Itc Limited · NSE:ITC
Itc — ICICI Securities Virtual ESG Conference 2021
77 slides from Itc's conference presentation, Aug 24, 2021
Slide 1: ITC: Leading ESG Performance
ITC : Leading ESG Performance ICICI Securities’ Virtual ESG Conference 24th August 2021
Slide 2: Contributing to Agriculture, Manufacturing & Services
CONTRIBUTING TO AGRICULTURE, MANUFACTURING & SERVICES Leading FMCG Marketer Iconic Hotels : Trailblazer in Responsible Luxury Agri Business: Pioneering Rural Transformation Paperboards, Paper & Packaging: Environmental Stewardship
Slide 3: ITC FMCG Diverse Portfolio
ITC FMCG Diverse Portfolio! Purpose-led Brands | Strong Growth Platforms Branded Packaged Foods
Slide 4: An Exemplar in Triple Bottom Line Performance
AN EXEMPLAR IN TRIPLE BOTTOM LINE PERFORMANCE Among the Gross Sales Value FMCG Products Reach Top 3 Rs 74979 cr 150 mn Contributors to the Exchequer in the For the year ended Households private sector in India March 2021 In India Carbon Water Solid Waste Positive Positive Recycling Positive 16 years
Slide 5: ITC's Sustainability Vision
ITC’s Sustainability Vision
Slide 6: Sustainability Challenges
SUSTAINABILITY CHALLENGES Water Stress Map of India World Resources Institute (WRI) One-third 12 million 54% of Increasing of the join India incidents of world’s the work is Extreme poor lives force every water Weather in India year stressed events
Slide 7: New Paradigm Needed
NEW PARADIGM NEEDED BUSINESS CANNOT RESPONSIBLE SUCCEED COMPETITIVENESS IN SOCIETIES THAT FAIL ✓ COMPETITIVE ✓ INCLUSIVE ✓ SUSTAINABLE
Slide 8: Sustainability Approach for Superior ESG Performance
SUSTAINABILITY APPROACH FOR SUPERIOR ESG PERFORMANCE Embedding Sustainability Across Deepening Engagement in ITC’s the Business Value Chain Core Catchments – Agri & Factory Unique Synergistic Business Models Creating Sustainable Value Chains Fostering Strengthening Capabilities Inclusive Growth Publ
Slide 9: Embedding Sustainability Across the Value Chain
EMBEDDING SUSTAINABILITY ACROSS THE VALUE CHAIN Responsible Sustainable Sustainable Sustainable Delighting Responsible Sourcing Manufacturing & Packaging Logistics & Consumers End-of--Life Services Warehousing Management Sustainable ITC Hotels' Strategically located Regenerative & Health & Safety &
Slide 10: ITC's Sustainability Framework
ITC’s Sustainability Framework Foundation Management Management of Key Sustainability/ESG Issues Reporting & System Communication Materiality Climate Water Sustainable Stakeholder Engagement Risks & Opportunities ITC’s Guidelines, Change Security Packaging ESG Ratings: Sustainability Standards & MSC
Slide 11: ESG Key Focus Areas
ESG KEY FOCUS AREAS Environment Social Governance • Climate Resilience • Sustainable Livelihoods • 3-tier Governance Structure • Water Security • Empowering Farmers • Ethics & Integrity • Afforestation • NextGeneration Agriculture • Code of Conduct • Strategic Risk • Bio-Diversity • Building Resilie
Slide 12: Recognitions
Recognitions ITC rated AA by MSCI-ESG Highest amongst Global Tobacco cos ITC has been included in the Dow Jones Sustainability Emerging Markets Index ITC PSPD unit, Kovai, awarded Alliance for Water Stewardship Platinum-level Certification, highest recognition for water stewardship in the world -- s
Slide 13: Awards & Accolades
AWARDS & ACCOLADES Inaugural UNDP-ICC World Business & Development Award Sustainability Leadership Porter Prize 2017 for 'Excellence in Award 2012 at the Rio+20 UN Summit Award, Zurich Corporate Governance and Integration' ICSI National Awards for Excellence in The Stockholm Challenge Award Developm
Slide 14: ITC Sustainability Report
ITC SUSTAINABILITY REPORT Publishing a GRI based The Sustainability Report is Sustainability Report since also mapped to TCFD 2004 – 18th Report recommendations. Aligned to the latest GRI Standards (including Food Sector supplement) and meets the "In Accordance - Comprehensive" criteria Highest leve
Slide 15: Addressing Climate Risk & Competitiveness
Addressing Climate Risk & Competitiveness
Slide 16: A Comprehensive Approach to Climate Change
