Business Responsibility

REPORT AND ACCOUNTS 2022 and Sustainability Report

Business Responsibility
and Sustainability Report

Section A General Disclosures II

Section B Management and Process Disclosures VIII

Section C Principle wise Performance Disclosure XII

Businesses should conduct and govern themselves with integrity, and in

Principle 1 XII
a manner that is Ethical, Transparent and Accountable

Businesses should provide goods and services in a manner that is

Principle 2 XIII
sustainable and safe

Businesses should respect and promote the well-being of all employees,

Principle 3 XVI
including those in their value chains

Businesses should respect the interests of and be responsive to all its

Principle 4 XXI
stakeholders

Principle 5 Businesses should respect and promote human rights XXIV

Businesses should respect and make efforts to protect and restore the
Principle 6 XXVIII
environment

Businesses, when engaging in influencing public and regulatory policy,

Principle 7 XXXIV
should do so in a manner that is responsible and transparent

Principle 8 Businesses should promote inclusive growth and equitable development XXXVI

Businesses should engage with and provide value to their consumers in

Principle 9 XL
a responsible manner

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Business Responsibility
and Sustainability Report REPORT AND ACCOUNTS 2022

Section A: General Disclosures

I. Details of the listed entity
1. Corporate Identity Number L16005WB1910PLC001985
(CIN) of the Company

2. Name of the Company ITC Limited

3. Year of Incorporation 1910

4. Registered office address

Virginia House, 37 Jawaharlal Nehru Road, Kolkata 700 071
5. Corporate office address
6. E-mail id enduringvalue@itc.in
7. Telephone +91 33 2288 9371
8. Website www.itcportal.com
9. Financial year for which 2021-22
reporting is being done
10. Name of the Stock National Stock Exchange of India Limited (‘NSE’), BSE Limited (‘BSE’),
Exchange(s) where shares The Calcutta Stock Exchange Limited (‘CSE’)
are listed

11. Paid-up capital `1232.33 crores (As on 31.03.2022)

Name and contact details of Ms. Madhulika Sharma
12. the person who may be con- Chief Sustainability Officer
tacted in case of any queries Madhulika.sharma@itc.in
on the BRSR report +91 33 2288 9371
13. Reporting boundary The financial disclosures made in this report are on a standalone basis, and
are excerpted from the Company’s Report and Accounts 2022. The data related
to social performance is on a standalone basis.
The environmental disclosures are based on performance of Company’s
Businesses, certain subsidiaries and associates, and key Third-Party
Manufacturers (TPMs). The details are available in ‘About this Report’ section
of ITC’s Sustainability & Integrated Report 2022.

II. Products/services
14. Details of business activities:

S. Description of % of Turnover
Description of Business Activity
No. Main Activity of the Entity
1. FMCG Cigarettes: Cigarettes, Cigars etc. 39.68%

Others: Branded Packaged Foods Businesses (Staples & Meals;

Snacks; Dairy & Beverages; Biscuits & Cakes; Chocolates, Coffee & 27.01%
Confectionery); Personal Care Products; Education and Stationery
Products; Safety Matches and Agarbattis; Apparel.
2. Hotels Hoteliering. 2.16%
3. Agri Business Agri-commodities such as wheat, rice, spices, coffee, soya and leaf 20.52%
tobacco.
4. Paperboards, Paperboards, Paper including Specialty Paper & Packaging including 10.63%
Paper & Packaging flexibles.

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15. Products/Services sold by the entity:

S. NIC Code % of Total Turnover

Product/Service
No. Contributed

1 Cigarettes: Cigarettes, Cigars etc. 12003, 21002, 46307 39.68%

2 Others: Branded Packaged Foods 10202, 10304, 10308, 10402,

Businesses (Staples & Meals; Snacks; 10501, 10502, 10504, 10509,
Dairy & Beverages; Biscuits & Cakes; 10611, 10612, 10712, 10732, 27.01%

Chocolates, Coffee & Confectionery); 10733, 10735, 10740, 10750,

Education and Stationery Products; 10792, 10795, 10796, 10798,
Personal Care Products; Safety 20231, 20233, 20234, 20236,
Matches and Agarbattis; Apparel. 20237, 20239, 20293, 46491
46496, 46497, 46909, 47711

3 Hoteliering 55101, 56101, 56301, 74909, 2.16%

47110, 47190, 68200, 77400,
79900, 96010, 96020, 96905

4 Agri-commodities such as wheat, rice, 12001, 10202, 10209, 10302, 20.52%

spices, coffee, soya and leaf tobacco. 10304, 10406, 10611, 10795,
20213, 46201, 46207, 46301,
46305, 46306, 47300

5 Paperboards, Paper including Specialty 17015, 17016, 17093, 17022, 10.63%

Paper & Packaging including flexibles. 17029, 22203

III. Operations

16. Number of locations where plants and/or operations/offices of the entity are situated.

The Company’s Businesses and operations are spread across the country. Details of plant locations, including hotels
owned/operated by the Company, are provided under sections ‘Shareholder Information’ in Company’s Report and
Accounts 2022, and ‘About this Report’ section of the Company’s Sustainability & Integrated Report 2022.

17. Markets served by the entity

a. Number of locations

Location Number

National (No. of States) Pan-India

International (No. of Countries) ITC exports to over 100 countries

b. What is the contribution of exports as a percentage of the total turnover of the entity?

FY 2021-22 15.77%

FY 2020-21 10.75%

c. A brief on types of customers

ITC is one of India’s foremost private sector companies and a diversified conglomerate with 13 businesses spanning
FMCG, Hotels, Paperboards, Paper & Packaging and Agri Businesses, and operates across both B2C and B2B
segments.

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IV. Employees
18. Details as at the end of Financial Year:
a. Employees and workers (including differently abled):
During FY 2021-22, the Company employed 49,342 employees, out of which 5,543 were female employees.

S. Male Female
Particulars Total (A)
No. No. (B) % (B/A) No. (C) % (C/A)
EMPLOYEES
1. Permanent (D) 23,829 21,568 91% 2,261 9%
2. Other than Permanent (E) 25,513 22,231 87% 3,282 13%
3. Total employees (D + E) 49,342 43,799 89% 5,543 11%
WORKERS
4. Permanent (F) 12,734 12,102 95% 632 5%
5. Other than Permanent (G) 25,317 22,068 87% 3,249 13%
6. Total workers (F + G) 38,051 34,170 90% 3,881 10%
Note: Definition of employee clustering is as under:
• Permanent Employees include Management, Non-Management and Workers • Other than Permanent Employees include Service
Provider Personnel (SPP), Fixed Term Contract (FTC)/Fixed Term Retainer (FTR) (Management/Non-management, worker) • Permanent
Workers include only Workers • Other than Permanent Workers include SPP, FTC (Worker) • Trainees and Apprentices not included in the
Workforce
b. Differently abled Employees and workers:
During FY 2021-22, the Company employed 123 differently abled employees.

S. Total
Particulars Male Female
No. (A)

No. (B) % (B/A) No. (C) % (C/A)

DIFFERENTLY ABLED EMPLOYEES
1. Permanent (D) 25 21 84% 4 16%
2. Other than Permanent (E) 98 69 70% 29 30%
3. Total differently abled employees (D + E) 123 90 73% 33 27%
DIFFERENTLY ABLED WORKERS
4. Permanent (F) 17 15 88% 2 12%
5. Other than Permanent (G) 32 31 97% 1 3%
6. Total differently abled workers (F + G) 49 46 94% 3 6%

19. Participation/Inclusion/Representation of women

Total (A) No. and percentage of Females
No. (B) % (B/A)
Board of Directors 16 2 12.50%
Key Managerial Personnel* 6 0 0
* Comprising Chairman & Managing Director, Wholetime Directors, Chief Financial Officer and Company Secretary

20. Turnover rate for permanent employees and workers

In FY 2021-22, the overall attrition (voluntary separation, retirement, termination and abandonment of services)
across employees was 10%. Gender-wise attrition stood at 9% for male employees and 18% for female employees.
FY 2021-22 FY 2020-21 FY 2019-20
Male Female Total Male Female Total Male Female Total
Permanent Employees 9% 18% 10% 7% 15% 8% 10% 19% 11%
Permanent Workers 6% 25% 7% 6% 22% 7% 7% 33% 8%
Note: The attrition amongst female workforce is higher due to personal and contextual reasons such as marriage, re-location, etc.

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V. Holding, Subsidiary and Associate Companies (including joint ventures)

21. (a) Names of holding/subsidiary/associate companies/joint ventures
S. Name of the Holding/Subsidiary/ Indicate Whether % of Shares Does the Entity Indicated
No. Associate Companies/ Holding/ Held by at Column A, Participate in
Joint Ventures (A) Subsidiary/ Listed Entity* the Business Responsibility
Associate/ (Refer Note) Initiatives of the Listed Entity?
Joint Venture (Yes/No)**
1 ITC Infotech India Limited Subsidiary 100.00 Yes
2 ITC Infotech Limited Subsidiary 100.00 No
3 ITC Infotech (USA), Inc. Subsidiary 100.00 No
4 Indivate Inc. Subsidiary 100.00 No
5 Surya Nepal Private Limited Subsidiary 59.00 Yes
6 Technico Agri Sciences Limited Subsidiary 100.00 Yes
7 Technico Pty Limited Subsidiary 100.00 No
8 Technico Technologies Inc. Subsidiary 100.00 No
9 Technico Asia Holdings Pty Limited Subsidiary 100.00 No
10 Technico Horticultural Subsidiary 100.00 No
(Kunming) Co. Limited
11 Srinivasa Resorts Limited Subsidiary 68.00 Yes
12 Fortune Park Hotels Limited Subsidiary 100.00 No
13 Landbase India Limited Subsidiary 100.00 Yes
14 Bay Islands Hotels Limited Subsidiary 100.00 Yes
15 WelcomHotels Lanka (Private) Limited Subsidiary 100.00 No
16 Russell Credit Limited Subsidiary 100.00 No
17 Greenacre Holdings Limited Subsidiary 100.00 No
18 Wimco Limited Subsidiary 100.00 No
19 Gold Flake Corporation Limited Subsidiary 100.00 No
20 ITC Investments & Holdings Limited Subsidiary 100.00 No
21 MRR Trading & Investment Subsidiary 100.00 No
Company Limited
22 North East Nutrients Private Limited Subsidiary 76.00 Yes
23 Prag Agro Farm Limited Subsidiary 100.00 No
24 Pavan Poplar Limited Subsidiary 100.00 No
25 ITC IndiVision Limited Subsidiary 100.00 No
26 Espirit Hotels Private Limited Joint Venture 26.00 No
27 Logix Developers Private Limited Joint Venture 27.90 No
28 ITC Essentra Limited Joint Venture 50.00 No
29 Maharaja Heritage Resorts Limited Joint Venture 50.00 No
30 Gujarat Hotels Limited Associate 45.78 Yes
31 International Travel House Limited Associate 48.96 No
32 Russell Investments Limited Associate 25.43 No
33 Divya Management Limited Associate 33.33 No
34 Antrang Finance Limited Associate 33.33 No
35 ATC Limited Associate 47.50 Yes
36 Delectable Technologies Private Associate 27.34# No
Limited
* held directly or through subsidiary companies.
#
on a fully diluted basis.
Note: Refer Note 28(ii) of Consolidated Financial Statements forming part of Report and Accounts 2022, for further details on subsidiaries,
associates and joint ventures.
** For details, refer to ‘About this Report’ section of the Company’s Sustainability & Integrated Report 2022.

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VI. CSR Details

22 (i) Whether CSR is applicable as per section 135 of Companies Act, 2013: (Yes/No).
Yes, CSR is applicable as per Section 135 of Companies Act, 2013.
(ii) Turnover of the Company for the year ended 31st March, 2022 - ` 59,101.09 crores
(iii) Net worth of the Company as at 31st March, 2022 - ` 60,545.55 crores (computed as per the Companies Act, 2013)
VII. Transparency and Disclosures Compliances
23. Complaints/grievances on any of the principles (Principles 1 to 9) under the National Guidelines on
Responsible Business Conduct (NGRBC).

Stakeholder Grievance
group from whom Redressal FY  2021-22
complaint is Mechanisms in
received Place (Yes/No)
Number of complaints Number of complaints
filed during the year pending resolution at close Remarks
of the year

Communities Yes. ITC’s Social Investments Programme (SIP) has a structured process of engaging with the
communities to get feedback on the interventions and also understand if they have any views,
issues, complaints and grievances related to these interventions. During FY 2021-22,
no grievances were raised by the communities during such interactions.

Shareholders and Yes. The Company has an Investor Service Centre (‘ISC’) which is registered with the SEBI as
Investors Category II Share Transfer Agent for providing in-house share registration and related services to
the Shareholders and Investors. ISC has effective systems and processes in place to ensure prompt
redressal of investor grievances, as follows:

(a) The Head of Investor Service Centre of the Company is responsible for redressal of investor
grievances.

(b) The Company has a specific e-mail address earmarked for receiving investor complaints which
is isc@itc.in.

(c) The ‘Investor Charter’ of the Company and the status of investor complaints received by the
Company are available on its website.

(d) A Board Level Committee viz., the Security Holders Relationship Committee, has been
mandated to oversee redressal of investor grievances, and review adherence to the service
standards adopted by the Company in respect of its in-house share registration activities.

(e) ISC has a ‘Complaint Identification Policy’ for identification of investor complaints. Further, ISC
attends to shareholder/investor complaints within five working days, except where constrained
by disputes or legal impediments.

(f) Details of investor complaints received by the Company are filed on a quarterly basis with
the Stock Exchanges where the Company’s shares are listed, and with the SEBI on a
half-yearly basis.

During FY 2021-22, one complaint relating to delay in recording of Permanent Account Number of a
Shareholder was received and promptly resolved.

There were no shareholder/investor complaints pending for resolution at the end of the year.

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Employees and Yes. To address employee concerns and complaints pertaining to human rights and labour
workers practices, a Grievance Redressal Procedure with appropriate systems and mechanisms
has been instituted across ITC units. It aims to facilitate open and structured discussions
on grievances raised on labour practices and human rights. The implementation is ensured
by Divisional/SBU Chief Executives, through members of the respective Management
Committees.

During FY 2021-22, there were 212 complaints received across the Businesses, and 206 such
complaints were resolved. 6 are pending resolution at the close of the year.

Consumers, Yes. Robust systems have been put in place across ITC Businesses to continuously engage
Shoppers & with consumers for gathering feedback and address their concerns, if any, in a timely manner.
Retailers A dedicated customer interactions team is in place to address any product related query/
complaint. Several communication channels like email, telephone number and feedback
forms are provided to the consumers. In addition, the Company has an online reputation
management team which interacts with consumers via social media channels, and responds
to their queries in a real time manner. A Customer Relationship Management (CRM) platform
has been implemented for capturing customer complaints, queries, feedback and suggestions
received across channels. The CRM platform also provides consumer insights for bringing
about process related changes, and system enhancements for improving the CSAT (Customer
Satisfaction) scores.

