According to the World Economic Forum (WEF) Report on Global Risks 2015, the evolving risk landscape indicates a shift over the past few years from economic risks to environmental risks - ranging from climate change to water crises. The challenges related to environment and ecosystems especially due to climate change are complex, long-term and inter-related, especially in terms of its impact on water and availability of other natural resources. This in turn has wide-ranging implications on ITC and its stakeholders.
In order to address these challenges, environmental best practices have been deeply integrated into ITC's operations on the basis of which, the Company strives to maximise the efficiencies of natural resource usage across its Businesses. Furthermore, for continuous improvement on environmental performance, during 2014-15 ITC's Businesses have set voluntary targets in terms of specific energy reduction, specific water intake reduction, specific waste generation, etc. Accordingly targets have been set at the Business/ Unit levels for maintaining this performance. An organisation-wide integrated sustainability data management system supplemented by standard operating procedures for measurement and recording provides the platform to monitor the data of each business on resource utilisation and environmental impact vis-a-vis production.
In addition, ITC also constantly endeavours to create a positive environmental footprint. Large-scale Social and Farm Forestry, Integrated Watershed Development, Sustainable Agriculture Practices and logistic network optimisation of ITC's FMCG products, among others, are a few examples of extensive initiatives in this direction.
ITC's Board approved Policies such as those on Environment, Health and Safety, Life Cycle Sustainability of Products and Services and Responsible Sourcing, provide the necessary framework to address the direct impacts of the Company's own operations as well as progressively extend the efforts along the supply chain (Please refer to Policies available at www.itcportal.com). During the reporting period, each Business drew a roadmap for implementation of each of these policies in a phased manner.
It is the overall responsibility of the Divisional/Strategic Business Unit (SBU) Chief Executives, to ensure implementation of relevant policies and standards on environmental performance through the members of the respective Management Committees, General Managers and Unit Heads. This also includes institution of various committees and designating specific responsibilities.
ITC's Corporate Environment, Health & Safety (CEHS) Department is responsible for reviewing and updating Corporate Standards, verifying compliance, providing guidance and support as required. Compliance and progress based upon the roadmap defined by each Business is regularly reviewed by the Sustainability Compliance Review Committee (SCRC) of the Corporate Management Committee (CMC).
The following sections outline the challenges being faced by ITC on material environmental aspects within as well as outside the boundary of its operations, the strategy for addressing of each of these challenges and performance for 2014-15:
