Slide 1: Participation at ESG Conference
3rd December, 2022 The Manager The General Manager The Secretary Listing Department Dept. of Corporate Services The Calcutta Stock National Stock Exchange of BSE Ltd. Exchange Ltd. India Ltd. P. J. Towers 7, Lyons Range Exchange Plaza, Dalal Street Kolkata 700 001 Plot No. C-1, G Block Mumbai 400 00
Slide 2: cc: Securities Exchange Commission
cc: Securities Exchange Commission Division of Corporate Finance Office of International Corporate Finance Mail Stop 3-9 450 Fifth Street Washington DC 20549 U.S.A. cc: Societe de la Bourse de Luxembourg 35A Boulevard Joseph II L- 1840 Luxembourg
Slide 3: ITC: Securing the Future
ITC : Securing the Future CLSA Webinar 2nd December 2022
Slide 4: Forward-Looking Statements
Forward-Looking Statements This presentation contains certain forward-looking statements including those describing the Company’s strategies, strategic direction, objectives, future prospects, estimates etc. Investors are cautioned that “forward looking statements” are based on certain assumptions o
Slide 5: Sustainability Embedded in Corporate Strategy
Sustainability Embedded in Corporate Strategy Plastic Revised AWS Platinum Climate Smart Sustainability D & I Policy Neutral for Kovai Agriculture 2.0 Vision Digital farmer First 8 hotels in the AWS Sankhya LEED MSCI Sustainability training during ITC world to be LEED Certification Certification AA
Slide 6: ITC's Sustainability Vision
ITC’s Sustainability Vision #1
Slide 7: Critical to Replenish Environmental Resources
India: Limited Natural Resources 17% 4% 2.4% <2% World Water Land Global Population Resources Mass Forest Resources Critical to Replenish Environmental Resources
Slide 8: Code Red on Climate Change
Code Red on Climate Change Southern Zone is most vulnerable, followed by the Eastern Zone, to extreme climate events Extreme Weather witnessed on ~90% of days in the first 9 months of 2022 Climate change has made India’s heat wave 100 times more likely. Map Source :https://www.ceew.in/publications/m
Slide 9: Challenges of Inequality and Livelihoods
Challenges of Inequality and Livelihoods Planet must produce more food • Large proportion of Poorest half of global world’s poor live in India in next 40 years than all farmers population possess just 2% of • 12 million youth join in history have harvested in the the total wealth. workforce every ye
Slide 10: Business cannot succeed in societies that fail
Business cannot succeed in societies that fail
Slide 11: Enduring Value: Triple Bottom Line Performance
Enduring Value : Triple Bottom Line Performance Innovative Business Models that pursue: ✓ Extreme Competitiveness ✓ Growth with Livelihoods ✓ Growth with Climate Action RESPONSIBLE COMPETITIVENESS |9|
Slide 12: An Exemplar in Triple Bottom Line Performance
An Exemplar in Triple Bottom Line Performance Carbon Water Solid Waste Positive Positive Recycling Positive 17 years 20 years 15 years ~42 % of Total Energy from Renewable Sources Sustainable Livelihoods for 6 million people | 10 | Sustainability 2.0 – A Bold Agenda for a Secure Tomorrow
Slide 13: Recognition of Sustainability Performance
Recognition of Sustainability Performance ITC rated AA by MSCI-ESG ITC has been included in the Rated at the ‘Leadership Level’ by Rated AA every year Dow Jones Sustainability CDP with scores of ‘A-‘ for both since 2018 Emerging Markets Index Climate Change and Water Security AWS Platinum-level cert
Slide 14: Our Sustainability Strategy
Our Sustainability Strategy Objective Initiatives 4. Developing a 1. Addressing ➢ Going beyond risk mitigation and leveraging RESILIENT & opportunities CLIMATE CHANGE SUSTAINABLE Risks SUPPLY CHAIN ➢ Reinforcing Sustainability as an integral part of Business Strategy 5. Leveraging ➢ Strengthening IT
Slide 15: Addressing Climate Risk & Competitiveness
Addressing Climate Risk & Competitiveness #2
Slide 16: Mitigation | Decarbonisation
Mitigation | Decarbonisation Renewable Energy – Large scale 40 Platinum rated Green Buildings Continuous Reduction in Specific Energy/Water 42% of energy consumed Sequestration 9 LEED Zero Carbon Certification Consumption
Slide 17: Adaptation: A Critical Imperative
Adaptation: A Critical Imperative • With Current Policies : + 2.7oC • With Pledges & Targets : + 2.0oC • Best Case Scenario : + 1.8oC “We can do little to avoid the coming climate breakdown. Instead we need to adapt to the hothouse world that lies ahead and to start taking action to try to stop a bl
Slide 18: Adaptation @ ITC
Adaptation @ ITC Climate Smart Agriculture Water Stewardship Biodiversity Agro Forestry