During FY 2021-22, around 10,000 complaints were received across Businesses, and more
than 97% of these were resolved as on 31st March, 2022.

Value Chain Yes. As per the Company’s Code of Conduct for Suppliers and Service Providers, they are
Partners expected to bring to the notice of the manager concerned at ITC, any actual or suspected breach
of the Code. Suppliers and Service Providers are encouraged to report any known or suspected
improper behaviour of ITC employees. Such reports are treated in a confidential manner.

The Company policies are hosted on the website at https://www.itcportal.com/about-itc/policies/index.aspx

24. Overview of the entity’s material responsible business conduct issues

In order to identify the material issues including environmental and social ones, and understand the relative
importance of these issues to its stakeholders and ITC Businesses, the Company conducts materiality assessments,
and accordingly devise specific action plans for addressing each material issue at regular intervals. Such
assessments help in identifying key drivers for value creation over a period of time. In FY 2019-20, ITC engaged with
a diverse set of internal and external stakeholders in order to update its materiality matrix. Going forward, ITC will
continue to engage with its key internal and external stakeholders on an ongoing basis to ensure a more dynamic
materiality assessment.

As a diversified enterprise, ITC continues to focus on a system-based approach to Business Risk Management. The
management of risk is embedded in the corporate strategies of developing a portfolio of world-class Businesses
that best match organisational capability with market opportunities, focusing on building distributed leadership
and succession planning processes, nurturing talent and enhancing organisational capabilities through timely
developmental inputs.

For more information on Risk Management Framework and ITC’s materiality matrix, refer to the ‘Risk Management
Section’ of the Report of the Board of Directors forming part of ITC’s Report and Accounts 2022, and ‘Strategic Risk
Management’ and ‘Material Issues’ sections of ITC Sustainability & Integrated Report 2022.

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Section B: Management and Process Disclosures

The National Guidelines for Responsible Business Conduct (NGRBC) as brought out by the Ministry of Corporate
Affairs advocates nine principles referred as P1-P9 as given below:
P1 Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical,
Transparent and Accountable
P2 Businesses should provide goods and services in a manner that is sustainable and safe
P3 Businesses should respect and promote the well-being of all employees, including those in their value chains
P4 Businesses should respect the interests of and be responsive to all its stakeholders
P5 Businesses should respect and promote human rights
P6 Businesses should respect and make efforts to protect and restore the environment
P7 Businesses, when engaging in influencing public and regulatory policy, should do so in a manner that is
responsible and transparent
P8 Businesses should promote inclusive growth and equitable development
P9 Businesses should engage with and provide value to their consumers in a responsible manner

Disclosure Questions P1 P2 P3 P4 P5 P6 P7 P8 P9

Policy and management processes

1. a. Whether your entity’s policy/ Yes, ITC is guided by a comprehensive set of Board-approved Policies that
policies cover each principle and its cover NGRBC principles (P1 to P9) and the underlying core elements.
core elements of the NGRBCs. (Yes/No) To achieve its Sustainability 2.0 vision, the Company continues to strengthen
b. Has the policy been approved by the its management approach which is guided by a comprehensive set of
Board? (Yes/No) Sustainability Policies that are being implemented across the organisation.
The Company is also strengthening the mechanisms of engagement
c. Web Link of the Policies, if available with key stakeholders, identification of material sustainability issues and
2. Whether the entity has translated the progressively monitoring and mitigating the impacts along the value chain
policy into procedures. (Yes/No) of each Business. The Company will continue to update these systems and
processes in line with evolving disclosure standards and Environmental,
3. Do the enlisted policies extend to Social and Governance (ESG) requirements.
your value chain partners?
The overall responsibility for ensuring the implementation of Sustainability
(Yes/No)
Policies resides with the Divisional/Strategic Business Unit (SBU) Chief
Executives and the Heads of Corporate Functions who work with their
respective management teams. Various committees designated with
specific responsibilities have also been constituted for operationalising
these Policies. The Sustainability Compliance Review Committee has
the overall responsibility to monitor and evaluate compliance with these
Policies. The overall responsibility for implementation of ITC’s CSR Policy
rests with the Corporate Social Investments Programme (SIP) Team.
The Policies covering these principles are available on the Company’s
corporate website www.itcportal.com under ‘Our Policies’ section.

4. Name of the national and • ITC’s manufacturing facilities have well-defined Environment, Health
international codes/certifications/ and Safety (EHS) and quality management systems in place, and are
labels/standards (e.g. Forest aligned with International Standards like ISO 14001: Environment
Stewardship Council, Fairtrade, Management System, OHSAS 18001/ISO 45001: Occupational Health
Rainforest Alliance, Trustea) standards and Safety Management Systems, SA 8000: Social Accountability, and
(e.g. SA 8000, OHSAS, ISO, BIS) adopted FSSC 22000/ISO 22000/HACCP: Food Safety Management System.
by your entity and mapped to each • ITC, with its commitment of procuring sustainable raw materials,
principle. endeavours to integrate sustainability in the supply chains of
its products and services. ITC collaborates with national and
international sustainability certification bodies on responsible
sourcing certification of key agri raw materials. For instance,
Agri Business continues to increase the scale and scope of crops
covered under various sustainable farm certifications like Rainforest
Alliance, Global G.A.P Certification, Fairtrade and USDA Organic.

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• ITC’s commitment to environmental stewardship is reflected

in its role of pioneering the Green Building movement in
India. 38 buildings of the Company have achieved Platinum
certification USGBC (U.S. Green Building Council)/IGBC
(Indian Green Building Council). As a testament to the
Company’s ‘Triple Bottom Line’ philosophy and ‘Responsible
Luxury’ ethos, ITC Windsor, Bengaluru achieved the
distinction of being the first hotel in the world to achieve
LEED® Zero Carbon Certification. ITC Grand Chola, Chennai
(largest hotel in the world to receive this) and ITC Gardenia,
Bengaluru also received the LEED® Zero Carbon certification
during the year. These properties are the first three hotels
in the world to receive the LEED® Zero Carbon Certification.
The Company’s Hotels Business has also demonstrated high
levels of resource efficiency by achieving the LEED® Platinum
certification for its luxury collection hotels.
• The Hotels Business continued to reinforce its commitment
towards health & hygiene with ‘WeAssure’ – a programme
designed in collaboration with medical professionals &
disinfection experts to reassure guests and to provide best-
in-class experience in hygiene and safety at the Company’s
iconic Hotels. The programme has received a Platinum Level
certification from M/s. DNV.
• ITC is also committed to getting all its sites in High
Water Stressed Areas certified as per the International
Water Stewardship Standard by AWS (Alliance for Water
Stewardship) by 2035. ITC’s Paperboards & Specialty Papers
Business unit at Kovai was only the second facility in the
world and the first in India to be awarded the AWS Platinum-
level certification in FY 2019-20, the highest recognition for
water stewardship in the world.
For more information on Environment, Social, Occupational
Health and Safety, Food Safety Certifications and Sustainable
Farming Certifications, refer to ‘Certifications’ section of ITC
Sustainability & Integrated Report 2022.

5. Specific commitments, goals and targets set In line with its Sustainability 2.0 agenda, ITC has set short-to-
by the entity with defined timelines, if any. medium targets for key priority areas like climate change, water
6. Performance of the entity against the stewardship, plastic waste and circular economy, sustainable
specific commitments, goals and targets along agriculture, biodiversity conservation and sustainable livelihoods.
with reasons in case the same are In line with the above, ITC’s Businesses have targets for key
not met. performance indicators (KPIs) like specific energy consumption,
specific greenhouse gas emissions, specific water intake and
specific waste generation. In order to achieve these targets, all
ITC Units have established management systems which entail
regular monitoring of environmental KPIs, development of an
environmental management plan, and reviewing progress on
a regular basis to ensure that Businesses are on track with
respect to the agreed roadmap.
For more information on annual performance against the
Sustainability 2.0 targets, refer to ‘Sustainability 2.0 Ambitions: 2030
Targets’ section of ITC Sustainability & Integrated Report 2022.

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Governance, leadership and oversight

7. Statement by director responsible for the business responsibility report, highlighting ESG related challenges,
targets and achievements (listed entity has flexibility regarding the placement of this disclosure).

Please refer to the ‘Chairman’s Statement’ section in ITC Sustainability & Integrated Report 2022.
8. Details of the highest authority responsible At the highest level, the Board of Directors of the Company, led
for implementation and oversight of the by the Chairman & Managing Director, has the primary role of
Business Responsibility policy (ies). trusteeship to protect and enhance shareholder value through
strategic supervision of ITC. As trustees, the Board ensures that
the Company has clear goals aligned to shareholder value and
its growth, and also in line with its Sustainability agenda.
The CSR and Sustainability Committee of the Board, chaired
by the Chairman & Managing Director, reviews and oversees
implementation of the Sustainability Policies of the Company on
an annual basis. In addition, the Committee and the Board also
review the progress of implementation of the Company’s CSR
Programmes, on a half-yearly basis.
The Corporate Management Committee (CMC) of the Company
is the management body responsible for compliance with the
Sustainability Policies of the Company.
The CMC has constituted the Sustainability Compliance Review
Committee (SCRC), which monitors and evaluates compliance
with these Policies and places a quarterly report thereon for
review by the CMC.
The Chief Executives of Divisions / Strategic Business Units
(SBU), through members of the respective Management
Committees, and Heads of Corporate Functions, are responsible
for ensuring implementation of the Sustainability Policies of
the Company within their respective Division / SBU / Corporate
Function, and communication of these Policies to the employees.

9. Does the entity have a specified Committee Yes, as mentioned above, the CSR and Sustainability Committee
of the Board/ Director responsible for decision of the Board, inter alia, reviews, monitors and provides
making on sustainability related issues? strategic direction to the Company’s CSR and sustainability
(Yes/No). If yes, provide details. practices towards fulfilling its Triple Bottom Line objectives.
The Committee seeks to guide the Company in crafting unique
models to support creation of sustainable livelihoods together
with environmental regeneration.
The Committee also reviews the Business Responsibility and
Sustainability Report of the Company, and recommends the
same to the Board for adoption, and approves the Sustainability
& Integrated Report of the Company.
In addition, the Company has appointed a Chief Sustainability
Officer (CSO) who is, inter alia, responsible for periodic review of
material issues, scanning the external environment for evolving
sustainability trends and regulations, monitor the progress on
sustainability targets and facilitate the Businesses & Corporate
Functions in implementing sustainability initiatives. The CSO
reports to the Group Head of Sustainability who is also a CMC
Member and the Chairman of the SCRC. The CSO provides
progress report backs on the Company’s sustainability initiatives
to the senior leadership of the Company.

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10. Details of Review of NGRBCs by the Company:

Subject for Review Review of Principles undertaken by Director/

Committee of the Board/any other Committee and its
frequency.
Performance against above policies and follow up action As stated above, the SCRC is responsible for
monitoring and evaluating compliance with the
Sustainability Policies of the Company and placing
a quarterly report thereon for review by the CMC.
The CSR and Sustainability Committee also reviews
implementation of these Policies on an annual basis.

The Chief Executives of Divisions/Strategic Business

Units (SBU) and Heads of Corporate Functions are
responsible for ensuring implementation of the
Sustainability Policies of the Company within their
respective Division/SBU/Corporate Function. During the
year, most of the Sustainability Policies of the Company
were comprehensively reviewed and updated to reflect
the current practices followed by the Company and also
taking into account the evolving industry practices &
standards.
Compliance with statutory requirements of relevance to The Company is in compliance with applicable laws and
the principles, and, rectification of any non-compliances regulations.

11. Has the entity carried out independent assessment/ • ITC has been obtaining independent third-party
evaluation of the working of its policies by an external assurance for its Sustainability Reports since
agency? (Yes/No). If yes, provide name of the agency. 2004. In the reporting year, authenticity of the
data and systems disclosed in the Sustainability &
Integrated Report 2022 has been assured by M/s
Deloitte Haskins & Sells LLP, an independent third
party assurance provider. M/s Deloitte Haskins &
Sells LLP have provided the assurance as per the
International Standard for Assurance Engagements
(ISAE) 3000 at the ‘Reasonable Level’.

• ITC has computed its greenhouse gas (GHG)

inventory, including GHG emissions, biogenic
emissions and GHG removals, in accordance with
ISO 14064:2006. The GHG inventory of FY 2021-22
has been verified by M/s Deloitte Haskins & Sells
LLP at the ‘Reasonable Assurance’ level.

• In addition to above, relevant third-party

assessments and certifications are conducted
across Business units periodically.

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Section C: Principle wise Performance Disclosure

Principle 1
Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical, Transparent and
Accountable.
Essential Indicator
1. Percentage coverage by training and awareness programmes on any of the principles during the financial year

Total Number of Topics/Principles Covered % of Persons in Respective

Segment Training and Awareness Under the Training and Category Covered by the Awareness
Programmes held its Impact Programmes
Board of The Directors of the Company are briefed on the sustainability initiatives of the Company from time
Directors to time. The Directors are also updated on changes/developments in the domestic/global corporate
and industry scenario including those pertaining to statutes/legislation & economic environment
and on matters affecting the Company, to enable them to take well informed and timely decisions.

