Sustainability Initiatives at ITC Ltd.

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Case Details:

Case Code : BECG086
Case Length : 16 Pages
Period : 2001-2007
Pub Date : 2008
Teaching Note :Not Available
Organization : ITC Ltd.
Industry : Diversified
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Introduction Contd...

On the business front, ITC had transformed itself from a tobacco-only company in early 20th century, to a multi-business conglomerate, with presence in hotels, paperboards, packaging and agri-exports, packaged foods & confectionery, branded apparel and information technology (IT) businesses.

For the year ended March 31, 2008, the company reported a gross income of Rs 219.67 billion.

On the environmental front, ITC claimed to be the only company in India to have achieved carbon positive and water positive status. Also, its operations released close to zero solid waste.10

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To achieve this status, the company reportedly undertook several initiatives such as forestry programs meant to convert wasteland into high yielding plantations and thereby enabling carbon dioxide sequestration11.

It also used renewable sources of energy, reduced water consumption, recycled waste water and solid waste, and implemented rainwater harvesting programs.

On the social front, the company took its 'e-Choupal' initiative to farmers giving them crop-specific information in local languages.

It also started rural hypermarkets (called Choupal Sagar), where farmers could sell their produce, buy farm inputs and avail of services like soil testing, banking and insurance...

 Excerpts >>

10] A company is considered carbon positive when it eliminates more carbon dioxide from the atmosphere through afforestation programmes, than the sum of the carbon emitted by the company through its operations. When a company generates more fresh water through various water harvesting methods than it consumes in its factories, then it achieves the water positive status. A company that achieves this is either able to utilize its entire waste as raw material for some other industry, or recycle it for use again in the factory. (Source: Surajeet Das Gupta, "Waste to Wealth: ITC's Success Story,", February 11, 2006.)
11] Carbon dioxide sequestration is the process by which carbon dioxide is removed from the atmosphere.


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