A COMPREHENSIVE APPROACH TO CLIMATE CHANGE Our Approach ..is based on Ground Level And, is supported by a Robust Encompasses: Assessments covering: Internal Mechanism for Tracking Requirements of Climate Change Physical Assets Global ESG Mitigation Frameworks Climate-specific Climate Change Key Agri
Slide 17: Adopting a Low Carbon Footprint
ADOPTING A LOW CARBON FOOTPRINT Renewable Energy – Over 41% of 33 Platinum rated Green Buildings; ITC Windsor– world’s first energy consumed LEED Zero Carbon certified hotel World’s Greenest Luxury Hotels chain ITC Sankhya: World's First LEED Platinum Continuous Reduction in Specific Data Centre Ene
Slide 18: Replenishing Natural Resources
REPLENISHING NATURAL RESOURCES WATER AFFORESTATION BIODIVERSITY
Slide 19: ITC's Paper Value Chain: Leveraging Technology & Innovation
ITC’S PAPER VALUE CHAIN LEVERAGING TECHNOLOGY & INNOVATION
Slide 20: Clonal Saplings grown in Nursery
Clonal Saplings grown in Nursery
Slide 21: Wasteland Conversion
Wasteland Conversion
Slide 22: ITC's Afforestation Initiative
ITC’S AFFORESTATION INITIATIVE
Slide 23: Greening over 8,75,000 acres
Greening over 8,75,000 acres Social Contribution Providing Livelihoods to poor Tribals and Marginal Farmers Creating 160 million person days of employment Environmental Impact Carbon Sequestration Augmenting Green Cover Top Soil Retention Water Recharge Economic Benefit to ITC A Competitive Source o
Slide 24: Powering the Paper Value-Chain
POWERING THE PAPER VALUE-CHAIN Packaging solutions
Slide 25: Biodiversity
BIODIVERSITY Ahmednagar, Maharashtra Before After Actions Spread & Coverage • Eco-restoration of village commons & • Over 44,000 acres conserved across 7 States pasturelands • PPP with Wasteland Development Board of Rajasthan • Reduce pressures on forest through to restore 2,47,000 acre commons frin
Slide 26: Pioneering Green Buildings
World’s largest LEED Platinum Luxury Hotel – ITC Grand Chola, Chennai World’s Highest Rated LEED Platinum PIONEERING building – ITC Green Centre, Gurugram GREEN BUILDINGS World’s First Hotel to be LEED Zero Carbon Certified– ITC Windsor, Bengaluru
Slide 27: Renewable Energy Mix
41.3% of ITC’s energy is from renewable sources Renewable Energy Mix 12 ITC units met more than 90% 91.5% Biomass 0.3% of their electrical energy Solar 8.2% requirements from renewable Wind sources in 2020-21
Slide 28: Addressing Water Security
MM ENA Enduring Value Addressing Water Security
Slide 29: Climate Change in India's Agriculture
Climate Change in India’s Agriculture “…..The last time we saw crops was during our grandfather’s time…..”
Slide 30: Water Security around catchments
Water Security Drought around Proofing catchments Agriculture
Slide 31: Water Security: Our Approach
Water Security: Our Approach Demand Side Supply Side Unit level Unit level Internal Water Audits & On-site aquifer Assessments to minimise recharge & rainwater fresh water consumption harvesting Watershed level Watershed level - Improve water use - Detailed hydrological & hydro-geological study effi
Slide 32: Participatory Watershed Planning
PARTICIPATORY WATERSHED PLANNING
Slide 33: Rainwater Harvesting Potential
RAINWATER HARVESTING POTENTIAL 1.2 MILLION Target ACRES 5 times Net Water Consumption 22,000 in 2030 WATER STRUCTURES
Slide 34: ITC's Water Stewardship Mission
ITC’S WATER STEWARDSHIP MISSION REPLENISHING NATURAL RESOURCES
Slide 35: Water User Groups
A ae Vi jn Enduring Value oe - oi », ay L, ee f ° ie ern is x gee Pe: ai oe ss ioe ck bee ce WATER USER GROUPS i re a
Slide 36: Improving Water Use Efficiency in Agriculture
IMPROVING WATER USE EFFICIENCY IN AGRICULTURE ‘MORE CROP PER DROP’ Others (Onion, Banana, Sugarcane Wheat Rice Coconut) 0.20 lakh acres 2.34 lakh acres 0.36 lakh acres 0.10 lakh acres Pune: drip & Seedling Munger – Zero Till Chandauli – DSR Coimbatore – Banana Drip 85.47 m cu.m 72.62 m cu.m 46.80 m
Slide 37: Unit Water Security Programme
UNIT WATER SECURITY PROGRAMME • Ambitious plan to achieve water positive status in all its catchments • Two phased approach 1. Phase -1 (Offsets): Water harvesting equal to factory usage 2. Phase -2 (Water Positive status): Fill entire catchment’s water balance gap through supply & demand management