Key The Company periodically updates and familiarises employees on the following:
Managerial
1. ITC’s Code of Conduct which covers aspects such as Corporate Governance & Good Corporate
Personnel
Citizenship
Employees
2. Whistleblower Policy of the Company
other than
BoD and 3. Sustainability Policies of the Company
KMPs

Workers

2. Details of fines/penalties/punishment/award/ 4. Does the entity have an anti-corruption or anti-

compounding fees/settlement amount paid in bribery policy? If yes, provide details in brief and if
proceedings (by the entity or by directors/KMPs) available, provide a web-link to the policy.
with regulators/law enforcement agencies/judicial The Company’s Code of Conduct covers aspects relating
institutions, in the financial year, in the following to anti-corruption or anti-bribery. In terms of the said
format (Note: the entity shall make disclosures on the Code, the Company believes in conducting its business
basis of materiality as specified in Regulation 30 of in a transparent manner and does not indulge in bribery
SEBI (Listing Obligations and Disclosure Obligations) or corruption.
Regulations, 2015 and as disclosed on the entity’s The ITC Code of Conduct can be accessed on the
website): Company’s corporate website at
https://www.itcportal.com/about-itc/values/index.
Nil
aspx#sectionb5
3. Of the instances disclosed in Question 2 above, 5. Number of Directors/KMPs/employees/workers
details of the Appeal/Revision preferred in cases against whom disciplinary action was taken by any
where monetary or non-monetary action has been law enforcement agency for the charges of bribery/
appealed. corruption:
Not applicable Nil
6. Details of complaints with regard to conflict of interest:
FY 2021-22 FY 2020-21
Number Remarks Number Remarks
Number of complaints received in relation to issues of Nil - Nil -
conflict of interest of the Directors
Number of complaints received in relation to issues of Nil - Nil -
conflict of interest of the KMPs

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7. Provide details of any corrective action taken or in which their personal interests could conflict with the
underway on issues related to fines/penalties/action interests of the Company. The Code, inter alia, clarifies
taken by regulators/law enforcement agencies/ that conflict of interest may arise when (a) an employee
judicial institutions, on cases of corruption and or a family member (family member includes spouse,
conflicts of interest. children, siblings and parents) has a material interest
Not Applicable in an entity that has a business relationship with the
Company or is being evaluated for a commercial
Leadership Indicators transaction, or (b) an employee is in a position to benefit
1. Awareness programmes conducted for value chain someone with whom he / she has a close relationship,
partners on any of the Principles during the financial year: in relation to the Company’s business. However,
this is an area in which it is impossible to provide
ITC facilitates capacity building workshops for its key comprehensive guidance but the guiding principle is
value chain partners to educate, and create shared
that conflict, if any, or any potential conflict must be
awareness on key areas like human rights, labour
disclosed to higher management for guidance and
practices and sustainability.
action as appropriate.
2. Does the entity have processes in place to avoid/
Further, the Directors of the Company are required to
manage conflict of interests involving members of the
disclose to the Board, on an annual basis, whether they,
Board? (Yes/No) If Yes, provide details of the same.
directly or indirectly or on behalf of third parties, have
Yes, the ITC Code of Conduct requires the Directors, material interest in any transaction or matter directly
senior management and employees to avoid situations affecting the Company.

Principle 2
Businesses should provide goods and services in a manner that is sustainable and safe.

Essential Indicators sources of energy, technology absorption and the

expenditure incurred on Research and Development,
1. Percentage of R&D and capital expenditure (capex) refer to the ‘Disclosure on Conservation of Energy and
investments in specific technologies to improve the Technology Absorption’ forming part of the Report of
environmental and social impacts of product and the Board of Directors in the Company’s Report and
processes to total R&D and capex investments made Accounts 2022.
by the entity, respectively. `in Crores

The Company’s state-of-the-art ITC Life Sciences and FY 2021-22 FY 2020-21

Technology Centre (LSTC) in Bengaluru is at the core of Expenditure on R&D - Capital 20.17 12.12
driving science-led product innovation to support and Expenditure on R&D - 143.59 131.22
build ITC’s portfolio of world-class brands. The LSTC Revenue
team comprising over 350 highly qualified scientists, Total R&D Expenditure 163.76 143.34
with over 900 patents applications filed, have a mandate Capital Investment on 12.22 20.22
to work on future-ready science platforms, design Energy Conservation
differentiated products to address unique needs and Equipment
deliver superior benefits to Indian consumers.
2. a. Does the entity have procedures in place for
Centres of Excellence in Biosciences, Agrisciences sustainable sourcing?
and Materials, and robust research platforms such as
Yes, there are procedures in place for sustainable
Beauty & Hygiene, Heath & Wellness, Agro-forestry
sourcing. ITC has a Board approved Policy on
& Crop Sciences, Sustainable Packaging materials
‘Sustainable Supply Chain and Responsible Sourcing’
continue to drive world-class innovation.
and a ‘Code of Conduct for Suppliers and Service
In pursuit of environmental excellence, all Business Providers’. The Code reflects ITC’s commitment to
units continued their efforts to improve energy usage respect human rights across the supply chain. It
efficiencies and increase the share of renewable energy. upholds the spirit outlined in the International Labour
For more details on steps taken and efforts made Organisation Guidelines and United Nations Guiding
towards conservation of energy, utilising alternate Principles on Business and Human Rights. ITC, with

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its diverse and expanding portfolio of businesses, the end of life, for (a) Plastics (including packaging) (b)
prioritises embedding sustainability and building E-waste (c) Hazardous waste and (d) other waste.
resilience in the supply chain as part of its Sustainability ITC has achieved Plastic Neutrality in FY 2021-
2.0 vision. 22 by implementing an integrated solid waste
Farmers constitute a vital part of ITC’s supply chain, and management programme that incorporates unique and
the close linkages between ITC’s Businesses and Indian multidimensional initiatives. The Company collected
agriculture provides a unique opportunity to engage and sustainably managed more than 54,000 tonnes of
plastic waste across 35 States and Union Territories.
with farmers across the country and help address
The amount of plastic waste managed exceeded the
some of the sustainability challenges confronting them,
amount of plastic packaging utilised by ITC during the
and at the same time create sustainable and resilient
year, enabling the Company to achieve the milestone of
Agri-value chains for ITC’s Agri, FMCG and Paper
Plastic Neutrality.
Businesses.
For more than a decade, the Company has been running
Leveraging the Company’s enterprise strengths and its
a holistic 360° solid waste management programme
large presence in rural communities, ITC has, over the that is based on the principles of a circular economy and
years designed and implemented large scale programmes encompasses the entire waste value chain.
on sustainable agriculture. The focus of these interventions
ITC has adopted a multipronged approach to reduce
has been largely around improving farmer livelihoods,
plastic in the Company’s operations spanning FMCG,
increasing agricultural productivity, strengthening regional
Hotels, Paperboards and Packaging. This includes
water security and addressing the challenge of climate
creating robust next generation environment friendly
change and enhancing Agri-resilience.
packaging solutions, mega-scale waste collection
Note: For more details on ITC’s sustainable sourcing programmes under its flagship waste management
practices pertaining to key Agri value chains and key initiative ‘ITC WOW – Well Being Out of Waste’ as well
value chain partners like third party manufacturers, as focused interventions in rural areas; a culture of
refer to ‘Next-Generation Agriculture’ and ‘Inclusive plastic-free operations - in line with its philosophy
Value Chains’ sections of ITC Sustainability & Integrated of ‘Responsible Luxury’ to eliminate single use
Report 2022. plastic usage in ITC Hotels; and innovative models
for sustainability which have plastic reduction and
b. If yes, what percentage of inputs were sourced management at their core. Within its operations, ITC
sustainably? has been recycling more than 99% of the solid waste for
The supply chains of most ITC’s Businesses are more than a decade.
vertically integrated, which facilitate optimum For further details, refer to the ‘Sustainably Managing
utilisation of raw materials, recycling of waste as well Waste’ and ‘Mission Sunehra Kal for Sustainable &
as efficient logistics operations. Farmers constitute Inclusive Growth’ sections of ITC Sustainability &
a vital part of ITC’s supply chain. Accordingly, the Integrated Report 2022.
Company focuses extensively on enhancing the 4. Whether Extended Producer Responsibility (EPR)
sustainability of its Agri-based supply chain. During FY is applicable to the entity’s activities (Yes/No). If
2021-22, ITC processed around 2,500 kilo tonnes of raw yes, whether the waste collection plan is in line with
materials, out of which nearly 97% were sourced from the Extended Producer Responsibility (EPR) plan
Agro/Forestry based renewable sources. submitted to Pollution Control Boards? If not, provide
steps taken to address the same.
ITC’s leading Agri value chains are also certified as per
renowned global standards like Rainforest Alliance ITC is in compliance with the requirements of Plastic
(RFA), Global G.A.P Certification, Fairtrade, USDA Waste Management Rules, 2016 and subsequent
Organic and India Organic. amendments.

Note: For more details on ITC’s sustainable sourcing Leadership Indicators

practices, refer to the ‘Next-Generation Agriculture’, 1. Has the entity conducted Life Cycle Perspective/
‘Inclusive Value Chains’ and ‘Certifications’ sections of Assessments (LCA) for any of its products (for manufacturing
ITC Sustainability & Integrated Report 2022. industry) or for its services (for service industry)?
3. Describe the processes in place to safely reclaim The Company has initiated Life Cycle Assessments
your products for reusing, recycling and disposing at (LCA) of its products and services since 2010 with an

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objective to evaluate the impacts and identify areas designs, loading efficiencies in transportation. Studies
for improvement in the value chain. So far, LCAs have conducted on the selected products also provided
been carried out for key product categories from valuable insights which are duly considered for new
Paperboards and Specialty Papers Business (Carte product development and design. Several sustainable
Lumina, Safire Graphik, Liquid Packaging Board etc.), products were developed during the year. For example,
Personal Care Products Business (Superia Soap) and Savlon Pichkiao (easy-squeeze pack), an innovative
Branded Packaged Foods Businesses (Bingo! Potato pump-free format that is completely reusable, refillable
chips). LCA studies will continue to be used as a tool for and easy to carry, and made with 22% less plastic
assessing environmental footprint of products/services compared to ordinary pump pack was launched last
going forward. year. The pack also bagged the prestigious ‘Diamond
2. If there are any significant social or environmental Finalist Award’ at the Dow Packaging Innovation Awards
concerns and/or risks arising from production or 2021, demonstrating excellence across all the three
disposal of your products/services, as identified in the criteria of the award – Sustainability, Technological
Life Cycle Perspective/Assessments (LCA) or through Advancement and Enhanced User Experience.
any other means, briefly describe the same along with
3. Percentage of recycled or reused input material
action taken to mitigate the same.
to total material (by value) used in production (for
The Company has put in place robust guidelines and manufacturing industry) or providing services (for
standards, that are benchmarked against international service industry).
best practices, with defined Standard Operating
Nearly 97% of ITC’s input material is sourced from
Procedures (SOPs) for identifying and mitigating both
renewable sources consisting primarily of pulpwood
social and environmental risks. LCA studies have
also been carried out for some of the Company’s key and other Agri products. During FY 2021-22, the Kovai
products for identifying additional opportunities to Unit of ITC’s Paperboards & Specialty Papers Business
reduce environmental impact across the value chain. sourced over 85,000 tonnes of waste paper from
These assessments have enabled identification of external sources, which constituted over 75% of the
concrete solutions towards more efficient packaging Unit’s total input materials.

4. Of the products and packaging reclaimed at end of life of products, amount (in metric tonnes) reused, recycled,
and safely disposed.

During FY 2021-22, ITC expanded its plastic waste management programme across the country covering all plastic
waste categories including rigids, flexibles and Tetra Pak packaging waste. The Company collected and sustainably
managed more than 54,000 tonnes of plastic waste across 35 States and Union Territories. The amount of plastic
waste managed exceeded the amount of plastic packaging utilised by ITC during the year, enabling the Company to
achieve the milestone of Plastic Neutrality. In FY 2020-21, more than 31,000 tonnes of post-consumer plastic waste
from 24 States and Union Territories was collected and sustainably managed, which was equivalent to more than 80%
of plastic packaging films (flexibles) utilised by ITC during FY 2020-21.

The Company also has mechanisms to recover expired, damaged and discarded products from the market. Depending
on the product, both the product and the packaging material waste are sustainably recycled/safely disposed.

FY 2021-22 FY 2020-21
Reused Recycled Safely Disposed Reused Recycled Safely Disposed

Plastics Approx. Approx. Approx. Approx.

(including - -
5,400 MT 48,600 MT 2000 MT 29,000 MT
packaging)

5. Reclaimed products and their packaging materials (as percentage of products sold) for each product category.

Please refer to responses to Question 3 and 4 above.

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Principle 3
Businesses should respect and promote the well-being of all employees, including those in their value chains.

Essential Indicators
1. a. Details of measures for the well-being of employees:
Category % of Employees Covered by

Total Health Insurance Accident Maternity Paternity Day Care

(A) Insurance Benefits Benefits Facilities
Num- % (B/A) Num- % (C/A) Num- % (D/A) Num- % (E/A) Num- % (F/A)
ber (B) ber (C) ber (D) ber (E) ber (F)
Permanent Employees
Male 21,568 21,568 100% 21,568 100% - - 9,466 44% - -

Female 2,261 2,261 100% 2,261 100% 2,261 100% - - 2,261 100%

Total 23,829 23,829 100% 23,829 100% 2,261 100% - - 2,261 100%

b. Details of measures for the well-being of workers:

Category % of Workers Covered by
Total Health Accident Maternity Paternity Day Care
(A) Insurance Insurance Benefits Benefits Facilities
Num- % (B/A) Num- % (C/A) Num- % (D/A) Num- % (E/A) Num- % (F/A)
ber (B) ber (C) ber (D) ber (E) ber (F)
Permanent Workers
Male 12,102 12,102 100% 12,102 100% - - - - - -

Female 632 632 100% 632 100% 632 100% - - 632 100%

Total 12,734 12,734 100% 12,734 100% 632 100% - - 632 100%

2. Details of retirement benefits, for Current FY and Previous Financial Year.

Benefits FY 2021-22 FY 2020-21

No. of No. of Deducted and No. of No. of Deducted and
Employees Workers Deposited Employees Workers Deposited with the
Covered as Covered as with the Covered as Covered as Authority (Y/N/N.A.)
a % of Total a % of Total Authority a % of Total a % of Total
Employees Workers (Y/N/N.A.) Employees Workers

PF 100% 100% Y 100% 100% Y

Gratuity 100% 100% Y 100% 100% Y
ESI 11% 19% Y - - Y

3. Accessibility of workplaces improving infrastructure for eliminating barriers to

accessibility.
Are the premises/offices of the entity accessible to
differently abled employees and workers, as per the 4. Does the entity have an equal opportunity policy as
per the Rights of Persons with Disabilities Act, 2016? If
requirements of the Rights of Persons with Disabilities
so, provide a web-link to the policy.
Act, 2016? If not, whether any steps are being taken by
Yes, the Company has Policy on Diversity, Equity
the entity in this regard.
and Inclusion, which is available at https://www.
Our establishments are accessible to the differently itcportal.com/about-itc/policies/sustainability-policy.
abled, and we are continuously working towards aspx#EqualOpportunity

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5. Return to work and retention rates of permanent employees and workers that took parental leave.
Permanent Employees Permanent Workers
Gender Return to Work Rate Retention Rate Return to Work Rate Retention Rate
Male - - - -
Female 100% 98% 100% 100%

Total 100% 98% 100% 100%

6. Is there a mechanism available to receive and redress grievances for the following categories of employees and
worker? If yes, give details of the mechanism in brief.

Yes, ITC’s Grievance Redressal Procedure is available to employees and workers. The objective of the policy is to
facilitate open and structured discussion on employees’ work-related grievances with the intent of ensuring that the
grievance is dealt with in a fair and just manner whilst being in compliance with the Company’s policies. ITC’s open-
door practices encourage an amicable and fair resolution of grievances. Employees are encouraged to first discuss
the grievance with their immediate reporting authority, and attempt to arrive at a resolution before invoking a formal
grievance redressal mechanism.