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 Investor Day 2021
Slide 21: Plantation by small land holders
Plantation by small land holders
Slide 22: ITC's Afforestation Initiative
ITC’S AFFORESTATION INITIATIVE
Slide 23: Greening over 1,000,000 acres
Greening over 1,000,000 acres ➢ Supporting nearly 175 million person days of employment ➢ Environmental Impact ▪ Carbon Sequestration ▪ Augmenting Green Cover ▪ Top Soil Retention ▪ Water Recharge ➢ A Competitive Source of Pulp-wood for ITC’s Paper mill
Slide 24: Agro-Forestry Over 1,75,000 Acres
AGRO-FORESTRY OVER 1,75,000 ACRES Investor Day 2021
Slide 25: From Sustainable Paper to Brand Leadership
From Sustainable Paper to Brand Leadership
Slide 26: Sustainable Packaging Solutions
Sustainable Packaging Solutions ITC New Growth Vector ATS N ext Enduring Value im J dobevY Indo barr sey cy) IndobowL Leave nothing behind Extrusion Coated Boards Bio-based Coated Boards Antimicrobial Coating Laminating Anti fungal Base Boards Oxyblock Sustainable Products >2x ] portfolio y FileBev
Slide 27: Biodiversity
Biodiversity Regulated Planting of Impacts Mapping of Soil Moisture Grazing – Social Native Commons Conservation • Biomass and green cover increased Protection Species up to 6 times in 5 years • Animals and Reptiles Species doubled Village Commons restoration - AP Before 1,33,000 acres – 10 States,
Slide 28: Pioneering Green Buildings – 40 LEED Platinum Buildings
Pioneering Green Buildings – 40 LEED ® Platinum Buildings
Slide 29: First 8 Hotels & Data Centre in the World LEED Zero Carbon
First 8 Hotels & Data Centre in the World to be LEED® Zero Carbon Certified ITC Windsor, ITC Grand Chola, ITC Gardenia, ITC Mughal, Bengaluru Chennai Bengaluru Agra WelcomHotel WelcomHotel WelcomHotel WelcomHotel ITC Sankhya Data Bengaluru Chennai Coimbatore Guntur Centre, Bengaluru
Slide 30: 42% of ITC's energy is from renewable sources
42% of ITC’s energy is from renewable sources
Slide 31: Recently Commissioned ITC Solar Farm at Tamil Nadu
Recently Commissioned ITC Solar Farm at Tamil Nadu
Slide 32: Water Stewardship
Enduring Value Water Stewardship #3
Slide 33: 54% of India is water stressed
Climate Change in India’s Agriculture “…..The last time we saw crops was during our grandfather’s time…..” 54 % of India is water stressed
Slide 34: Supply Augmentation Demand Management
Demand Supply Management Augmentation Using AWS framework for third party Verification of high water stress areas
Slide 35: Participatory Watershed Planning
PARTICIPATORY WATERSHED PLANNING
Slide 36: Rainwater Harvesting Potential
RAINWATER HARVESTING POTENTIAL 3 times 25,000 1.3 MILLION ACRES Net Water WATER STRUCTURES Consumption in 2022
Slide 37: ITC's Water Stewardship Mission
ITC’S WATER STEWARDSHIP MISSION REPLENISHING NATURAL RESOURCES
Slide 38: Water Demand Efficiency | River Basin Management
Water Demand Efficiency : More Crop per Drop | River Basin Management Demand River Basin Management Management Impacts • Groundwater improvement up to 3.5 m against control • Reduction in water consumption by up to 40% as compared to conventional practices Ghod + • Soil organic carbon improvement 7,
Slide 39: Climate Positive: Road Ahead | S 2.0 2030
Climate Positive: Road Ahead | S 2.0 2030 ✓ 50% of Total Energy from Renewable Sources ✓ 100% Purchased Grid Electricity Requirements from Renewable Sources ✓ 50% reduction in Specific GHG Emissions ✓ 30% reduction in Specific Energy Consumption ✓ Carbon Sequestration (Area under Social and Farm For
Slide 40: Empowering Farmers through NextGen Agriculture
Empowering Farmers through NextGen Agriculture #4
Slide 41: Indian Agriculture Faces Many Challenges
INDIAN AGRICULTURE FACES MANY CHALLENGES Small Farms Limited access to Formal credit • Reliance on high-cost • ~70% farm holdings informal credit channel are less than 1 hectare Sub-optimal Farm yields • Lower than that of developed nations High post-harvest losses • Low availability of scientific a
Slide 42: The Earlier Years: e-Choupal Ecosystem
THE EARLIER YEARS: E-CHOUPAL ECOSYSTEM Empowering 4 Million Farmers
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 for 27 aspirational districts
Collaboration with NITI Aayog for improvement of agriculture in 27 aspirational districts – 3.4 million farmer interactions
Slide 45: Climate Smart Agriculture | ITC Next
Climate Smart Agriculture | ITC Next Weather Water Seed / Carbon/ Market Smart Smart Breed Nutrient Smart Smart Smart Covered over 1.5 million acres Case Study: Madhya Pradesh GHG emission of select crops by 13% to 66%, whilst enhancing net returns to farmers between 46% to 93%.
