ITC Ltd — Environmental & Social Information 2022

Jul 16, 2022

Business Responsibility and Sustainability Report

REPORT AND ACCOUNTS 2022

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Business Responsibility and Sustainability Report

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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

I. Details of the listed entity

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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.
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II. Products/services

14. Details of business activities:

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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:

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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,
27.01%
Dairy & Beverages; Biscuits & Cakes; 10611, 10612, 10712, 10732,
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
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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

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Location Number
National (No. of States) Pan-India
International (No. of Countries) ITC exports to over 100 countries
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b. What is the contribution of exports as a percentage of the total turnover of the entity?

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FY 2021-22 15.77%
FY 2020-21 10.75%
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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.

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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%
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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.

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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%
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19. Participation/Inclusion/Representation of women

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Total (A) No. and percentage of Females
No. (B) % (B/A)
Board of Directors 16 2 12.50%
Key Managerial Personnel 6 0 0
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• 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.

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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%
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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

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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
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• 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 31[st] March, 2022 - ` 59,101.09 crores

• (iii) Net worth of the Company as at 31[st] 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).

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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.
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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:

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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
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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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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

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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
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2. Details of fines/penalties/punishment/award/ compounding fees/settlement amount paid in proceedings (by the entity or by directors/KMPs) with regulators/law enforcement agencies/judicial institutions, in the financial year, in the following format (Note: the entity shall make disclosures on the basis of materiality as specified in Regulation 30 of SEBI (Listing Obligations and Disclosure Obligations) Regulations, 2015 and as disclosed on the entity’s website):

Nil

3. Of the instances disclosed in Question 2 above, details of the Appeal/Revision preferred in cases where monetary or non-monetary action has been appealed.

Not applicable

4. Does the entity have an anti-corruption or antibribery policy? If yes, provide details in brief and if available, provide a web-link to the policy.

The Company’s Code of Conduct covers aspects relating to anti-corruption or anti-bribery. In terms of the said Code, the Company believes in conducting its business in a transparent manner and does not indulge in bribery or corruption.

The ITC Code of Conduct can be accessed on the Company’s corporate website at https://www.itcportal.com/about-itc/values/index. aspx#sectionb5

5. Number of Directors/KMPs/employees/workers against whom disciplinary action was taken by any law enforcement agency for the charges of bribery/ corruption:

Nil

6. Details of complaints with regard to conflict of interest:

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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 underway on issues related to fines/penalties/action taken by regulators/law enforcement agencies/ judicial institutions, on cases of corruption and conflicts of interest.

Not Applicable

Leadership Indicators

1. Awareness programmes conducted for value chain partners on any of the Principles during the financial year:

ITC facilitates capacity building workshops for its key value chain partners to educate, and create shared awareness on key areas like human rights, labour practices and sustainability.

2. Does the entity have processes in place to avoid/ manage conflict of interests involving members of the Board? (Yes/No) If Yes, provide details of the same.

Yes, the ITC Code of Conduct requires the Directors, senior management and employees to avoid situations

in which their personal interests could conflict with the interests of the Company. The Code, inter alia, clarifies that conflict of interest may arise when (a) an employee or a family member (family member includes spouse, children, siblings and parents) has a material interest in an entity that has a business relationship with the Company or is being evaluated for a commercial transaction, or (b) an employee is in a position to benefit someone with whom he / she has a close relationship, in relation to the Company’s business. However, this is an area in which it is impossible to provide comprehensive guidance but the guiding principle is that conflict, if any, or any potential conflict must be disclosed to higher management for guidance and action as appropriate.

Further, the Directors of the Company are required to disclose to the Board, on an annual basis, whether they, directly or indirectly or on behalf of third parties, have material interest in any transaction or matter directly affecting the Company.

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Principle 2

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

Essential Indicators

1. Percentage of R&D and capital expenditure (capex) investments in specific technologies to improve the environmental and social impacts of product and processes to total R&D and capex investments made by the entity, respectively.

The Company’s state-of-the-art ITC Life Sciences and Technology Centre (LSTC) in Bengaluru is at the core of driving science-led product innovation to support and build ITC’s portfolio of world-class brands. The LSTC team comprising over 350 highly qualified scientists, with over 900 patents applications filed, have a mandate to work on future-ready science platforms, design differentiated products to address unique needs and deliver superior benefits to Indian consumers.

Centres of Excellence in Biosciences, Agrisciences and Materials, and robust research platforms such as Beauty & Hygiene, Heath & Wellness, Agro-forestry & Crop Sciences, Sustainable Packaging materials continue to drive world-class innovation.

In pursuit of environmental excellence, all Business units continued their efforts to improve energy usage efficiencies and increase the share of renewable energy. For more details on steps taken and efforts made towards conservation of energy, utilising alternate

sources of energy, technology absorption and the expenditure incurred on Research and Development, refer to the ‘Disclosure on Conservation of Energy and Technology Absorption’ forming part of the Report of the Board of Directors in the Company’s Report and Accounts 2022.

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`in Crores
FY 2021-22 FY 2020-21
Expenditure on R&D - Capital 20.17 12.12
Expenditure on R&D - 143.59 131.22
Revenue
Total R&D Expenditure 163.76 143.34
Capital Investment on 12.22 20.22
Energy Conservation
Equipment
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2. a. Does the entity have procedures in place for sustainable sourcing?

Yes, there are procedures in place for sustainable sourcing. ITC has a Board approved Policy on ‘Sustainable Supply Chain and Responsible Sourcing’ and a ‘Code of Conduct for Suppliers and Service Providers’. The Code reflects ITC’s commitment to respect human rights across the supply chain. It upholds the spirit outlined in the International Labour Organisation Guidelines and United Nations Guiding Principles on Business and Human Rights. ITC, with

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its diverse and expanding portfolio of businesses, prioritises embedding sustainability and building resilience in the supply chain as part of its Sustainability 2.0 vision.

Farmers constitute a vital part of ITC’s supply chain, and the close linkages between ITC’s Businesses and Indian agriculture provides a unique opportunity to engage with farmers across the country and help address some of the sustainability challenges confronting them, and at the same time create sustainable and resilient Agri-value chains for ITC’s Agri, FMCG and Paper Businesses.

Leveraging the Company’s enterprise strengths and its large presence in rural communities, ITC has, over the years designed and implemented large scale programmes on sustainable agriculture. The focus of these interventions has been largely around improving farmer livelihoods, increasing agricultural productivity, strengthening regional water security and addressing the challenge of climate change and enhancing Agri-resilience.

Note: For more details on ITC’s sustainable sourcing practices pertaining to key Agri value chains and key value chain partners like third party manufacturers, refer to ‘Next-Generation Agriculture’ and ‘Inclusive Value Chains’ sections of ITC Sustainability & Integrated Report 2022.

b. If yes, what percentage of inputs were sourced sustainably?