Yes/No
(If yes, then give details of the mechanism in brief)
Permanent Workers As mentioned above
Permanent Employees As mentioned above

7. Membership of employees and worker in association(s) or Unions recognised by the listed entity:

FY 2021-22 FY 2020-21
Total No. of Employees/ % (B/A) Total No. of Employees/ %
Category Employees/ Workers in Respective Employees/ Workers in Respective (D/C)
Workers in Category, who are part of Workers in Category, who are part
Respective Association(s) or Union Respective of Association(s) or
Category (A) (B) Category (C) Union (D)
Total
23,829 10,670 45% 24,070
Permanent
10,490 44%
Employees

- Male 21,568 10,550 49% 21,883

- Female 2,261 120 5% 2,187

Total
12,734 10,670 84% 13,035
Permanent
10,490 80%
Workers
- Male 12,102 10,550 87% 12,461

- Female 632 120 19% 574

ITC believes that all employees are important stakeholders in the enterprise, and it is imperative to build a culture
of mutual trust and respect, interdependence, and meaningful engagement. This approach helps in building,
strengthening and sustaining harmonious employee relations across the organisation. It is ITC’s policy:

• To respect the dignity of the individual and the freedom of employees to lawfully organise themselves into interest
groups, independent of supervision by the management.

• To ensure that employees are not discriminated against for exercising this freedom in a lawful manner and
consistent with ITC’s core values.

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8. Details of training given to employees and workers:

*EHS Training all permanent employees for FY 2021-22 is 153,913 person-days training.
Category FY 2021-22
Total (A) On Health and Safety Measures On Skill Upgradation
No. (B) % (B/A) No. (C) % (C/A)
Employees & Workers Total of 25,586 person days training were imparted on EHS to employees &
workers. 4,422 unique employees & workers attended skill upgradation training.
437 unique employees & workers attended mental wellbeing training.

9. Details of performance and career development reviews of employees and workers.

FY 2021-22
Category
Total (A) No. (B) % (B/A)
Employees
Male 21,568 16,418 76%

Female 2,261 2,051 91%

Total 23,829 18,469 78%

Workers
Male 12,102 6,952 57%
Female 632 422 67%
Total 12,734 7,374 58%

10. Health and safety management system: providers’ employees, while continually investing in
state-of-the-art technology and in developing
a. Whether an occupational health and safety
human capital.
management system has been implemented by the
entity? (Yes/No). If yes, the coverage such system? EHS requirements are integrated at the design stage for
all new investments. Compliance with EHS standards
Yes, ITC has implemented occupational health and during the construction phase as well as in operation
safety management system. phase of ITC units, Hotels, Warehouses and Offices is
The Company believes that a safe and healthy work ensured by implementing project EHS management
environment is a pre-requisite for employee well-being, systems and through established EHS management
and the adoption of best practices in occupational systems with designated roles and responsibilities for
health and safety have a direct impact on its overall competent resources respectively.
performance. It helps in attracting and retaining quality b. What are the processes used to identify work-
talent, besides being the duty of the Company as a related hazards and assess risks on a routine and
responsible corporate citizen.
non-routine basis by the entity?
ITC endeavours that Environment, Health & Safety
ITC has identified the EHS Risk Management framework
(EHS) standards at all its units are ahead of applicable
as one of the integral steps towards building a robust
legislation and regulations, and Standards and Codes,
safety management system. This framework entails
and are benchmarked against international best
a set of processes for continual risk identification,
practices across sectors in which it operates. ITC’s
approach to occupational health & safety standards assessment and mitigation, with active participation
is articulated in the Board approved Environment, of the workforce in each of its facilities. Shop floor
Health and Safety Policy. It is based on an EHS processes in this regard include hazard spotting tours,
management system that emphasises on enhancing suggestion schemes, daily briefings and periodic EHS
EHS performance by setting objectives and targets and committee meetings in which employees participate. In
continually monitoring key performance indicators. addition, all ITC Units undergo periodic Environment,
Further, it promotes a culture of safety through Health & Safety audits at the Business as well as
behaviour change programmes and by providing Corporate level to verify compliance with standards.
appropriate training to employees as well as service Several national awards and certifications acknowledge

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ITC’s commitment and efforts towards providing a safe create an open and transparent safety culture across
and healthy workplace to all. ITC Units, employees are encouraged to participate and
discuss safety related issues in forums like periodic
c. Whether you have processes for workers to report
EHS Committee meetings and Departmental Open
the work-related hazards and to remove themselves
Forums.
from such risks. (Y/N)
d. Do the employees/worker of the entity have access
Yes. A system is in place across ITC factories, hotels
to non-occupational medical and healthcare services?
and offices for workers to spot and report work-related
(Yes/No)
hazards, and offer suggestions for improvements.
Necessary training is given to all employees in Yes, permanent employees and their family members
recognising hazards and issues. Joint inspections by have access to the Company provided or Company
management representatives and employees on the supported medical benefits. Workers have access to
shop floor are also carried out at regular intervals, medical benefits through Company provided group
and respective corrective and preventive measures are insurance policies, Company funded medical support
undertaken to mitigate the identified risks. In order to and where applicable, statutory benefits under ESIC.

11. Details of safety related incidents.

ITC reports its safety performance on two fronts – ‘on-site’ - referring to the place of work i.e. factory, hotel, office,
etc. which is under direct operational control of ITC and ‘off-site’ - defined as places other than on-site while on
official duty, which includes to and fro commute between residence and place of work. In FY 2021-22, the total on-site
Lost Time Accidents (LTA) was 14 as compared to 12 in FY 2020-21. For details on ’off-site’ LTAs, please refer to ITC
Sustainability & Integrated Report 2022.
Detailed investigations are carried out for all accidents to identify the root causes and to understand the measures
to prevent recurrence. The learnings from all accidents are disseminated across the organisation, and a formal
compliance is also obtained.
Safety Incident/Number Category FY 2021-22 FY 2020-21
Lost Time Injury Frequency Rate (LTIFR) (per one million-person-hours Employees
0.09 0.11
worked)*
Workers
Total recordable work-related injuries** Employees
11 12
Workers
No. of fatalities# Employees
2 1
Workers
High consequence work-related injury or ill-health (excluding fatalities) Employees
9 11
Workers
*# The data on LTIFR and no. of fatalities is for the combined workforce i.e. ITC employees and service providers’ employees.
** ITC discloses total recordable work-related injuries as Lost Time Accident (LTA) - an accident due to which the injured is not able to come
back to work in the next scheduled shift. Total recordable work-related injuries data shown above is for the combined workforce i.e. ITC
employees and service providers’ employees. (Trainees/Apprentices not included).

12. Describe the measures taken by the entity to adopting globally recognised best practices, ensuring
ensure a safe and healthy work place. that facilities are designed, constructed, operated and
In line with the Company’s Environment, Health and maintained in an inherently safe manner.
Safety Policy, safety as a value-led concept has been ITC will continue to undertake efforts for creating a safe
institutionalised by inculcating a sense of ownership at working environment and a strong safety culture by:
all levels and driving behavioural change, leading to the
• Integrating safety at the design stage itself
creation of a cohesive safety culture. ITC has put in place
comprehensive health and safety protocols for the safety and ensuring it through design reviews, stage
and well-being of its stakeholders. ITC endeavours that inspections and pre-commissioning audits, thereby
EHS standards at all its units are ahead of applicable strengthening the engineering control measures
legislations, regulations, and Standards and Codes, and are through ‘design for safety’ principles.
benchmarked against international best practices across • Conducting pre-commissioning and periodic
the diverse sectors in which it operates. operational audits during construction and
ITC continues to strengthen its safety processes, operational stages respectively.

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• Implementing behaviour-based safety initiatives 15. Provide details of any corrective action taken
to facilitate engagement for collaborative work on or underway to address safety-related incidents
improving safety performances. (if any) and on significant risks / concerns arising
• Studies to assess the safety culture and efficacy from assessments of health & safety practices and
of behaviour-based safety interventions will be working conditions.
conducted periodically.
Internal audits of ITC units at Divisional as well as
• Adoption of keystone behaviours by individual units
Corporate level are being conducted on a periodic
to demonstrate collective commitment and create a
shared vision of safety and discipline. basis. Corrective and preventive measures are
taken based on the findings. Detailed investigations
• Embracing and leveraging the digital landscape for
safety management system. are carried out for all accidents to identify the root
causes and to understand the measures required to
ITC will continue to identify solutions for strengthening the
safety culture aligned with the goal of ‘Zero Accidents’. prevent recurrence. Accident investigation findings
with corrective and preventive measures form part of
13. Number of complaints on the following made by
the report presented to the Corporate Management
employees and workers.
Committee (monthly) and the Board (quarterly). The
Employees are encouraged to report work area related safety
learnings from all accidents are disseminated across
issues through various programmes like Hazard identification
the organisation at periodic intervals and a formal
processes, Suggestion schemes and EHS Committees.
compliance obtained.
14. Assessments for the year:

Most of ITC’s manufacturing locations are covered

Leadership Indicators
under the OHSAS 18001/ ISO 45001: Occupational 1. Does the entity extend any life insurance or any
Health and Safety Management Systems. Compliance compensatory package in the event of death of (A)
to safe working conditions is an essential aspect of EHS Employees (Y/N) (B) Workers (Y/N).
management systems. In addition, all ITC Units undergo
periodic Environment, Health & Safety audits at the Yes. In the unfortunate event of the death of an
Business/Division level as well as Corporate, to verify employee including workers, the Company extends
compliance with Standards and Corporate Guidelines. financial support to family members of the employee.
% of your Plants and Offices 2. Provide the measures undertaken by the entity to
that were Assessed (by entity
or Statutory Authorities or ensure that statutory dues have been deducted and
Third Parties) deposited by the value chain partners.
Health and safety
100% The Company ensures that statutory dues as payable by
practices
service providers for their employees are deposited on time
Working Conditions 100%
and in full through a process of periodic audits and controls.

3. Provide the number of employees/workers having suffered high consequence work-related injury/ill-
health/ fatalities (as reported in Q11 of Essential Indicators above), who are rehabilitated and placed in suitable
employment or whose family members have been placed in suitable employment.

Total no. of Affected Employees/Workers No. of Employees/Workers that are Rehabilitated

and Placed in Suitable Employment or whose Family
Members have been Placed in Suitable Employment*

FY 2021-22 FY 2020-21 FY 2021-22 FY 2020-21

Employees 5 4 5 4

Workers 3 4 3 4

*On site Accidents

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4. Does the entity provide transition assistance Guiding Principles on Business and Human Rights, and
programmes to facilitate continued employability and is shared and accepted by all supply chain partners and
the management of career endings resulting from service providers.
retirement or termination of employment? (Yes/No)
ITC has a robust process of evaluating its Suppliers
ITC continually invests in human capital development and Service Providers before engaging with them,
which includes building skills and capabilities proactively making them aware of its expectations/
that are contemporary while providing employees requirements, and seeking commitment for compliance
with a diversity of experiences. These enhance the through contractual agreements. ITC reserves the right
employability of the workforce and enable a smooth to verify compliance with this Code at any time through
transition to alternate opportunities where sought. The appropriate audit and assessment mechanisms,
Company has in place a programme called ‘Making including self-certification. ITC is also committed
New Choices’ for retiring staff. In addition, the Company to reinforcing awareness of this Code amongst the
provides the pension benefits and post retiral medical Suppliers and Service Providers and to support them in
benefits for those members of staff who qualify. this endeavour.
Workers are provided pension benefits covered under
the relevant statute. 6. Provide details of any corrective actions taken
or underway to address significant risks/concerns
5. Details on assessment of value chain partners on
arising from assessments of health and safety
Health and safety practices and Working Conditions
practices and working conditions of value chain
ITC is committed to continuously raise awareness of partners.
supply chain members to comply with applicable laws
ITC’s Sectoral EHS Guidelines are shared with the value
and regulations related to labour and employment,
chain partners, and periodic training is given to their
including gender diversity, human rights, child
concerned personnel.
labour, wages, working hours, bribery & corruption,
occupational health, safety and environment. Periodic audits by ITC are conducted for its key value
chain partners against the sectoral EHS guidelines.
ITC’s Code of Conduct for Suppliers and Service
Corrective and preventive measures are recommended
Providers enshrines the Company’s unwavering focus
based on the audit findings.
on fair treatment, human rights, good labour practices,
environmental conservation, health and safety. The Detailed investigations are carried out for accidents
Code upholds the spirit outlined in the International to identify the root causes, and to understand the
Labour Organisation Guidelines and United Nations measures required to prevent recurrence.

Principle 4
Businesses should respect the interests of and be responsive to all its stakeholders.

Essential Indicators stakeholder engagements, help validate the Company’s

performance and shape new perspectives.
1. Describe the processes for identifying key
stakeholder groups of the entity. For details on ITC’s Process of Stakeholder
Engagement, refer to ‘Stakeholder Engagement’
In line with the Board approved policy on stakeholder
section of ITC Sustainability & Integrated Report 2022.
engagement, ITC has evolved structured framework for
engaging with its stakeholders and fostering enduring 2. List stakeholder groups identified as key for your
relationships with each one of them. ITC’s engagement entity and the frequency of engagement with each
approach is anchored on the principles of materiality, stakeholder group.
completeness and responsiveness. The Board approved Policy on Stakeholder Engagement
The engagement approach takes into cognisance the provides the approach for identifying and engaging with
fact that each stakeholder group is unique and has stakeholders that include shareholders, consumers,
a distinctive set of priorities. Insights gathered from farmers, employees, local communities, suppliers,

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Central and State Governments, regulatory bodies and b) Completeness – Understanding key concerns of
the media. stakeholders and their expectations.