Slide 46: Digital Technologies Can Transform the Farming Journey
DIGITAL TECHNOLOGIES CAN TRANSFORM THE FARMING JOURNEY Rapid Quality Assaying Image Analytics IoT Sensors Soil Health and Agri- Real-time Identification of Pest Precision Agriculture: Produce Quality and Expert resolution AI/ML models of Farming Digital Agri Supply Chain Agri Drones Demand backed pr
Slide 47: Digital & Sustainability Will Be the Megatrends of the Future
DIGITAL & SUSTAINABILITY WILL BE THE MEGATRENDS OF THE FUTURE: SANJIV PURI
Slide 48: ITC Next
ITC Next Metamarket for Advanced Agriculture & Rural Services
Slide 49: ITCMAARS Phygital Model: Current Scale
ITCMAARS PHYGITAL MODEL: CURRENT SCALE Physical Digital 460+ AI Based Tech / ML Led Crop FPOs Personalized Crop Advisory Advisory E-platform for Agri Inputs 1500+ ITC Field Teams E-marketplace 3 lakh acres for outputs Demo Plots Digitally E-nabledEnabled Rural Engagement Services Rural Services Cent
Slide 50: ITC MAARS Ecosystem
ITC MAARS ECOSYTEM Digital Empowerment of Farmers > Improved Yields > Reduced Cost of Production > Improved Price Realisation > Enhanced Income AI / ML Led Digitally Enabled Digitally Enabled Digitally Enabled Establishing FPOs Personalized Crop Advisory Inputs Market Access Rural Services AI/ML dri
Slide 51: ITCMAARS Demonstration Farms
ITCMAARS Demonstration Farms
Slide 52: Livestock Development
Livestock Development Animal husbandry services to nearly 2,100,000 milch animals Pashu Sakhis earning additional income around Rs 60,000 per annum
Slide 53: Empowering women
Empowering women Over 1,05,000 rural women benefitted
Slide 54: Women Coverage & Participation
WOMEN COVERAGE & PARTICIPATION* 5,00,000 + Education & Skilling 1,30,000 + CSA, WSP, SF 1,380,000 + Financial Literacy 1,00,000+ Women 93,000 + Empowerment Animal Husbandry 6,20,000 + * Excludes those benefited from Mother and Child Health Sanitation and Waste Management
Slide 55: Skill Development Initiative
Skill Development Initiative Over 1,10,000 youth trained
Slide 56: Rural Education Programme
Rural Education Programme Over 8,90,000 children benefitted
Slide 57: Mother & Child Health
Mother & Child Health Over 6,00,000 covered
Slide 58: Sanitation
Sanitation Over 39,000 individual sanitary units constructed
Slide 59: Sustainable Agriculture & Supply Chain: Road Ahead | S 2.0 2030
Sustainable Agriculture & Supply Chain: Road Ahead | S 2.0 2030 ✓ ITCMAARS to reach 10 million farmers ✓ 4,000 FPOs to be supported by ITCMAARS ✓ Targeting Climate Smart Agriculture in 3 million acres by 2030 ✓ Scale up interventions for Horizon 2 livelihood initiatives ✓ Capability and Capacity bui
Slide 60: Towards a Circular Economy
Towards a Circular Economy #5
Slide 61: Well Being out of Waste (WOW) | Community Engagement
Well Being out of Waste (WOW) | Community Engagement 60,000+ MT of dry waste diverted from land fills 18 Million Citizen outreach in 19+ cities 95% to 15% Waste to landfill reduced 600+ temples Green Temple Programme
Slide 62: Plastic Waste Management across the Nation
Plastic Waste Management across the Nation 100%+ Collections in 2021-22: ITC Turns Plastic Neutral Supporting industry wide projects
Slide 63: Circularity: Road Ahead | S 2.0 2030