The supply chains of most ITC’s Businesses are vertically integrated, which facilitate optimum utilisation of raw materials, recycling of waste as well as efficient logistics operations. Farmers constitute a vital part of ITC’s supply chain. Accordingly, the Company focuses extensively on enhancing the sustainability of its Agri-based supply chain. During FY 2021-22, ITC processed around 2,500 kilo tonnes of raw materials, out of which nearly 97% were sourced from Agro/Forestry based renewable sources.

ITC’s leading Agri value chains are also certified as per renowned global standards like Rainforest Alliance (RFA), Global G.A.P Certification, Fairtrade, USDA Organic and India Organic.

Note: For more details on ITC’s sustainable sourcing practices, refer to the ‘Next-Generation Agriculture’, ‘Inclusive Value Chains’ and ‘Certifications’ sections of ITC Sustainability & Integrated Report 2022.

3. Describe the processes in place to safely reclaim your products for reusing, recycling and disposing at

the end of life, for (a) Plastics (including packaging) (b) E-waste (c) Hazardous waste and (d) other waste.

ITC has achieved Plastic Neutrality in FY 202122 by implementing an integrated solid waste management programme that incorporates unique and multidimensional initiatives. 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.

For more than a decade, the Company has been running a holistic 360° solid waste management programme that is based on the principles of a circular economy and encompasses the entire waste value chain.

ITC has adopted a multipronged approach to reduce plastic in the Company’s operations spanning FMCG, Hotels, Paperboards and Packaging. This includes creating robust next generation environment friendly packaging solutions, mega-scale waste collection programmes under its flagship waste management initiative ‘ITC WOW – Well Being Out of Waste’ as well as focused interventions in rural areas; a culture of plastic-free operations - in line with its philosophy of ‘Responsible Luxury’ to eliminate single use plastic usage in ITC Hotels; and innovative models for sustainability which have plastic reduction and management at their core. Within its operations, ITC has been recycling more than 99% of the solid waste for more than a decade.

For further details, refer to the ‘Sustainably Managing Waste’ and ‘Mission Sunehra Kal for Sustainable & Inclusive Growth’ sections of ITC Sustainability & Integrated Report 2022.

4. Whether Extended Producer Responsibility (EPR) is applicable to the entity’s activities (Yes/No). If yes, whether the waste collection plan is in line with the Extended Producer Responsibility (EPR) plan submitted to Pollution Control Boards? If not, provide steps taken to address the same.

ITC is in compliance with the requirements of Plastic Waste Management Rules, 2016 and subsequent amendments.

Leadership Indicators

1. Has the entity conducted Life Cycle Perspective/ Assessments (LCA) for any of its products (for manufacturing industry) or for its services (for service industry)?

The Company has initiated Life Cycle Assessments (LCA) of its products and services since 2010 with an

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objective to evaluate the impacts and identify areas for improvement in the value chain. So far, LCAs have been carried out for key product categories from Paperboards and Specialty Papers Business (Carte Lumina, Safire Graphik, Liquid Packaging Board etc.), Personal Care Products Business (Superia Soap) and Branded Packaged Foods Businesses (Bingo! Potato chips). LCA studies will continue to be used as a tool for assessing environmental footprint of products/services going forward.

2. If there are any significant social or environmental concerns and/or risks arising from production or disposal of your products/services, as identified in the Life Cycle Perspective/Assessments (LCA) or through any other means, briefly describe the same along with action taken to mitigate the same.

The Company has put in place robust guidelines and standards, that are benchmarked against international best practices, with defined Standard Operating Procedures (SOPs) for identifying and mitigating both social and environmental risks. LCA studies have also been carried out for some of the Company’s key products for identifying additional opportunities to reduce environmental impact across the value chain. These assessments have enabled identification of concrete solutions towards more efficient packaging

designs, loading efficiencies in transportation. Studies conducted on the selected products also provided valuable insights which are duly considered for new product development and design. Several sustainable products were developed during the year. For example, Savlon Pichkiao (easy-squeeze pack), an innovative pump-free format that is completely reusable, refillable and easy to carry, and made with 22% less plastic compared to ordinary pump pack was launched last year. The pack also bagged the prestigious ‘Diamond Finalist Award’ at the Dow Packaging Innovation Awards 2021, demonstrating excellence across all the three criteria of the award – Sustainability, Technological Advancement and Enhanced User Experience.

3. Percentage of recycled or reused input material to total material (by value) used in production (for manufacturing industry) or providing services (for service industry).

Nearly 97% of ITC’s input material is sourced from renewable sources consisting primarily of pulpwood and other Agri products. During FY 2021-22, the Kovai Unit of ITC’s Paperboards & Specialty Papers Business sourced over 85,000 tonnes of waste paper from external sources, which constituted over 75% of the 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.

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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)
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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:

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

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

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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
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3. Accessibility of workplaces

Are the premises/offices of the entity accessible to differently abled employees and workers, as per the requirements of the Rights of Persons with Disabilities Act, 2016? If not, whether any steps are being taken by the entity in this regard.

Our establishments are accessible to the differently abled, and we are continuously working towards

improving infrastructure for eliminating barriers to accessibility.

4. Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016? If so, provide a web-link to the policy.

Yes, the Company has Policy on Diversity, Equity and Inclusion, which is available at https://www. itcportal.com/about-itc/policies/sustainability-policy. aspx#EqualOpportunity

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5. Return to work and retention rates of permanent employees and workers that took parental leave.

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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%
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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 opendoor 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.

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Yes/No
(If yes, then give details of the mechanism in brief)
Permanent Workers As mentioned above
Permanent Employees As mentioned above
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7. Membership of employees and worker in association(s) or Unions recognised by the listed entity:

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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
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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.

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

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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%
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10. Health and safety management system:

a. Whether an occupational health and safety management system has been implemented by the entity? (Yes/No). If yes, the coverage such system?

Yes, ITC has implemented occupational health and safety management system.

The Company believes that a safe and healthy work environment is a pre-requisite for employee well-being, and the adoption of best practices in occupational health and safety have a direct impact on its overall performance. It helps in attracting and retaining quality talent, besides being the duty of the Company as a responsible corporate citizen.

ITC endeavours that Environment, Health & Safety (EHS) standards at all its units are ahead of applicable legislation and regulations, and Standards and Codes, and are benchmarked against international best practices across sectors in which it operates. ITC’s approach to occupational health & safety standards is articulated in the Board approved Environment, Health and Safety Policy. It is based on an EHS management system that emphasises on enhancing EHS performance by setting objectives and targets and continually monitoring key performance indicators. Further, it promotes a culture of safety through behaviour change programmes and by providing appropriate training to employees as well as service

providers’ employees, while continually investing in state-of-the-art technology and in developing human capital.

EHS requirements are integrated at the design stage for all new investments. Compliance with EHS standards during the construction phase as well as in operation phase of ITC units, Hotels, Warehouses and Offices is ensured by implementing project EHS management systems and through established EHS management systems with designated roles and responsibilities for competent resources respectively.

b. What are the processes used to identify workrelated hazards and assess risks on a routine and non-routine basis by the entity?