For more details on consultation mechanisms and key c) Responsiveness – Responding coherently and
issues discussed with the stakeholder groups, refer to transparently to such issues and concerns.
‘Stakeholder Engagement’ section of ITC Sustainability
The Company has put in place systems and procedures
& Integrated Report 2022.
to identify, prioritise and address the needs and
concerns of its stakeholders across businesses and
Leadership Indicators
units in a continuous, consistent and systematic
1. Provide the processes for consultation manner. It has implemented mechanisms to facilitate
between stakeholders and the Board on economic, effective dialogue with all stakeholders across
environmental, and social topics or if consultation is businesses, identify material concerns and their
delegated, how is feedback from such consultations resolution in an equitable and transparent manner.
provided to the Board. These measures have helped the Company develop
ITC believes that an effective stakeholder engagement strong relationships, which have stood the test of
process is necessary for achieving its sustainability goal time. Select examples of how stakeholder inputs have
of inclusive growth. In this context, the Company has been incorporated into ITC policies and activities are
laid down a four layered mechanism to deal with the presented below:
aspect of stakeholder engagement. 1. Investors: In addition to its ongoing interactions
The Board, through the CSR and Sustainability with analysts representing institutional equity
Committee, inter alia, reviews, monitors and provides investors on a regular basis post-results, the Company
strategic direction to the Company’s CSR and has, over the last two years, been supplementing
sustainability practices towards fulfilling its Triple its quarterly earnings press releases with detailed
Bottom Line objectives. Half-yearly reports on the investor presentations. This is but one example of how
progress made by the Company in this regard are the Company has refined its processes emanating
placed by the CMC before the CSR and Sustainability from interactions with them. This year, the Company
Committee. The CMC in turn has constituted the organised its first-ever ‘Institutional Investors and
Sustainability Compliance Review Committee (SCRC), Financial Analysts Day’ for institutional investors, a
comprising senior members of management, which well attended programme that drew participation from
evaluates and monitors compliance with the Policy domestic as well as global investors, to provide deeper
formulated in this connection. The SCRC places a insights into ITC’s Corporate Strategy and operating
quarterly report on the subject before the CMC. segments including, inter alia, their competitive
strengths, unique value propositions and key drivers
2. Whether stakeholder consultation is used
of growth and profitability. These initiatives have been
to support the identification and management of
much appreciated by the investor community. The
environmental, and social topics (Yes/No). If so,
Company is well-recognised for its ESG credentials,
provide details of instances as to how the inputs
and is acknowledged as one of the pioneers of adopting
received from stakeholders on these topics were
the Triple Bottom Line philosophy in India. Recognising
incorporated into policies and activities of the entity.
the growing investor interest in this area and factoring
The Company believes that an effective stakeholder in feedback from investor interactions, the Company
engagement process is necessary for achieving its also periodically reviews, refines and updates its ESG
sustainability goal of inclusive growth. Accordingly, policies on the Company’s portal, as it progresses
it anchors stakeholder engagement on the following towards its clearly-defined 2030 goals.
principles:
2. Customers & Value Chain Partners: Customers,
a) Materiality – Prioritised consideration of the Consumers and Value Chain Partners are some of ITC’s
economic, environmental and social impacts core stakeholders. Various tech-enabled avenues have
identified to be important to the stakeholders as been constructed to constantly receive feedback and
well as the organisation. ideas from these stakeholders.

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A portal called Aikyam, captures ideas and feedback by the communities were related to lack of sustainable
provided by our partners, which are evaluated and taken livelihoods today and tomorrow. Based on this, Core
forward by the business. This has enabled both product Area Perspective Plan (CAPP) was conceptualised and
enhancements and process efficiencies. Two Horizons approach to address the needs of the
community was developed and adopted.
Rapidly evolving consumer needs are constantly
being monitored through social listening, in-depth During FY 2021-22, changes in emerging needs and
immersions and are being carefully synthesised to priorities of communities was revisited through CAPP
transform into relevant solutions. Some examples are 2.0 by carrying out an exploratory exercise across
mentioned below: 3,718 villages in 21 factory and 7 agri-catchments
with following objectives:
• Launching of products like ITC Masterchef’s
• To revisit coverage and community needs in the
‘IncrEdible’ Plant-based range, a sustainable
changed context;
alternative to meat. This range supports consumers
with vegan preferences, and also helps in reducing • To assess reasons for not achieving the earlier
carbon footprint. planned outcomes (if any); and

• Providing choices to consumers with specific needs • To re-strategise ITC’S Social Investments
like – Programme (SIP) themes and approach based on
the findings.
- Aashirvaad Svasti Milk for lactose intolerant
consumers. The CAPP 2.0 exercise was carried out by involving
third party organisations and NGO partners under close
- Aashirvaad’s Organic Range and Nature’s Super supervision of SIP’s state teams who were present
Foods Range for consumers looking for healthier during the data collection exercise. The assessment
options. involved primary and secondary data collection using
• YiPPee! A Better World programme for children that quantitative and qualitative tools through
entails a series of workshops for creating awareness 6,771 Household Surveys, 169 Key Informant
on segregation at source, and arts and crafts Interviews, 656 Focus Group Discussions and
sessions for teaching them how to make useful 168 Participatory Rural Appraisal Exercises.
objects out of waste materials available at home. The above process ensures that stakeholder
inputs, suggestions and needs are appropriately
3. Employees: ITC is committed to creating an
incorporated in SIP’s interventions. For example,
inclusive, equitable and diverse workplace where
SIP’s water stewardship programme initially focused
every employee feels valued and included. This
on supply side augmentation through watershed
requires continuous engagement with employees and
development. However, it emerged during the
understand their experiences. This understanding
interactions with stakeholders and through studies
enables ITC to refresh its policies, and ensures that the
that a more comprehensive approach is required
important enablers of inclusion, such as for drought proofing agriculture and achieving
work-life balance, flexibility in work and benefits are positive water balance. To address the issue, river
addressed in a relevant, timely and effective fashion. basin level interventions were planned and demand
A series of focused group discussions were conducted side management of water use in agriculture was
to understand the employee experiences whilst incorporated in the programme. Similarly, in SIP’s
framing the policies on Gender Diversity, Equity and Vocational Training programme, the trades are decided
Inclusion. More than 150 employees (around 10% of based on regular community feedback and market
the target population) were part of the discussions. demand in specific geographical regions. For instance,
The discussions gave rich insight about the priority demand for bedside nursing increased during the
issues such as flexible work arrangements and pandemic, hence training on bedside nursing trade
employee benefits across various life stages such as was amplified. Similarly, based on the feedback
maternity. Such nuanced insights enabled the policies received from students placed in various organisations,
to effectively address the requirements of employees. post-placement assistance was incorporated in the
Vocational Training programme.
4. Community: A comprehensive stakeholder
engagement exercise was first undertaken in 2015- 3. Provide details of instances of engagement
16, wherein core areas were defined and needs of the with, and actions taken to, address the concerns of
communities residing in these areas, that is, factory vulnerable/marginalised stakeholder groups.
and agri-catchments were identified and prioritised. It ITC’s SIP adopts a bottom-up approach to identify and
emerged that one of the overarching problems faced address the emerging needs of the community. Presented

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hereunder are a few instances wherein changing with children after the first wave of COVID 19
community needs in unprecedented pandemic situation pandemic that continued this year too. “Catch
were addressed through modifications in ongoing Up Campaign” was initiated where mohalla level
programme components as well as through introducing learning camps were organised to build/rebuild
entirely new activities under the programmes. foundational reading and math skills. Subsequently,
• Digitalisation Activities: The unprecedented situation when schools started re-opening, “Readiness
created by the pandemic posed several challenges for campaign” was initiated to help children of grade
SIP operations and necessitated a rethink and redesign 1 and 2, to get ready for school by leveraging
of some interventions. The SIP team proactively community support of mothers. For this, mothers’
addressed these challenges through contextual groups were formed who were trained on Activity
solutions and actions planned in consultation with Based Learning method. Since the mothers
key stakeholders. Currently, there are several tools in required support for continuing Activity Based
practice for Learning Management and for enablement Learning at home, active women from these groups
of programme implementation. were selected as “Smart Moms” and were trained
a. Learning Management Systems have been on the pedagogy to help other group members
developed in the form of web portal for training conduct learning activities for their children. This
of teachers in West Bengal, vocational training of helped in continuing learning activities for children
students in Assam, Karnataka and West Bengal, under Read India Programme despite disturbances
and training of Urban Local Bodies on Solid Waste of frequent lockdowns and school closures.
Management in Uttar Pradesh. • Small Ruminants Programme: Diversification
b. Digital Platforms for Enabling Programme of livelihoods to build resilience as well as to
Implementation: Application (App) based training of support family income emerged as one of the
Anganwadi workers on Mother & Child Healthcare prominent needs during engagement with rural
in Assam and West Bengal, App for command women. Hence, a programme was initiated to
area in Maharashtra, App for crop survey in Tamil build capacity of rural poor women for providing
Nadu, App for Soil and Moisture Conservation, and health assistance to small ruminants like goats.
Swachh Mitra App for collection and reporting of The programme not only provided a sustainable
daily waste data in Uttarakhand. livelihood option to participating women, but also
• Smart Mom Intervention: ITC’s education provided opportunities for living a dignified life, and
programme adopted remote engagement activities contribute towards household income.

Principle 5
Businesses should respect and promote human rights.

Essential Indicators
1. Employees and workers who have been provided training on human rights issues and policy(ies) of the entity,
in the following format:

Category FY 2021-22
Total (A) No. of Employees’ Workers Covered (B) % (B/A)

Employees

Permanent 23,829 23,829 100%

Other than Permanent 25,513 23,513 100%
Total Employees 49,342 49,342 100%
Workers
Permanent 12,734 12,734 100%
Other than Permanent 25,317 25,317 100%
Total Workers 38,051 38,051 100%

The awareness pertains to the ITC Code of Conduct.

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2. Details of minimum wages paid to employees and workers, in the following format:
Category FY 2021-22
Total (A) Equal to Minimum Wage More than Minimum Wage
No. (B) % (B/A) No. (C) % (C/A)
Employees
Permanent 23,829 23,829 100%
Male 21,568 21,568 100%
Female 2,261 2,261 100%
Other than Permanent 25,513 74% of other than permanent employees are paid more than the minimum
Male 22,231 wage, and the remaining 26% are paid equal to the minimum wage.
Female 3,282
Workers
Permanent 12,734 12,734 100%
Male 12,102 12,102 100%
Female 632 632 100%
Other than Permanent 25,317 74% of other than permanent workers are paid more than minimum wage,
Male 22,068 and the remaining 26% are paid equal to minimum wage.
Female 3,249

3. Details of remuneration/salary/wages, in the following format:

Male Female
Number Median Remuneration/Salary/ Number Median Remuneration/Salary/
Wages of Respective Category Wages of Respective Category
Board of Directors 14 ` 76 Lakhs 2 ` 76 Lakhs
(BoD)
Key Managerial 6 ` 568 Lakhs - -
Personnel*
Employees other 21,562 ` 6.7 Lakhs 2,261 ` 6.6 Lakhs
than BoD and KMP
Workers# 12,102 ` 4.4 Lakhs 632 ` 1.9 Lakhs
* Comprising Chairman & Managing Director, Wholetime Directors, Chief Financial Officer and Company Secretary
#
Female workers are primarily in newer units or have just commenced their careers.

4. Do you have a focal point (Individual/Committee) (ILO). The Company continues to work towards
responsible for addressing human rights impacts or strengthening and introducing systems to ensure sound
issues caused or contributed to by the business? (Yes/ implementation of ITC’s Sustainability Policies specially
No). with respect to human rights and labour practices.

Yes. The Company has in place a ‘Code of Conduct for

Suppliers and Service Providers’ across Businesses.
5. Describe the internal mechanisms in place to
The Suppliers and Service Providers have voluntarily
redress grievances related to human rights issues.
accepted and adopted the Company’s Code, which
The Company has Policies on Human Rights which are requires compliance with applicable laws relating to,
applicable to all its employees and suppliers & service inter alia, human rights, environmental conservation,
providers. The said Policies and their implementation and quality of products and services. A Grievance
are directed towards adherence to applicable laws and Redressal System to facilitate open and structured
upholding the spirit of human rights, as enshrined in discussions is available at all units and locations to
existing international standards such as the Universal ensure that grievances related to labour practices and
Declaration and the Fundamental human rights human rights are addressed and resolved in a fair and
Conventions of the International Labour Organisation just manner.

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6. Number of Complaints on the following made by employees and workers:

FY 2021-22 FY 2020-21
Filed during Pending Resolution Remarks Filed Pending Remarks
the Year at the End of Year during the Resolution
Year at the End of
Year
Sexual Harassment 2 0 All 2 1 Pending 1
Resolved was
Resolved
Discrimination at
Workplace
Nil
Child Labour

Forced Labour/
Involuntary Labour
Wages - - - - - -
Other Human
Rights Related Issues
Note: As mentioned above in the Section VII. Transparency and Disclosures Compliances Point 23-Complaints/Grievances, a total of 212
grievances pertaining primarily to clarification on incentive calculations were received.

7. Mechanisms to prevent adverse consequences to the the employees are fully aware of the aspects of sexual
complainant in discrimination and harassment cases. harassment and of the redressal mechanism.

ITC is committed to a workplace free of harassment, 8. Do human rights requirements form part of your
including sexual harassment at the workplace, and has business agreements and contracts? (Yes/No)
zero tolerance for such unacceptable conduct.
Yes, contract manufacturing agreements provide for
ITC encourages reporting of any harassment concerns
compliance with accepted standards on issues related to EHS,
and is responsive to complaints about harassment or
other unwelcome or offensive conduct. Committees human rights and labour practices. Additionally, ITC has a
have been constituted across locations to enquire into ‘Code of Conduct for Suppliers and Service Providers’. This
complaints of sexual harassment and to recommend requires suppliers to comply with applicable laws, labour
appropriate action, wherever required. Necessary standards, environmental regulations, and uphold human
disclosures in relation to the sexual harassment rights and principles of ethics and integrity in their operations.
complaints received and redressal thereof are provided All Suppliers are expected to meet the requirements of this
in ITC Report and Accounts 2022. Regular awareness Code. ITC also expects its Suppliers to hold their business
and training sessions are conducted to ensure that associates to the same standards as enshrined in this Code.

9. Assessments for the year:

% of your Plants and Offices that were Assessed
(by Entity or Statutory Authorities or Third Parties)
Child Labour 100%.
Forced/Involuntary Labour The Company has Policies on Human Rights which are applicable to
Sexual Harassment all its employees and value chain partners. The said Policies and their
Discrimination at Workplace implementation are directed towards adherence to applicable laws and
Wages upholding the spirit of human rights, as enshrined in existing international
standards such as the Universal Declaration and the Fundamental Human
Rights Conventions of the International Labour Organisation (ILO).
10. Provide details of any corrective actions taken or underway to address significant risks/concerns arising from
the assessments at Question 9 above.

Please refer to response to Question 9 of Principle 5 under essential indicators.

