, higher costs of cultivation and climate Farmer Producer Organizations (FPOs) are across advisory, inputs, credit and output
withstand crop failures. To address this risk, risks. During the year, 9.5 lakh linkages to collectives of farmers incorporated under market linkages.
ITC works for enabling institutional support to government schemes were facilitated in six Companies Act 2013 in the catchment areas
During the last two years (FY 2021-22 &
farmers to help them in risk mitigation and cost identified schemes benefiting around of ITC’s Agri Business Division (ABD). These
2022-23), these Farmer Collectives/FPOs
reduction. ITC works to link farmers with major 3.8 lakh farmers. FPOs are promoted by ITC to strengthen the
have:
Government programmes and enables farmers • Soil Health Card for rationalization of farming community through collectivization
to get enrolled in farmer institutions such as fertilizer use of their resources and efforts for their • Provided crop advisory support across
Agri Business Centres (ABCs) and Farmer • PM KISAN for supplementary income to own benefit. The initiative is in line with 22 crop value chains through ITCMAARS
Producer Organizations (FPOs). farmers Government of India’s vision of promoting covering 3,684 articles & videos, 177 field
⬤ Agri Business Centres (ABCs) and Farmer • Institutional credit from Kisan Credit Card 10,000 Farmer Producer Organization trainings, 5,491 soil testing and 1,348
Producer Organizations (FPO) are promoted (KCC) and Cooperative Societies for timely (FPOs) for the benefit of small and marginal frontline demonstrations
to provide services such as agri-credit loans and avoiding exploitation from money farmers which constitutes around 86% of the
• Facilitated farm inputs such as seeds,
linkages, collective input procurement and lenders total cultivars in the country.
fertilizers and agro chemicals worth
taking agricultural equipment on hire. 1,150 • Crop insurance for overcoming crop
So far, ITC is engaged with around around `95 million to catchment farmers
FPOs and 916 Agri Business Centres are damage from extreme weather episodes
1,150 FPOs by helping farmers form new
providing services to more than 2.83 lakh • Sale of produce through e-NAM market • For the purpose of carrying out business
Farmer Collectives and/or strengthening
members, and additionally, 6,087 Water User channels transactions, FPOs availed formal credit
existing ones. These Farmer Collectives/
Groups and Social Forestry Committees are • PM Kisan Pension scheme for a safe future. from banks of around `99.2 million
FPOs have membership of around
serving over 1.13 lakh members for collective at group level and additionally
2.65 lakh farmers and are spread across
mobilization, apart from playing a key role in helped catchment farmers to avail
9 States. Comprehensive programme for
ensuring sustenance of the programmes individual credit of around `66.8 million
supporting these FPOs has been rolled out
predominantly through Kisan Credit Card
under ITCMAARS platform. The FPOs are
supported for increasing their access to area • Provided market linkages to catchment
specific crop advisory through physical and farmers by aggregating and trading
digital medium, access to farm inputs (seeds, around 1.02 lakh MT of farm produce
fertilizers, crop protection chemicals), worth `2,600 million.
access to formal credit through linkages
with formal financial institutions (banks) and
market linkages for the key crops. Dedicated
mobile application for FPOs has been rolled
out linking farmers from catchment areas
digitally and providing multiple services
Leveraging Govt. Schemes – Farmer Beneficiary in Rajasthan

Annexures
Creating Capabilities
for Tomorrow
Support to School
This programme closely aligned to (Chart 1). Additionally, Mothers’ groups were
Government’s ‘Samagra Shiksha Abhiyan’ and formed and were trained on activity-based
‘National Education Policy 2020’, is designed to learning to reinforce the outcomes. These
provide children from weaker sections access to Mothers’ groups helped children at their homes
education with focus on learning outcomes and in retaining the learning levels and bridging
retention. The interventions focus on universal learning gaps. During the year over 3,400
Activity based learning at Anganwadi Centre in Andhra Pradesh
access and retention, bridging of gender and Mothers’ group were formed under the Read
social category gaps in elementary education India Programme.
and improving the quality of learning.
During the year, over 14,400 government school Chart 1: Learning Levels in children in primary education (Sample of 5,941)
Operational in 32 districts of 12 States, the teachers and Anganwadi Sevikas were also
Support to Education programme covered trained on child-friendly pedagogy under 1%
14% 8% 28%
over 2.5 lakh children in FY 2022-23. As part Support to Education programme, which
of this, the Read India Programme aims to helped achieve scale and will also enable 34%
58%
provide quality education and improve learning sustenance of the programme. 46% 41%
levels of children. The programme focuses
Furthermore, 125 Supplementary Learning 38%
on bridging the gap in learning levels among
Centres (SLCs) were operational during
children studying in same standard. To ensure 32%
the year for mainstreaming of out of 30% 23%
the same, children are categorized into groups 18%
school children. Over 2,000 children were 7%
based on the assessment of their learning levels 9% 2% 8% 2%
mainstreamed during the year into regular
irrespective of the standard in which they are Baseline 1st Endline 2nd Endline 3rd Endline
education system (refer box ahead for detailed
enrolled. Thereafter, activity-based learning
information on SLCs). Beginner 1-Digit 2-Digit Subtraction Division
pedagogy is adopted to improve their learning
levels to be at par with that of their peers

Annexures
Mission Sunehra Kal for Sustainable and Inclusive Growth Horizon II - Creating Capabilities for Tomorrow
Mainstreaming of out of school Children for ensuring foundational education
Socio economically poor communities in Subsequently, an instructor is identified After mainstreaming also, visits to schools and Education is a basic requirement for human
Saharanpur and Haridwar witness multifold from the same area who along with the interaction with school teachers is done to development. With education, employment
problems that result in their children dropping Programme Supervisor, counsels and ensure that the child feels comfortable. opportunities get broadened impacting
out of school. There is also a large number influences the parents to send their drop out livelihood in future. Supplementary Learning
The programme has mainstreamed more
of poor, especially migrant population, in or out of school children to the SLC. Instructors Programme thus aims to secure future
than 5,200 students till date; of which 2,000
these districts that comes in search of jobs. are trained thoroughly on pedagogy of livelihood of such vulnerable children in ITC
were mainstreamed in 2022-23 itself. Of
Many of them are illiterate and earn a living activity-based learning and provided catchments.
those mainstreamed in initial years, over
by working in factories and labour intensive handholding support from subject experts.
200 children have now already reached
micro industries like wood craft. Education Each Centre catering to about 40 children is
secondary & higher secondary level.
becomes low priority for them and many of equipped with teaching and learning material
these families either engage their children including stationery for children.
in petty jobs to increase their household
Structured baseline and end line of each
income or leave the elder child, especially
child attending the SLC is done to determine
girls, at home to take care of younger siblings
learning levels. Special support is also
as both the parents have to go for work.
provided to slow learners. Continuous
Consequently, children belonging to age
assessment of child learning is performed and
group of 6-14 years are amongst the most
updated on a monthly basis to track progress.
vulnerable lot and tend to drop out of school.
As involvement of parents is very critical in
ITC has been running its Supplementary this programme, monthly home visits are
Learning Programme targeting such done in addition to the monthly meeting with
out of school children, initially with 40 parents at the Centre. Purpose of this is to
Supplementary Learning Centres (SLC) in appraise parents on their child’s progress,
Saharanpur and 10 in Haridwar. During the and for motivating and counselling them to
year, 125 SLCs were operational across both enroll them in neighboring schools post the
locations. programme. Mothers play a critical role in
the entire process and provide the required
Supplementary Learning Centres are
psychological support to the children.
planned based on household surveys and
Participatory Rural Appraisal that helps After the learning levels have advanced
in identifying specific reasons for children from beginner to upper level, they are
to be out of school and also decide the mainstreamed in age appropriate classes
location where the Centre can be opened. in government schools in nearby localities.
Children at SLC in Saharanpur

Annexures
Infrastructure Support and Maintenance:

Improvement in infrastructure at identified
government primary schools/ anganwadis
is an important feature of the Support to
Education programme with the aim of
creating an attractive and enabling learning
environment through ‘child friendly schools’.
Over 380 primary schools/ anganwadis were
provided with infrastructure support in FY 2022-
23, taking the cumulative number till date to
more than 3,300 schools and anganwadis.
The programme also strengthened over

781 School Management Committees (SMCs)
to enable participation, ownership and
involvement in sustaining maintenance of
school infrastructure being provided by ITC. In
several schools, contributions for operations
and maintenance of infrastructure/ sanitation
facilities, creation of soap banks, capacity
building of school heads, teachers and child
cabinet members have also been initiated. In
addition, over 680 Child Cabinets and Water
& Sanitation (WATSAN) Committees were also
strengthened in all project locations to drive
cleanliness and hygienic practices in
the schools.
During the year, 16 schools

supported by ITC’s programme
won Swachh Vidyalaya Award
5-star rating. One school from
Bhadradri Kothagudem won
State-level award.
Child Cabinet Members in a School at Andhra Pradesh

Annexures
Skilling of Youth
Empowerment through Skilling Initiative
The programme focuses on providing after courses being electrical, computer skills
market relevant skills to make potential job and bedside assistance. Candidates are helped
Ms. Swetha (Name changed), aged 26 Through a mobilization camp organized
seekers industry-ready and employable. The in getting jobs in market after completion of the
years, hails from a small suburb in North in her locality, she came in touch with ITC
programme is closely aligned to the ‘Pradhan training. Such earnings are not only helping
Chennai. Due to poor financial condition Mission Sunehra Kal and enrolled herself in
Mantri Kaushal Vikas Yojana (PMKVY)’, which youth to have better livelihood, but is also
of her family, she was not able to pursue the Retail & Sales Associate course in 2022.
aims to enable youth take up industry-relevant enhancing their self-esteem and allowing them
education beyond 12th Standard and also got Determined to get a job, she got a placement
skill training to help secure better livelihoods. to contribute to the well-being of their family.
married at an early age of 18 years. However, in Chennai as a Data Entry Operator with a
The programme is being implemented around During the year, skilling of persons with her marriage did not last long. For last 3 monthly salary of `10,000/- and other perks
ITC’s factories and agribusiness catchments in 33 disabilities, locomotor and hearing impairment, years, she was living with her parents along like communication expense, life insurance
districts of 17 States and has trained 1 lakh youth was piloted in Bengaluru, Karnataka. Two with her daughter aged 7 years. Her father and travel allowance, which has now
cumulatively. In FY 2022-23, 34% of the youth batches with 53% women were started in trades is a fisherman and mother a daily wage provided financial and social security to her.
enrolled were from the SC/ST communities and of life skills, computer and English language. labourer. With family income of just `5,000/-
Because of a steady income, she has now
46% were female students. The programme per month, they were finding it difficult to
admitted her daughter in a private school.
offered courses in 8 skills with the most sought- manage their daily expenses. Worried about
She is able to spend around `30,000/- per
her and her growing child’s future, Swetha
annum on her education. She also spent
was under deep stress. She was perceived
around `60,000/- to renovate her parental
as a liability on her father by the society.
house and is now leading a dignified life in
She desperately wanted to pursue a job to
the society as people’s perception regarding
educate her daughter properly and sustain
her changed from “liability for her father to
herself, but could not get it due to lack of any
an earning member of the family”. Apart from
professional education and skill set required
investing in her child’s education and house
in the job market.
renovation, she also has planned to save for
her daughter’s higher education.
“I was in deep depression and had never thought that I could

have dignity in my life. The skill training proved me wrong and I
am now able to live proudly in my society along with my parents.
I want to forget my past nightmare and want to provide quality
education to my daughter and the same has been possible only
because of skill training program of ITC. I will advise all youth like
me to enroll in the program for a Better Future.”
General Duty Assistant Trainees at a centre in Madhya Pradesh – Ms. Swetha (name changed)

Annexures
Public Health
Waste Management
Sanitation & Waste Management
The Company’s waste recycling programme,
Access to Sanitation –
‘WOW - Wellbeing Out of Waste’, enables the
Household and Community
creation of a clean & green environment and
The objective of the programme is to promote
promotes sustainable livelihoods for waste
a hygienic environment through prevention of
collectors. During the year, the programme
open defecation and reduction in incidence
continued to be executed in Bengaluru, Mysuru,
of water-borne diseases. The intervention
Hyderabad, Coimbatore, Chennai, Delhi, major
aligned to the ‘Swachh Bharat Mission
towns of Telangana and several districts of
(SBM)’, is a holistic approach to sanitation,
Andhra Pradesh. The quantum of dry waste
including construction of toilets, street
collected during the year was about 64,000 MT
cleaning, minimizing generation of waste and
from over 1,270 wards. The programme has
behavioural change.
covered over 2.2 crore citizens in over
ITC has promoted construction of toilets on a 55 lakh households, 57 lakh school children
cost sharing basis, coupled with high impact and around 2,100 corporates since its inception.
awareness campaigns, to ensure enhanced It has promoted sustainable livelihood for
levels of ownership and behavioural change. over 17,750 waste collectors by facilitating an
During the year, around 200 Individual effective collection system in collaboration with
Household Toilets were constructed. To cover Municipal Corporations. The intervention has
Source Segregated Waste Collection in Mysuru
poor households without land for toilets, 35 also created over 150 social entrepreneurs
community toilets were also constructed in FY who are involved in maximizing value capture
waste management closer to the generator is an additional income apart from the monthly
2022-23 with operations & management being from dry waste collected.
so as to minimize environmental impact and amount paid to them by Mohalla Committees
managed by the community itself through
Decentralized Solid Waste Management associated costs. The number of Mohalla from the user fee collected.
funds generated by them. Cumulatively, 157
(SWM): The primary focus of this programme Committees paying to the waste collectors has
community toilets and over 39,600 household `110 million was collected during the year
is on source segregation and minimizing waste been sustained over the years, and in some
toilets have been constructed till March, 2023. by the Mohalla Committees and Gram
to landfill. The programme is operational in 10 locations, the local Government is paying the
Panchayats as revenue from household levy,
States. During the year, focus was on ensuring waste collectors directly. Currently, over 5 lakh
sale of compost and recyclables, which went
impactful execution of the amplification households are engaged in home composting
towards meeting part of the administration and
partnerships in towns, villages and temples. and 82.5% of the over 25 lakh households
overhead costs in running the decentralized
reached so far are now practicing source
The programme covered over 25 lakh solid waste management programme by them.
segregation and who were not doing so earlier.
households & establishments and handled
During the year, Nagar Palika Parishad, Shivalik
over 2.6 lakh MT of waste during the As a result of the programme, over 87% of
Nagar, in Haridwar where ITC works on waste
year. Focus on decentralized community waste has been avoided from going to the
management, was awarded second prize
owned waste management continued with landfills through home composting, cluster
by the Uttarakhand State government for
the formation of household clusters and composting and recycling. The waste collectors
decentralized waste management.
Community Toilet in West Bengal encouraging home composting to push also benefit from the sale of recyclables which