ITC has identified the EHS Risk Management framework as one of the integral steps towards building a robust safety management system. This framework entails a set of processes for continual risk identification, assessment and mitigation, with active participation of the workforce in each of its facilities. Shop floor processes in this regard include hazard spotting tours, suggestion schemes, daily briefings and periodic EHS committee meetings in which employees participate. In addition, all ITC Units undergo periodic Environment, Health & Safety audits at the Business as well as Corporate level to verify compliance with standards. Several national awards and certifications acknowledge

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ITC’s commitment and efforts towards providing a safe and healthy workplace to all.

c. Whether you have processes for workers to report the work-related hazards and to remove themselves from such risks. (Y/N)

Yes. A system is in place across ITC factories, hotels and offices for workers to spot and report work-related hazards, and offer suggestions for improvements. Necessary training is given to all employees in recognising hazards and issues. Joint inspections by management representatives and employees on the shop floor are also carried out at regular intervals, and respective corrective and preventive measures are undertaken to mitigate the identified risks. In order to

create an open and transparent safety culture across ITC Units, employees are encouraged to participate and discuss safety related issues in forums like periodic EHS Committee meetings and Departmental Open Forums.

d. Do the employees/worker of the entity have access to non-occupational medical and healthcare services? (Yes/No)

Yes, permanent employees and their family members have access to the Company provided or Company supported medical benefits. Workers have access to medical benefits through Company provided group insurance policies, Company funded medical support 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.

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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
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*[#] 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 ensure a safe and healthy work place.

In line with the Company’s Environment, Health and Safety Policy, safety as a value-led concept has been institutionalised by inculcating a sense of ownership at all levels and driving behavioural change, leading to the creation of a cohesive safety culture. ITC has put in place comprehensive health and safety protocols for the safety and well-being of its stakeholders. ITC endeavours that EHS standards at all its units are ahead of applicable legislations, regulations, and Standards and Codes, and are benchmarked against international best practices across the diverse sectors in which it operates.

ITC continues to strengthen its safety processes,

adopting globally recognised best practices, ensuring that facilities are designed, constructed, operated and maintained in an inherently safe manner.

ITC will continue to undertake efforts for creating a safe working environment and a strong safety culture by:

• Integrating safety at the design stage itself and ensuring it through design reviews, stage inspections and pre-commissioning audits, thereby strengthening the engineering control measures through ‘design for safety’ principles.

• Conducting pre-commissioning and periodic operational audits during construction and operational stages respectively.

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• Implementing behaviour-based safety initiatives to facilitate engagement for collaborative work on improving safety performances.

• Studies to assess the safety culture and efficacy of behaviour-based safety interventions will be conducted periodically.

• Adoption of keystone behaviours by individual units to demonstrate collective commitment and create a shared vision of safety and discipline.

• Embracing and leveraging the digital landscape for safety management system.

ITC will continue to identify solutions for strengthening the safety culture aligned with the goal of ‘Zero Accidents’.

13. Number of complaints on the following made by employees and workers.

Employees are encouraged to report work area related safety issues through various programmes like Hazard identification processes, Suggestion schemes and EHS Committees.

15. Provide details of any corrective action taken or underway to address safety-related incidents (if any) and on significant risks / concerns arising from assessments of health & safety practices and working conditions.

Internal audits of ITC units at Divisional as well as Corporate level are being conducted on a periodic basis. Corrective and preventive measures are taken based on the findings. Detailed investigations are carried out for all accidents to identify the root causes and to understand the measures required to prevent recurrence. Accident investigation findings with corrective and preventive measures form part of the report presented to the Corporate Management Committee (monthly) and the Board (quarterly). The learnings from all accidents are disseminated across the organisation at periodic intervals and a formal compliance obtained.

14. Assessments for the year:

Most of ITC’s manufacturing locations are covered under the OHSAS 18001/ ISO 45001: Occupational Health and Safety Management Systems. Compliance to safe working conditions is an essential aspect of EHS management systems. In addition, all ITC Units undergo periodic Environment, Health & Safety audits at the Business/Division level as well as Corporate, to verify compliance with Standards and Corporate Guidelines.

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% of your Plants and Offices
that were Assessed (by entity
or Statutory Authorities or
Third Parties)
Health and safety
100%
practices
Working Conditions 100%
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Leadership Indicators

1. Does the entity extend any life insurance or any compensatory package in the event of death of (A) Employees (Y/N) (B) Workers (Y/N).

Yes. In the unfortunate event of the death of an employee including workers, the Company extends financial support to family members of the employee.

2. Provide the measures undertaken by the entity to ensure that statutory dues have been deducted and deposited by the value chain partners.

The Company ensures that statutory dues as payable by service providers for their employees are deposited on time 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/illhealth/ 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.

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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
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*On site Accidents

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4. Does the entity provide transition assistance programmes to facilitate continued employability and the management of career endings resulting from retirement or termination of employment? (Yes/No)

ITC continually invests in human capital development which includes building skills and capabilities that are contemporary while providing employees with a diversity of experiences. These enhance the employability of the workforce and enable a smooth transition to alternate opportunities where sought. The Company has in place a programme called ‘Making New Choices’ for retiring staff. In addition, the Company provides the pension benefits and post retiral medical benefits for those members of staff who qualify. Workers are provided pension benefits covered under the relevant statute.

5. Details on assessment of value chain partners on Health and safety practices and Working Conditions

ITC is committed to continuously raise awareness of supply chain members to comply with applicable laws and regulations related to labour and employment, including gender diversity, human rights, child labour, wages, working hours, bribery & corruption, occupational health, safety and environment.

ITC’s Code of Conduct for Suppliers and Service Providers enshrines the Company’s unwavering focus on fair treatment, human rights, good labour practices, environmental conservation, health and safety. The Code upholds the spirit outlined in the International Labour Organisation Guidelines and United Nations

Guiding Principles on Business and Human Rights, and is shared and accepted by all supply chain partners and service providers.

ITC has a robust process of evaluating its Suppliers and Service Providers before engaging with them, proactively making them aware of its expectations/ requirements, and seeking commitment for compliance through contractual agreements. ITC reserves the right to verify compliance with this Code at any time through appropriate audit and assessment mechanisms, including self-certification. ITC is also committed to reinforcing awareness of this Code amongst the Suppliers and Service Providers and to support them in this endeavour.

6. Provide details of any corrective actions taken or underway to address significant risks/concerns arising from assessments of health and safety practices and working conditions of value chain partners.

ITC’s Sectoral EHS Guidelines are shared with the value chain partners, and periodic training is given to their concerned personnel.

Periodic audits by ITC are conducted for its key value chain partners against the sectoral EHS guidelines. Corrective and preventive measures are recommended based on the audit findings.

Detailed investigations are carried out for accidents to identify the root causes, and to understand the measures required to prevent recurrence.