Slide 38: Next Generation Agriculture & Inclusive Growth
Next Generation Agriculture & Inclusive Growth
Slide 39: Powering Next Generation Agriculture
POWERING NEXT GENERATION AGRICULTURE Agri Sector Critical Core Challenges to India’s Growth Story ✓ Productivity Employs 50% of ✓ Sustainability workforce but ✓ Market Access accounts for only 14% of India’s GDP
Slide 40: ITC in Agriculture: e-Choupal Ecosystem
ITC IN AGRICULTURE : E-CHOUPAL ECOSYSTEM Empowering 4 Million Farmers
Slide 41: e-Choupal Digital Infrastructure
e-Choupal Digital Infrastructure
Slide 42: Demonstration Farms
Demonstration Farms Choupal Pradarshan Khet
Slide 43: Leveraging Technology & Innovation to Enhance Productivity
ITC in Agriculture : Baareh Mahine Hariyali Leveraging Technology & Innovation to Enhance Productivity Varietal Improvement Choupal Pradarshan Khet Zero Tillage Short Duration Varieties Water Management Cropping Intensity Agri Best Practices Farm Mechanisation
Slide 44: Collaboration with NITI Aayog
Collaboration with NITI Aayog for improvement of agriculture in 27 aspirational districts – trained 2.5 million farmers
Slide 45: ITC Foods Brands - Driving Agri Value Chains
ITC FOODS BRANDS - DRIVING AGRI VALUE CHAINS
Slide 46: Aspiration to benefit 10 million farmers by 2030
‘Phygital Model’ Metamarket for Advanced Agriculture and Rural Services. ITC-MAARS Leveraging the Digital Revolution to provide the full array of new age solutions to empower the farmer Aspiration to benefit 10 million farmers by 2030
Slide 47: Illustrative Example in Andhra Pradesh
An Illustrative Example in Andhra Pradesh, India Delivered 26% increase in farmer income in one year 25,000 10,000 acres GUNTUR Farmers KURNOOL KRISHNA PRAKASAM
Slide 48: Key Interventions: 26% Increase in Net Returns
General Farmer Key Interventions Project Farmer Productivity Productivity 17.9 20.1 Quintals/Acre Quintals/Acre Digital Advisory e-Krishi Sevaks / FPOs Remote Sensing Avg. Price Avg. Price 100.1 104.1 Rs./Kg* Rs./Kg * As per 2020-21 season Crop Monitoring Post-Harvest Technologies Digital Quality As
Slide 49: Climate Smart Agriculture
CLIMATE SMART AGRICULTURE Weather Water Seed / Carbon/ Market Smart Smart Breed Nutrient Smart Smart Smart Covered over 2.5 lakh farmers across 8,000 villages. A pilot at scale reduced GHG emission of select crops by 47%, whilst enhancing net returns to farmers between 41% to 87%. The climate-smart
Slide 50: Livestock Development
Livestock Development Providing integrated animal husbandry services to nearly 20,00,000 milch animals.
Slide 51: Empowering women
Empowering women Over 78,000 rural women entrepreneurs
Slide 52: Skill Development Initiative
Skill Development Initiative Over 97,000 youth trained
Slide 53: ITC's Rural Education Programme
ITC’s Rural Education Programme Benefitting 825,000 children
Slide 54: Individual sanitary units constructed
Nearly 38,400 individual sanitary units constructed
Slide 55: Towards a Circular Economy - Well-being Out of Waste
TOWARDS A CIRCULAR ECONOMY – ITC WELL-BEING OUT OF WASTE (WOW) ✓ Covering 15 million citizens ✓ Livelihoods for 17,000 waste collectors
Slide 56: Managing Waste
MANAGING WASTE ✓ Plant to recycle Multi- Layered Plastic in Pune
Slide 57: Developing Sustainable Paperboard & Packaging Solutions
i Developing Sustainable Innovation = Paperboard & Packaging solutions Sodarie Vio Bio-degradable boards Recyclable boards Sustainable Packaging J ty Bio-Seal om pra ES By av & eg 2 eServe & Pack Bio compostable packaging solutions for Oar IT packaged/fast-food & Personal Care industries. Lecve noth
Slide 58: Scale and Impact
SCALE AND IMPACT 6,100 e-Choupals, 35,000 villages, 4 million farmers 8,75,000 acres of forestry – 160 million person-days of employment 12,53,000 acres of watershed development 20,00,000 milch animals covered 8,25,000 children benefiting from supplementary education 78,000 sustainable livelihoods f
Slide 59: Social Investment Initiatives
