Risks from Climate Change		Potential Impacts	Management Method
Energy Regulation	For reduction of energy as well as GHG emissions intensity aligned with INDCs to UNFCCC, regulatory market-based instruments in India like Renewable Energy Certificates (RECs), Renewable Purchase Obligation (RPO) and Perform Achieve and Trade (PAT) mechanisms likely to get more stringent.	Additional investments to improve specific energy and enhance renewable energy share.	Adoption of a low carbon growth path through reduction in specific energy consumption and enhancing use of renewable energy sources, while enlarging positive carbon footprint through increased carbon sequestration. Effective measurement, recording and reporting of relevant data in line with Standard Operating Procedures developed as per International best practices. Continuous monitoring and review of performance through organisation-wide data management system.
Fuel/ energy taxes and Regulations	Nationwide thrust for low-carbon economic growth expected to lead to an increased carbon tax on select energy intensive industries and/or products in order to incentivize energy efficient production. The pulp & paper sector likely to be subjected to these taxes in the near future.	Increase in manufacturing cost which could lead to higher product cost.
Extreme weather events	Extreme weather events posing a threat to ITC properties that are in coastal areas and possibly lead to disruption in manufacturing and logistics.	Disruptions in raw materials supply, production as well as delivery of product.	Significant spends are made regularly by the businesses on strengthening measures covering ITC manufacturing units located in the coastal areas. Business continuity plans are in place to compensate any interruption of production by a manufacturing facility due to extreme weather events.
Fluctuating Socio-Economic Conditions	Socio-economic inequality is one of the major risks that plague the world today. Increased difficulty in achieving equitable growth and development in a large and diverse country like India. Coupled with huge disparity in incomes and rising irregularities, a period of significant socio-economic turbulence is foreseen.	The low-income section of population would be worst affected by climate change and may lead to further aggravate the issue of socio-economic inequality. Businesses having dependence on agriculture sector, which is source of livelihood for nearly half of population, may face challenges in their supply chain.	Belief that the performance of business enterprises must be measured in terms of the value they create for society. ITC's development models based upon the foundation of its deep rooted stakeholder centric approach, provide the opportunity for generation of sustainable livelihoods. Such models unleash strong drivers for achieving development with social equity. With initiatives like Sustainable Agriculture, Soil & Moisture Conservation, etc., ITC has been working to develop climate-smart villages. For details on ITC’s Social Investments Programmes, please refer 'Mission Sunehra Kal' section of this Report.
Opportunities from Climate Change		Potential Implications	Management Method
Changing Consumer Behaviour	Increasing awareness towards climate change to have an impact on consumer behaviour - drive for a product which is not only cost effective but also eco-friendly across the supply chain. An opportunity to grow businesses catering to these demands by being a pioneer in the field of sustainability.	Major clients of our B2B businesses like Paperboards and Speciality Papers and Leaf Tobacco already seek disclosures on sustainability issues. Meeting the customers’ requirements and expectations, enhances the brand value.	Continue to expand our initiatives towards sustainable growth and maintain transparency in disclosures. Developing products/ services that take into account the climate change related parameters like LEED® certification of all its Luxury Hotels, FSC certified wood and ECF technology for paper production. Life Cycle Assessment (LCA) studies for selected products/ services to evaluate their environmental impacts along the value chain and take necessary steps to make our products/ services more benign to the environment.