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Principle 4

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

Essential Indicators

1. Describe the processes for identifying key stakeholder groups of the entity.

In line with the Board approved policy on stakeholder engagement, ITC has evolved structured framework for engaging with its stakeholders and fostering enduring relationships with each one of them. ITC’s engagement approach is anchored on the principles of materiality, completeness and responsiveness.

The engagement approach takes into cognisance the fact that each stakeholder group is unique and has a distinctive set of priorities. Insights gathered from

stakeholder engagements, help validate the Company’s performance and shape new perspectives.

For details on ITC’s Process of Stakeholder Engagement, refer to ‘Stakeholder Engagement’ section of ITC Sustainability & Integrated Report 2022.

2. List stakeholder groups identified as key for your entity and the frequency of engagement with each stakeholder group.

The Board approved Policy on Stakeholder Engagement provides the approach for identifying and engaging with stakeholders that include shareholders, consumers, farmers, employees, local communities, suppliers,

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Central and State Governments, regulatory bodies and the media.

For more details on consultation mechanisms and key issues discussed with the stakeholder groups, refer to ‘Stakeholder Engagement’ section of ITC Sustainability & Integrated Report 2022.

Leadership Indicators

1. Provide the processes for consultation

between stakeholders and the Board on economic, environmental, and social topics or if consultation is delegated, how is feedback from such consultations provided to the Board.

ITC believes that an effective stakeholder engagement process is necessary for achieving its sustainability goal of inclusive growth. In this context, the Company has laid down a four layered mechanism to deal with the aspect of stakeholder engagement.

The Board, through the CSR and Sustainability Committee, inter alia, reviews, monitors and provides strategic direction to the Company’s CSR and sustainability practices towards fulfilling its Triple Bottom Line objectives. Half-yearly reports on the progress made by the Company in this regard are placed by the CMC before the CSR and Sustainability Committee. The CMC in turn has constituted the Sustainability Compliance Review Committee (SCRC), comprising senior members of management, which evaluates and monitors compliance with the Policy formulated in this connection. The SCRC places a quarterly report on the subject before the CMC.

2. Whether stakeholder consultation is used

to support the identification and management of environmental, and social topics (Yes/No). If so, provide details of instances as to how the inputs received from stakeholders on these topics were incorporated into policies and activities of the entity.

The Company believes that an effective stakeholder engagement process is necessary for achieving its sustainability goal of inclusive growth. Accordingly, it anchors stakeholder engagement on the following principles:

• a) Materiality – Prioritised consideration of the economic, environmental and social impacts identified to be important to the stakeholders as well as the organisation.

• b) Completeness – Understanding key concerns of stakeholders and their expectations.

• c) Responsiveness – Responding coherently and transparently to such issues and concerns.

The Company has put in place systems and procedures to identify, prioritise and address the needs and concerns of its stakeholders across businesses and units in a continuous, consistent and systematic manner. It has implemented mechanisms to facilitate effective dialogue with all stakeholders across businesses, identify material concerns and their resolution in an equitable and transparent manner. These measures have helped the Company develop strong relationships, which have stood the test of time. Select examples of how stakeholder inputs have been incorporated into ITC policies and activities are presented below:

1. Investors: In addition to its ongoing interactions with analysts representing institutional equity investors on a regular basis post-results, the Company has, over the last two years, been supplementing its quarterly earnings press releases with detailed investor presentations. This is but one example of how the Company has refined its processes emanating from interactions with them. This year, the Company organised its first-ever ‘Institutional Investors and Financial Analysts Day’ for institutional investors, a well attended programme that drew participation from domestic as well as global investors, to provide deeper insights into ITC’s Corporate Strategy and operating segments including, inter alia, their competitive strengths, unique value propositions and key drivers of growth and profitability. These initiatives have been much appreciated by the investor community. The Company is well-recognised for its ESG credentials, and is acknowledged as one of the pioneers of adopting the Triple Bottom Line philosophy in India. Recognising the growing investor interest in this area and factoring in feedback from investor interactions, the Company also periodically reviews, refines and updates its ESG policies on the Company’s portal, as it progresses towards its clearly-defined 2030 goals.

2. Customers & Value Chain Partners: Customers, Consumers and Value Chain Partners are some of ITC’s core stakeholders. Various tech-enabled avenues have been constructed to constantly receive feedback and ideas from these stakeholders.

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A portal called Aikyam, captures ideas and feedback provided by our partners, which are evaluated and taken forward by the business. This has enabled both product enhancements and process efficiencies.

Rapidly evolving consumer needs are constantly being monitored through social listening, in-depth immersions and are being carefully synthesised to transform into relevant solutions. Some examples are mentioned below:

• Launching of products like ITC Masterchef’s ‘IncrEdible’ Plant-based range, a sustainable alternative to meat. This range supports consumers with vegan preferences, and also helps in reducing carbon footprint.

• Providing choices to consumers with specific needs like –

• Aashirvaad Svasti Milk for lactose intolerant consumers.

• Aashirvaad’s Organic Range and Nature’s Super Foods Range for consumers looking for healthier options.

• YiPPee! A Better World programme for children that entails a series of workshops for creating awareness on segregation at source, and arts and crafts sessions for teaching them how to make useful objects out of waste materials available at home.

3. Employees: ITC is committed to creating an inclusive, equitable and diverse workplace where every employee feels valued and included. This requires continuous engagement with employees and understand their experiences. This understanding enables ITC to refresh its policies, and ensures that the important enablers of inclusion, such as work-life balance, flexibility in work and benefits are addressed in a relevant, timely and effective fashion. A series of focused group discussions were conducted to understand the employee experiences whilst framing the policies on Gender Diversity, Equity and Inclusion. More than 150 employees (around 10% of the target population) were part of the discussions. The discussions gave rich insight about the priority issues such as flexible work arrangements and employee benefits across various life stages such as maternity. Such nuanced insights enabled the policies to effectively address the requirements of employees.

4. Community: A comprehensive stakeholder engagement exercise was first undertaken in 201516, wherein core areas were defined and needs of the communities residing in these areas, that is, factory and agri-catchments were identified and prioritised. It emerged that one of the overarching problems faced

by the communities were related to lack of sustainable livelihoods today and tomorrow. Based on this, Core Area Perspective Plan (CAPP) was conceptualised and Two Horizons approach to address the needs of the community was developed and adopted.

During FY 2021-22, changes in emerging needs and priorities of communities was revisited through CAPP 2.0 by carrying out an exploratory exercise across 3,718 villages in 21 factory and 7 agri-catchments with following objectives:

• To revisit coverage and community needs in the changed context;

• To assess reasons for not achieving the earlier planned outcomes (if any); and

• To re-strategise ITC’S Social Investments Programme (SIP) themes and approach based on the findings.

