Risks from Climate Change		Potential Impacts	Management Method
Energy Regulation	Targets under Renewable Energy Certificate (RECs), and Perform Achieve and Trade (PAT) mechanisms likely to get more stringent in line with India's NDC.	Additional investments become necessary to improve specific energy and enhance renewable energy share.	Effective measurement and benchmarking our performance with international best practices. Identification of energy conservation opportunities through rigorous third party audits and implementation of the viable recommendations. During 2016-17, ITC has achieved savings of 44.7 TJ over 2015-16 levels.
Fuel/ energy taxes and Regulations	Increase in fuel prices due to higher taxes.	Increase in fuel costs could lead to higher product cost.
Weather events	Disruption in agriculture yield due to change in precipitation patterns.	ITC's Businesses depend significantly on agri-inputs. Any disruption in crop yields will result in greater competition for agriculture commodities.	Social investments made in various programmes, such as soil & moisture conservation, climate smart agriculture practices and technologies, etc., reduce dependence on rainwater.
	Extreme weather events posing a threat to ITC properties that are in coastal areas and possibly leading to disruption in manufacturing and logistics.	Disruptions in raw materials supply, production as well as delivery of product.	Significant investments have been made to strengthen 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.	ITC's development models are based upon deep rooted stakeholder concern and 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 agriculture. For details on ITC's Social Investments Programmes, please refer 'ITC 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 Specialty 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/ paperboard production. Life-Cycle Assessment (LCA) studies for 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.
Resource efficiency	Opportunities for improvement in resource efficiency, i.e. raw material, energy, water, etc.	Improvement in resource efficiency would lead to overall reduction in costs.	Integrated approach of efficiency covering all resources such as energy, water, raw material, etc. together for overall improvement.