Annexures
Women SHGs led Waste Management in Rural Mysuru
Mysore district spanning across 1,170 villages existing old buildings in the villages or through Since women from SHGs are well recognized
from 256 Gram Panchayats generates around low cost temporary sheds for dry waste by the community, sensitization of villagers on
84 MT of solid waste per day in rural areas, processing & storage. This helped GPs save waste management has becomes easier with
of which about 30% is dry waste and 70% is over 65% of the infrastructure cost (around their involvement. They have started acting as
wet waste. Though solid waste generated `1.13 million savings /GP) compared to the change makers in motivating households to
in rural areas is predominantly organic and earlier high cost infrastructure model. About segregate waste at source and adopt home
biodegradable, it was becoming a major 146 GPs (78%) have now adopted the low cost composting methods like Pipe composting
problem due to lack of adequate segregation model. and Thippe composting for managing wet
and proper management in a financially waste. ITC and Zilla Panchayat has helped
However, monitoring of daily waste collection,
viable manner. SHGs and Gram Panchayats to link with waste
transportation, processing and treatment was
recyclers for managing dry waste. Training
ITC Mission Sunehra Kal collaborated with becoming a big challenge for GPs due to lack Home visit for Awareness Generation on SWM
and handholding support was also provided
Zilla Panchayat Mysuru in February 2019 of manpower required to do these operations. by SHG Members
to the SHGs on waste data recording and
for a period of 3 years as a Public Private To overcome this, ITC and Zilla Panchayat
project monitoring.
Community Partnership (PPCP) programme trained SHGs of State Rural Livelihood The Green Temple initiative is a closed loop
to help Gram Panchayats (GPs) in initiating Mission on waste management at Gram In these GPs, 93% households are segregating waste management model involving processing
Decentralized Solid Waste Management Panchayat Level, and facilitated agreement waste at source. By reviving traditional of waste generated in places of worship to
(DSWM) with the objective of managing between SHGs and GPs in accordance with composting method like “Thippe”, 52% provide biogas to the temple kitchen and
waste at source and ‘minimizing waste SWM by-laws of the State. Bilikere Gram households are managing their wet waste compost for its gardens. During the year, the
dumping’. ITC designed high impact Panchayat of Hunsur taluk, Mysuru District through home composting. Recyclable waste intervention expanded to over 950 places. In
Information, Education and Communication that was promoted as a Hub to demonstrate is further segregated into various categories Tamil Nadu, the programme is implemented in
(IEC) activities and trainings to drive Social best practices under the collaborative and sold to recyclers. SHG involvement collaboration with Endowments Department,
Behaviour Change among GP officials, programme, became the first GP to sign an has helped not only in decentralized Govt. of Tamil Nadu.
elected Panchayat Representatives and Self- agreement with SHGs for managing solid waste management, but also in reduction
Also, during the year, ITC has collaborated with
Help Groups on various aspects of planning, waste. It has since paved the way for other of recurring/operating costs of waste
Department of Drinking Water and Sanitation
implementation and managing Solid Waste in Gram Panchayats in the district to adopt management by 30%. The cost is reduced
(DDWS), Government of India, and
a decentralized approach. the model. Since then, 120 GPs in the district mainly due to improved work efficiencies of
India Sanitation Coalition (ISC), FICCI to develop
have signed agreements with SRLM SHGs for these SHGs & reduction in O&M expenditure.
The programme has been rolled out in 188 of 36 Gram Panchayats (GPs) across 10 States as
managing solid waste in their GPs are currently paying service fee to SHGs
the 256 Gram Panchayats (GPs) in the District. Lighthouses, demonstrating best practices in
Gram Panchayats. for waste management. It is aimed that in
ITC supported GPs to implement Low cost sanitation and waste management, which will be
future, SHGs should also earn income from
waste management. GPs are facilitated to adopted by other GPs, gradually. Partnership is
recycling waste.
implement waste management by utilizing part of the DDWS’s plan of creating 75 lighthouse
Gram Panchayats across India.

Annexures
Health & Nutrition

Mother & Child Health and Nutrition
The objective of the programme is to improve
maternal health, reduce malnutrition and
promote healthy community. The intervention
aligned to the ‘Saksham Anganwadi and
Poshan 2.0’, addresses the challenges of
malnutrition in children, adolescent girls,
pregnant women and lactating mothers.
Over 5.6 lakh beneficiaries were covered

under Mother and Child Health initiative,
through more than 2,100 awareness camps to
improve the health-nutrition status of women,
adolescents and children by strengthening
institutional capacity, promoting greater
convergence with existing government
schemes and increasing access to basic
services on maternal, child, & adolescent
health, nutrition and child protection.
In select catchments of Kamrup and Darrang

districts in Assam, the intervention specifically
targeted strengthening of home-based
counselling of families with malnourished
children by the Anganwadi workers. Focus was
given for improving exclusive breast-feeding
practices for children of 0-6 months of age, Anganwadi Worker doing Home visit in West Bengal
complementary feeding for children above 6
months of age and awareness using a mobile ITC’s Swasthya Choupal initiative continued to conducted group meetings, school activities
the programme, Social Welfare Department
based application developed by ITC. This enhance awareness on various health related and door-to-door visits in the villages focusing
of Assam has done a partnership with ITC,
resulted in significant reduction in underweight issues through a network of 430 women Village on aspects like sanitation, menstrual and
wherein, ITC will help in capacity building of
children and increase in institutional deliveries Health Champions (VHCs) who reached out to personal hygiene, family planning, diarrhoea
Government staff to undertake these activities.
in project locations of Kamrup and Darrang nearly 1.16 lakh women and adolescent girls prevention and nutrition, apart from providing
The partnership with the objective of reducing
districts as compared to NFHS-5 data (2019- during the year. The programme is operational access to related products and thus also having
malnutrition covers 8 districts including 7
21) for these districts. Seeing the impact of in seven districts of Uttar Pradesh and three a supplementary income.
aspirational districts of the State.
districts of Madhya Pradesh. The VHCs

Annexures
Doorstep Delivery of Healthcare Services
Kamla Devi (name changed) from a village Struggling to get basic healthcare, Kamla
in Saharanpur is an old landless woman Devi expressed her delight with the relief
belonging to the Below Poverty Line (BPL) that she has received after the Mobile
category. She has four sons and four Medical Unit under ITC Swaasth Kiran
daughters. Two of her sons work as daily intervention started visiting her village. The
wage labourers and total monthly income of van equipped with all necessary resources
the household is only around `15,000/-. including doctor, nurse, medicines, etc.
visits the village once a month and provides
Kamla Devi suffers from hypertension and
doctor consultation, diagnostic tests and
diabetes and recently developed respiratory
medicines free of cost, thus taking care of
issues as well. She also suffers from
healthcare needs of Kamla Devi. This not
osteoarthritis. With multiple ailments at her
Mobile Medical Unit serving rural population at door-step only reduces the cost incurred on travel, but
age, she required constant medication and
also helps villagers like Kamla in avoiding
frequent hospital visits. She has been visiting
Healthcare income loss incurred by losing a day’s work
the nearest Community Health Centre (CHC)
ITC Swaasth Kiran, a new integrated medicines and basic medical equipment for in commuting to health centres. Moreover,
at Sadhauli Qadeem block every month for
healthcare programme was initiated in screening of diseases, provide free medical regular visits of MMUs in the villages spread
medical check-up and medicines, which is
the districts of Saharanpur (Uttar Pradesh) consultation and medicines to the community awareness among community members on
around 15 kms away. To add to her woes,
and Munger (Bihar). This intervention aims at their doorstep. During the year, more than preventive healthcare. MMUs have brought
the public transport connectivity between
to improve health status of community by 57,000 individual engagements were made quality and reliable healthcare accessible
her village and the CHC is also not very
providing affordable access to primary with community members across 690 villages, to the community, benefitting the poor and
good and requires her to change two buses
health care services at the doorstep of rural 56% of whom were women. 6,900 diagnostic underprivileged.
to reach the CHC. Moreover, she spends
communities with support from and in close tests were also conducted and 5,600 referrals
around `100/- to `150/- on commute alone
coordination with Health Departments of made to higher level hospitals. The programme
for every visit to the health centre.
respective districts. Apart from primary will be further strengthened in the coming
curative health services, this intervention also years by including additional interventions.
encompasses preventive healthcare by driving
Additionally, ITC provided support to the “Doctor comes to our village in the MMU.
behaviour change through awareness creation.
national campaign to eradicate Tuberculosis We get consultation as well as free medicines
8 Mobile Medical Units (MMU), 4 each in - Pradhan Mantri TB Mukt Bharat Abhiyaan from the MMU. Not just me, but the entire village
Saharanpur & Munger, were operational by the Ministry of Health & Family Welfare.
is benefitted from the MMU”.
during the year. Each MMU is manned by a Under the intervention, ITC provided nutritional
team comprising of a MBBS qualified Doctor, food kits to identified Tuberculosis patients in
a Nurse, a Pharmacist and a Community Saharanpur, Munger and Delhi for a period of Kamla Devi (name changed)
Mobilizer. These MMUs, equipped with six months.

Annexures
Women Empowerment
This initiative is designed to provide a range of Ultra-Poor Women: The programme has been
gainful entrepreneurial opportunities to poor operational in 3 districts of Madhya Pradesh,
women and supported with financial assistance Telangana and Uttar Pradesh during the
by way of loans and grants. Strong market
linkages are attempted to ensure long term
year and has cumulatively impacted more
than 32,600 women. These are the Ultra Poor
3 districts 32,600
of Madhya Pradesh, Telangana women impacted (cumulative)
sustainability. This initiative is closely aligned women, shouldering responsibility of heading
and Uttar Pradesh
to ‘National Rural Livelihoods Missions' of the the family, and are benefitted through a
Government, which aims to support women to structured programme as depicted below
diversify their livelihoods, improve their incomes (Figure 21) and thus helping them to move out
and quality of life. of abject poverty.
Targeting Hard-core Poor Women Programme

Annexures
Mainstreaming the Ultra-poor Women
Mrs. Shanthi (name changed), a 40+ year husband and soon gave birth to a boy. She earning adult male member in the family. She her earnings increased to `6,000/- per month.
old woman comes from a Below Poverty decided to not be a burden on her family and was enrolled in the two-year programme, Soon after, she further expanded her venture
Line family residing in one of the villages of started working as a housemaid, which helped wherein she was provided with training, social to sell fruits as well. Now her average monthly
Bhadradri Kothagudem district (an Aspirational her earn `1,600/- per month. Shanthi started linkages, assets, and handholding support income is around `10,000/-. Net asset value
District). Her family consists of 6 persons living separately near her father’s house, to run an enterprise. As part of the two-year of her shop is around `78,000/- and she has
including herself, her father, mother, two but was struggling to support her and her programme, she was provided with training bank savings of `21,000/-. Shanthi graduated
sisters and a brother. Her father was the only children’s basic needs (food and education) and knowledge on various dimensions of from the programme in March 2023.
wage earner for the family and his earning with her meagre earnings which remained managing a micro-enterprise along with
Her eldest daughter, who is 18+, is helping
was only around `3,000/- per month. Her stagnant due to less opportunities in the area. consumption support of `1,400/- @ `200/- per
her in her business now. Other children have
family condition did not allow her to pursue Learning from her life, Shanthi was quite day for 7 days to compensate for income loss
resumed education, with the second daughter
education and was compelled to start working determined to educate her children, but forced when she attended trainings.
pursuing higher education in a Government
at an early age of 14 to support her family. by the circumstances, her daughters could not
Post training, she was provided support of Degree College and son resuming his studies in
Shanthi got married at the age of 18 to a daily continue their education.
`11,500/- to start her enterprise of selling school. The programme has resulted in overall
wage labourer who turned out to be alcoholic
In 2021, Shanthi was identified as a potential vegetables on a push cart. Shanthi started upliftment in the socio-economic status of the
and abusive. After 11 years of pain and agony,
participant in the ITC’s ‘Targeting Hardcore earning `3,500/- per month by selling family, as they now have access to healthcare,
Shanthi’s father decided to pull her out of the
Poor’ woman programme (THP), which works vegetables in morning and evening. She was bank accounts, sanitation, social security
marriage.
for upliftment of ultra-poor women who are encouraged to have a full-time shop for selling schemes, Self-help Groups, etc.
Shanthi was a mother to two girls and was heading a household with monthly income of vegetables to increase her income. Shanthi,
pregnant at the time of separation from her less than `2,500/- and have no able-bodied soon managed to save for a full-time shop and
Self-Help Groups (SHGs): 1,500 SHGs were linked to various Government social security
newly formed in FY 2022-23. The existing and schemes and have started saving money.
new SHGs together leveraged `7 million from More than 2,400 Yojana Sakhis have been
banks during the year. trained so far to provide door-step services
to rural community in awareness generation
Financial Inclusion: Post the signing of the
and linking women to social security schemes.
MoU with Madhya Pradesh State Rural
This helps the Sakhis as they get an additional
Livelihood Mission (MPSRLM) in 2017-18 for
monthly income of more than `2,500/-.
financial literacy and inclusion of SHG women
members, the programme has reached out to
over 213,800 SHGs and more than 20.7 lakh
women members in 52 districts till date. Over
16 lakh women from those trained have also
Financial Literacy Training of Super Trainers in Madhya Pradesh
been provided access to bank accounts and

Annexures
Awards and Recognition

received by ITC’s Social Investment Programme in FY 2022-23
ITC won the 16th Edition of CII – National Awards for Excellence in Water Management
under the category ‘Beyond the Fence’ for its Ghod River Basin Project.
ITC won FICCI CSR Award for its ‘Ghod River Basin Project’ under the category
‘Environment Sustainability’ for Private Sector Companies with turnover of `3,001 crores
Way Forward per annum and above.
As discussed in SIP’s approach section, The convergence of the needs and priorities
ITC’s initiatives in Water Stewardship Programme received recognition under the
ITC’s CSR programmes follow a bottom-up of the stakeholders will continue to be
Category – ‘Protect and Restore Community Water Structures’ at Water Sustainability
approach and keep community needs and the basis to further strengthen ITC’s Two
Awards by TERI in collaboration with UNDP and the International Water Association (IWA).
priorities at the centre while also focussing Horizon approach and make it more holistic
upon organizational and national priorities. and comprehensive, with special focus on
Programme priorities are defined by three vulnerable and underprivileged sections of ITC’s Case Study focusing on Women Empowerment through Financial Literacy
key drivers with certain level of overlaps and society including women. was published in a Compendium of best practices titled “Creating Value through
alignment in needs and priorities of each of Partnerships” by Confederation of Indian Industry. Compendium was launched during
During FY 2022-23, a household survey the CII CSR National Summit held in January 2023.
the identified stakeholders.
was undertaken covering over 26,000
households in 14 States to assess the
ITC’s three case studies focusing on successful models of Solid Waste Management
Organizational Priorities gaps against planned outcomes and,
were published in a Compendium on Business of Change series, titled ‘Models of
accordingly develop future action plans.
and strategic pillars Success in Solid Waste Management and Greywater Management in Urban and Rural
Periodical household surveys and other
including those aligned to assessments will continue to scan emerging
India’ by India Sanitation Coalition. The compendium was launched during the sixth
Sustainability 2.0 edition of ISC-FICCI Sanitation Awards and the India Sanitation Conclave held in
needs and guide the progress as well as
December 2022.
direction of the programmes.
National Priorities; and The programmes will focus on amplifying

the outcomes through synergistic effect
by convergence of benefits received by a
Community Priorities
household under multiple interventions,
identified through Core thus creating model habitations.
Area Perspective Plan
(CAPP) 2.0 study and other
surveys and engagements
CII Water Awards

Annexures
Creating
Enduring Institutions
ITC Sangeet Research CII–ITC Centre of Excellence
Academy for Sustainable Development
The ITC Sangeet Research Academy (ITC Chatterjee, Pt. Uday Bhawalkar, Vidushi Subhra The ‘CII–ITC Centre of Excellence for India Plastics Pact, India Business & Biodiversity
SRA), established in 1977, is an embodiment Guha, Shri Omkar Dadarkar and Shri Brajeswar Sustainable Development’, established by ITC Initiative, Business for Human Rights, and
of ITC’s sustained commitment to a priceless Mukherjee. The Academy’s focus continues to in 2006 in collaboration with the Confederation Cleaner Air – Better Life. Over the years, the
national heritage. This commitment towards be on nurturing exceptionally gifted students of Indian Industry (CII), continues to focus Centre has developed marquee offerings for
ensuring enduring excellence in Classical selected from across the country through a on promoting sustainable business practices supporting the sustainability transformation
Music education continues to drive ITC SRA system of multi-level audition. Full scholarship amongst Indian enterprises. An Advisory of Indian industry. These include CII-ITC
in furthering its objective of preserving and is provided to them to reside and pursue music Council, which includes members from the Sustainability Award, Annual Sustainability
propagating Hindustani classical music education in the Academy’s campus and in industry, civil society and institutions, headed Summit, Climate Action Programme (CAP2.0),
based on the age-old principle of ‘Guru- other designated locations under the tutelage by ITC’s Chairman provides strategic direction ESG Intelligence and Analytics and Sustainable
Shishya Parampara’. The eminent Gurus of the of the country’s most distinguished musicians. to the Centre. The Centre focuses on policy Value Chain Programme (Eco Edge).
Academy impart intensive training and quality Creation of the next generation of masters of advocacy, training & advisory and executive
education in Hindustani classical music to the Hindustani classical music for the propagation education programmes across key intervention
of a precious legacy continues to be the For more details, refer ‘Promoting Thought
scholars. The present Gurus of the Academy areas encompassing Climate Action, Circular
Leadership in Sustainability’ section of ‘Report
include Padma Bhushan Pt. Ajoy Chakrabarty, Academy’s objective. Economy, Biodiversity & Nature and Resilient of the Board of Directors & Management
Padma Shri Pt. Ulhas Kashalkar, Pt. Partha Business & Society. Its flagship industry Discussion and Analysis’ forming part of
‘ITC Report and Accounts, 2023’
alliances include the CII Climate Action Charter,

Annexures
Annexures
Aligned SDGs SIP Themes Key Indicators to which MSK works contribute
1.2: Reduce poverty | 1.3: Social Protection Systems for all | 1.4: Equal rights to economic resources to vulnerable | 1.5: Build resilience
SDG 1 Climate Smart Agri, Livestock & Women
of poor and vulnerable
SDG 2 Climate Smart Agri, Livestock & Women 2.2: End all forms of malnutrition | 2.3: Agricultural productivity & incomes | 2.4: Sustainable & resilient agri
3.1: Reduce maternal mortality | 3.2: End new-born/neonatal & under-5 mortality | 3.3: End epidemics & communicable diseases |
SDG 3 Public Health: Sanitation and Health & Nutrition
3.4: Reduce premature mortality | 3.7: Access to sexual & reproductive health-care
4.1: Quality education & learning outcomes | 4.2: Quality early childhood | 4.3: Quality vocational education | 4.4: Vocational skills &
SDG 4 Support to Education & Skilling of Youth
jobs | 4.5: Education & vocational training for vulnerable | 4.a: Gender sensitive education
5.5: Women leadership opportunities | 5.a: Women rights to ownership | 5.b: Technology for women empowerment |
SDG 5 Women Empowerment
5.c: Sound policies for equality and empowerment
6.1: Safe drinking water | 6.2: Access to sanitation and hygiene | 6.4: Water-use efficiency | 6.5: Water resources management |
SDG 6 Water Stewardship, Sanitation, School WASH (PE)
6.6: Protect water-related ecosystems | 6.a & 6.b: Capacity building & community participation
SDG 8 Skilling of Youth and Women Empowerment 8.3: Job creation | 8.5: Employment & decent work for all | 8.6: Reduce youth unemployment
Climate Smart Agriculture, Women Empowerment, 9.1: Affordable and equitable access for all to resilient infrastructure for economic development and human well-being |
SDG 9 Support to Education and Sanitation 9.3: Access of small-scale industrial and other enterprises to financial services and their integration into value chains and markets
Women Empowerment, Support to Education, Skilling 10.1: Income growth of the bottom 40 per cent of the population at a rate higher than the national average | 10.2: Empower and
SDG 10 of Youth promote the social economic and political inclusion of all | 10.3: Ensure equal opportunity and reduce inequalities of outcome
SDG 11 Public Health: Sanitation 11.6: Air quality & waste management
12.2: Achieve the sustainable management and efficient use of natural resources | 12.5: Substantially reduce waste generation
Natural Resource Management - Soil, Water & Biodi-
SDG 12 versity; Waste Management
through prevention, reduction, recycling and reuse | 12.6: Adopt sustainable practices and to integrate sustainability information
into their reporting cycle
SDG 13 All Horizon - I themes 13.1: Resilience & adaption to climate-hazards | 13.2: Policies, strategies, and plans | 13.3: Climate Change education
14.1: Prevent and significantly reduce marine pollution of all kinds, in particular from land-based activities, including marine debris
SDG 14 Waste Management
and nutrient pollution
Social Forestry, Water Stewardship, Biodiversity Con- 15.1: Sustainable ecosystems | 15.2: Restore degraded forests & afforestation | 15.3: Combat desertification |
SDG 15 servation and Climate Smart Agriculture 15.9: Ecosystem & biodiversity planning
Social Forestry, Water Stewardship, Climate Smart 16.6: Develop effective, accountable and transparent institutions at all levels | 16.7: Ensure responsive, inclusive, participatory and
SDG 16 Agriculture, Support to Education, Women Empower-
ment, Health & Nutrition representative decision-making at all levels | 16.9: Provide legal identity for all, including birth registration
Water Stewardship, Biodiversity Conservation, Cli- 17.16: Enhance global partnership for sustainable development, complemented by multi-stakeholder partnerships to support the
mate Smart Agriculture, Support to Education, Public
SDG 17 Health: Sanitation and Health & Nutrition, Women
achievement of the sustainable development goals | 17.7: Encourage and promote effective public, public-private and civil society
Empowerment partnerships

Annexures
Contribution
to UN SDGs
The company’s triple bottom line philosophy is deeply embedded into its Corporate Strategy thus enabling innovative business
models which create economic, environmental and social capital and contribute favourably to United Nation's Sustainable
Development Goals (UN SDGs). ITC’s Sustainability 2.0 ambitions and priorities are aligned to UN SDGs Targets, and a mapping of
the Sustainability 2.0 priorities and contribution of major related interventions to the UN SDGs targets is given below.
SDG SDG Target Select Interventions by ITC SDG SDG Target Select Interventions by ITC
1.2: Reduce poverty ITC’s ‘Triple Bottomline’ approach has enabled support for sustainable 2.4: Sustainable The Climate Smart Agriculture interventions spread over 23 lakh
1.3: Social livelihoods for 6 million people till date and has a target to support 10 food production acres have benefitted over 7.4 lakh farmers. The Climate Smart
protection systems million sustainable livelihoods by 2030. system and resilient Village programme is targeting to cover 30 lakh acres by 2030. These
for all The Two Horizon approach focusses on social and economic empowerment agriculture interventions have resulted in significant increase in farmer returns.
of the vulnerable especially those residing in rural areas, or urban areas 3.1: Reduce the The ‘Mother and Child Health’ (MCH) initiatives aimed at improving the
with inadequate infrastructure, that includes small / marginal farmers, global maternal health-nutrition status of women, adolescents and children has benefitted
women and girls, children & youth. The interventions provide protection mortality over 5.6 lakh beneficiaries.
from poverty, diseases, unhealthy environment and climate change.
3.2: End 8 Mobile Medical Units (MMU), 4 each in Saharanpur & Munger were
Refer ‘Mission Sunehra Kal for Sustainable & Inclusive Growth’ section of preventable deaths operational during the year. More than 57,000 individual engagements
this report. of new-borns and were made with community members across 690 villages during the year.
1.4: Equal rights to The Women Economic Empowerment Programme has benefitted around children under 5
economic resources 1.2 lakh women including 32,600 Ultra-Poor Women till date and has a years of age
to vulnerable target of enhancing the support for 1.5 lakh women by 2030. 3.4: Reduce
Additionally, 20.7 lakh women have been covered under financial literacy premature mortality
interventions resulting in enhanced linkages to savings, insurance, social 3.7: Ensure universal ITC’s ‘Swasthya Choupal Initative’, for creating awareness on sanitation,
security and credit. access to sexual and menstrual and personal hygiene, family planning, diarrhoea prevention
1.5: Build resilience of The Sustainable Agriculture intervention covering over 23 lakh acres, and reproductive health- and nutrition, and providing access to related products has had an
poor and vulnerable Farm & Social Forestry programmes covering over 10 lakh acres till date care services outreach to nearly 1.16 lakh women and adolescent girls during FY 2022-
have enabled higher returns to farmers and also diversification of farm 23 through 430 women Village Health Champions (VHCs).
portfolios of small / marginal farmers and rural households.
4.1: Quality The Primary Education Programme has enabled improvement in Learning
2.2: End all forms of ITC’s Mother and Child Health initiative is aligned to the ‘Saksham Anganwadi education & Outcomes for over 11 lakh children till date.
malnutrition and Poshan 2.0’ programme and addresses the challenges of malnutrition in learning outcomes Operational in 32 districts of 12 States, the Support to Education
children, adolescent girls, pregnant women and lactating mothers. 4.2: Quality early programme covered over 2.5 lakh children in FY 2022-23. As part of
ITC Foods Business’ Four Pillar Model with its core purpose of “Help India Eat education this, the Read India Programme aims to provide quality education and
better” is centred on 1) Value-added Product Portfolio, 2) Sustainable Food improve learning levels of children.
Ecosystem, 3) Healthy Communities and 4) Employee and Consumer Awareness. During the year, over 14,400 government school teachers and Anganwadi
Sevikas were also trained on child-friendly pedagogy under Support to
2.3: Agricultural ITC’s ‘Baareh Mahine Hariyali’ intervention has enabled multiplication of
Education programme.
productivity & farm incomes with benefits rendered to over 200,000 farmers till date and
incomes over 35,000 farmers reporting doubling of their incomes, with a target to 125 Supplementary Learning Centres (SLCs) were operational during
cover 1 million farmers progressively. the year for mainstreaming of out of school children. Over 2,000 children
were mainstreamed during the year taking cumulative total to over
ITCMAARS provides assorted agricultural and allied services to farmers
10,000 children mainstreamed into regular education system.
on the digital platform. From supply of seeds and fertilizers and services
like soil testing to weather forecast and marketing. It has been launched
in 9 States with over 5 lakh farmers empowered through 1,100+ FPOs.

Annexures
Contribution to UN SDGs
4.3: Quality The vocational programme has trained over 1 lakh youth on market- 6.1: Safe drinking Creating facilities and infrastructure for improving access to safe drinking
vocational education relevant skills till date with a target of covering 2.25 lakh youths by water water.
4.4: Vocational skills 2030. Training is provided in skills that are in demand in the market, and 6.2: Access to Cumulatively, 157 community toilets and over 39,600 household toilets
& jobs includes practical training to enhance employability. sanitation and have been constructed till March, 2023, benefitting over 1.15 lakh
4.5: Education & During enrolment, the focus is on girls and youth from the socially hygiene people.
vocational training challenged sections of the society. In FY 2022-23, 34% of the youth
for vulnerable enrolled were from the SC/ST communities and 46% were female 6.3: Reducing ITC Businesses target 40% reduction in Specific Water Intake by 2030.
students. pollution, treatment, The ITC’s Paper Mill at Kovai is Second facility in the world and the first in
4.7 Knowledge and Training to employees on various sustainable development aspects recycling and safe India to be awarded the Alliance for Water Stewardship (AWS) Platinum-
skills to promote including sustainability, health and safety. In FY 2022-23, there were 11 reuse level certification in 2019-20. In FY 2022-23, ITC’s Foods unit at Malur
Sustainable lac hours of formal (behavioural and technical) training provided to 6.4: Increase water- became the first foods processing facility in Asia to be awarded the AWS
Development employees across the Company. use efficiency Platinum level certification. The target is to have AWS certification of 8
4.8: Gender Refer SDG Target 5.1 & 5.5 across all sectors sites by 2023-24 and all high-risk sites by 2035-36.
sensitive education The Demand Side Management of water in Agriculture has benefitted
farmers across 11.8 lakh acres till date, resulting in an estimated potential
savings of 780 million kl of water in a year with a target of 2,000 million kl
of water savings (annually) by 2030.
5.1 End of ICMLs of Pudukottai and Medak having women representation at 79% 6.5: Integrated The Integrated Watershed Development Project is spread across 45
discrimination and 97 % of the on-roll labour force respectively. Water Resource Districts of 16 States in India.
against women ITC's recruitment of talent from premier campuses reflects diversity ratios Management Over 14.7 lakh acres covered and over 28,300 water harvesting structures
superior to the prevailing norm in such institutions. have been created, resulting in 48.9 million kl of rainwater harvesting
Gender-sensitization and inclusive hiring workshops for managers across (RWH) potential till date.
the organisation. The target is to create 50,000 water harvesting structures over 22 lakh
Women focused - Wellness Programmes acres, resulting in an RWH potential of 60 million kl by 2030
5.5: Equal Women-focused Leadership Development Programmes. 6.a & 6.b: Strengthening grassroots level water governance through creation of over
opportunities for ITC’s interventions that focus on access to information and products Capacity building 4,290 water-user groups with more than 69,600 members till date. Similar
leadership related to finances, livelihood interventions, and access to physical & community such institutions have been created in other interventions also.
5a: Women’s right resources like water and livestock. participation
to ownership Use of digital tools in areas like education, financial literacy and maternal
7.2: Share of 43% of total energy consumption from renewable sources in FY 2022-23
5b: Technology / child health which help women not only as beneficiaries but also as
renewable energy with target of 50% by 2030.
for women influencers.
empowerment 47% of electricity requirements sourced from renewable sources in FY
2022-23 with target of 100% by 2030.
12 ITC units met more than 90% of their electrical energy requirements
from renewable sources in FY2022-23.
7.3: Improvement in Efficiency Improvement across ITC Businesses with a target of 50%
energy efficiency reduction in Specific GHG Emissions, and 30% reduction in Specific Energy
Consumption by 2030.