SOCIAL INVESTMENT INITIATIVES Horizon 1- Sustainable Livelihoods Today Sustainable Biodiversity Women’s Watershed Social Forestry Agriculture Empowerment Development Achieved:394,678* Achieved: 1,231,251* Achieved: 771,119* Achieved: 44,044* Covered: 77,851 Target: 630,000* Target: 2,200,000 * Targe
Slide 60: Contributions to UN SDGs
CONTRIBUTIONS TO UN SDG’S Women’s Sustainable Primary Diversity Water Occupational Climate Climate Water Economic Products Education and Equal Security for Health & Resilience Resilience Security Empower- Opportunity All Safety for All ment Sustainable Managing Social Supply Chains Women’s Sanitatio
Slide 61: Governance & ESG Oversight
Governance & ESG Oversight
Slide 62: Governance: Trusteeship, Transparency, Ethical Conduct
GOVERNANCE : Trusteeship, Transparency, Ethical Conduct Trusteeship, Transparency, Ethical Conduct Audit Committee Nomination & 3-Tiered Compensation Governance Committee Structure Independent Directors Committee Securityholders Relationship Committee
Slide 63: ESG Oversight @ ITC
ESG OVERSIGHT @ ITC The SCRC presently comprises seven senior members of management, Quarterly Meetings with its Chairman being Group Head – Sustainability & R&D, and a member of the Corporate Management Committee. Other members represent: • EHS & Sustainability Monthly Reviews • Human Resources • A
Slide 64: ESG Policies
ESG POLICIES ITC’s ESG Policies: ITC’s Suite of Board approved ESG Policies addresses ITC’s Material ESG issues, • Policy on Sustainable Supply Chain and and is also aligned to the requirements of Global ESG Disclosure Frameworks: Responsible Sourcing • Code of Conduct for Suppliers and Service Prov
Slide 65: Consumers, Partners, Supply-Chain
Consumers Partners Supply-Chain
Slide 66: Helping Consumers Make Sustainable Choices
HELPING CONSUMERS MAKE SUSTAINABLE CHOICES ITC Life Sciences & Technology Centre ITC-LSTC has been recently acknowledged as one of the leading and largest innovation centres in India with strong presence in nutrition, health and well-being, plant breeding, genetics, microbiology, genomics and proteo
Slide 67: Insight + Innovation >> Impact: 120+ New Launches in FY21
120+ New Launches in FY21 Insight + Innovation >> Impact Hygiene++ , Protection & Care ‘Good For You ’ & ‘Free From’ Convenience & On-the-Go Aashirvaad Aashirvaad Aashirvaad Nature’s Super Food On-the-Go Range Ready to Cook Savlon Organic Atta & Dals Hexa range, Disinfectants, Masks & Wipes Sunfeast
Slide 68: Global Platinum Level certification by DNV
Global Platinum Level certification by DNV
Slide 69: Supply Chain - Vertically Integrated
SUPPLY CHAIN – VERTICALLY INTEGRATED Leaf Tobacco Agri Business 69
Slide 70: Key Agri Commodities - Summary of Interventions
KEY AGRI COMMODITIES – SUMMARY OF INTERVENTIONS Leaf Tobacco Wheat Pulpwood Spices & Chilli Potato Dairy ITC Brands Cigarettes Deforestation Water Scarcity Deforestation Safety & Quality Quality Safety & Quality Major Risks in the Supply Chain Human Rights Soil Health Soil & Biodiversity Pesticide U
Slide 71: Traceability & Certifications
TRACEABILITY & CERTIFICATIONS Leaf Tobacco Wheat Pulpwood Spices & Chilli Potato Dairy ITC Brands Cigarettes Direct Linkages to Farmer-led Collection Traceability 4.0 4.0 Farmers through Model - Enables Programmes on Seed Farmer-wise, Village- ITC e-Choupal 4.0 Crop ITC e-Choupal Network ITC e-Choup
Slide 72: Nurturing the Workplace of Tomorrow
Nurturing the Workplace of Tomorrow
Slide 73: Diversity & Equal Opportunity
DIVERSITY & EQUAL OPPORTUNITY Reflections Series Inspiring stories
Slide 74: Sustainability 2.0: A Bolder & Ambitious Agenda
Sustainability 2.0 A Bolder & Ambitious Agenda
Slide 75: ITC's 2030 Sustainability Targets
Sustainability 2.0 ITC’s 2030 Sustainability Targets Raising The Bar Bolder Goals Renewable Specific Energy Specific GHG Sustainable Supporting Sustainable Energy (RE) Consumption* Emissions* Packaging Plan Livelihoods 50% 30% 50% 100% 10 million RE Energy Recyclable Plastic From 6 million Packaging
Slide 76: A passion for profitable growth, sustainable and inclusive
A passion for profitable growth…. …..in a way that is sustainable……. …. and inclusive
Slide 77: Thank You
RY MENA . Enduring Value NATION FIRST THANK YOU