The CAPP 2.0 exercise was carried out by involving third party organisations and NGO partners under close supervision of SIP’s state teams who were present during the data collection exercise. The assessment involved primary and secondary data collection using quantitative and qualitative tools through

6,771 Household Surveys, 169 Key Informant Interviews, 656 Focus Group Discussions and 168 Participatory Rural Appraisal Exercises.

The above process ensures that stakeholder inputs, suggestions and needs are appropriately incorporated in SIP’s interventions. For example, SIP’s water stewardship programme initially focused on supply side augmentation through watershed development. However, it emerged during the interactions with stakeholders and through studies that a more comprehensive approach is required for drought proofing agriculture and achieving positive water balance. To address the issue, river basin level interventions were planned and demand side management of water use in agriculture was incorporated in the programme. Similarly, in SIP’s Vocational Training programme, the trades are decided based on regular community feedback and market demand in specific geographical regions. For instance, demand for bedside nursing increased during the pandemic, hence training on bedside nursing trade was amplified. Similarly, based on the feedback received from students placed in various organisations, post-placement assistance was incorporated in the Vocational Training programme.

3. Provide details of instances of engagement with, and actions taken to, address the concerns of vulnerable/marginalised stakeholder groups.

ITC’s SIP adopts a bottom-up approach to identify and address the emerging needs of the community. Presented

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hereunder are a few instances wherein changing community needs in unprecedented pandemic situation were addressed through modifications in ongoing programme components as well as through introducing entirely new activities under the programmes.

• Digitalisation Activities: The unprecedented situation created by the pandemic posed several challenges for SIP operations and necessitated a rethink and redesign of some interventions. The SIP team proactively addressed these challenges through contextual solutions and actions planned in consultation with key stakeholders. Currently, there are several tools in practice for Learning Management and for enablement of programme implementation.

• a. Learning Management Systems have been developed in the form of web portal for training of teachers in West Bengal, vocational training of students in Assam, Karnataka and West Bengal, and training of Urban Local Bodies on Solid Waste Management in Uttar Pradesh.

• b. Digital Platforms for Enabling Programme Implementation: Application (App) based training of Anganwadi workers on Mother & Child Healthcare in Assam and West Bengal, App for command area in Maharashtra, App for crop survey in Tamil Nadu, App for Soil and Moisture Conservation, and Swachh Mitra App for collection and reporting of daily waste data in Uttarakhand.

• Smart Mom Intervention: ITC’s education programme adopted remote engagement activities

• with children after the first wave of COVID 19 pandemic that continued this year too. “Catch Up Campaign” was initiated where mohalla level learning camps were organised to build/rebuild foundational reading and math skills. Subsequently, when schools started re-opening, “Readiness campaign” was initiated to help children of grade 1 and 2, to get ready for school by leveraging community support of mothers. For this, mothers’ groups were formed who were trained on Activity Based Learning method. Since the mothers required support for continuing Activity Based Learning at home, active women from these groups were selected as “Smart Moms” and were trained on the pedagogy to help other group members conduct learning activities for their children. This helped in continuing learning activities for children under Read India Programme despite disturbances of frequent lockdowns and school closures.

• Small Ruminants Programme: Diversification of livelihoods to build resilience as well as to support family income emerged as one of the prominent needs during engagement with rural women. Hence, a programme was initiated to build capacity of rural poor women for providing health assistance to small ruminants like goats. The programme not only provided a sustainable livelihood option to participating women, but also provided opportunities for living a dignified life, and contribute towards household income.

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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:

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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%
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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:

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

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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 - -<br>Personnel*<br>Employees other 21,562 6.7 Lakhs 2,261 6.6 Lakhs<br>than BoD and KMP<br>Workers [#] 12,102 4.4 Lakhs 632 ` 1.9 Lakhs
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• 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)

responsible for addressing human rights impacts or issues caused or contributed to by the business? (Yes/ No).

Yes.

5. Describe the internal mechanisms in place to redress grievances related to human rights issues.

The Company has Policies on Human Rights which are applicable to all its employees and suppliers & service providers. The said Policies and their implementation are directed towards adherence to applicable laws and 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). The Company continues to work towards strengthening and introducing systems to ensure sound implementation of ITC’s Sustainability Policies specially with respect to human rights and labour practices.

The Company has in place a ‘Code of Conduct for Suppliers and Service Providers’ across Businesses. The Suppliers and Service Providers have voluntarily accepted and adopted the Company’s Code, which requires compliance with applicable laws relating to, inter alia, human rights, environmental conservation, and quality of products and services. A Grievance Redressal System to facilitate open and structured discussions is available at all units and locations to ensure that grievances related to labour practices and human rights are addressed and resolved in a fair and just manner.

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

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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
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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 complainant in discrimination and harassment cases.

ITC is committed to a workplace free of harassment, including sexual harassment at the workplace, and has zero tolerance for such unacceptable conduct. ITC encourages reporting of any harassment concerns and is responsive to complaints about harassment or other unwelcome or offensive conduct. Committees have been constituted across locations to enquire into complaints of sexual harassment and to recommend appropriate action, wherever required. Necessary disclosures in relation to the sexual harassment complaints received and redressal thereof are provided in ITC Report and Accounts 2022. Regular awareness and training sessions are conducted to ensure that

the employees are fully aware of the aspects of sexual harassment and of the redressal mechanism.

8. Do human rights requirements form part of your business agreements and contracts? (Yes/No)

Yes, contract manufacturing agreements provide for compliance with accepted standards on issues related to EHS, human rights and labour practices. Additionally, ITC has a ‘Code of Conduct for Suppliers and Service Providers’. This requires suppliers to comply with applicable laws, labour standards, environmental regulations, and uphold human rights and principles of ethics and integrity in their operations. All Suppliers are expected to meet the requirements of this Code. ITC also expects its Suppliers to hold their business associates to the same standards as enshrined in this Code.

9. Assessments for the year:

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% 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).
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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

1. Details of a business process being modified/ introduced as a result of addressing human rights grievances/complaints.

The ITC Code of Conduct, as adopted by the Board, is applicable to Directors, senior management and employees of the Company. The Code covers ITC’s commitment to human rights aspects like selfrespect and human dignity, child labour, gender friendly workplace, ethical dealings with suppliers and customers, health & safety, environment, transparency, anti-bribery and corruption, and exemplary personal conduct. Any violation of the Code by an employee renders the person liable for disciplinary action. ITC has mechanisms to address human rights grievances/ complaints of all internal stakeholders. For details, refer to responses to Questions 5 and 7 under essential indicators (Principle 5).

For value chain partners, ITC has a ‘Code of Conduct for Suppliers and Service Providers’ covering relevant human rights aspects. All suppliers are expected to meet the requirements of this Code. ITC also expects its suppliers to hold their business associates to the same standards as enshrined in this Code. ITC constantly engages with the rightholders and stakeholders across the supply chain for devising programmes that support Human Rights and Social Development in an integrated manner. An illustrative example for ITC’s leaf tobacco value chain is presented below.

