{"id":10219,"date":"2016-11-04T16:58:13","date_gmt":"2016-11-04T20:58:13","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/itc-an-indian-conglomerate-fighting-climate-change-impact\/"},"modified":"2016-11-04T16:58:56","modified_gmt":"2016-11-04T20:58:56","slug":"itc-an-indian-conglomerate-fighting-climate-change-impact","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/itc-an-indian-conglomerate-fighting-climate-change-impact\/","title":{"rendered":"ITC \u2013 an Indian conglomerate fighting climate change impact"},"content":{"rendered":"<p><em><strong><u>Business Context<\/u><\/strong><\/em><\/p>\n<p>ITC is a diversified \u00a0Indian conglomerate into FMCG, Hotels, Paperboards &amp; Packaging, Agri-business and information technology. The company completed 100 years in 2010 and as of 2015-16, had an annual turnover of US $ 8 billion\u00a0and a\u00a0market capitalisation of US $45 billion. It employs over 25,000 people. [1]<\/p>\n<p>As a conglomerate, ITC has a significant overlap between its different businesses, and different synergies among businesses give the company a competitive advantage. \u00a0The flow chart below gives an idea of\u00a0how different businesses link together-<\/p>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/ITC.png\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-10206 aligncenter\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/ITC-300x295.png\" alt=\"ITC's business model\" width=\"536\" height=\"528\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/ITC-300x295.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/ITC-768x756.png 768w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/ITC-600x590.png 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/ITC.png 818w\" sizes=\"auto, (max-width: 536px) 100vw, 536px\" \/><\/a><\/p>\n<p>For example, ITC\u2019s packaged wheat flour\/premium cookie business includes the following inputs from different businesses- \u00a0Raw Materials (wheat) is sourced from farmers directly through the agri-business division, raw materials (packaging) is sourced internally from the paperboards and specialty paper business, the foods business owns the manufacturing facility, and the products are also retailed through ITC\u2019s hotel chain. [2]<\/p>\n<p><span style=\"text-decoration: underline\"><em><strong>Climate change impact<\/strong><\/em><\/span><\/p>\n<p>Because of the intense overlap between these businesses (<strong>Agri-business, Paperboards and speciality paper business , Foods business\u00a0&amp; Hotels business<\/strong>), climate change affects a simple consumer product\u00a0through different businesses in the following ways-<\/p>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/impact.png\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-11329 aligncenter\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/impact-300x210.png\" alt=\"impact\" width=\"545\" height=\"381\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/impact-300x210.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/impact.png 582w\" sizes=\"auto, (max-width: 545px) 100vw, 545px\" \/><\/a><\/p>\n<p><em><strong><u>Action &amp; Results<\/u><\/strong><\/em><\/p>\n<p><strong>Agri-business division<\/strong>&#8211;<\/p>\n<ul>\n<li><strong>ITC e-Choupal<\/strong>\u00a0&#8211; an initiative\u00a0to link directly with rural farmers via the Internet for procurement of agricultural and aquaculture products, was launched to enhance the ability of farmers to take informed decisions, align their farm output with market demand and ensures higher quality and productivity. [9]<\/li>\n<li>Drip irrigation was implemented in 700 hectares of land in the state of Andhra Pradesh , saving almost 900 million litres of water.[3]<\/li>\n<li>Launch of the &#8216;Soil conservation programme&#8217; helped to provide inputs to farmers on sustainable agriculture techniques that address physical, chemical and biological health of the soil (covering \u00a0around 7,000 hectares). [3]<\/li>\n<\/ul>\n<figure id=\"attachment_10586\" aria-describedby=\"caption-attachment-10586\" style=\"width: 630px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/e-Choupal.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-10586\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/e-Choupal-300x144.jpg\" alt=\"Use of computers help farmers learn more about crop produce.\" width=\"630\" height=\"302\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/e-Choupal-300x144.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/e-Choupal-768x368.jpg 768w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/e-Choupal-1024x490.jpg 1024w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/e-Choupal-600x287.jpg 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/e-Choupal.jpg 1078w\" sizes=\"auto, (max-width: 630px) 100vw, 630px\" \/><\/a><figcaption id=\"caption-attachment-10586\" class=\"wp-caption-text\">ITC E-choupal. Use of internet to\u00a0help farmers learn more about crop produce.<\/figcaption><\/figure>\n<p><strong>Packaging and paperboards business \u2013<\/strong><\/p>\n<ul>\n<li>51,21,855 tonnes of CO2 sequestered in this year, making <strong><em>ITC carbon positive<\/em> <\/strong>for 11 years in a low [7]<\/li>\n<li>ITC started the Integrated Watershed Development Projects, covering 2,59,050 hectares of land , support the <strong><em>Water Positive status<\/em><\/strong> of the Company for the 14<sup>th\u00a0<\/sup>year in a row.<\/li>\n<li>ITC&#8217;s \u00a0social forestry programme covered nearly 64,795 hectares under pulpwood plantation and 22,879 hectares under energy plantation.