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Leadership Indicators Farm Safety: ITC undertakes a holistic approach

that addresses the farm safety challenges in Indian
1. Details of a business process being modified/
farming. Close to 5,000 farmers have been provided
introduced as a result of addressing human rights
with Personal Protective Equipment (PPE) kits for safe
grievances/complaints.
spraying of chemicals and secured storage box for safe
The ITC Code of Conduct, as adopted by the Board, storage of chemicals. In addition, 75,000 harvesting
is applicable to Directors, senior management and gloves were provided to labourers to shelter their hands
employees of the Company. The Code covers ITC’s while harvesting. Technology like drones were scaled
commitment to human rights aspects like self- up covering 3,550 acres minimising human interference
respect and human dignity, child labour, gender while chemical spraying besides increasing the efficacy
friendly workplace, ethical dealings with suppliers and of operation and water saving.
customers, health & safety, environment, transparency,
anti-bribery and corruption, and exemplary personal For more information, refer to ‘Inclusive Value Chain’
conduct. Any violation of the Code by an employee section of ITC Sustainability & Integrated Report 2022.
renders the person liable for disciplinary action. ITC 2. Details of the scope and coverage of any human
has mechanisms to address human rights grievances/ rights due diligence conducted.
complaints of all internal stakeholders. For details,
refer to responses to Questions 5 and 7 under essential The scope and coverage of human rights due diligence
indicators (Principle 5). extends to own operations including manufacturing
locations, Hotels, offices and value chain partners.
For value chain partners, ITC has a ‘Code of Conduct
for Suppliers and Service Providers’ covering relevant 3. Is the premise/office of the entity accessible to
human rights aspects. All suppliers are expected to differently abled visitors, as per the requirements of
meet the requirements of this Code. ITC also expects its the Rights of Persons with Disabilities Act, 2016?
suppliers to hold their business associates to the same Our establishments are accessible to the differently
standards as enshrined in this Code. ITC constantly abled, and we are continuously working towards
engages with the rightholders and stakeholders across improving infrastructure for eliminating barriers to
the supply chain for devising programmes that support
accessibility.
Human Rights and Social Development in an integrated
manner. An illustrative example for ITC’s leaf tobacco 4. Details on assessment of value chain partners for
value chain is presented below. Human Rights.

ITC coordinated a Human Rights impact assessment ITC is committed to continuously raise awareness of
with an independent party, covering the entire leaf supply chain members to comply with applicable laws
tobacco farm supply chain covering farmers from and regulations related to labour and employment,
Andhra Pradesh and Karnataka region. The Human including gender diversity, human rights, child
Rights Due Diligence process was aligned to UN Guiding labour, wages, working hours, bribery & corruption,
Principles of Business and Human Rights, and focused occupational health, safety and environment.
on identifying human rights risks and impacts covering
Contracts with the service providers include clauses
farmers, labourers and communities.
that conformed to ITC’s Human Rights Policies and EHS
Following actions have been implemented by ITC based guidelines. ITC reserves the right to verify compliance
on the outcome of the assessment: with the Code of Conduct for Suppliers and Service
Training and Awareness on Human Rights: 184 Village Providers at any time through appropriate audit and
level training programmes were conducted covering assessment mechanisms, including self-certification.
subjects such as Farm Safety, Child Labour, Wages, Fair ITC coordinated a Human Rights impact assessment
Treatment, Freedom of Association, Water, Sanitation covering the entire tobacco farm supply chain. For more
And Hygiene (WASH), No Discrimination and other
details, refer to response to Question 1 (Principle 5)
areas pertaining to human rights.
under leadership indicators.
Human Rights Manual in Vernacular Language:
5. Provide details of any corrective actions taken
Released the industry’s first Human Rights Do’s and
or underway to address significant risks/concerns
Don’ts in farm supply chain. The manual assists as
arising from the assessments at Question 4 above.
a ready reckoner for ITC employees working in farm,
the farmers with whom we partner and the labourers Please refer to responses to Questions 1 and 4 of
engaged by the farmers. Principle 5 under Leadership Indicators.

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Principle 6
Businesses should respect and make efforts to protect and restore the environment.
Essential Indicators
1. Details of total energy consumption (in Joules or multiples) and energy intensity.
In FY 2021-22, ITC units consumed 24,394 Terra Joules (TJ) of energy.
Parameter* FY 2021-22 FY 2020-21
Total electricity consumption (A) 1,808 1,527
Total fuel consumption (B) 22,407 20,660
Energy consumption through other sources (C) 179 182
Total energy consumption (A+B+C) 24,394 22,369
Energy intensity per rupee of turnover (Total energy consumption/turnover in rupees) 413 465
(GJ/Crore INR)

*In Terra Joule (TJ)

During FY 2021-22, ITC’s total energy consumption saw an increase of 9%, despite a 24% increase in production at ITC’s
Paperboards & Specialty Papers Business that accounts for around 87% of ITC’s total energy consumption.
The energy intensity (on per production basis) for all major Businesses is available in ‘Building Climate Resilience’ section of ITC
Sustainability & Integrated Report 2022.
ITC’s energy consumption data has been assured at the ‘Reasonable Level’ by M/s Deloitte Haskins and Sells LLP. For more details,
refer to ‘Building Climate Resilience’ section of ITC Sustainability & Integrated Report 2022.
2. Does the entity have any sites / facilities and, accordingly, the performance of the Company’s
identified as Designated Consumers (DCs) under the units covered exceeds the energy efficiency targets
Performance, Achieve and Trade (PAT) Scheme of the fixed under the PAT scheme. The Bhadrachalam Unit is
Government of India? (Y/N) If yes, disclose whether the first pulp and paper mill and the second unit in the
targets set under the PAT scheme have been achieved. country overall, to be rated GreenCo Platinum+ by CII,
In case targets have not been achieved, provide the as part of Green Company rating system.
remedial action taken, if any.
Details of the energy efficiency initiatives measures
Three Units of ITC’s Paperboards and Specialty implemented during the year are included in
Papers Business and eleven Hotels of Hotels Business ‘Disclosure on Conservation of Energy and Technology
are covered under the PAT scheme. ITC has made Absorption’ forming part of the Report of the Board of
significant investments in reducing energy consumption Directors in ITC Report and Accounts 2022.
3. Provide details of the following disclosures related to water.
In FY 2021-22, ITC’s total water intake was 33.7 million kilolitres (kl).
Parameter FY 2021-22 FY 2020-21

Water withdrawal by source (in Million kilolitres)

(i) Surface water 26.9 25.1

(ii) Groundwater 5.4 5.4

(iii) Third party water 1.4 1.2

(iv) Seawater/desalinated water - -

(v) Others 0.1 0.1

Total volume of water withdrawal (in Million kilolitres) (i + ii + iii + iv + v) 33.7 31.8

Total volume of water consumption (in Million kilolitres) 11.7 9.9

Water intensity per rupee of turnover (Water withdrawal/turnover) (kilolitre/Crore INR) 569 660

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During FY 2021-22, ITC’s total water intake saw an increase of 6%, despite a 24% increase in production at ITC’s paper
business that accounts for around 89% of ITC’s total water intake.
The water intensity (on per production basis) for all major Businesses is available in ‘Water Security for All’ section of
ITC Sustainability & Integrated Report 2022.
Over the years, ITC has created rainwater harvesting potential through extensive investments in its Integrated
Watershed Development Projects. The programme promotes the development and management of local water
resources in water stressed areas by facilitating community participation in planning and implementing such
measures, whilst building, reviving and maintaining water harvesting structures. The coverage of this programme
currently extends to 40 districts of 16 States in India. During the year, ITC’s watershed development projects covering
over 1.3 million acres of land created a total Rainwater Harvesting potential (RWH) of over 46 million kl (cumulative),
which is nearly four times the net water consumed by ITC’s operations.
ITC’s water withdrawal and consumption data has been assured at the ‘Reasonable Level’ by M/s Deloitte Haskins and
Sells LLP. For more details, refer to ‘Water Security for All’ section of ITC Sustainability & Integrated Report 2022.
4. Has the entity implemented a mechanism for Zero Liquid Discharge? If yes, provide details of its coverage and
implementation.
ITC’s approach to water stewardship focuses on reducing water intake by utilising treated wastewater within the
process, thereby reducing demand for fresh water. ITC units operate in line with the Consent to Operate (CTO)
conditions.
5. Please provide details of air emissions (other than GHG emissions) by the entity.
Parameter Please Specify Unit FY 2021-22 FY 2020-21
NOx Tonnes 1,799 1,693
SOx Tonnes 3,203 2,600
Particulate Matter (PM) Tonnes 637 655
Persistent Organic Pollutants (POP) - Not applicable Not applicable
Volatile Organic Compounds (VOC) - Not applicable Not applicable
Hazardous Air Pollutants (HAP)* Tonnes 7 5
*The data is for Paperboards & Specialty Papers Business’s Bhadrachalam Unit’s Hydrogen Sulphide emissions (H2S)
ITC’s air emissions data has been assured at the ‘Reasonable Level’ by M/s Deloitte Haskins and Sells LLP. For more details, refer to ‘Air Emissions
Management’ section of ITC Sustainability & Integrated Report 2022.

6. Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity.
Parameter Please Specify Unit FY 2021-22 FY 2020-21
Total Scope 1 emissions (Break-up of the GHG into CO2, kilo tonnes of CO2 1,258 1,172
CH4, N2O, HFCs, PFCs, SF6, NF3 if available) equivalent
Total Scope 2 emissions kilo tonnes of CO2 193 168
(Break-up of the GHG into CO2, CH4, N2O, HFCs, PFCs, SF6, equivalent
NF3 if available)

Total Scope 1 and Scope 2 emissions per rupee of turnover tonnes of CO2 /Crore 25 28
INR

During FY 2021-22, ITC’s GHG emissions (Scope 1+Scope 2) saw an increase of 8%, despite a 24% increase in production at
ITC’s Paperboards & Specialty Papers Business that accounts for around 80% of ITC’s total GHG emissions (Scope 1+Scope 2).
The GHG emissions (Scope 1+Scope 2) intensity (on per production basis) for all major Businesses is available in ‘Building
Climate Resilience’ section of ITC Sustainability & Integrated Report 2022.
ITC’s Paperboards & Specialty Papers Business has large scale forestry programmes promoting sustainable forests
management with primary aim of securing pulpwood requirement for Business continuity. In addition to sequestering carbon,
this programme benefits the stakeholders by improving productivity of wasteland, de-risking poor rural households by
diversifying farm portfolios through promotion of tree-based farming. During FY 2021-22, this programme has sequestered
6,182 kilo tonnes of CO2, which is more than 2 times the amount of CO2 from ITC’s operations.
ITC’s GHG emissions (Scope 1 and Scope 2) data has been assured at the ‘Reasonable Level’ by M/s Deloitte Haskins and Sells
LLP. For more details, refer to ‘Building Climate Resilience’ section of ITC Sustainability & Integrated Report 2022.

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7. Does the entity have any project related to technologies across key business areas, to enhance
reducing Green House Gas emission? If Yes, then productivity, reduce carbon footprint, achieve strategic
provide details. cost efficiencies and superior product performance.
ITC has undertaken a target of 50% reduction in Specific Some of the major projects undertaken by ITC’s
GHG Emissions (% Reduction in GHG Emissions (Scope Paperboards and Specialty Papers Business as part of
1, 2) per Unit of Production) by 2030 as part of its its Digital Transformation Programme include process
Sustainability 2.0 ambitions. Accordingly, actions are debottlenecking and throughput improvement for
being undertaken to reduce greenhouse gas emissions productivity and Overall Equipment Effectiveness (OEE),
by investing in energy efficiency and increasing share of process capability improvement leading to reduction in
renewable energy. defects and resource optimisation.

Energy efficiency: Renewable energy:

ITC has invested in renewable energy projects such as
ITC Units are focusing on energy efficiency through process
rooftop and offsite solar power, wind energy, and biomass
improvements and investing in new technologies. Over
power for meeting its energy requirements. These
the years, ITC has implemented measures like installation
investments have helped ITC to achieve around 42% of its
of Vapour Absorption Machines (VAM), Automation in
energy requirements from renewable sources.
tube cleaning system of Heating, Ventilation and Air
Conditioning (HVAC), and installation of energy efficient In FY 2021-22, ITC commissioned 14.9 MW offsite solar
equipment such as chillers, AHUs, motors, fans, pumps, project in Tamil Nadu that will cater to the electricity
agitators. In FY 2021-22, the investments in energy requirements for ITC’s Hotels and manufacturing Units
conservation equipment has resulted in energy savings of of Branded Packaged Foods Businesses, Paperboards
& Specialty Papers Business and Packaging and
about 87 TJ, which is equivalent to around 10,900 tonnes of
Printing Business. This project will supply about 22
GHG emissions.
Million kWh and help ITC Units in Tamil Nadu to reach
In line with ITC’s focus on accelerating digitalisation about 90% of its grid electricity requirements from
across Businesses, ITC’s Paperboards and renewables. Apart from supplying green electricity,
Specialty Papers Business is implementing several it also includes a rainwater harvesting system that
transformative projects leveraging Industry 4.0 recharges about 2 million litres of water annually.
8. Provide details related to waste management by the entity.
Parameter (in kilo tonnes) FY 2021-22 FY 2020-21
Plastic waste (A)* - -
E-waste (B) 0.071 0.051
Bio-medical waste (C) 0.018 0.017
Construction and demolition waste (D) 6.5 1.4
Battery waste (E) 0.3 0.3
Radioactive waste (F) 0 0
Other Hazardous waste. Please specify, if any. (G) 20 18
Other Non-hazardous waste generated (H). Please specify, if any. 699 664
(Break-up by composition i.e. by materials relevant to the sector)

Total (A+B + C + D + E + F + G + H) 726 684

Total waste recovered through recycling, reusing or other recovery operations

(i) Recycled 715 672

(ii) Reused** - -
(iii) Other recovery operations 10 11
Total 725 683
Total waste disposed by nature of disposal method

(i) Incineration 0.6 0.5

(ii) Landfilling 0.3 1
(iii) Other disposal operations 0 0
Total^ 0.9 1.5
* Plastic waste is reported under Non-hazardous waste.
** Waste reused is reported under waste recycled.
^ The difference between total waste generated and total waste disposal is the change in onsite storage.

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In FY 2021-22, the Company continued to recycle over 99% of solid waste from its operations. In addition to this,
the Company’s Paperboards & Specialty Papers Business recycled over 85,000 tonnes of externally sourced post-
consumer waste paper, thereby creating a positive environmental footprint. The Company also collected and
sustainably managed 100% of its post-consumer plastic packaging waste.
ITC’s waste data has been assured at the ‘Reasonable Level’ by M/s Deloitte Haskins and Sells LLP. For more details,
refer to ‘Sustainably Managing Waste’ section of ITC Sustainability & Integrated Report 2022
9. Briefly describe the waste management 10. If the entity has operations/offices in/around
practices adopted in your establishments. Describe ecologically sensitive areas (such as national parks,
the strategy adopted by your company to reduce wildlife sanctuaries, biosphere reserves, wetlands,
usage of hazardous and toxic chemicals in your biodiversity hotspots, forests, coastal regulation
products and processes and the practices adopted zones etc.) where environmental approvals/
to manage such waste. clearances are required.