Annexures
8.2: Achieve higher ITC’s vibrant and synergistic portfolio of businesses with a growing 9.1: Affordable and ITC’s interventions enable equitable access to natural resources like water,
levels of economic presence across all three sectors of the economy – agriculture, equitable access physical resources like toilets, school infrastructure, financial resources like
productivity manufacturing and services. 9.2: Inclusive loans / credits and knowledge on agriculture, education, and health.
8.3: Job creation • For FY 2022-23, Gross Revenue at H694.81 billion increased by 17.6%, and sustainable 200+ manufacturing locations across India.
8.5: Full and while EBITDA increased by 26.5% to H239.44 billion. Industrialisation 10 State-of-the-art Integrated Consumer Goods Manufacturing and
productive • Profit Before Tax and Exceptional items at H246.78 billion grew by Logistics facilities (ICMLs) across India, with focused smart manufacturing
employment for all 24.4% over previous year and Profit After Tax stood at interventions leveraging automation and Industry 4.0 technologies to
H187.53 billion (previous year H150.58 billion). drive operational efficiencies, yield and energy management and further
• T otal Comprehensive Income for the year stood at H187.83 billion enhance safety and quality.
(previous year H156.32 billion).
9.3: Increase ITC’s diverse portfolio of products is anchored on inclusive agri and
• E arnings Per Share for the year stood at H15.15 (previous year H12.22). access of small- forestry value chains with nearly 97% of raw materials being agri/forestry
Apart from creation of employment opportunities through core scale enterprises, based, sourced from farmers.
operations, ITC’s interventions also provide livelihood / supplementary integrate into value
income opportunities including for women in rural India. chains
8.6: Reduce youth ITC, with its diversified presence across all three sectors of the economy 9.4: Adoption Large scale investments in energy conservation and renewable energy
unemployment – Agriculture, Manufacturing and Services, and a pan-India operational of clean and projects along with exploring innovative technologies in line with ITC’s
footprint of 200+ Manufacturing Locations and 113 Hotels, creates both environmentally 2030 Sustainability 2.0 Goals.
direct and indirect employment opportunities for youth of the Country. sound technologies Pioneer in the green building movement, with 40 buildings having
In FY 2022-23, ITC employed 37,736 full-time employees, of which 2005 received Platinum certification by USGBC/IGBC.
in the Leaf Tobacco Business were engaged on a seasonal basis owing
to the nature of the business. During this period, approximately 26,908 Capacity augmentation of offsite solar power plant at Tamil Nadu from
service provider employees were also engaged with ITC. 14.9 MW to 17.9MW.
Refer SDG Target 4.3, 4.4 & 4.5 9.5: Enhance State-of-the-art ITC Life Sciences and Technology Centre (LSTC) in
scientific research Bengaluru, with over 400 highly qualified scientists and over 800 patents
8.7: Measures to ITC’s Board-approved Policy on Prohibition of Child Labour and and encourage filed till date.
reduce child labour, Prevention of Forced Labour at the Workplace, and Code of Conduct for innovation
forced labour Suppliers and Service Providers. R&D expenditure in last five years of H806 crores during FY 2022-23
10.1: Income Refer SDG Target 1.2, 1.4, 2.3, 2.4, 4.1, 4.2, 4.3, 4.4 & 4.5
8.8: Protect labour Policies and practices in place to ensure enforcement of labour rights
growth of the
rights and safe across the value chain: Board-approved Code of Conduct, Policy on
bottom 40 per cent
work environment Freedom of Association, Policy on Diversity, Equity and Inclusion, Policy on
of the population
Environment, Health and Safety, and Code of Conduct for Suppliers and
Service Providers. 10.2: Empower and Refer SDG 1.3
promote the social,
Comprehensive EHS strategy founded on two pillars: ‘Safety by Design’
economic and
and ‘Safety by Culture’.
political inclusion
EHS standards, that are benchmarked against international best practices of all
across sectors in which ITC operates, implemented across all Units.
Best-in-class engineering standards for all investments to embed safety
from design stage.
8.9: Sustainable ITC Hotels with its highest standards of hygiene and safety, portfolio of
Tourism world-class properties, iconic cuisine brands and best-in-class service
levels anchored on ‘Responsible Luxury’ ethos.

Annexures
10.3: Ensure equal As part of its commitment to enhancing diversity, ITC places particular 12.5: Reduce waste 99% total solid waste generated in ITC units is either reused or recycled.
opportunity emphasis on representation and inclusion of women and the differently- generation
abled persons through concerted actions.
This includes initiatives and efforts to enhance representation of
women in the selection pool, collaborating with external partners to 12.6: Sustainability Commitment to Transparent Sustainability Disclosures with 19 years
recruit differently abled persons, and where feasible, encouraging their Reporting of Sustainability Reporting (since 2004) in line with International and
deployment with business associates across the value chain. National Frameworks.
For instance, ITC is amongst the leading employers in the hospitality Additionally, ITC voluntarily responds to CDP Climate Change and
industry on gender diversity and an employer of People with Disabilities. Water Security Questionnaires, and also participates in the S&P Global
Refer SDG Target 5.1 & 5.5 Corporate Sustainability Assessment (CSA).
12.8: Information Creating purpose-led brand experiences for consumers:
11.4: Protect and The ITC Sangeet Research Academy, established in 1977, is committed and awareness • S avlon Swasth India Mission’s various campaigns on health and hygiene
safeguard the to preserving and propagating Hindustani classical music, a priceless on Sustainable • I TC’s Mission Millets is a millet-based product portfolio under its
world’s cultural and national heritage. Development and flagship brands of Aashirvaad Natures Super Foods (Ragi flour, multi
natural heritage lifestyles millet flour), Sunfeast Farmlite Super Millets cookies amongst other
11.6: Reduce ITC’s Solid Waste Management Programmes have covered around 8 products under the value-added innovation portfolio. In addition a
the adverse million households till date, instilling behavioural change through door- dedicated Millet microsite will host authored articles, blogs, videos and
environmental to-door awareness campaigns for ensuring segregation of waste at recipes that give credible information on benefits and use of Millets
impact of cities source. will be developed.
• I TC Foods Division ensures availability of online nutritional information
• W
ell-Being Out of Waste’ (WOW) programme: covering 2.2 crore
for all its packs on various platforms like ITCstore, Brand websites or
citizens, 64,000 MT dry recyclable waste collected from 1,270 wards
E-commerce stores
during FY 2022-23.
• Mission Sunehra Kal’s Solid Waste Management programme, spread
across 18 districts in 10 States, focussing on waste segregation at 13.1: Strengthen Building farmer capabilities on targeted climate smart technologies
source, collected over 2.6 lakh MT waste during FY 2022-23 and thus resilience and through over 8,200 Farmer Field Schools (FFS) covering 2.78 lakh student
reduced waste going to landfill. adaptive capacity farmers during FY 2022-23.
ITC’s Climate Smart Village interventions reached out to over 4,800
12.2: Sustainable ITC’s ‘Triple Bottom Line’ Philosophy, and abiding strategy of ‘Responsible villages in 11 States covering over 10 lakh acres till date aimed at creating
management and Competitiveness’ that focuses on extreme competitiveness in a manner climate resilient villages with a target to cover 30 lakh acres by 2030.
efficient use of that replenishes the environment and supports sustainable livelihoods. 13.2: Climate Comprehensive climate change risk and vulnerability assessments using
natural resources Board-approved Policy on Resource Efficiency, and Policy on Product change measures climate models across key physical assets and agri value chains.
Responsibility. in strategy and
Refer Targets under SDG 2, 6, 7, 9 & 13 planning
12.3: Lowering food ITC's investments in Integrated Consumer Goods Manufacturing and 13.3: Improve In addition to various other interventions including recognition of
waste and loss Logistics facilities (ICMLs), strategically located in close proximity to agri- awareness, sustainability exemplars in the Indian industry, nearly 1,200 participants
procurement catchments, help reduce agri wastages. institutional covered through 36 capacity building programmes on various aspects of
capacity on climate sustainable development including climate change by CII–ITC Centre of
change Excellence for Sustainable Development in FY 2022-23.
12.4: Environmentally Leveraging Life Cycle Assessments (LCA) of products and services since
sound management 2010 for identifying areas for improvement across the value chain.
throughout lifecycle Refer ‘Product Sustainability’ section of this report

Annexures
14.1: Prevent and Diverting plastic waste from entering water bodies through sustainable 16.5: Reduce Commitment to highest standards of ethical conduct: Board-approved
reduce marine collection and management of post-consumer plastic waste. ITC corruption and Code of Conduct for Directors, Senior Management and Employees, and
pollution retained its status of being plastic neutral in FY 2022-23. During the bribery in all forms Code of Conduct for Suppliers and Service Providers.
year, ITC, through its various partners, has collected and managed ITC’s Board-approved Policy on Tax to ensure compliance with the spirit
around 60,000MT of plastic waste during the year, with over 30% getting as well as the letter of the tax laws and regulations across countries of
channelised for recycling, and remaining being sent for energy recovery. operations.
14.4: Regulate Best Aquaculture Practices (BAP) Certified Operations for ITC’s Agri SBU’s 16.6: Develop Focus on Participatory Development through Creation of Empowered
harvesting and end Aqua (Prawns) Business. effective, Grassroots Institutions – 6,500+ Self Help Groups, 4,200+ Water User
overfishing accountable Groups, nearly 1,800 Forestry Groups, 781 School Management
and transparent Committees, and over 900+ Agri-business Centres created till date.
15.1: Conservation Refer SDG Target 6.5 institutions at all ITC's Board-approved Policy on Responsible Advocacy provides the
of freshwater levels framework for necessary interface with Government/Regulatory Authorities.
ecosystems 16.7: Ensure ITC's Board-approved Policy on Stakeholder Engagement: Commitment
responsive, to understand and address concerns of stakeholders including those who
15.2: Sustainable Sustainable Forest Management through ITC’s Farm and Social Forestry inclusive, are disadvantaged, vulnerable and marginalised.
management of programmes with greening of over 10 lakh acres till date. participatory and
representative CII–ITC Centre of Excellence for Sustainable Development for promoting
forests
decision-making at sustainable business practices amongst Indian enterprises.
15.3: Restore Biodiversity conservation programme covering over 2.9 lakh acres till all levels
degraded land and date with a target to cover 10 lakh acres by 2030.
soil
17.3: Mobilise
15.5: Halt the loss of ITC’s Board-approved Policy on Biodiversity Conservation, and Policy on financial resources
biodiversity Deforestation.
Deforestation-free Wood and Leaf Tobacco value chains.
15.9: Ecosystem In FY 2022-23, ITC’s community driven biodiversity efforts have 17.16: Global Partnerships with National and International organizations including
& biodiversity conserved more than 1.56 lakh acres of area, taking the total till date to partnership CGIAR, IUCN, IWMI, WWF India, ACWADAM, CGIAR, CIMMYT and leading
planning over 2.9 lakh acres. for sustainable Agricultural Universities.
development Partnership with IIT Delhi to support research in STEM (Science,
Reviving and restoring pasture lands in Rajasthan in partnership with
Wasteland Development Board initiated across 70,000 acres of village 17.17: Encourage Technology, Engineering and Mathematics) areas.
commons with target to cover 2.5 lakh acres in a phased manner. and promote Public Private Partnerships (PPP) with Government Agencies to enable rapid
effective public, scale-up of programmes - 86 MoUs (25 currently operational) till date.
‘Sustainable Agriscape for Future’ Project in Munger District (Bihar) with
public-private
IUCN – During FY 2021-22, 164,000 native and commercial species Implementation Partnerships under Social Investments Programme with
and civil society
planted, soil conservation tillage promoted in 5,350 acres on the Ganga 78 reputed NGOs for execution of 129 projects across India.
partnerships
river banks.
Participatory Development through more than 15,400 Grassroots
79,000 acres targeted to be covered under forest conservation planning Institutions & Community Based Organisations created till date with over
in a phased manner to improve forest cover across Telangana and 4.8 lakh members.
Maharashtra. Planning has been completed for over 14,100 acres, and
planned activities completed in over 3,700 acres till date.