ITC coordinated a Human Rights impact assessment with an independent party, covering the entire leaf tobacco farm supply chain covering farmers from Andhra Pradesh and Karnataka region. The Human Rights Due Diligence process was aligned to UN Guiding Principles of Business and Human Rights, and focused on identifying human rights risks and impacts covering farmers, labourers and communities.

Following actions have been implemented by ITC based on the outcome of the assessment:

Training and Awareness on Human Rights: 184 Village level training programmes were conducted covering subjects such as Farm Safety, Child Labour, Wages, Fair Treatment, Freedom of Association, Water, Sanitation And Hygiene (WASH), No Discrimination and other areas pertaining to human rights.

Human Rights Manual in Vernacular Language: Released the industry’s first Human Rights Do’s and Don’ts in farm supply chain. The manual assists as a ready reckoner for ITC employees working in farm, the farmers with whom we partner and the labourers engaged by the farmers.

Farm Safety: ITC undertakes a holistic approach that addresses the farm safety challenges in Indian farming. Close to 5,000 farmers have been provided with Personal Protective Equipment (PPE) kits for safe spraying of chemicals and secured storage box for safe storage of chemicals. In addition, 75,000 harvesting gloves were provided to labourers to shelter their hands while harvesting. Technology like drones were scaled up covering 3,550 acres minimising human interference while chemical spraying besides increasing the efficacy of operation and water saving.

For more information, refer to ‘Inclusive Value Chain’ section of ITC Sustainability & Integrated Report 2022.

2. Details of the scope and coverage of any human rights due diligence conducted.

The scope and coverage of human rights due diligence extends to own operations including manufacturing locations, Hotels, offices and value chain partners.

3. Is the premise/office of the entity accessible to differently abled visitors, as per the requirements of the Rights of Persons with Disabilities Act, 2016?

Our establishments are accessible to the differently abled, and we are continuously working towards improving infrastructure for eliminating barriers to accessibility.

4. Details on assessment of value chain partners for Human Rights.

ITC is committed to continuously raise awareness of supply chain members to comply with applicable laws and regulations related to labour and employment, including gender diversity, human rights, child labour, wages, working hours, bribery & corruption, occupational health, safety and environment.

Contracts with the service providers include clauses that conformed to ITC’s Human Rights Policies and EHS guidelines. ITC reserves the right to verify compliance with the Code of Conduct for Suppliers and Service Providers at any time through appropriate audit and assessment mechanisms, including self-certification.

ITC coordinated a Human Rights impact assessment covering the entire tobacco farm supply chain. For more details, refer to response to Question 1 (Principle 5) under leadership indicators.

5. Provide details of any corrective actions taken or underway to address significant risks/concerns arising from the assessments at Question 4 above.

Please refer to responses to Questions 1 and 4 of 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.

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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)
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• *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

identified as Designated Consumers (DCs) under the Performance, Achieve and Trade (PAT) Scheme of the Government of India? (Y/N) If yes, disclose whether targets set under the PAT scheme have been achieved. In case targets have not been achieved, provide the remedial action taken, if any.

Three Units of ITC’s Paperboards and Specialty Papers Business and eleven Hotels of Hotels Business are covered under the PAT scheme. ITC has made significant investments in reducing energy consumption

and, accordingly, the performance of the Company’s units covered exceeds the energy efficiency targets fixed under the PAT scheme. The Bhadrachalam Unit is the first pulp and paper mill and the second unit in the country overall, to be rated GreenCo Platinum+ by CII, as part of Green Company rating system.

Details of the energy efficiency initiatives measures implemented during the year are included in ‘Disclosure on Conservation of Energy and Technology Absorption’ forming part of the Report of the Board of 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).

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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.

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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
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*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.

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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
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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 reducing Green House Gas emission? If Yes, then provide details.

ITC has undertaken a target of 50% reduction in Specific GHG Emissions (% Reduction in GHG Emissions (Scope 1, 2) per Unit of Production) by 2030 as part of its Sustainability 2.0 ambitions. Accordingly, actions are being undertaken to reduce greenhouse gas emissions by investing in energy efficiency and increasing share of renewable energy.

Energy efficiency:

ITC Units are focusing on energy efficiency through process improvements and investing in new technologies. Over the years, ITC has implemented measures like installation of Vapour Absorption Machines (VAM), Automation in tube cleaning system of Heating, Ventilation and Air Conditioning (HVAC), and installation of energy efficient equipment such as chillers, AHUs, motors, fans, pumps, agitators. In FY 2021-22, the investments in energy conservation equipment has resulted in energy savings of about 87 TJ, which is equivalent to around 10,900 tonnes of GHG emissions.

In line with ITC’s focus on accelerating digitalisation across Businesses, ITC’s Paperboards and Specialty Papers Business is implementing several transformative projects leveraging Industry 4.0

technologies across key business areas, to enhance productivity, reduce carbon footprint, achieve strategic cost efficiencies and superior product performance.

Some of the major projects undertaken by ITC’s Paperboards and Specialty Papers Business as part of its Digital Transformation Programme include process debottlenecking and throughput improvement for productivity and Overall Equipment Effectiveness (OEE), process capability improvement leading to reduction in defects and resource optimisation.

Renewable energy:

ITC has invested in renewable energy projects such as rooftop and offsite solar power, wind energy, and biomass power for meeting its energy requirements. These investments have helped ITC to achieve around 42% of its energy requirements from renewable sources.

In FY 2021-22, ITC commissioned 14.9 MW offsite solar project in Tamil Nadu that will cater to the electricity requirements for ITC’s Hotels and manufacturing Units of Branded Packaged Foods Businesses, Paperboards & Specialty Papers Business and Packaging and Printing Business. This project will supply about 22 Million kWh and help ITC Units in Tamil Nadu to reach about 90% of its grid electricity requirements from renewables. Apart from supplying green electricity, it also includes a rainwater harvesting system that recharges about 2 million litres of water annually.

8. Provide details related to waste management by the entity.

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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
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• 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 postconsumer 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 practices adopted in your establishments. Describe the strategy adopted by your company to reduce usage of hazardous and toxic chemicals in your products and processes and the practices adopted to manage such waste.

The Company has initiated measures across units to ensure waste minimisation, segregation of waste at source and recycling. For the past 15 years, the Company has been consistently recycling over 98% of solid waste generated at its units, and during the year, the recycling level reached 99.8%. In addition, over 85,000 MT of externally sourced post-consumer waste paper was used as raw material during the year.

ITC follows a proactive approach to manage hazardous chemicals by actively looking for alternatives, which not only helps keep its operations safe but also ensures safest products for customers. This approach is demonstrated in pioneering practices implemented by ITC like elemental chlorine free (ECF) bleaching, and ozone bleaching technology in India in its Paper Business, and switching from solvent based inks to water-based ones in its Packaging and Printing Business.

For more details, refer to ‘Chemical Safety Management’ section of ITC Sustainability & Integrated Report 2022.