Circularity: Road Ahead | S 2.0 2030 ✓ 100% of Packaging to be Reusable, Recyclable, Compostable or Bio-Degradable ✓ Plastic Neutrality: Enable Sustainable Management of Waste in Excess of the Amount of Packaging Utilised. Achieved in FY22, to be Sustained Going Forward Scaling Scaling Up Sustainabl
Slide 64: Diversity & Inclusion
VAN Enduring Valu Diversity & Inclusion #6
Slide 65: Inclusion & Enablement Policies
Inclusion & Enablement Policies Paternity Leave Additional WFH Part time working Options • Balance domestic commitments • Final Trimester, Difficult & profesional aspirations pregnancies, Young children Extended Child Care Alternate Location Working Leave • 4 years Leave w/o Pay • Short-term locatio
Slide 66: Growing participation of Women in Units
Growing participation of Women in Units
Slide 67: Enhancing Women Representation
FMCG : MARKETING, HR, HOTELS, LSTC, PERSONAL RESEARCH & PRODUCT CARE, CORPORATE DEVELOPMENT ICMLS ENHANCING WOMEN PROGRESSIVELY LARGER REPRESENTATION IN CAMPUS PARTICIPATION OF RECRUITMENT WOMEN
Slide 68: Governance: Trusteeship, Transparency, Ethical Conduct
Governance: Trusteeship Transparency Ethical Conduct #7
Slide 69: Governance: Strategy of Organisation
Governance : Strategy of Organisation Trusteeship, Transparency, Ethical Conduct Audit Committee Nomination & 3-Tiered Compensation Governance Committee Structure Independent Directors Committee Securityholders Relationship Committee
Slide 70: Strong Governance Mechanisms for Cascading Sustainability Strategy
Strong Governance Mechanisms for Cascading Sustainability Strategy Board approved Board Committee on CSR & Sustainability 16 sustainability policies Corporate Management Committee (CMC) Headed by Chairman & Managing Director Sustainability Compliance Review Committee (SCRC) Chaired by Group Head Sus
Slide 71: ESG Reporting: Highest Standards of Transparency & Disclosure
ESG Reporting: Highest Standards of Transparency & Disclosure 19 years of ESG reporting experience… ITC Sustainability & Integrated Report 2022 | Executive Summary 2022 Responding to CDP Climate Change & Reporting aligned to Global Frameworks ITC Report & Accounts, Water Questionnaire, and Business
Slide 72: Contribution to SDGs
Contribution to SDGs 6 Million ITC Foods Mother & Employee Diversity and Alliance for Water 42% Energy Presence Livelihoods Business’ Four Child Health Training & Equal Stewardship(AWS) Needs from across: Agri, Supported Pillar Model - Development Opportunity Certification Renewable Manufacturing ʻH
Slide 73: Contribution to SDGs
Contribution to SDGs WOW Strategically Climate Sustainable Deforestation- Highest Water 10 State of the Diversity programme located ICMLs – Resilient standards of art ICMLs Initiatives Manage- free Wood and Stewardship covering Operations & ethical conduct Industry 4.0 Optimal ment of Leaf Tobacco D
Slide 74: Summary: S2.0 Targets - Raising The Bar
Summary : S2.0 Targets - Raising The Bar Renewable Specific Energy Specific GHG Sustainable Supporting Sustainable Energy (RE) Consumption* Emissions* Packaging Plan Livelihoods 50% 30% 50% 100% 10 million 100% RE Electricity RE Energy Recyclable Plastic From 6 million Packaging Specific Water Water
Slide 75: A passion for profitable growth, sustainable and inclusive
A passion for profitable growth…. …..in a way that is sustainable……. …. and inclusive