Annexures
GRI Content Index

General Disclosures External
Report Section / Explanation Omissions
GRI Standard Disclosure Assurance
General disclosures
2-1 Organizational details About ITC - Yes
2-2 Entities included in the organization’s sustainability reporting About this Report - Yes
2-3 Reporting period, frequency and contact point About this Report - Yes
2-4 Restatements of information About this Report - Yes
2-5 External assurance About this Report - Yes
2-6 Activities, value chain and other business relationships About ITC - Yes
2-7 Employees Workforce for Tomorrow - Yes
2-8 Workers who are not employees Workforce for Tomorrow - Yes
2-9 Governance structure and composition Governance - Yes
2-10 Nomination and selection of the highest governance body Governance - Yes
2-11 Chair of the highest governance body Governance - Yes
2-12 Role of the highest governance body in overseeing the management of impacts Governance - Yes
2-13 Delegation of responsibility for managing impacts Governance - Yes
2-14 Role of the highest governance body in sustainability reporting Governance - Yes
2-15 Conflicts of interest Governance - Yes
2-16 Communication of critical concerns Governance - Yes
2-17 Collective knowledge of the highest governance body Governance - Yes
2-18 Evaluation of the performance of the highest governance body Governance - Yes
Governance
2-19 Remuneration policies https://www.itcportal.com/about-itc/policies/remuneration-policy. - -
pdf
2-20 Process to determine remuneration Governance - -

2-21 Annual total compensation ratio Governance - -
2-22 Statement on sustainable development strategy Chairman’s message - -
2-23 Policy commitments Chairman’s message - -
2-24 Embedding policy commitments Chairman’s message - -
Report and Accounts 2023 -Business Responsibility
2-25 Processes to remediate negative impacts Sustainability Reporting (BRSR)- Principle 4 - -

Annexures
GRI Content Index

2-26 Mechanisms for seeking advice and raising concerns Workforce for Tomorrow - Yes
2-27 Compliance with laws and regulations Report and Accounts 2023- (BRSR) Principle 1 - -
2-28 Membership associations Report and Accounts 2023 - (BRSR) Principle 7 - -
2-29 Approach to stakeholder engagement Stakeholder Engagement - Yes
Workforce of tomorrow
2-30 Collective bargaining agreements - Yes
Report and Accounts 2023- (BRSR) Principle 3
Material Topics
3-1 Process to determine material topics Material Issues - Yes
3-2 List of material topics Material Issues - Yes
Economic
Economic Performance
3-3 Management of material topics Creating sustained economic value - -
201-1 Direct economic value generated and distributed Creating sustained economic value - -
Refer ITC’s publicly available response to CDP Climate
201-2 Financial implications and other risks and opportunities due to climate change - -
Change Questionnaire.
201-3 Defined benefit plan obligations and other retirement plans Creating sustained economic value - -
201-4 Financial assistance received from government Creating sustained economic value - -
Market Presence
3-3 Management of material topics Creating sustained economic value - -
202-1 Ratios of standard entry level wage by gender compared to local minimum wage Report and Accounts 2023- (BRSR) Principle 5 - -
202-2 Proportion of senior management hired from the local community Governance - -
Indirect Economic Impacts
3-3 Management of material topics About ITC - -
ITC’s Approach to Value-creation
203-1 Infrastructure investments and services supported ITC Businesses - -
Creating sustained economic value
203-2 Significant indirect economic impacts Mission Sunehra Kal for Sustainable and Inclusive Growth - -
Procurement Practices
3-3 Management of material topics Sustainable Supply Chain and Responsible Sourcing - -
204-1 Proportion of spending on local suppliers Report and Accounts 2023 –(BRSR) – Principle 8 - -

Annexures
GRI Content Index

Anti-Corruption
3-3 Management of material topics Governance - -
205-1 Operations assessed for risks related to corruption Governance - -
Governance
205-2 Communication and training about anti-corruption policies and procedures - -
Report and Accounts 2023 –(BRSR) – Principle 1
205-3 Confirmed incidents of corruption and actions taken Report and Accounts 2023 –(BRSR) – Principle 1 - -
Anti-competitive Behavior
3-3 Management of material topics - -
Governance
Legal actions for anti-competitive behavior, anti-trust, and
206-1 Report and Accounts 2023 –(BRSR) – Principle 1, 7 - -
monopoly practices
Tax
https://www.itcportal.com/about-itc/policies/sustainability-policy.
3-3 Management of material topics aspx#policy-tax
- -
207-1 Approach to tax aspx#policy-tax
- -
207-2 Tax governance, control, and risk management aspx#policy-tax
- -
207-3 Stakeholder engagement and management of concerns related to tax aspx#policy-tax
- -
207-4 Country-by-country reporting Report and Accounts 2023 - -

Materials
3-3 Management of material topics - Yes
301-1 Materials used by weight or volume - Yes
301-2 Recycled input materials used - -
Towards Circularity
301-3 Reclaimed products and their packaging materials - -
Energy
3-3 Management of material topics Climate Change - Yes
302-1 Energy consumption within the organization Climate Change - Yes
302-2 Energy consumption outside of the organization Climate Change - -
302-3 Energy intensity Climate Change - Yes
302-4 Reduction of energy consumption Climate Change - Yes

Annexures
GRI Content Index

302-5 Reductions in energy requirements of products and services Climate Change - -
Water and Effluents
3-3 Management of material topics Water Security - Yes
303-1 Interactions with water as a shared resource Water Security - -
Water Security
303-2 Management of water discharge-related impacts - -
Chemical Safety Management
303-3 Water withdrawal Water Security - Yes
303-4 Water discharge Water Security - Yes
303-5 Water consumption Water Security - Yes
Biodiversity
3-3 Management of material topics Biodiversity Management - -
Operational sites owned, leased, managed in, or adjacent to, protected areas and
304-1 Biodiversity Management - -
areas of high biodiversity value outside protected areas
304-2 Significant impacts of activities, products and services on biodiversity Biodiversity Management - -
304-3 Habitats protected or restored Biodiversity Management - -
IUCN Red List species and national conservation list species with habitats in areas
304-4 Biodiversity Management - -
affected by operations
Emissions
3-3 Management of material topics Climate Change - Yes
305-1 Direct (Scope 1) GHG emissions Climate Change - Yes
305-2 Energy indirect (Scope 2) GHG emissions Climate Change - Yes
305-3 Other indirect (Scope 3) GHG emissions Climate Change - Yes
305-4 GHG emissions intensity Climate Change - -
305-5 Reduction of GHG emissions Climate Change - -
305-6 Emissions of ozone-depleting substances (ODS) Air Emissions Management - Yes
305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions Air Emissions Management - Yes
Waste
3-3 Management of material topics Towards Circularity - Yes
306-1 Waste generation and significant waste-related impacts Towards Circularity - -

Annexures
GRI Content Index

306-2 Management of significant waste-related impacts Towards Circularity - -
306-3 Waste generated Towards Circularity - Yes
306-4 Waste diverted from disposal Towards Circularity - Yes
306-5 Waste directed to disposal Towards Circularity - Yes
Supplier Environmental Assessment
Report and Accounts 2023 – (BRSR) Principle 6
308-1 New suppliers that were screened using environmental criteria - -
Report and Accounts 2023 – (BRSR) Principle 6
308-2 Negative environmental impacts in the supply chain and actions taken - -
Social
Employment
3-3 Management of material topics Workforce for Tomorrow - Yes
401-1 New employee hires and employee turnover Workforce for Tomorrow - Yes
Benefits provided to full-time employees that are not provided
401-2 Workforce for Tomorrow - Yes
to temporary or part-time employees
401-3 Parental leave Workforce for Tomorrow - Yes
Labour/ Management Relations
3-3 Management of material topics Workforce for Tomorrow - -
402-1 Minimum notice periods regarding operational changes Workforce for Tomorrow - -
3-3 Management of material topics Occupational Health and Safety - Yes
403-1 Occupational health and safety management system Occupational Health and Safety - -
403-2 Hazard identification, risk assessment, and incident investigation Occupational Health and Safety - -
403-3 Occupational health services Occupational Health and Safety - -
Worker participation, consultation, and communication on occupational health and
403-4 Occupational Health and Safety - -
safety
403-5 Worker training on occupational health and safety Occupational Health and Safety - -
403-6 Promotion of worker health Occupational Health and Safety - -

Annexures
GRI Content Index

Prevention and mitigation of occupational health and safety impacts directly linked by
403-7 Occupational Health and Safety - -
business relationships
403-8 Workers covered by an occupational health and safety management system Occupational Health and Safety - -
403-9 Work-related injuries Occupational Health and Safety - Yes
403-10 Work-related ill health Occupational Health and Safety - -
Training and education
3-3 Management of material topics Workforce for Tomorrow - Yes
404-1 Average hours of training per year per employee Workforce for Tomorrow - Yes
404-2 Programs for upgrading employee skills and transition assistance programs Workforce for Tomorrow - -
Percentage of employees receiving regular performance and career development
404-3 Workforce for Tomorrow - -
reviews
Diversity and Equal Opportunity
Governance
405-1 Diversity of governance bodies and employees - -
405-2 Ratio of basic salary and remuneration of women to men Report and Accounts 2023- (BRSR) – Principle 5 - -
Non - Discrimination
3-3 Management of material topics - -
Report and Accounts 2023- (BRSR) – Principle 5
406-1 Incidents of discrimination and corrective actions taken - -
Freedom of Association and Collective Bargaining
Operations and suppliers in which the right to freedom of association and collective
407-1 Workforce for Tomorrow - -
bargaining may be at risk
Child Labour
408-1 Operations and suppliers at significant risk for incidents of child labor - -

Annexures
GRI Content Index

Forced or Compulsory Labour
3-3 Management of material topics Workforce of Tomorrow - -
409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor - -
Security practices
410-1 Security personnel trained in human rights policies or procedures Report and Accounts 2023- (BRSR) – Principle 5 - -
Rights of indigenous people
411-1 Incidents of violations involving rights of indigenous peoples Not a material issue -
Local Communities
3-3 Management of material topics Mission Sunehra Kal for Sustainable and Inclusive Growth - -
Operations with local community engagement, impact assessments, and
413-1 Mission Sunehra Kal for Sustainable and Inclusive Growth - Yes
development programs
Operations with significant actual and potential negative impacts on local
413-2 Mission Sunehra Kal for Sustainable and Inclusive Growth - -
communities
Supplier Social Assessment
414-1 New suppliers that were screened using social criteria Report and Accounts 2023 – Principle 5 - -
414-2 Negative social impacts in the supply chain and actions taken Sustainable Supply Chain and Responsible Sourcing - -
Public Policy
415-1 Political contributions Report and Accounts 2023 - -
Customer Health and Society
3-3 Management of material topics Product Sustainability - -
416-1 Assessment of the health and safety impacts of product and service categories Product Sustainability - -
Incidents of non-compliance concerning the health and safety impacts of products
416-2 Product Sustainability - -
and services
Marketing and Labelling
3-3 Management of material topics Product Sustainability - Yes
417-1 Requirements for product and service information and labelling Product Sustainability - Yes

Annexures
GRI Content Index

Incidents of non-compliance concerning product and service information and
417-2 Product Sustainability - Yes
labelling
417-3 Incidents of non-compliance concerning marketing communications Product Sustainability - Yes
Customer Privacy
3-3 Management of material topics Product Sustainability - -
Substantiated complaints concerning breaches of customer privacy and losses of
418-1 Product Sustainability - -
customer data

Annexures
Quantification
Methodologies
Energy and GHG Emissions Stationary Combustion Transportation • Refrigerants released from the
Emission factors provided in the IPCC Guideline Sources for calculation of emission factors refrigerators, chillers and air conditioners
To set organisational boundaries for for National Greenhouse Gas Inventories for different modes of transportation are as • SF6 release from power distribution system
consolidated GHG emissions, ITC has utilised of 2006 have been used to calculate GHG follows: • CO2 release from fire protection system
the operational control approach for various emissions from stationary combustion sources. • Emissions from gas cutting/ welding
Road - India Specific Road Transport Emission
entities covered under the Report. ITC’s GHG Activity data (quantity of fuel consumed) is • Methane released from wastewater
Factors published by India GHG Programme.
emissions inventory is prepared based on the multiplied with the respective default energy treatment
ISO 14064-1: 2018 Standard, and using ‘GHG factor or actual measured Net Calorific Value Rail - India Specific Rail Transport Emission • Emissions from composting of waste inside
Protocol Corporate Accounting and Reporting (NCV) to arrive at the energy consumption Factors for Passenger Travel and Material the unit premises
Standard’ as amended thereto and ‘Corporate values, which is multiplied by the emission Transport published by India GHG • Emissions from fertiliser application in
Value Chain (Scope 3) Accounting and factor to quantify the direct emission from Programme12. forestry project
Reporting Standard’ (including supplements to stationary combustion sources. • Emissions from business air travel
Air - India Specific Air Transport Emission
it) developed by the GHG Protocol Initiative, a Contribution of other sources of GHG emissions
Factors for Passenger Travel and Material
partnership between World Resources Institute Purchased Energy is less than 5% in ITC’s total GHG emissions.
Transport published by India GHG
(WRI) and the World Business Council for The quantification of indirect GHG emission These are measured once in three years
Programme12.
Sustainable Development (WBCSD). Global due to purchased electricity is based on activity (except for refrigerants which are monitored
Warming Potential (GWP) used are sourced data (electricity consumption in kWh) multiplied Ship - Emission factor published by annually).
from the IPCC Fifth assessment report. by weighted average emission factors specified Department of Business, Energy & Industrial
in the ‘CO2 Baseline Database for the Indian Strategy, UK. GHG Removals
Power Sector User Guide’, (version 18.0, GHG removals from plantations have
December 2022) issued by Central Electricity Other Sources been calculated based on the approved
Authority, Government of India. For market- The quantification of GHG emissions from methodology used in ITC's UNFCCC registered
based Scope 2 emissions, the emission factor other sources is based on a robust process CDM project '2241: Reforestation of severely
of the contracted power plant is used (where of data collection at unit/Division level and degraded landmass in Khammam District
applicable), and for location-based Scope methodologies/emission factors taken from of Andhra Pradesh, India under ITC Social
2 emissions, the emission factor of the grid recognised global sources such as IPCC, GHG Forestry Project.'
is used for purchased electricity including Protocol and UNFCCC. The sources that have
purchased renewable electricity. a minor contribution to ITC's overall GHG
emissions are listed below:
The quantification of indirect GHG emissions
• Process Emissions
for purchased steam is based on activity data
• Emissions from company owned vehicles
(energy consumption in GJ) multiplied by the
• Emissions from employee commuting
relevant emission factor. The emission factor is
• Emissions from vehicles used for guest
sourced from the IPCC Guideline for National
pickup and drop at ITC Hotels
Greenhouse Gas Inventories of 2006 for the
corresponding fuel.

