Recently, ITC was awarded for being the best company with ESG performance – it has been carbon positive for 15 years, water positive for 18 years, and solid waste recycling positive for 13 years. But do you know that its major revenue comes from sin product cigarettes?
Crux of the Matter
Founded on 24 August 1910, ITC’s headquarters is at Virginia House, Kolkata. It is an Indian conglomerate manufacturing a variety of products. However, a major portion of its revenues comes from the sales of sin products i.e. cigarettes.
Best ESG Performance
ITC has been carbon positive for 15 years, water positive for 18 years, and solid waste recycling positive for 13 years. About 820,000 acres of forest have been created to date leading to 150 million days of employment. Moreover, 41% of ITC’s energy consumption is met from renewable sources and the company has created 19,000 rainwater harvesting structures across 1.2 million acres.
In social reforms, it has provided supplementary education to 781,000 children, created sustainable livelihood opportunities for 76,000 women, started vocational training program and so far have trained 86,000 youth and has created 37,700 sanitation units.
But What Is Carbon & Water Positive?
Carbon positive is a term used when a company benefits the environment by removing additional carbon dioxide from the atmosphere. When a company replenishes dwindling levels of available water in a particular region, it is said to be water positive.
ITC, A Family Company?
ITC is perceived as a family company as most of its advertisement is related to household goods. However, in 2016 ITC challenged the government’s decision to add Pictorial Health Warnings (PHWs) to 85% large size on sin products. And earlier in 2003 it also challenged the implementation of the Cigarettes and Other Tobacco Products Act and appealed against the prohibition of smoking in public places.
Do you think ITC is achieving ESG goals & creating brand image of a family company to compensate for the sales of its sin product, cigarettes?
Let us know your views here.
- Surrogate advertising is a form of advertising which is used to promote banned products, like cigarettes and alcohol, in the disguise of another product. This type of advertising uses a product of a fairly close category such as club soda, or products of a completely different category, for example, music CDs.
- Established in 1910 as the Imperial Tobacco Company of India Limited, the company was renamed as the India Tobacco Company Limited in 1970 and later to I.T.C. Limited in 1974. The company now stands renamed to ITC Limited, where “ITC” today is no longer an acronym or an initialised form.
- Yogesh Chander Deveshwar was an Indian businessman. He was the chairman of ITC Limited and the longest-serving CEO of any Indian company.