The Company has initiated measures across units ITC’s existing operations/offices comply with applicable
to ensure waste minimisation, segregation of waste environmental regulations of the Country, and operate
at source and recycling. For the past 15 years, the as per Consent to Operate (CTO) conditions from the
Company has been consistently recycling over 98% of Central and State Pollution Control Boards in line with
solid waste generated at its units, and during the year, guidelines issued by Ministry of Environment, Forest
the recycling level reached 99.8%. In addition, over and Climate Change, Government of India.
85,000 MT of externally sourced post-consumer waste 11. Details of environmental impact assessments of
paper was used as raw material during the year. projects undertaken by the entity based on applicable
laws, in the current financial year.
ITC follows a proactive approach to manage
hazardous chemicals by actively looking for Not applicable
alternatives, which not only helps keep its operations
12. Is the entity compliant with the applicable
safe but also ensures safest products for customers. environmental law/regulations/guidelines in
This approach is demonstrated in pioneering India; such as the Water (Prevention and Control
practices implemented by ITC like elemental of Pollution) Act, Air (Prevention and Control of
chlorine free (ECF) bleaching, and ozone bleaching Pollution) Act, Environment protection act and rules
technology in India in its Paper Business, and thereunder (Y/N). If not, provide details of all such
switching from solvent based inks to water-based non-compliances.
ones in its Packaging and Printing Business.
ITC’s existing operations/offices comply with applicable
For more details, refer to ‘Chemical Safety environmental regulations of the Country, and operate
Management’ section of ITC Sustainability & as per CTO conditions from the Central and State
Integrated Report 2022. Pollution Control Boards.

Leadership Indicators
1. Provide break-up of the total energy consumed (in Joules or multiples) from renewable and non-renewable sources
Parameter** FY 2021-22 FY 2020-21
From renewable sources
Total electricity consumption (A)@ 910 785
Total fuel consumption (B) #
9,099 8,280
Energy consumption through other sources (C)$ 179 182
Total energy consumed from renewable sources (A+B+C) 10,188 9,247
From non-renewable sources
Total electricity consumption (D)@ 898 742
Total fuel consumption (E) #
13,308 12,380
Energy consumption through other sources (F) $
0 0
Total energy consumed from non-renewable sources (D+E+F) 14,206 13,122
@
This includes electricity from own wind or solar power plants, and purchased electricity.
#
This includes all fuels used within the premises including for onsite electricity generation.
$
This includes purchased steam.
**
In Terra Joules (TJ).

ITC’s Energy performance has been assured at the ‘Reasonable Level’ by M/s Deloitte Haskins and Sells LLP. For
more details, refer to ‘Building Climate Resilience’ section of ITC Sustainability & Integrated Report 2022.

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2. Provide the following details related to water discharged:

Parameter FY 2021-22 FY 2020-21
Water discharge by destination and level of treatment (in Million kilolitres)
(i) To Surface water 12.2 10.9
No treatment - -
With treatment – please specify level of treatment Secondary Secondary
(ii) To Groundwater - -
No treatment - -
With treatment – please specify level of treatment NA NA
(iii) To Seawater - -
- No treatment NA NA
- With treatment – please specify level of treatment NA NA
(iv) Sent to third parties 9.8 10.9
- No treatment - -
- With treatment – please specify level of treatment Tertiary Tertiary
Total water discharged (in Million kilolitres) 22 21.8
ITC’s water discharge data has been assured at the ‘Reasonable Level’ by M/s Deloitte Haskins and Sells LLP. For
more details, refer to ‘Water Security for All’ section of ITC Sustainability & Integrated Report 2022.
3. Water withdrawal, consumption and discharge in areas of water stress (in kilolitres).
ITC has developed the water risk assessment methodology for identifying water stressed areas based on WRI
Aqueduct’s Baseline Water Stress and Central Ground Water Board’s (India) groundwater block classification.
Additionally, insights from stakeholder engagement were also considered. This holistic methodology allows ITC to
cognise water risks in a comprehensive manner, and design mitigation strategy to address the identified risks. ITC’s
water stewardship goals are available in the section ‘Sustainability 2.0 ambitions’ of ITC Sustainability & Integrated
Report 2022. The aggregated water withdrawal, consumption and discharge in areas of water stress is given below:

Parameter FY 2021-22 FY 2020-21

Water withdrawal by source (in Million kilolitres)
(i) Surface water 26.9 25.0
(ii) Groundwater 0.2 0.2
(iii) Third party water 0.2 0.2
(iv) Seawater/desalinated water 0 0
(v) Others 0.05 0.04
Total volume of water withdrawal (in Million kilolitres) 27.3 25.5
Total volume of water consumption (in Million kilolitres) 6.6 4.9
Water discharge by destination and level of treatment (in Million kilolitres)
(i) Into Surface water 11.5 10.4
No treatment - -
With treatment – please specify level of treatment Secondary Secondary
(ii) Into Groundwater - -
No treatment NA NA
With treatment – please specify level of treatment NA NA
(iii) Into Seawater - -
No treatment NA NA
With treatment – please specify level of treatment NA NA
(iv) Sent to third parties 9.2 10.2
No treatment - -
With treatment – please specify level of treatment Tertiary Tertiary
Total water discharged (in Million kilolitres) 20.7 20.6

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4. Please provide details of total Scope 3 emissions & its intensity

Parameter Unit FY 2021-22 FY 2020-21
Total Scope 3 emissions Kilo tonnes of CO2 318 237
(Break-up of the GHG into CO2, CH4, N2O, HFCs, equivalent
PFCs, SF6, NF3, if available)

The company has been progressively increasing the coverage of its Scope 3 emissions by including more Supply
Chain partners in its reporting boundary. The scope of coverage for Scope 3 emission is mentioned in ‘Building
Climate Resilience’ section of ITC Sustainability & Integrated Report 2022.

While working towards reducing its emissions and greening its energy portfolio, ITC seeks to increase
carbon sequestration by expanding forestry projects on wastelands. The Farm Forestry programme by ITC’s
Paperboards & Specialty Papers Business was started for promoting sustainable forests management
practices in the value chain, and securing the supply of pulpwood for its paper mills. ITC’s Social and Farm
Forestry initiative has greened over 950,000 acres till date, with 76,608 acres of plantation added in
FY 2021-22 resulting in 6,182 kilo tonnes of CO2 getting sequestered during the year, which is equivalent to
more than 2 times the amount of CO2 emissions from ITC’s operations.

ITC’s Greenhouse Gas emissions (Scope 3) have been assured at the ‘Reasonable level’ by M/s Deloitte Haskins
and Sells LLP. For more details, refer to ‘Building Climate Resilience’ section of ITC Sustainability & Integrated
Report 2022.

5. With respect to the ecologically sensitive areas of disruptions to business activities or processes.
reported at Question 10 of Essential Indicators above, Business Continuity Planning validates the adequacy
provide details of significant direct & indirect impact of the existing systems and processes to prevent and
of the entity on biodiversity in such areas along with recover from potential threats. It ensures continuity
prevention and remediation activities. (Refer response of delivery of products or services at pre-defined
in above Essential Indicator 10) acceptable levels following a disruptive incident.
Nil Comprehensive Business Continuity Plans have been
6. If the entity has undertaken any specific initiatives made covering all facets of operations, and are being
or used innovative technology or solutions to tested at pre-determined intervals. These Plans have
improve resource efficiency, or reduce impact due to been duly approved by the Management Committees of
emissions/effluent discharge/waste generated, please the Businesses.
provide details of the same as well as outcome of such 8. Disclose any significant adverse impact to the
initiatives. environment, arising from the value chain of the
The Company has undertaken a number of initiatives, entity. What mitigation or adaptation measures have
and also deployed innovative technologies across been taken by the entity in this regard.
its operations for improving resource efficiency and ITC has a Board approved Policy on ‘Sustainable
minimising environmental impact. For details, refer to Supply Chain and Responsible Sourcing’ and a ‘Code
‘Disclosure on Conservation of Energy and Technology of Conduct for Suppliers and Service Providers’. ITC,
Absorption’ forming part of the Report of the Board with its diverse and expanding portfolio of businesses,
of Directors in ITC Report and Accounts 2022, and prioritises embedding sustainability and building
‘Building Climate Resilience’, ‘Towards Water Security resilience in the supply chain as part of its Sustainability
for All’, ‘Sustainably Managing Waste’, ‘Chemical Safety 2.0 vision.
Management’, ‘Air Emissions Management’ sections of
ITC Sustainability & Integrated Report 2022. ITC’s Code of Conduct for Suppliers and Service
Providers enshrines the Company’s unwavering focus
7. Does the entity have a business continuity and
on fair treatment, human rights, good labour practices,
disaster management plan?
environmental conservation, health and safety. The
Yes, ITC has a Business Continuity and Disaster Code is shared and accepted by all supply chain
Management Plan designed to address the threat partners and service providers.

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ITC has a robust process of evaluating its Suppliers environment and provide the necessary framework to
and Service Providers before engaging with them, address the direct environmental impacts of Company’s
proactively making them aware of its expectations/ own operations as well as progressively extend the
requirements, and seeking commitment for compliance efforts to its supply chain.
through contractual agreements. ITC reserves the right
Key value chain partners like third party manufacturers
to verify compliance with this Code at any time through
are encouraged to adopt management practices
appropriate audit and assessment mechanisms,
detailed under International Standards such as ISO
including self-certification. ITC is also committed
9001, ISO 14001, OHSAS 18001 and ITC’s Environment,
to reinforcing awareness of this Code amongst the
Health and Safety (EHS) Guidelines. Contract
Suppliers and Service Providers and to support them in
manufacturing agreements provide for compliance
this endeavour.
with accepted standards on issues related to EHS,
ITC has identified material environmental impacts human rights and labour practices, and third party
across its value chain, and has deployed various manufacturers are periodically assessed to ensure
mitigation and adaptation strategies. compliance.

For example, managing hazardous chemicals is not only Farmers constitute a major portion of ITC’s value
important within ITC factories but also in the supply chain, and accordingly the Company has deployed large
chain. Within the supply chain, farmers working with scale programmes to both assess and address the
hazardous pesticides is an area of special attention. environmental impacts across its key agri value chains.
ITC’s approach is to eliminate or reduce the use of For example, ITC’s leaf tobacco value chain is assessed
hazardous pesticides. Intensive training is conducted as part of the global Sustainable Tobacco Programme
on Integrated Pest Management (IPM), which helps (STP 2.0) which focuses on Water, Human Rights, Crop,
adopt a holistic approach in reducing pesticide usage Soil, Climate Change, Natural Habitats, Livelihoods
as well as substituting such pesticides with nature- and Governance. For more details, refer to the ‘Next-
based solutions. The training programmes also cover Generation Agriculture’ section of ITC Sustainability &
the safe handling of pesticides used and the responsible Integrated Report 2022.
management of wastes generated. As a part of reporting for supply chain, ITC has
For more details, refer to ‘Next-Generation Agriculture’ instituted systems to report environmental data for
section of ITC Sustainability & Integrated Report 2022. key Third Party Manufacturing (TPM) units and plans
to progressively expand its reporting boundary. ITC
9. Percentage of value chain partners (by value of
also supports its TPM units by providing knowledge
business done with such partners) that were assessed
support in specific areas like energy, water and waste
for environmental impacts.
management. Through monitoring and reporting of
ITC is guided by a comprehensive set of Board environmental related data, and through sharing of
approved Sustainability Policies. The Policies outline good practices, ITC aims to positively influence the
the Company’s commitment to high standards on performance of its supply chain partners.

Principle 7
Businesses, when engaging in influencing public and regulatory policy, should do so in a manner that is
responsible and transparent.
Essential Indicators
1 a. Number of affiliations with trade and industry chambers/associations.
ITC’s Policy on Responsible Advocacy (https://www.itcportal.com/about-itc/policies/sustainability-policy.aspx)
provides the framework for necessary interface with Government/Regulatory Authorities on matters concerning
various sectors in which the Company operates. The Company’s engagement with the relevant authorities is guided
by the values of commitment, integrity, transparency and the need to balance the interests of diverse stakeholders.
The Company works with apex industry institutions that are engaged in policy advocacy as well as various other
forums. During the year, the Company had active affiliations with 89 such trade and industry chambers/associations.

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b. List the top 10 trade and industry chambers/associations (determined based on the total members of such body)
the entity is a member of/affiliated to.

S. No. Name of the trade and industry chambers/ Reach of trade and industry chambers/associations
associations (State/National)
1 ASSOCHAM National
2 All India Management Association National
3 Confederation of Indian Industry National
4 Madras Management Association State
5 Indian Merchants Chamber of Commerce National
6 Mahratta Chamber of Commerce, Industries State
& Agriculture
7 PHD Chamber of Commerce & Industry National
8 Bombay Management Association State
9 Federation of Indian Chambers of Commerce National
& Industry
10 Retailers Association of India National

2. Provide details of corrective action taken or underway on any issues related to anti-competitive conduct by the
entity, based on adverse orders from regulatory authorities.
The Company has not engaged in any anti-competitive conduct.

Leadership Indicators
1. Details of public policy positions advocated by the entity.

S. Public Policy Method resorted for Whether informa- Frequency of review Web Link, if
No. advocated such advocacy tion available in by Board (Annually available
public domain? /Half yearly/
(Yes/No) Quarterly/Others –
please specify)

The Company’s Policy The Company works with For more details, - -
on Responsible apex industry institutions refer to ‘Report
Advocacy approved that are engaged in of the Board
by the Board provides policy advocacy, like the of Directors &
the framework for Confederation of Indian Management
necessary interface Industry, Federation Discussion and
with Government/ of Indian Chambers of Analysis’ section
Regulatory Authorities Commerce & Industry, forming part of
on matters concerning Associated Chambers ITC’s Report and
various sectors in of Commerce and Accounts 2022.
which the Company Industry of India, and
operates. various other forums
including regional
Sector-wise matters
Chambers of Commerce.
taken up are in line
The Company’s
with national priorities
engagement with the
to strengthen
relevant authorities is
domestic industry,
guided by the values of
promoting sustainable
commitment, integrity,
agriculture and
transparency and taking
business practices.
into consideration
interests of all
stakeholders.

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Principle 8
Businesses should promote inclusive growth and equitable development.