Annexures
Certifications
Environment, Social and Product safety certification:
Occupational Health & Guest safety
Safety ‘Platinum certification’ for ‘WeAssure’
Programme by Hotels Division »
ISO 14001: Environment
All ITC Hotels are ‘Platinum certification’
Management System
for ‘WeAssure’ Programme under ‘My Care
All ITC owned manufacturing Units (except
Infection Risk Management Programme’ from
Leaf threshing Unit at Anaparti and newly
the Det Norske Veritas (DNV) group, Norway,
inducted factories from Sunrise foods & newly
one of the world’s leading risk management
commissioned factory at Medak) »
service providers. ITC Hotels is the first Hotel
All ITC owned Hotels (except ITC Royal Bengal chain in the world to receive such a recognition.
and ITC Narmada),
Offices: ITC Green Centre Gurugram, LSTC Food Safety:

Subsidiaries: Srinivasa Resorts Limited FSSAI: Food Safety
(ITC Kakatiya), Bay Island Hotels Limited All ITC owned Foods Business Units Subsidiaries
(Welcomhotel Bay Island Port Blair), Surya and third-party manufacturers are compliance
OHSAS 18001/ISO 45001: Occupational
Nepal Private Limited (SNPL) Units at Simra & to Food Safety Standards as per FSSAI.
Health and Safety Management Systems »
Seratar and ATC Limited Unit at Hosur All ITC owned manufacturing Units (except
FSSC 22000/ISO 22000/HACCP: Food
Third Party Vendors: Welcomhotel Vadodara), Leaf threshing Unit at Anaparti and newly
Safety Management System » Other product certifications:
HDC Hyderabad and RCTI Bhopal inducted factories from Sunrise foods & newly
All ITC owned Foods Business Units (except BRCGS Certification as per BRC Global
commissioned factory at Medak),
factory at Sankrail where certification is under Standard for Packaging and Packaging
Subsidiaries: North-East Nutrients Private progress) » All ITC Hotels (except recently Materials »
Limited (NENPL) Unit at Mangaldai, SNPL Units commissioned ITC Royal Bengal, Welcomhotel Packaging and Printing Units at Tiruvottiyur,
at Simra & Seratar, and ATC Limited Unit at Coimbatore, Welcomhotel Amritsar, Haridwar and Nadiad » Paperboards
Hosur Welcomhotel Bhubaneshwar, Welcomhotel and Specialty Papers Units at Bollaram,
Guntur and ITC Narmada Hotels where systems Bhadrachalam and Tribeni
Third Party Vendors: HDC Hyderabad and RCTI
are under development),
Bhopal.
Forest Stewardship Council® »
Subsidiaries: Srinivasa Resorts Limited (ITC
Paperboards and Specialty Papers Units at
SA 8000: Social Accountability » Kakatiya at Hyderabad) and Bay Island Limited
Bhadrachalam, Tribeni, Kovai and Bollaram
Cigarettes factories at Munger and Packaging (Welcomhotel Bay Island at Port Blair),
(FSC®-C064218 and FSC®-C102390) »
and Printing Units at Munger & Tiruvottiyur
ITC Units at Bengaluru, Pune, Saharanpur, Packaging and Printing Units at Tiruvottiyur
Subsidiary: SNPL Unit at Simara Packaging and Printing Units at Tiruvottiyur and Haridwar

Annexures
Certifications
Infrastructure (Buildings)
LEED® Platinum Rating by US Green Building Platinum Rated Green Factory Building by
Council/Platinum Rated Green Building by Indian Green Building Council (IGBC) »
Indian Green Building Council ITC Units at Saharanpur, Bengaluru, Munger,
Hotels: » ITC Maurya, ITC Windsor, ITC Pune, Kidderpore and Medak, and ATC Limited
Maratha, ITC Grand Central, ITC Mughal, Catchment level water
ITC Sonar, ITC Kakatiya, ITC Rajputana, LEED® Zero carbon » management
ITC Gardenia, ITC Grand Chola, ITC Grand ITC Windsor, ITC Gardenia, ITC Grand
Alliance for Water Stewardship (AWS)
Bharat, ITC Grand Goa, ITC Royal Bengal, ITC Chola, ITC Mughal, ITC Rajputana, ITC
Platinum-level certification »
Kohenur, Welcomhotel Bengaluru, Welcomhotel Grand Central, ITC Maratha, Sheraton New
Paperboards and Speciality Papers Unit at
Coimbatore, Welcomhotel Amritsar, Delhi, WelcomHotel Chennai, WelcomHotel
Kovai and Foods Unit at Malur
Welcomhotel Bhubaneswar, Welcomhotel Bengaluru, WelcomHotel Coimbatore,
Guntur, Sheraton New Delhi and WelcomHotel WelcomHotel Guntur and Sankhya Data centre
Chennai and ITC Narmada
Sustainable Farming
Other buildings: » ITC Green Centre at
LEED® Zero Water »
ITC Mughal and ITC Sonar
Certifications
Bengaluru, ITC Sankhya Data Centre, ITC
Rainforest Alliance Certification: Fairtrade Certification:
Green Centre Manesar, ITC Green Centre
» In FY2022-23, around 2446 MT of coffee » Fairtrade certification endorses that the agri
at Guntur, ITC Green Centre Gurugram, ITC
raw materials was certified under Rainforest produce meet defined environmental, labour
Virginia House Kolkata, ITC Centre Kolkata and
Alliance sustainable standard. and developmental standards. In Fy2022-23,
ITC Green Centre at Kolkata (Pre-certified)
close to 353 acres of Mango area was covered
Union for Ethical Bio Trade (UEBT) & under Fairtrade certification.
Rainforest Alliance Joint Certification:
» In FY2022-23, ITC produced nearly 4,087 MT Certified Organic Production:
of raw materials under new UEBT & RA joint » In FY2022-23, close to 1155 acres of Mango
herbs & spices programme covering Chilli, and 2934 acres of Spices (Chilli, Turmeric Seed
Cumin, Celery and Turmeric crops. spices) area is certified under organic farming.
Global G.A.P Certification: NPOP, NOP and EU certification standards:

In FY2022-23, close to 1,200 acres of Chilli, » The processing and warehouse facilities in
Turmeric and Seed Spices were certified under the processed fruits & spices business comply
Global G.A.P. The Good Agriculture Practices with NPOP, NOP and EU organic certification
(GAP) programme addresses environmental, standards.
economic and social sustainability for on-farm
processes, and result in safe and quality farm
produce.

Annexures
Awards and
Recognitions
Major Awards and
Certifications 2022-23
⬤ I TC Limited was conferred as the ‘Company
of the Year’ Award at the Economic Times
Bengal Corporate Awards
The Award was presented to Chairman
Mr. Sanjiv Puri by Dr. Shashi Panja, Hon'ble
Minister for Industries, Commerce &
Enterprises and Department of Women
and Child Development and Social Welfare,
⬤ I TC featured among the top 3 at the first • ITC’s branded packaged food businesses • ITC won the Gold Award in ‘Innovation
Government of West Bengal at a special
ever LinkedIn Talent Awards in the 'Best won award for being the Marketing Team in e-Commerce’ for Aashirvaad Svasti
ceremony held in Kolkata on March 3, 2023.
Employer Brand on LinkedIn' category. of the Year at the exchange4media Indian Ghee, Gold Award for ‘Online Commerce
or the second year in a row ITC receives
⬤ F Marketing Awards. Campaign for Customer Acquisition’ for
⬤ I TC has been awarded the 'Astitva
the highest CDP ratings of 'A-' for Climate • ITC’s ICMF Mysuru was conferred with Sunbean Coffee by Campaign India's
Samman' 2023 by the PHD Chamber Family
change and Water Security for the Foods, Gold medal for its consistent progress in Digital Crest Awards.
Welfare Foundation for promoting women
Beverages and Tobacco sector in India – to improving sustainability factors associated • ITC’s Aashirvaad Multigrain Atta’s Happy
empowerment.
be part of Ratings. to a manufacturing facility, in the 8th edition Tummy Campaign was recognised as
⬤ ITC’s Unit in Malur, Karnataka, became the of India Green Manufacturing Challenge ‘Innovative Integrated Media Campaign’
⬤ I TC’s Sankhya in Bengaluru becomes the
1st food factory in Asia to be awarded the 2022 (IGMC) organized by International from The Advertising Club’s Abbys.
World’s First Data Centre to be LEED®
prestigious Alliance for Water Stewardship Research Institute of Manufacturing (IRIM). • ITC won the Gold Award for ‘Best
Zero Carbon certified. The facility has been
(AWS) Platinum-level certification for • Two wins come in the categories 'Packaging Performance Marketing Campaign’ by
awarded the certification by the US Green
its responsible water management Converter of the Year (Food & Beverages)' Maddies for B Natural e-Commerce
Building Council (USGBC), which recognizes
interventions. and 'Packaging Company of the Year - campaign.
net zero carbon emission from a building
Folding Cartons (Volume)' in recognition • ITC won the Gold Award in ‘Innovation
over a period of 12 months. ⬤ 1 2 ITC Hotels became the first in the
of the innovative use of technology and in e-Commerce’ for Aashirvaad Svasti
world to receive the LEED® Zero Carbon
⬤ ITC Limited has been adjudged Winner in brilliant aesthetics. Ghee, Gold Award for ‘Online Commerce
Certification.
the Listed Segment: Large Category at the • ITC’s Ranjangaon unit received ‘Shrestha Campaign for Customer Acquisition’ for
1st Edition of the 'BCC&I Corporate ⬤ T
wo ITC Hotels also became the first in the Suraksha Puraskar’ from National Safety Sunbean Coffee by Campaign India's
Governance Recognition' Awards organised world to achieve the LEED® Zero Water Council of India under Safety Awards-2022 Digital Crest Awards.
by the Bengal Chamber of Commerce & Certification. (Manufacturing Sector).
Industry. • ITC won the Gold Award for ‘Best
Performance Marketing Campaign’ by
⬤ I TC wins 9 first prizes at the Public
Maddies for B Natural e-Commerce
Relations Society of India (PRSI) National
campaign.
Awards 2022.

Annexures
Awards and Recognitions
ITC won the PAC Global Award of Distinction 2023 • ITC’s Bengaluru unit received the “Best injuries, implement best occupational safety
under the 'Brand Marketing - Limited Edition' Performing Wind Farm” for FY 2021-22; and health practices.
category for its legacy '75 Years of Glory' Zone: III (Karnataka, Andhra Pradesh • ITC has been recognised as the winner in
matches pack. The pack was launched to & Telangana) by Indian Wind Power five distinct categories at the Travel+Leisure
commemorate 75 years of India's freedom: Association (IWPA). India's Best Awards 2022 for: Best Luxury
• ITC won the ‘Responsible Manufacturer of Hotel Chain (Domestic) category, Best New
• ITC’s Paperboards and Specialty papers the Year Award 2022 – Platinum Medallion’ Hotel (Domestic) category - ITC Narmada,
division was judged winner at the Pulp by Kaizen Hansei Institute, wing of Kaizen Best Hotel for Weddings (Domestic)
Institute of India. category - ITC Grand Goa, Best Hotel Major Awards Over the years
& Paper International (PPI) Awards by
Fastmarkets RISI, in the category of 'Internet • ITC’s two projects from Kidderpore and Loyalty Programme (Domestic) category
Saharanpur units, were recognised as - Club ITC, Best Tier Two Hotel (Domestic) ITC was awarded the First Prize in the
of Things and Digitalization' at a ceremony
‘Winner’ under ‘Automation and Robotics’ category - Welcomhotel by ITC Hotels, ‘Best Industry for CSR Activities’ category
in Lisbon, Portugal in March 2022.
and ‘Operational excellence leadership’ Shimla. by the Ministry of Jal Shakti, Government
• ITC’s Paperboards Unit in Kovai was
categories respectively by Frost & Sullivan. • ITC was awarded 5 prestigious honours at of India, at the 3rd National Water Awards
awarded GreenCo Platinum Plus rating by
• ITC’s Kidderpore unit received the ‘Excellent the 6th BW (Businessworld) Hotelier Awards. 2020
CII. Platinum plus is the highest rating in the
Green Company Rating Process. Energy Efficient Unit Award’ at the CII • ITC Narmada is the first luxury hotel in
National Award for Excellence in Energy Gujarat to be awarded the LEED Platinum ITC was conferred the ‘CSR Excellence
• ITC’s Bhadrachalam and Kovai mills
Management 2022. certification by U.S. Green Building Council. Award’ in the Large category by the
won awards for Excellence in Energy
• ITC’s 21 MW wind farm in Karnataka • ITC is recognised as the best Luxury Hotel Institute of Company Secretaries of India
Management at the ‘23rd National Awards’
also received ‘Best Performing Wind Chain for the 4th consecutive year at ‘Travel (ICSI) at the 6th ICSI CSR Excellence
for ‘Excellence in Energy Management’ in
Farm Award’ in Karnataka, Andhra + Leisure India’s Best Awards 2022’. Awards
the Pulp & Paper sector.
• ITC’s Packaging Business was recognised Pradesh & Telangana by Indian Wind • ITC’s Engage ‘Pocketful O’Stories 3.0’
Power Association for FY 2021-22 and bagged 2 ‘Golds’ for best use of social Mr. Sanjiv Puri, Chairman & Managing
as ‘Packaging Company of the Year’ at the
‘Performance excellence award for Solar media for UGC (User Generated Content) Director, was conferred ‘The IMPACT
Printweek Awards 2022. It also won three
and Wind Plants – 2022’ under the Wind in the ‘ET Digi+ 2023 Awards’ and in ‘AFAQs Person of the year, 2020’ Award by
restigious World Packaging Organisation
Category from CII. Digies 2023 Awards’. exchange4media, a leading online news
Awards for developing sustainable
• ITC was recognised as the ‘Logistics and platform
packaging solutions ITC wins 19 top prizes • ITC’s Saharanpur unit won ‘IGBC Excellence
for excellence in Packaging Design at Award’ under Factory Building category Supply Chain Innovation Company of the
Year’ and ‘Best Innovator in Data and Mr Sanjiv Puri, Chairman & Managing
the INDIA STAR Awards. has also been from CII.
• ITC Windsor Bengaluru has been inducted Analytics’ by ET Ascent. Director, was conferred an Honorary
honoured with a Special Recognition Award
into the prestigious ACREX – Hall of Fame • ITC received recognition for its excellence Doctorate by the XIM University,
for Excellence in Packaging.
2023 for Excellence in Energy Efficiency and under the Food, Perishable, Beverages and Bhubaneswar
• ITC adjudged winner at the prestigious
WorldStar Global Packaging Awards. Sustainability in HVAC&R. FMCG category by the CII SCALE Awards,
2022. Mr. Nakul Anand, Executive Director, was
• ITC’s Kidderpore unit won the "Winner" • ITC Maurya was recently adjudged the
conferred the HICSA (Hotel Investment
of SHE Excellence Award 2021-22 at a winner of the prestigious NSCI Safety Award
Conference – South Asia) Lifetime
"Regional" Level, from CII- ER in Large viz. Sarvashreshtha Suraksha Puraskar
– For commitment to reduce workplace Achievement Award
Scale Manufacturing Sector category.