[3]<\/li>\n<\/ul>\n<figure id=\"attachment_10651\" aria-describedby=\"caption-attachment-10651\" style=\"width: 636px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-10651\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Aforestation-300x110.png\" alt=\"aforestation\" width=\"636\" height=\"233\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Aforestation-300x110.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Aforestation-600x220.png 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Aforestation.png 733w\" sizes=\"auto, (max-width: 636px) 100vw, 636px\" \/><figcaption id=\"caption-attachment-10651\" class=\"wp-caption-text\">ITC&#8217;s Social &amp; Farm forestry\u00a0initiative<\/figcaption><\/figure>\n<p><strong>Foods business<\/strong> \u2013<\/p>\n<ul>\n<li>ITC&#8217;s WoW programme minimises scrap waste across the conglomerate. \u2018WOW &#8211; Well-being out of Waste\u2019 has provided effective solutions in several cities of South India. [8]<\/li>\n<li>ITC is planning a big investment in establishing a end to end cold chain to reduce agricultural waste [5]<\/li>\n<\/ul>\n<p><strong>Hotels business-\u00a0<\/strong><\/p>\n<ul>\n<li>ITC has secured the LEED platinum rating for all its hotels making it one of the greenest luxury hotel chain in the world. The rating means leadership in energy and environmental design for the highest standards of energy, water and waste efficiency.\u00a0[6]<\/li>\n<li>Over 47% \u00a0of ITC\u2019s total energy requirements was met from carbon neutral sources such as biomass, wind and solar [6]<\/li>\n<\/ul>\n<figure id=\"attachment_10562\" aria-describedby=\"caption-attachment-10562\" style=\"width: 522px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-10562\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/h2-300x225.jpg\" alt=\"ITC's Hotels\" width=\"522\" height=\"392\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/h2-300x225.jpg 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/h2-768x576.jpg 768w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/h2-600x450.jpg 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/h2.jpg 800w\" sizes=\"auto, (max-width: 522px) 100vw, 522px\" \/><figcaption id=\"caption-attachment-10562\" class=\"wp-caption-text\">ITC&#8217;s luxury hotel chain<\/figcaption><\/figure>\n<p><em><span style=\"text-decoration: underline\"><strong>Way forward<\/strong><\/span><\/em><\/p>\n<p>In the long term, ITC should target using 100% renewable (produced by natural processes at a rate comparable to its rate of consumption) or recycled materials for products and packaging. ITC still uses many non-renewable materials (like those made from petroleum etc). Materials\u00a0may come from traditional sources such as biomass , and ITC should use its R&amp;D capabilities to\u00a0understand how raw materials can be derived from biological processes. ITC&#8217;s\u00a0vision should also be\u00a0to have all waste end up in a valued waste stream (e.g., recycling, composting, waste-to-energy without toxic emissions). Finally,\u00a0ITC must start committing\u00a0to consumer education programs and encouraging audiences to be a part of the responsibility we all bear for protecting the environment.<\/p>\n<p>&nbsp;<\/p>\n<p>[1]\u00a0http:\/\/www.itcportal.com\/sustainability\/sustainability-report-2013\/index.aspx<\/p>\n<p>[2]\u00a0http:\/\/www.itcportal.com\/sustainability\/sustainability-report-2013\/material-sustainability.aspx<\/p>\n<p>[3]\u00a0http:\/\/itcportal.mobi\/sustainability\/sustainability-report-2016\/default.aspx<\/p>\n<p>[4] &#8211;\u00a0https:\/\/www.theguardian.com\/environment\/2016\/apr\/07\/reducing-food-waste-would-mitigate-climate-change-study-shows<\/p>\n<p>[5]-http:\/\/economictimes.indiatimes.com\/industry\/cons-products\/tobacco\/itc-plans-multiple-projects-with-rs-25000-crore-outlay\/articleshow\/53335417.cms<\/p>\n<p>[6]\u00a0http:\/\/articles.economictimes.indiatimes.com\/2011-07-19\/news\/29791004_1_itc-hotels-luxury-hotels-itc-properties<\/p>\n<p>[7]\u00a0https:\/\/sustainabledevelopment.un.org\/partnership\/?p=865<\/p>\n<p>[8]\u00a0http:\/\/www.itcportal.com\/media-centre\/press-releases-content.aspx?id=1135&amp;type=C&amp;news=itcs-wow-wealth-out-of-waste-initiative<\/p>\n<p>[9]\u00a0http:\/\/www.inclusive-business.org\/2012\/05\/itc-e-choupal-india.html<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>How does climate change impact a packaged flour product? A cookie? Stationery products? Personal care products?. This post highlights how the entire value chain- from agriculture to retail can be impacted by climate change and how a vertically integrated conglomerate is fighting this.<\/p>\n","protected":false},"author":2583,"featured_media":10524,"comment_status":"open","ping_status":"closed","template":"","categories":[],"class_list":["post-10219","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/climate-change-challenge-2016\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>ITC \u2013 an Indian conglomerate fighting climate change impact - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/itc-an-indian-conglomerate-fighting-climate-change-impact\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"ITC \u2013 an Indian conglomerate fighting climate change impact - Technology and Operations Management\" \/>\n<meta property=\"og:description\" content=\"How does climate change impact a packaged flour product? 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