Essential Indicators in line with the new SEBI guidelines on Business

Responsibility and Sustainability Reporting.
1. Details of Social Impact Assessments (SIA) of
projects undertaken by the entity based on applicable Such discussions not only focus on complaints and
laws, in the current financial year. grievances, but also on providing resolution in a time
None of the projects undertaken by ITC in FY 2021-22 bound manner. During FY 2021-22, 20 stakeholder
required Social Impact Assessments (SIA). engagement meetings were held across Karnataka,
Tamil Nadu, Maharashtra, Uttar Pradesh, Uttarakhand
2. Provide information on project(s) for which
and Bihar. Several suggestions were made by the
ongoing Rehabilitation and Resettlement (R&R) is
being undertaken by your entity. community and discussions were held to provide
possible solutions to relevant ones. However, no
Not applicable
grievances were raised by the community pertaining to
3. Describe the mechanisms to receive and redress Corporate Social Responsibility related activities.
grievances of the community.
4. Percentage of input material (inputs to total inputs
ITC’s Social Investments Programme (SIP) adopts a by value) sourced from suppliers.
bottom-up approach by keeping community needs
and priorities at the centre of all its interventions. FY 2021-22 FY 2020-21
Detailed and structured community engagements Directly sourced from 15.76% 19.39%
are planned periodically to revisit the changing needs MSMEs/small producers
of the community and the emerging priorities feed
Sourced directly from 45.73% 58.14%
into designing and re-designing of ongoing and new
within the district and
programmes. neighbouring districts
Further, regular community interactions are undertaken
by the internal state level programme teams and Leadership Indicators
the implementing partners to discuss, identify and
1. Provide details of actions taken to mitigate any
address any issues, complaints and grievances of the
community members pertaining to the operations of negative social impacts identified in the Social Impact
Social Investments Programme. Assessments (Reference: Question 1 of Essential
Indicators above):
SIP has also formalised and internalised the process of
undertaking and recording such community interactions Not applicable

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2. Provide the following information on CSR projects undertaken by your entity in designated aspirational
districts as identified by government bodies:
State Aspirational District Amount spent (In INR)
Andhra Pradesh Visakhapatnam 8,34,199
Assam Baksa 27,98,809
Assam Barpeta 27,99,339
Assam Darrang 2,55,46,103
Assam Dhubri 29,67,661
Assam Goalpara 28,86,712
Bihar Khagaria 6,25,000
Bihar Muzaffarpur 12,61,759
Bihar Araria 33,42,848
Bihar Begusarai 83,07,671
Bihar Katihar 37,82,457
Bihar Sheikhpura 32,19,846
Bihar Sitamarhi 32,30,309
Chhattisgarh Sukma 48,94,704
Haryana Nuh 61,64,624
Jharkhand Pakur 32,28,506
Jharkhand Sahibganj 2,96,313
Karnataka Yadgir 49,24,663
Madhya Pradesh Barwani 27,48,747
Madhya Pradesh Chhatarpur 3,03,435
Madhya Pradesh Damoh 2,41,89,169
Madhya Pradesh Guna 12,48,252
Madhya Pradesh Khandwa 25,23,607
Madhya Pradesh Rajgarh 3,72,748
Madhya Pradesh Singrauli 27,55,075
Madhya Pradesh Vidisha 1,48,65,730
Maharashtra Nandurbar 30,94,731
Odisha Kalahandi 32,43,681
Odisha Malkangiri 1,56,50,318
Odisha Rayagada 32,43,643
Rajasthan Baran 1,97,41,197
Rajasthan Barmer 61,29,105
Rajasthan Jaisalmer 88,16,420
Tamil Nadu Virudhunagar 48,70,538
Telangana Bhadradi Kothagudem 8,99,02,354
Telangana Warangal 3,06,800
Uttar Pradesh Bahraich 63,42,979
Uttar Pradesh Balrampur 23,37,957
Uttar Pradesh Chitrakoot 23,07,946
Uttar Pradesh Sonbhadra 23,16,204
Uttarakhand Haridwar 3,93,22,243
TOTAL 33,77,44,401

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3. a. Do you have a preferential procurement policy 1.25 lakh acres of plantations involving over 30,000
where you give preference to purchase from suppliers farmers. During FY 2021-22, over 320,000 tonnes of
comprising marginalised/vulnerable groups? (Yes/No): FSC® certified wood were procured from these certified
plantations.
The Board approved Policy on Sustainable Supply Chain
and Responsible Sourcing defines the supply chain ITC encourages competency development among
local vendors and its vendor base includes medium
which includes farmers. ITC is committed to collaborate
and small-scale enterprises that are proximate to its
with farmers to make them more sustainable and help
manufacturing locations. These initiatives are aligned
build their adaptive capacity and resilience to emerging
to national priorities of ‘Make in India’, ‘Atmanirbhar
risks like climate change and water stress and other
Bharat’ as well. ITC also works in close partnership
extreme weather events. It is also working towards
with small-scale units in businesses such as Safety
raising awareness and work with farmers on crop Matches, and Education and Stationery Products.
quality, safety, protection, integrity and traceability, as These partnerships have significantly enhanced
applicable. capabilities and competitiveness of a number of units
b. From which marginalised/vulnerable groups do in these sectors.

you procure? For more details on the profile of the suppliers and
key procurement by volume and value, refer to ‘Next-
Please refer to response given in c.
Generation Agriculture’ and ‘Inclusive Value Chains’ of
c. What percentage of total procurement (by value) ITC Sustainability & Integrated Report 2022.
does it constitute?
4. Details of the benefits derived and shared from
The Social Forestry programme focuses on creating the intellectual properties owned or acquired by
commercially viable land use options for small landholder your entity (in the current financial year), based on
farmers through tree-based farming to diversify income traditional knowledge.
from land while ensuring food, fodder and fuelwood Not applicable
security. Till date, ITC’s Social and Farm Forestry
5. Details of corrective actions taken or underway,
programme has together greened over 950,000 acres,
based on any adverse order in intellectual property
generating about 173 million-person-days of employment. related disputes wherein usage of traditional
Till date, ITC has received Forest Stewardship Council® knowledge is involved.
- Forest Management (FSC®-FM) certification for over Not applicable

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6. Details of beneficiaries of CSR Projects:

Objective Initiatives UoM Target Achieved Achieved Balance to
2030 in FY till FY achieve
2021-22 2021-2022
Horizon I - Sustainable Livelihoods Today
De-risk poor rural households Social Acres 6,30,000 30,700 4,25,000 2,05,000
by diversifying farm portfolios Forestry#
through the promotion of
tree-based farming
Integrate diverse elements of Climate Smart Acres 30,00,000 8,20,000 8,20,000 21,80,000
the rural portfolio of initiatives Village1#
into a Climate Smart Village
approach

Ensure water security for all Watershed Acres 22,00,000 1,01,000 13,30,000 8,70,000
stakeholders through watershed Development
development & demand
management Water Nos. 50,000 3,100 25,100 24,900
harvesting
structures
Storage Million KL 60 3.47 45.27 14.73
Potential#
Crop Million KL 2,000 496.5 496.5 1,503.5
Water Use
Efficiency#
Bio-Diversity Acres 10,00,000 89,000 1,33,000 8,67,000
Conservation#

Actively promote non-farm Women Eco- Nos. 1,50,000 6,200 86,000 64,000
livelihood opportunities to nomic Em-
diversify income portfolios of poor powerment
households
Horizon II - Creating Capabilities for Tomorrow
Ensure that every child is in Improvement No. of 13,00,000 55,000 8,64,000 4,36,000
school and learning well through in learning children
improvement in pedagogy and outcomes
the learning environment
Infrastructure Nos. 4,000 400 2,500 1,500
support to
Government
Schools and
Anganwadi

Align skills training to Vocational No. of 2,82,000 13,300 1,07,000 1,75,000

market demand to maximise Training youths
employment of youth from our Enrolled
core areas

Reduce morbidity, especially Toilets Nos. 40,000 1,251 39,400 600

amongst women and children, constructed
by promoting a clean and
healthy environment
Solid Waste No. of 45,00,000 14,62,000 14,62,000 30,38,000
Management Households
(SWM) & establish-
ments

Note:
1 hectare = 2.47105 acres
#
These indicators contribute to five of Company’s sustainability 2030 (S 2.0) commitments.
Please note that the area covered under Climate Smart Village Approach, Water Savings in Crop Water Use efficiency and Households
covered under SWM report same numbers for annual and cumulative achievement.

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In the social sector, the two most important stakeholders of ITC are:
• Rural communities with whom the Company’s agri-businesses have forged long and enduring partnerships
through crop development and procurement activities; and
• Communities residing in close proximity to our manufacturing units, situated in urban and semi-rural locations.
The beneficiaries of ITC’s CSR programmes from the stakeholder communities belong to the under privileged
sections of the society, and are primarily small & marginal farmers who face the challenge of securing sustainable
livelihoods. The challenge of securing sustainable livelihoods is addressed through the Two Horizon approach of
making today’s dominant source(s) of livelihoods sustainable; and creating capabilities for wealth generation and
employment for tomorrow.
The Two Horizon strategy has necessitated an integrated approach to development involving several interventions.
Presented below are the number of beneficiaries for key interventions and proportion of beneficiaries belonging to
vulnerable and marginalised groups.
CSR Projects No. of Persons Benefitted from % of Beneficiaries from Vulnerable
CSR Projects (approximately) and Marginalised Groups
1 2 3
Climate Smart Agriculture+ 4,50,000 #
SC/ST – 24%; Female – 18%
Water Stewardship+ 21,000 SC/ST – 30%; Female – 17%
Social Forestry+ 15,000 SC/ST – 17%; Female – 21%
Improved Animal Husbandry Practices+ 31,000 SC/ST – 16%; Female – 5%
Support to Education 55,000 Children – 100%
Skilling of Youth 13,000 SC/ST – 32%; Female – 46%
Sanitation 23,000 SC/ST – 2%
Solid Waste Management 1.46 million SC/ST – 18%
Mother and Child Health 5,90,000 89% - women, adolescents and
children
Women Empowerment 5,50,000 100% women
+ Climate Smart Agriculture, Water Stewardship, Social Forestry and Improved Animal Husbandry Practices primarily focus on small and
marginal farmers. Hence, almost entire coverage numbers qualify to be included under ‘beneficiaries from vulnerable and marginalised
groups’
#
excludes farmers covered under NITI Aayog partnership programme

Principle 9
Businesses should engage with and provide value to their consumers in a responsible manner.

Essential Indicators 3. Number of consumer complaints in respect of the

following:
1. Describe the mechanisms in place to receive and
Robust systems have been put in place across ITC
respond to consumer complaints and feedback.
Businesses to continuously engage with consumers for
A well-established system is in place for dealing with gathering feedback and address their concerns, if any,
consumer feedback. Consumers are provided multiple in a timely manner. A dedicated consumer interactions
options to connect with the Company through email, team is in place to address any product related query/
telephone, website, social media, feedback forms, etc. complaint. Several communication channels like
In addition, the Company’s Businesses have a dedicated email, telephone number and feedback forms are
consumer response cell to respond to their queries provided to the consumer. In addition, the Company
and receive feedback on products so as to be able to has an online reputation management team which
continuously improve upon its products and services. interacts with consumers via social media channels,
and responds to their queries in a real time manner. A
2. Turnover of products and/services as a percentage
Customer Relationship Management (CRM) platform
of turnover from all products/service that carry
has been implemented for capturing complaints,
information about:
queries, feedback and suggestions received across
Products of the Company contain all relevant information channels. The CRM platform also provides consumer
as required under applicable laws. insights for bringing about process related changes and

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 Business Responsibility
REPORT AND ACCOUNTS 2022 and Sustainability Report

system enhancements for improving the CSAT (Customer Officer is responsible for ensuring that the Cyber Security
Satisfaction) scores. systems remain effective and contemporary. He also
participates in the meetings of the Risk Management
During FY 2021-22, around 10,000 complaints were
Committee of the Company, whenever matters related to
received across Businesses, and more than 97% of these
cyber security are considered.
were resolved as on 31st March, 2022.
ITC’s Information Management Policy defines the
4. Details of instances of product recalls on account of
framework/policy on cyber security and risks related to
safety issues:
data privacy. ITC’s Privacy Policy is part of Information
Nil Management Policy and is published on ITC Portal (please
5. Does the entity have a framework/policy on cyber refer to https://www.itcportal.com/about-itc/policies/
security and risks related to data privacy? (Yes/No) If privacy-policy.aspx).
available, provide a web-link of the policy. 6. Provide details of any corrective actions taken or
A Cyber Security Committee, chaired by the Chief underway on issues relating to advertising, and delivery
Information Officer, is in place to provide specific focus on of essential services; cyber security and data privacy of
cyber security related risks, with the primary responsibility customers; re-occurrence of instances of product recalls;
of tracking emerging practices and technologies and penalty/action taken by regulatory authorities on safety
of products/services.
provide suitable recommendations for enhancing security
of the IT systems and infrastructure. The Chief Information Please refer to response given in Question 3 (Principle 9).

Leadership Indicators
1. Channels / platforms where information on products and services of the entity can be accessed (provide web
link, if available).
Products/Initiative Link
ITC Corporate Website https://www.itcportal.com/
ITC’s Businesses https://www.itcportal.com/businesses/index.aspx
ITCstore.in https://itcstore.in
ITC Brandworld https://www.itcportal.com/brands-microsite/default.aspx
“WeAssure” programme https://www.itchotels.com/content/dam/itchotels/in/umbrella/documents/WeAs-
sure-itc-hotels.pdf

2. Steps taken to inform and educate consumers about and consumer engagement by the Businesses. For
safe and responsible usage of products and/or services. example, ‘Appropriate Portion Guidance’ based on
All Businesses of the Company comply with the Serve Size and Recommended Daily Amount (RDAs)
regulations and relevant voluntary codes concerning has been initiated on front of the pack for enabling
marketing communications, including advertising, the consumers to know the nutritional attributes
promotion and sponsorship. The Company’s of the product, and thereby enabling them to make
communications are aimed at enabling consumers to
meaningful food choices. Also, claims which highlight
make informed purchase decisions. The Company also
the product’s ingredient and nutritional attributes
makes efforts to educate consumers on responsible
usage of its products and services. are being made on pack, in line with the applicable
regulatory & legal guardrails.
For more information, refer to ‘Product Sustainability’
section of ITC Sustainability & Integrated Report 2022. For more information on Product Information, Labelling
3. Mechanisms in place to inform consumers of any and Consumer Feedback Management, refer to
risk of disruption/discontinuation of essential services. ‘Product Sustainability’ section of ITC Sustainability &
Integrated Report 2022.
The Company has necessary mechanisms in place to
inform consumers if any major discontinuation happens. 5. Provide the following information relating to data
4. Does the entity display product information on the breaches:
product over and above what is mandated as per local
a. Number of instances of data breaches along-with
laws? (Yes/No/Not Applicable) If yes, provide details in
brief. Did your entity carry out any survey with regard impact
to consumer satisfaction relating to the major products Nil
/services of the entity, significant locations of operation
of the entity or the entity as a whole? (Yes/No) b. Percentage of data breaches involving personally
identifiable information of customers
As an integral part of ITC’s consumer satisfaction focus,
attention is paid to product information and labelling Nil

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