Annexures
Independent External
Assurance
Chartered Accountants
One International Centre,
Tower 3, 27th-32nd Floor,
Senapati Bapat Marg,
Elphinstone Road (West),
Mumbai - 400 013,
Maharashtra, India
B. FMCG - Others
Phone: +91 22 6185 4000
Fax: +91 22 6185 4101
1. Branded Packaged Foods Businesses
Independent Assurance Report on Annual Greenhouse Gas inventory presented Divisional Headquarters: Bengaluru (Karnataka)
in the Annual Sustainability Report of ITC Limited for the Financial Year Ended
March 31, 2023 Units: Haridwar (Uttarakhand), Pune (Maharashtra), Munger (Bihar), Panchla,
Uluberia and Sankrail* (West Bengal), Guwahati (Assam), Kapurthala (Punjab),
Pudukkottai (Tamil Nadu), Malur & Mysuru (Karnataka), Bikaner*, Reengus* and
Jaitpura* (Rajasthan), Agra* (Uttar Pradesh) and Medak (Telangana)
To the Board of Directors of ITC Limited
Deloitte Haskins & Sells LLP was engaged by the Management of ITC Limited (the * For these factories, data related to materials, energy and social indicators have been included
in the report. Other parameters will be included in subsequent years.
“Company”) to provide independent reasonable assurance on its Annual Greenhouse Gas
inventory (the “GHG inventory”) for the year ended March 31, 2023 in accordance with
the criteria stated below. The GHG inventory is presented in the Annual Sustainability 2. Personal Care Products Business Division (“PCPBD”)
Report for the year ended March 31, 2023 (the “Report”).
Divisional Headquarters: Kolkata (West Bengal)
1. Criteria Units: Haridwar (Uttarakhand), Manpura (Himachal Pradesh) and Guwahati (Assam)
The criteria used by the Company to prepare the GHG report is summarized below:
3. Education and Stationery Products Business (“ESPB”)
ISO 14064-1:2018, Greenhouse Gases – Part 1: Specification with guidance at the
organization level for quantification and reporting of greenhouse gas emissions and
Third Party Manufacturers of Notebooks: Eight
removals (the “ISO 14064-1:2018 Standard”) and using GHG Protocol Corporate
Accounting and Reporting Standard’ as amended thereto and ‘Corporate Value Chain
(Scope 3) Accounting and Reporting Standard’ (including supplements to it) developed by 4. Incense Sticks (Agarbattis) and Safety Matches
the GHG Protocol Initiative, a partnership between World Resources Institute (WRI) and
the World Business Council for Sustainable Development (WBCSD).
C. Hotels
2. Responsibility of the Management:
Divisional Headquarters: ITC Green Centre, Gurugram (Haryana)
The Company’s management is responsible for the preparation of the Report, identification
of Reporting Boundary as per paragraph 3 below, and the quantification and presentation Hotels: ITC Maurya (New Delhi), ITC Maratha and ITC Grand Central (Mumbai), ITC
of the GHG inventory therein in accordance with the Criteria mentioned in paragraph 1. Sonar and ITC Royal Bengal (Kolkata), ITC Mughal (Agra), ITC Grand Bharat
The management is also responsible for design, implementation, and maintenance of (Gurugram), ITC Windsor and ITC Gardenia (Bengaluru), ITC Rajputana (Jaipur), ITC
adequate internal controls to facilitate collection, calculation, aggregation, and validation Grand Chola (Chennai), ITC Grand Goa Resort and Spa (Goa), ITC Kohenur
of data with respect to the GHG inventory included in the Report, that is free from material (Hyderabad), ITC Narmada (Gujarat), Sheraton New Delhi (New Delhi), Welcomhotel
misstatement, whether due to fraud or error. Bengaluru, Welcomhotel Chennai, Welcomhotel Coimbatore, Welcomhotel Amritsar,
Welcomhotel Bhubaneswar and Welcomhotel Guntur
3. Reporting Boundary:
D. Agri Business Division (“ABD”)
The reporting boundary for the purpose of the Report includes the ITC Head Office,
Kolkata (West Bengal), and the following Divisional Headquarters (“DHQs”) and location
of operations: Divisional Headquarters: Guntur (Andhra Pradesh)
Units: Anaparti (Andhra Pradesh), Chirala (Andhra Pradesh), Mysuru (Karnataka)
A. FMCG- Cigarettes and Research Centre, Rajahmundry (Andhra Pradesh), Spices factory Guntur (Andhra
Pradesh)
1. INDIA TOBACCO DIVISION (“ITD”)
Divisional Headquarters: Kolkata (West Bengal) E. Paperboards And Specialty Papers Division (“PSPD”)
Units: Kolkata (West Bengal), Bengaluru (Karnataka), Munger (Bihar), Saharanpur
(Uttar Pradesh) and Pune (Maharashtra) Divisional Headquarters: Secunderabad, Hyderabad (Telangana)
Third party manufacturers: Four Units: Tribeni (West Bengal), Bhadrachalam and Bollaram (Telangana) and Kovai
(Tamil Nadu)
Regd. Office: One International Center, Tower 3, 27th – 32nd Floor, Senapati Bapat Marg, Elphinstone Road (West), Mumbai
– 400 013, Maharastra, India. (LLP Identification No. AAB-8737)

Annexures
Independent External Assurance
F. Packaging And Printing Business (“PPB”) The scope of reasonable assurance covers the following aspects of the GHG inventory:
➢ Data and information related to the Company’s GHG inventory- Scope 1, Scope 2,
Scope 3 and Biogenic emissions as well as GHG removals;
Units: Haridwar (Uttarakhand), Munger (Bihar), Nadiad (Gujarat) and Tiruvottiyur
➢ The consistency of the Company’s internal protocols, processes and controls related
(Tamil Nadu)
to the collection and collation of GHG emissions and removals with the
requirements of ISO 14064-1:2018;
G. Others
➢ Understanding the reasonableness of various assumptions, estimations and
materiality thresholds used by the Company for data analysis;
1.TRADE MARKETING & DISTRIBUTION (“TM&D”)
➢ Audit of information on sample basis at select locations of the Company as specified
below:
TM&D Headquarters: Kolkata (West Bengal)
District Offices: Kolkata (West Bengal), Mumbai (Maharashtra)
Warehouses: Ambernath (Maharashtra), Hyderabad (Telangana), Malur Sr no. Locations Sr no. Locations
(Karnataka), Chennai (Tamil Nadu), Ancillary Manufacturing cum Logistics Facilities 1 ICML* Pune (Maharashtra) 11 Sheraton New Delhi
(“AMLF”) – Pudukkottai (Tamil Nadu) and AMLF Kapurthala (Punjab) 2 ICML* Mysuru (Karnataka) 12 Welcomhotel Coimbatore
PCPB Manpura (Himachal
3 ICML* Panchla (West Bengal) 13
2. ITC Life Sciences & Technology Centre, Bengaluru (Karnataka) Pradesh)
PCPB Haridwar
3. Central Projects Organisation, Bengaluru (Karnataka) 4 ICML* Haridwar (Uttarakhand) 14
(Uttarakhand)
5 ITD Pune (Maharashtra) 15 PPB Haridwar (Uttarakhand)
H. Subsidiaries
6 ITD Munger (Bihar) 16 PPB Munger (Bihar)
ITD Saharanpur (Uttar
1. ITC INFOTECH INDIA LIMITED – Units: Bengaluru (Karnataka), Kolkata (West 7 17 KGLT Mysuru (Karnataka)
Pradesh)
Bengal) and Pune (Maharashtra)
PSPD Bhadrachalam
2. TECHNICO AGRI SCIENCES LIMITED – Units: Chandigarh and Manpura 8 ITC Grand Central (Mumbai) 18
(Telangana)
(Himachal Pradesh) 9 ITC Maurya (New Delhi) 19 PSPD Kovai (Tamil Nadu)
3. SRINIVASA RESORTS LIMITED – Hotel: ITC Kakatiya, Hyderabad (Telangana) 10 ITC Maratha (Mumbai) 20 PSPD Tribeni (West Bengal)
4. BAY ISLANDS HOTELS LIMITED – Hotel: Welcomhotel Bay Island, Port Blair
5. LANDBASE INDIA LIMITED – Classic Golf & Country Club, Gurugram (Haryana) * ICML – Integrated Consumer Goods Manufacturing and Logistics facilities, unit
6. NORTHEAST NUTRIENTS PRIVATE LIMITED – Unit: Mangaldoi (Assam) of Branded Packed Foods Businesses.
7. SURYA NEPAL PRIVATE LIMITED – Units: Simara and Seratar (Nepal)
I. Associates 5. Inherent Limitations

The absence of a significant body of established practice on which to draw to evaluate and
ATC LIMITED - Unit: Hosur (Tamil Nadu) measure non-financial information allows for different, but acceptable, measures and
GUJARAT HOTELS LIMITED – Hotel: Welcomhotel Vadodara (Gujarat)
measurement techniques and can affect comparability between entities.
Corporate Social Responsibility: ITC’s CSR footprint is spread across 27 States/ Union
Territories. 6. Our Independence, Ethical Requirements and Quality Control
4. Subject Matter Our team comprising of multidisciplinary professionals, have complied with independence
policies of Deloitte Haskins and Sells LLP, which address the requirements of the
We are required to provide reasonable assurance on whether the Company has presented International Federation of Accountants (the “IFAC”) Code of Ethics for Professional
in the Report, the annual GHG Inventory in all material respects, in accordance with the Accountants in the role as independent auditors. We have complied with the relevant
Criteria. applicable requirements of the International Standard on Quality Control (ISQC) 1, Quality
Control for Firms that Perform Audits and Reviews of Historical Financial Information, and
Other Assurance and Related Services Engagements.

Annexures
Our responsibility in performing our assurance activities is to the Management of the

We also confirm that we have maintained our independence in the Report and there were
Company only and in accordance with the terms of engagement agreed with the
no events or prohibited services related to the Assurance Engagement which could impair
Company. We do not therefore accept or assume any responsibility for any other
our independence.
purpose or to any other person or organization.
7. Our Responsibility We believe that the evidence we have obtained is sufficient and appropriate to provide
a basis for our conclusion.
Our responsibility, as agreed with the Management of the Company, is to provide
independent reasonable assurance as per the International Standard for Assurance
Engagements 3410 - Assurance Engagements on Greenhouse Gas Statements (“ISAE 8. Limitation of our Audit
3410”) issued by IFAC on the GHG inventory presented by the Management. This standard
requires us to comply with ethical requirements and to plan and perform our reasonable The assurance scope excludes:
assurance engagement to obtain sufficient appropriate evidence about whether the GHG
➢ Locations/ sites/ operations of the company other than those mentioned in
Inventory reported is free from material misstatement.
paragraph 4 - Subject Matter.
A reasonable assurance engagement involves assessing the risks of material ➢ Data and information outside the defined reporting period i.e. April 1, 2022, to
misstatement of the GHG Inventory whether due to fraud or error, responding to the March 31, 2023; and
assessed risks as necessary in the circumstances. ➢ Forward looking statements which describe belief, opinion, intensions or aspirations
provided by the Company.
The procedures we performed were based on our professional judgment and included ➢ Data and information on economic and financial performance of the Company.
inquiries, observation of processes performed, inspection of documents, evaluating ➢ Any information – other than those covered under the subject matter.
appropriateness of quantification methods and reporting policies, analytical procedures and
agreeing or reconciling with underlying records.
9. Our Conclusion
Given the circumstances of the engagement, in performing the procedures listed above, On the basis of our procedures aimed at obtaining reasonable assurance, we conclude in
we: respect of the subject matter that in our opinion, the Company has presented its GHG
Inventory in the Report in all material respects in accordance with the requirements of the
• Interviewed key personnel including senior executives at respective plant
Criteria. The reported GHG emissions and removals for the year ended March 31, 2023
locations and at the corporate office to understand the systems and processes
are:
in place for capturing the GHG Inventory during the reporting period;
GHG Biogenic
• Identified risks of material misstatement in the subject matter information and emissions (in emissions (in
used it as a basis for designing and performing audit procedures to respond to tonnes of tonnes of
the identified assessed risks. CO2e) CO2)
• Scope 1 1,354,662 1,007,890
• Tested data, audited records and relevant documentation submitted by the • Scope 2 (Market based) 241,113
21,578
Company on sample basis for sample locations; • Scope 2 (Location based) 251,236
• Scope 3 (break up below) [ refer note (i)] 295,430 100
Upstream transportation and distribution: 129,470 -
• Analysed and reviewed key data reports, processes, procedures relating to
Inbound transportation of raw materials
collation, aggregation, validation and reporting of the GHG Inventory on sample
Downstream transportation and distribution - 145,737 -
basis; and Outbound transportation of products and wastes
Others: -
• Reviewed the reasonableness of various assumptions, estimates and Business Travel – -
materiality thresholds used in preparation of GHG Inventory. Employees Business travel by employees of ITC by
air [refer note (iv)] 2,141
Employee commuting – -
We have relied on the information, documents, records, and explanations provided by Employee commuting primarily through buses at
the Company for the purpose of our audit. Plant locations and Corporate Offices as applicable
[refer note (iv)] 5,903
Purchased goods and services–

Annexures
One International Centre,
Tower 3, 27th-32nd Floor,
Senapati Bapat Marg,
Elphinstone Road (West),
Mumbai - 400 013,
Maharashtra, India
Phone: +91 22 6185 4000

(a) Supply Chain Energy: Third party 11,669 100 Fax: +91 22 6185 4101
manufacturers (TPMs) catering to notebooks
segment of the Educations and stationery Products
and Business and Cigarette Business – (14 entities)
[refer note (ii)/(iii)] Independent Assurance Report on Annual Sustainability Report of ITC Limited
(b) Pick up and drop of Guests in hotels of ITC. 510 - for the Financial Year Ended March 31, 2023
[refer note (iv)]
To the Board of Directors of ITC Limited
Deloitte Haskins & Sells LLP was engaged by the management of ITC Limited (the
GHG removals: 5,993,040 tonnes of CO2 (from social and farm forestry initiative)
“Company”) to provide independent reasonable assurance on disclosures as per the GRI
Sustainability Reporting Standards issued by the Global Reporting Initiative (the “GRI
Notes: Standards”) (herein the “GRI Standards Disclosures”) in its Annual Sustainability Report
i. The boundary considered for category wise reporting in Scope is as mentioned (the “Report”) for the year ended March 31, 2023 as detailed in paragraph 3 - Subject
under each category above. Matter.
ii. The management is in process of estimating its full scope 3 Emissions covering the
entire value chain. 1. Responsibility of the Management:
iii. Boundary considered is energy consumption by these entities.
iv. The Company has represented that the calculations for these emissions categories The Company’s management is responsible for the content and preparation of the
is based on data of the year 2021-22 considering these as minor emission
Report, identification of Reporting Boundary as per paragraph 2 below, engagement with
categories.
stakeholders, identification and presentation of information including the responsibility
for establishing and maintaining relevant and appropriate performance management
systems and internal control framework to facilitate collection, calculation, aggregation
and validation of the data with respect to the management’s basis of preparation and GRI
For DELOITTE HASKINS & SELLS LLP
Standards, included in the Report and preparation of the Report that is free from material
misstatement, whether due to fraud or error.
(Firm’s Registration No. 117366W / W-100018)
2. Reporting Boundary:
The reporting boundary for the purpose of the Report includes the ITC Head Office,
Kolkata (West Bengal) and the following Divisional Headquarters (“DHQs”) and location
of operations:
Pratiq Shah A. FMCG - Cigarettes

Partner
Membership No. 111850 1. INDIA TOBACCO DIVISION (“ITD”)
UDIN: 23111850BHAMMS3186
Place: London Units: Kolkata (West Bengal), Bengaluru (Karnataka), Munger (Bihar), Saharanpur
Date: July 3, 2023 (Uttar Pradesh) and Pune (Maharashtra)
Third party manufacturers: Four
B. FMCG - Others
1. Branded Packaged Foods Businesses
Divisional Headquarters: Bengaluru (Karnataka)
Regd. Office: One International Center, Tower 3, 27th – 32nd Floor, Senapati Bapat Marg, Elphinstone Road (West), Mumbai
– 400 013, Maharastra, India. (LLP Identification No. AAB-8737)