10. If the entity has operations/offices in/around ecologically sensitive areas (such as national parks, wildlife sanctuaries, biosphere reserves, wetlands, biodiversity hotspots, forests, coastal regulation zones etc.) where environmental approvals/ clearances are required.

ITC’s existing operations/offices comply with applicable environmental regulations of the Country, and operate as per Consent to Operate (CTO) conditions from the Central and State Pollution Control Boards in line with guidelines issued by Ministry of Environment, Forest and Climate Change, Government of India.

11. Details of environmental impact assessments of projects undertaken by the entity based on applicable laws, in the current financial year.

Not applicable

12. Is the entity compliant with the applicable environmental law/regulations/guidelines in India; such as the Water (Prevention and Control of Pollution) Act, Air (Prevention and Control of Pollution) Act, Environment protection act and rules thereunder (Y/N). If not, provide details of all such non-compliances.

ITC’s existing operations/offices comply with applicable environmental regulations of the Country, and operate as per CTO conditions from the Central and State Pollution Control Boards.

Leadership Indicators

1. Provide break-up of the total energy consumed (in Joules or multiples) from renewable and non-renewable sources

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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
----- End of picture text -----**

@ 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:

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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
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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:

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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

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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)
----- End of picture text -----

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 reported at Question 10 of Essential Indicators above, provide details of significant direct & indirect impact of the entity on biodiversity in such areas along with prevention and remediation activities. (Refer response in above Essential Indicator 10)

Nil

6. If the entity has undertaken any specific initiatives or used innovative technology or solutions to improve resource efficiency, or reduce impact due to emissions/effluent discharge/waste generated, please provide details of the same as well as outcome of such initiatives.

The Company has undertaken a number of initiatives, and also deployed innovative technologies across its operations for improving resource efficiency and minimising environmental impact. For details, refer to ‘Disclosure on Conservation of Energy and Technology Absorption’ forming part of the Report of the Board of Directors in ITC Report and Accounts 2022, and ‘Building Climate Resilience’, ‘Towards Water Security for All’, ‘Sustainably Managing Waste’, ‘Chemical Safety Management’, ‘Air Emissions Management’ sections of ITC Sustainability & Integrated Report 2022.

7. Does the entity have a business continuity and disaster management plan?

Yes, ITC has a Business Continuity and Disaster Management Plan designed to address the threat

of disruptions to business activities or processes. Business Continuity Planning validates the adequacy of the existing systems and processes to prevent and recover from potential threats. It ensures continuity of delivery of products or services at pre-defined acceptable levels following a disruptive incident.

Comprehensive Business Continuity Plans have been made covering all facets of operations, and are being tested at pre-determined intervals. These Plans have been duly approved by the Management Committees of the Businesses.

8. Disclose any significant adverse impact to the environment, arising from the value chain of the entity. What mitigation or adaptation measures have been taken by the entity in this regard.

ITC has a Board approved Policy on ‘Sustainable Supply Chain and Responsible Sourcing’ and a ‘Code of Conduct for Suppliers and Service Providers’. ITC, with its diverse and expanding portfolio of businesses, prioritises embedding sustainability and building resilience in the supply chain as part of its Sustainability 2.0 vision.

ITC’s Code of Conduct for Suppliers and Service Providers enshrines the Company’s unwavering focus on fair treatment, human rights, good labour practices, environmental conservation, health and safety. The Code is shared and accepted by all supply chain partners and service providers.

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ITC has a robust process of evaluating its Suppliers and Service Providers before engaging with them, proactively making them aware of its expectations/ requirements, and seeking commitment for compliance through contractual agreements. ITC reserves the right to verify compliance with this Code at any time through appropriate audit and assessment mechanisms, including self-certification. ITC is also committed to reinforcing awareness of this Code amongst the Suppliers and Service Providers and to support them in this endeavour.

ITC has identified material environmental impacts across its value chain, and has deployed various mitigation and adaptation strategies.

For example, managing hazardous chemicals is not only important within ITC factories but also in the supply chain. Within the supply chain, farmers working with hazardous pesticides is an area of special attention. ITC’s approach is to eliminate or reduce the use of hazardous pesticides. Intensive training is conducted on Integrated Pest Management (IPM), which helps adopt a holistic approach in reducing pesticide usage as well as substituting such pesticides with naturebased solutions. The training programmes also cover the safe handling of pesticides used and the responsible management of wastes generated.

For more details, refer to ‘Next-Generation Agriculture’ section of ITC Sustainability & Integrated Report 2022.

9. Percentage of value chain partners (by value of business done with such partners) that were assessed for environmental impacts.

ITC is guided by a comprehensive set of Board approved Sustainability Policies. The Policies outline the Company’s commitment to high standards on

environment and provide the necessary framework to address the direct environmental impacts of Company’s own operations as well as progressively extend the efforts to its supply chain.

Key value chain partners like third party manufacturers are encouraged to adopt management practices detailed under International Standards such as ISO 9001, ISO 14001, OHSAS 18001 and ITC’s Environment, Health and Safety (EHS) Guidelines. Contract manufacturing agreements provide for compliance with accepted standards on issues related to EHS, human rights and labour practices, and third party manufacturers are periodically assessed to ensure compliance.

Farmers constitute a major portion of ITC’s value chain, and accordingly the Company has deployed large scale programmes to both assess and address the environmental impacts across its key agri value chains. For example, ITC’s leaf tobacco value chain is assessed as part of the global Sustainable Tobacco Programme (STP 2.0) which focuses on Water, Human Rights, Crop, Soil, Climate Change, Natural Habitats, Livelihoods and Governance. For more details, refer to the ‘NextGeneration Agriculture’ section of ITC Sustainability & Integrated Report 2022.

As a part of reporting for supply chain, ITC has instituted systems to report environmental data for key Third Party Manufacturing (TPM) units and plans to progressively expand its reporting boundary. ITC also supports its TPM units by providing knowledge support in specific areas like energy, water and waste management. Through monitoring and reporting of environmental related data, and through sharing of good practices, ITC aims to positively influence the performance of its supply chain partners.

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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.

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----- Start of picture text -----

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
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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.

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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

1. Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable laws, in the current financial year.

None of the projects undertaken by ITC in FY 2021-22 required Social Impact Assessments (SIA).

2. Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being undertaken by your entity.

Not applicable

3. Describe the mechanisms to receive and redress grievances of the community.

ITC’s Social Investments Programme (SIP) adopts a bottom-up approach by keeping community needs and priorities at the centre of all its interventions. Detailed and structured community engagements are planned periodically to revisit the changing needs of the community and the emerging priorities feed into designing and re-designing of ongoing and new programmes.

Further, regular community interactions are undertaken by the internal state level programme teams and the implementing partners to discuss, identify and address any issues, complaints and grievances of the community members pertaining to the operations of Social Investments Programme.

SIP has also formalised and internalised the process of undertaking and recording such community interactions

in line with the new SEBI guidelines on Business Responsibility and Sustainability Reporting.

