Itc Corporate Review

INTRODUCTION ITC Limited which previously stood for Imperial Tobacco Company of India Limited is one of India's foremost private sector companies with a market capitalization of more than US $ 18 billion and a turnover of US $ 4.75 billion. Rated among the World's Best Big Companies by Forbes magazine, ITC ranks third in pre-tax profit among India's private sector corporations. The company is headed by Yogesh Chander Deveshwar. It employs over 20,000 people at more than 60 locations across India and is listed on Forbes 2000. CORPORATE SOCIAL RESPONSIBILTY IN “ITC WAY” As a responsible corporate citizen, ITC has made remarkable forays in the social as well as environmental sector. The Company is engaged in poverty alleviation activities in some of the most underdeveloped areas of the country. The thrust of the Company’s social sector investments, christened ‘Mission Sunehra Kal’, is on: (a) web-enablement of the Indian farmer, (b) natural resource management, which includes wasteland, watershed, and agricultural development, (c) sustainable livelihoods, comprising genetic improvement in livestock and economic empowerment of women and (d) community development, with a focus on primary education, and health & sanitation. ITC’s social development projects are spread over the states of Andhra Pradesh, Karnataka, Tamil Nadu, Madhya Pradesh, Uttar Pradesh, Rajasthan, West Bengal and Bihar.

ENVIROMENTAL PERFORMANCE OF ITC  ITC IS A ‘CARBON POSITIVE’ CORPORATION FOR 2 YEARS IN A ROW

ITC is now a 'Carbon Scientists are more confident than ever that humans have Positive interfered with the climate and that further human induced climate change is on the way. The future, particularly in the longer term, remains largely in our hands – the magnitude of expected change depends Total Green Housegreenhouse Gas (GHG) on what humans choose to do about gasemissions emissions.from all the ITC units d kilotonnes of CO2 (1,058 kilotonnes in 04-05). - The fourth assessment report of Intergovernmental Panel on Climate Change- 2007 ITC continued to rapidly upscale its farm and social forestry initiative

hectares of plantations in 2005-06. ITC is committed to the international endeavour to mitigate the ill effects of global warming

Theadverse total area under farm and forestry now am through strategies to minimise/eliminate any effect on ITC's the climate thatsocial may be causedplantations by GHG emissions from ITC’s operations. The strategies include: •

Conserving energy through audit, benchmarking and use of ‘next’ practices to achieve the lowest specific energy consumption (energy required per unit of production).

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Using renewable sources of energy.

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Creating a positive environmental footprint through forestry initiatives that enable Carbon Dioxide sequestration.

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Implementing CDM projects under the Kyoto protocol to mitigate the adverse effects of climate change This initiative has not only led to raw

 ENERGY USE AT ITC

materials

sustainability

for

ITC's

ITC’s operations consumed 13,075 Terra Paperboards business, but has helped Joules of energy in 2006-07, a reduction ofsequester 1,244 kilotonnes of CO2, 1.73% over the previous year. This is particularly remarkable because during thethereby making ITC a 'Carbon Positive Activity & Specialty Papers’ Unit Cumulative year, Paperboards Company'. 2006- Total production went up by 7.8%, Cigarettes 07 To date grew by 10.9%, Leaf production went up to 2005-06 by 10.6% and Packaging & Printing business grew 14.7%. Coverage: watershed A positive climatic footprint Catchment Area Hectares 10,004 2,413 12,417 ITC continued to rapidly upscale their farm and social forestry initiatives Cumulative 2006Total adding another nearly 24,000 Treated To date hectares of plantations in 2006-07. Total farm and social07 forestry plantations, as on March 31, 2007 Sources of Energy in ITC (in percentage) Official Irrigation Hectares to 2005-06 10,426 3,861 14,287 covered an area of nearly 65,000 hectares. This initiative has not only led to sustainable sources of raw Area Coverage: social forestry materials for ITC’s Paperboards business 03-04 and provided millions of employment to poor unit 04-05of man days 05-06 06-07 ITC’S APPROACH TO ENERGY CONSERVATION Total Watershed Hectares 20,430 6,274 26,704 No. of villages 301 82 1058 383 Co2released 1202 of CO2, 1143thereby tribals and marginalKilotonnes farmers, but also 1013 has helped sequester 2025 kilotons (Manufacturing Area No. Specialty of beneficiaries 2,713 10,732 ITC’s approach to human ITC’s Paperboards Papers status8,019 consolidating ITC’s&‘Carbon Positive’ for the second consecutive year. Total CO2 emitted by & Freight) resource is premised on the business is the largest consumer (88.7%) of Water Harvesting Plantation area CO Kilotonnes 311 906from 05-06). ITC 1224has implemented 2025 2 Units in 2006-07 amounted to 1143 kilotons (reduction of 4.9% fundamental belief of a energy in the organisation. Of the four units sequestered Minordata Structures No unit 794collection 354and 1,148 6,822 2,247 9,069 fostering in the in this business, the(hectares) Bhadrachalam computerised management data of 104 CO2 meritocracy emissions, using CO2 Percent system for31 86 estimationorganisation. 177 promotes alone accounts for 65.5% ofplanted totalNo energy Major Structures 198 improve 184 reliability 382 of the presented ITC Saplings sequestered IPCC emission factors, during the year to further data. diversity and offers utilised2006 by all operations. Total Structures (millions) No 22.98 992 8.51 538 31.50 1,530 equality of opportunity to All all unitsemployees. in Million KL