Annexures
Units: Haridwar (Uttarakhand), Pune (Maharashtra), Munger (Bihar), Panchla,

Uluberia and Sankrail* (West Bengal), Guwahati (Assam), Kapurthala (Punjab), G. Others
Pudukkottai (Tamil Nadu), Malur & Mysuru (Karnataka), Bikaner*, Reengus* and
Jaitpura* (Rajasthan), Agra* (Uttar Pradesh) and Medak (Telangana)
1.TRADE MARKETING & DISTRIBUTION (“TM&D”)
* For these factories, data related to materials, energy and social indicators have been
included in the report. Other parameters will be included in subsequent years. TM&D Headquarters: Kolkata (West Bengal)
District Offices: Kolkata (West Bengal), Mumbai (Maharashtra)
Warehouses: Ambernath (Maharashtra), Hyderabad (Telangana), Malur
2. Personal Care Products Business Division (“PCPBD”) (Karnataka), Chennai (Tamil Nadu), Ancillary Manufacturing cum Logistics Facilities
(“AMLF”) – Pudukkottai (Tamil Nadu) and AMLF Kapurthala (Punjab)
Units: Haridwar (Uttarakhand), Manpura (Himachal Pradesh) and Guwahati
(Assam) 2. ITC Life Sciences & Technology Centre, Bengaluru (Karnataka)
3. Education and Stationery Products Business (“ESPB”) 3. Central Projects Organisation, Bengaluru (Karnataka)
Headquarters: Chennai (Tamil Nadu) H. Subsidiaries

Third Party Manufacturers of Notebooks: Eight
1. ITC INFOTECH INDIA LIMITED – Units: Bengaluru (Karnataka), Kolkata
4. Incense Sticks (Agarbattis) and Safety Matches (West Bengal) and Pune (Maharashtra)
2. TECHNICO AGRI SCIENCES LIMITED – Units: Chandigarh and Manpura
(Himachal Pradesh)
C. Hotels
3. SRINIVASA RESORTS LIMITED – Hotel: ITC Kakatiya, Hyderabad (Telangana)
4. BAY ISLANDS HOTELS LIMITED – Hotel: Welcomhotel Bay Island, Port Blair
Divisional Headquarters: ITC Green Centre, Gurugram (Haryana)
5. LANDBASE INDIA LIMITED – Classic Golf & Country Club, Gurugram (Haryana)
Hotels: ITC Maurya (New Delhi), ITC Maratha and ITC Grand Central (Mumbai), ITC
6. NORTHEAST NUTRIENTS PRIVATE LIMITED – Unit: Mangaldoi (Assam)
Sonar and ITC Royal Bengal (Kolkata), ITC Mughal (Agra), ITC Grand Bharat
7. SURYA NEPAL PRIVATE LIMITED – Units: Simara and Seratar (Nepal)
(Gurugram), ITC Windsor and ITC Gardenia (Bengaluru), ITC Rajputana (Jaipur),
ITC Grand Chola (Chennai), ITC Grand Goa Resort and Spa (Goa), ITC Kohenur
I. Associates
(Hyderabad), ITC Narmada (Gujarat), Sheraton New Delhi (New Delhi),
Welcomhotel Bengaluru, Welcomhotel Chennai, Welcomhotel Coimbatore,
ATC LIMITED - Unit: Hosur (Tamil Nadu)
Welcomhotel Amritsar, Welcomhotel Bhubaneswar and Welcomhotel Guntur
GUJARAT HOTELS LIMITED – Hotel: Welcomhotel Vadodara (Gujarat)
D. Agri Business Division (“ABD”)

Corporate Social Responsibility: ITC’s CSR footprint is spread across 27 States/
Union Territories.
Divisional Headquarters: Guntur (Andhra Pradesh)
Units: Anaparti (Andhra Pradesh), Chirala (Andhra Pradesh), Mysuru (Karnataka)
3. Subject Matter
and Research Centre, Rajahmundry (Andhra Pradesh), Spices factory Guntur
(Andhra Pradesh)
We are required to provide reasonable assurance on the below GRI Standards
Disclosures, specific to the period from April 1, 2022 to March 31, 2023 in accordance
E. Paperboards And Specialty Papers Division (“PSPD”)
with management’s basis of preparation, and GRI Standards. The terms of management’s
basis of preparation and GRI Standards comprise the criteria by which the GRI Standards
Divisional Headquarters: Secunderabad, Hyderabad (Telangana)
Disclosures are evaluated for purposes of our reasonable assurance engagement.
Units: Tribeni (West Bengal), Bhadrachalam and Bollaram (Telangana) and Kovai
(Tamil Nadu)
F. Packaging And Printing Business (“PPB”)

Units: Haridwar (Uttarakhand), Munger (Bihar), Nadiad (Gujarat)and Tiruvottiyur
(Tamil Nadu)

Annexures
The subject matter includes the following: For information related to Corporate Social Responsibility, the scope covers audit and
verification of information for the following locations:
GRI Standards Disclosures Indicator number as per GRI Standards Sr no. Locations
1 Bhadradri Kothagudem, Telangana
General Disclosures: GRI 2 2-1 to 2-18, 2-26, 2-29 to 2-30
2 Pudukottai, Tamil Nadu
Material Topics: GRI 3 3-1 to 3-3 3 Howrah, West Bengal
4 Haridwar, Uttarakhand
Environmental topic-specific Standards: GRI 300 5 Kolar, Karnataka
Materials 301-1
4. Inherent Limitations
Energy 302-1, 302-3, 302-4
The absence of a significant body of established practice on which to draw to evaluate
Water and Effluents 303-3, 303-4, 303-5 and measure non-financial information allows for different, but acceptable, measures and
measurement techniques and can affect comparability between entities.
Emissions 305-1, 305-2, 305-3, 305-6, 305-7
Effluents and Waste 306-3, 306-4, 306-5

5. Our Independence, Ethical Requirements and Quality Control
Social topic-specific Standards: GRI 400
Our team comprising of multidisciplinary professionals, have complied with independence
Employment 401-1, 401-2, 401-3 policies of Deloitte Haskins and Sells LLP, which address the requirements of the
International Federation of Accountants (the “IFAC”) Code of Ethics for Professional
Occupational Health and Safety 403-9
Accountants in the role as independent auditors. We have complied with the relevant
Training and Education 404-1 applicable requirements of the International Standard on Quality Control (“ISQC”) 1,
Quality Control for Firms that Perform Audits and Reviews of Historical Financial
Local communities 413-1 Information, and Other Assurance and Related Services Engagements.
Marketing and labeling 417-1, 417-2, 417-3
We also confirm that we have maintained our independence in the Report and there were
no events or prohibited services related to the Assurance Engagement which could impair
The scope of reasonable assurance covers the audit and verification of information in our independence.
the Report on sample basis at select locations of the Company as specified below:
6. Our Responsibility
Sr no. Locations Sr no. Locations
1 ICML* Pune (Maharashtra) 11 Sheraton New Delhi Our responsibility is to express a reasonable assurance on GRI Standards Disclosures in
2 ICML* Mysuru (Karnataka) 12 Welcomhotel Coimbatore the Report as described in the subject matter, based on the procedures we have
ICML* Panchla (West performed and the evidence we have obtained. We conducted our reasonable assurance
3 13 PCPB Manpura (Himachal Pradesh)
Bengal) in accordance with International Standard on Assurance Engagement ISAE 3000
ICML* Haridwar (Revised) Assurance Engagements Other than Audits or Reviews of Historical Financial
4 14 PCPB Haridwar (Uttarakhand)
(Uttarakhand) Information (“ISAE 3000”) issued by the IFAC. This standard requires us to comply with
5 ITD Pune (Maharashtra) 15 PPB Haridwar (Uttarakhand) ethical requirements and to plan and perform our reasonable assurance engagement to
6 ITD Munger (Bihar) 16 PPB Munger (Bihar) obtain sufficient appropriate evidence about whether the GRI Standards Disclosures are
ITD Saharanpur (Uttar free from material misstatement.
7 17 KGLT Mysuru (Karnataka)
Pradesh)
8 ITC Grand Central (Mumbai) 18 PSPD Bhadrachalam (Telangana) A reasonable assurance engagement involves assessing the risks of material
9 ITC Maurya (New Delhi) 19 PSPD Kovai (Tamil Nadu)
misstatement of the GRI Standards Disclosures whether due to fraud or error,
10 ITC Maratha (Mumbai) 20 PSPD Tribeni (West Bengal)
responding to the assessed risks as necessary in the circumstances.
* ICML – Integrated Consumer Goods Manufacturing and Logistics facilities, unit of
Branded Packed Foods Businesses.

Annexures
The procedures we performed were based on our professional judgment and included
inquiries, observation of processes performed, inspection of documents, evaluating 8. Our Conclusions
appropriateness of quantification methods and reporting policies, analytical procedures
and agreeing or reconciling with underlying records. On the basis of our procedures aimed at obtaining reasonable assurance, and information
and explanations provided to us by the management, we conclude in respect of the
Given the circumstances of the engagement, in performing the procedures listed above, subject matter that, in our opinion,
we: - the Company has presented, in all material respects, the information on GRI
Standards Disclosures in accordance with the management’s basis of preparation,
• Interviewed key personnel including senior executives at respective plant locations GRI Standards following the GRI reporting principles including the principles of
and at the corporate office to understand the systems and controls in place for accuracy, balance and completeness.
capturing sustainability performance data used in preparation of the GRI Standards - Information on GRI Standards Disclosures is in accordance with the GRI
Disclosures during the reporting period; and
Standards.
• Identified risks of material misstatement in the subject matter information and used
it as a basis for designing and performing audit procedures to respond to the 9. Other Matter
identified assessed risks.
The Company has developed internal criteria to determine its carbon, water, and solid
• Tested data, records and relevant documentation submitted by the Company of its waste recycling positive status. The Company’s claim of Carbon Positive status is based
locations as mentioned in Subject Matter paragraph as applicable, to arrive at the on improvements in specific energy consumption, investments in renewable energy, and
data presented in their Report; and sequestration of carbon dioxide through social and farm forestry initiatives, Water
Positive status is based on implementing measures for reducing net water consumption
• Analyzed and reviewed key data management systems, processes, procedures
relating to collation, aggregation, validation and reporting of the sustainability within the fence and creation of rainwater harvesting potential both within and outside
information for the locations as mentioned in subject matter paragraph on a sample the fence and Solid Waste Recycling Positive status is based on reduction of specific waste
basis. generation, contribution to waste recycling and usage of post-consumer waste as raw
material. The Company continues to demonstrate its commitment to creating shared
• Reviewed the reasonableness of various assumptions, estimates and materiality value through its social initiatives. Our report does not provide assurance conclusion
thresholds used in preparation of the Report. thereon.
We have relied on the information, documents, records and explanations provided by

the Company for the purpose of our assurance.
For DELOITTE HASKINS & SELLS LLP
Our responsibility in performing our assurance activities is to the management of the Chartered Accountants
Company only and in accordance with the terms of reference agreed with the (Firm’s Registration No. 117366W / W-100018)
Company. We do not therefore accept or assume any responsibility for any other
purpose or to any other person or organization. We believe that the evidence we have
obtained is sufficient and appropriate to provide a basis for our conclusion.
7. Limitation of our Audit

Pratiq Shah
The assurance scope excludes: Partner
➢ Location/sites of the Company other than those mentioned in paragraph 3 - Membership No. 111850
Subject Matter; UDIN:23111850BHAMMR9907
➢ Aspects/indicators of the Report other than those mentioned above; Place: London
➢ Data and information outside above mentioned reporting period; Date: July 3, 2023
➢ Forward looking statements which describe belief, opinion, intensions or
aspirations provided by the Company; and
➢ Data and information on economic and financial performance of the Company.
➢ Any information – other than those covered under the subject matter

Social and Farm Forestry Initiative: Carbon sequestration, top soil retention, water recharge
Catchment Treatment - Water Harvesting Structure
Offsite Solar Plant, Dindigul, Tamil Nadu
ITC Limited
Virginia House
37 JL Nehru Road
Kolkata 700 071
India
enduringvalue@itc.in
www.itcportal.com @ITCCorpCom itc-limited

ITC Sustainability Integrated Report 2023

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SHAPING

ITC Businesses 18 Contribution to UN SDGs 182

Value Creation Model 24

| Sustainability Report 2023

1 | Sustainability Report 2023

2 | Sustainability Report 2023

3 | Sustainability Report 2023

4 | Sustainability Report 2023

About this report

5 | Sustainability Report 2023

About this report

6 | Sustainability Report 2023

About this report

Reporting Scope Exclusions**

Names of % of Shares Held by Names of % of Shares Held by

Technico Pty Limited 100 Names of % of Shares Held by

7 | Sustainability Report 2023

Driven by the ‘Nation First: Sab Saath

8 | Sustainability Report 2023

About this report

A Bouquet of leading FMCG Brands

ITC’s e-Choupal initiative empowers over Educational & Stationery products

ITCMAARS (Metamarket for Advanced #1 in Dhoop, #2 in Agarbattis

The Business is powering NextGen #2 in Floor Cleaner

9 | Sustainability Report 2023

2003 Launches ‘Let’s Put India First’ campaign 2007 2009

ITC launches 2005 Mission Sunehra Kal launches Sustainable

10 | Sustainability Report 2023

20 years of Sustainability Reporting at ITC

2011 2015 2018 2019

11 | Sustainability Report 2023

20 years of Sustainability Reporting at ITC

12 | Sustainability Report 2023

13 | Sustainability Report 2023

ITC’s Approach to Value-creation

Operating Elements of Strategic Pillars of ITC Next - Creating enduring

Elevated demand for Health & Hygiene,

Relatively stronger rural demand

Physical risks on operating assets and Cascades Down to Businesses

Evolving regulatory environment Agility and flexibility

Rising social inequality, economic Six Capitals

14 | Sustainability Report 2023

Multiple Drivers of Growth

Innovation and R&D

Agile, Resilient and Efficient Supply Chains

15 | Sustainability Report 2023

Multiple Drivers Innovation Agile, Resilient and

Material Issues Addressed

Sustainability 2.0 Digital World-class talent

⬤ Transform supply chain, sourcing, logistics,

⬤ Continuously strengthen the cybersecurity

Material Issues Addressed

Fast Moving Consumer Goods

Paperboards, Paper and Packaging

18 | Sustainability Report 2023

Multiple Drivers Innovation

19 | Sustainability Report 2023

20 | Sustainability Report 2023

Multiple Drivers Agile, Resilient and

21 | Sustainability Report 2023

ITCMAARS: create a robust 'phygital' eco-

22 | Sustainability Report 2023

23 | Sustainability Report 2023

Multiple Drivers Agile, Resilient and

⬤ Organisational level aggregation and 13 Responsible Sourcing Practices