Such discussions not only focus on complaints and grievances, but also on providing resolution in a time bound manner. During FY 2021-22, 20 stakeholder engagement meetings were held across Karnataka, Tamil Nadu, Maharashtra, Uttar Pradesh, Uttarakhand and Bihar. Several suggestions were made by the community and discussions were held to provide possible solutions to relevant ones. However, no grievances were raised by the community pertaining to Corporate Social Responsibility related activities.

4. Percentage of input material (inputs to total inputs by value) sourced from suppliers.

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FY 2021-22 FY 2020-21
Directly sourced from 15.76% 19.39%
MSMEs/small producers
Sourced directly from 45.73% 58.14%
within the district and
neighbouring districts
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Leadership Indicators

1. Provide details of actions taken to mitigate any negative social impacts identified in the Social Impact Assessments (Reference: Question 1 of Essential Indicators above):

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:

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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 where you give preference to purchase from suppliers comprising marginalised/vulnerable groups? (Yes/No):

The Board approved Policy on Sustainable Supply Chain and Responsible Sourcing defines the supply chain which includes farmers. ITC is committed to collaborate with farmers to make them more sustainable and help build their adaptive capacity and resilience to emerging risks like climate change and water stress and other extreme weather events. It is also working towards raising awareness and work with farmers on crop quality, safety, protection, integrity and traceability, as applicable.

b. From which marginalised/vulnerable groups do you procure?

Please refer to response given in c.

c. What percentage of total procurement (by value) does it constitute?

The Social Forestry programme focuses on creating commercially viable land use options for small landholder farmers through tree-based farming to diversify income from land while ensuring food, fodder and fuelwood security. Till date, ITC’s Social and Farm Forestry programme has together greened over 950,000 acres, generating about 173 million-person-days of employment.

Till date, ITC has received Forest Stewardship Council[®] - Forest Management (FSC[®] -FM) certification for over

1.25 lakh acres of plantations involving over 30,000 farmers. During FY 2021-22, over 320,000 tonnes of FSC[®] certified wood were procured from these certified plantations.

ITC encourages competency development among local vendors and its vendor base includes medium and small-scale enterprises that are proximate to its manufacturing locations. These initiatives are aligned to national priorities of ‘Make in India’, ‘Atmanirbhar Bharat’ as well. ITC also works in close partnership with small-scale units in businesses such as Safety Matches, and Education and Stationery Products. These partnerships have significantly enhanced capabilities and competitiveness of a number of units in these sectors.

For more details on the profile of the suppliers and key procurement by volume and value, refer to ‘NextGeneration Agriculture’ and ‘Inclusive Value Chains’ of ITC Sustainability & Integrated Report 2022.

4. Details of the benefits derived and shared from the intellectual properties owned or acquired by your entity (in the current financial year), based on traditional knowledge.

Not applicable

5. Details of corrective actions taken or underway, based on any adverse order in intellectual property related disputes wherein usage of traditional knowledge is involved.

Not applicable

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6. Details of beneficiaries of CSR Projects:

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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 Village [1#]
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
Water Nos. 50,000 3,100 25,100 24,900
management
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
----- End of picture text -----

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.

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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
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• 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

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Principle 9

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

Essential Indicators

1. Describe the mechanisms in place to receive and respond to consumer complaints and feedback.

A well-established system is in place for dealing with consumer feedback. Consumers are provided multiple options to connect with the Company through email, telephone, website, social media, feedback forms, etc. In addition, the Company’s Businesses have a dedicated consumer response cell to respond to their queries and receive feedback on products so as to be able to continuously improve upon its products and services.

2. Turnover of products and/services as a percentage of turnover from all products/service that carry information about:

Products of the Company contain all relevant information as required under applicable laws.

3. Number of consumer complaints in respect of the following:

Robust systems have been put in place across ITC Businesses to continuously engage with consumers for gathering feedback and address their concerns, if any, in a timely manner. A dedicated consumer 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 consumer. 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 complaints, queries, feedback and suggestions received across channels. The CRM platform also provides consumer insights for bringing about process related changes and

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Business Responsibility and Sustainability Report

REPORT AND ACCOUNTS 2022

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.

4. Details of instances of product recalls on account of safety issues:

Nil

5. Does the entity have a framework/policy on cyber security and risks related to data privacy? (Yes/No) If available, provide a web-link of the policy.

A Cyber Security Committee, chaired by the Chief Information Officer, is in place to provide specific focus on cyber security related risks, with the primary responsibility of tracking emerging practices and technologies and provide suitable recommendations for enhancing security of the IT systems and infrastructure. The Chief Information

Officer is responsible for ensuring that the Cyber Security systems remain effective and contemporary. He also participates in the meetings of the Risk Management Committee of the Company, whenever matters related to cyber security are considered.

ITC’s Information Management Policy defines the framework/policy on cyber security and risks related to data privacy. ITC’s Privacy Policy is part of Information Management Policy and is published on ITC Portal (please refer to https://www.itcportal.com/about-itc/policies/ privacy-policy.aspx).

6. Provide details of any corrective actions taken or underway on issues relating to advertising, and delivery of essential services; cyber security and data privacy of customers; re-occurrence of instances of product recalls; penalty/action taken by regulatory authorities on safety of products/services.

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).

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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
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2. Steps taken to inform and educate consumers about safe and responsible usage of products and/or services.

All Businesses of the Company comply with the regulations and relevant voluntary codes concerning marketing communications, including advertising, promotion and sponsorship. The Company’s communications are aimed at enabling consumers to make informed purchase decisions. The Company also makes efforts to educate consumers on responsible usage of its products and services.

For more information, refer to ‘Product Sustainability’ section of ITC Sustainability & Integrated Report 2022.

3. Mechanisms in place to inform consumers of any risk of disruption/discontinuation of essential services.

The Company has necessary mechanisms in place to inform consumers if any major discontinuation happens.

4. Does the entity display product information on the product over and above what is mandated as per local laws? (Yes/No/Not Applicable) If yes, provide details in brief. Did your entity carry out any survey with regard to consumer satisfaction relating to the major products /services of the entity, significant locations of operation of the entity or the entity as a whole? (Yes/No)

As an integral part of ITC’s consumer satisfaction focus, attention is paid to product information and labelling

and consumer engagement by the Businesses. For example, ‘Appropriate Portion Guidance’ based on Serve Size and Recommended Daily Amount (RDAs) has been initiated on front of the pack for enabling the consumers to know the nutritional attributes of the product, and thereby enabling them to make meaningful food choices. Also, claims which highlight the product’s ingredient and nutritional attributes are being made on pack, in line with the applicable regulatory & legal guardrails.

For more information on Product Information, Labelling and Consumer Feedback Management, refer to ‘Product Sustainability’ section of ITC Sustainability & Integrated Report 2022.

5. Provide the following information relating to data breaches:

a. Number of instances of data breaches along-with impact

Nil

b. Percentage of data breaches involving personally identifiable information of customers

Nil

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