Emerald Emerging Markets Case StudiesGreen management and environmental sustainability: a case of ITC Green CenterAnjana Singh Meghna Rishi Rati Shukla

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Green management and environmentalsustainability: a case of ITC Green Center

Anjana Singh, Meghna Rishi and Rati Shukla

On July 19, 2009, Environment Minister Jairam Ramesh, greeted Hilary Clinton at ITC

Green Center where the main agenda for both Dr Manmohan Singh and Barack

Obama’s administration was to devise proactive strategies for thoughtful

application of green technology, a subject that has shown its presence in the global

discussion on climate change. ITC Green Center has been the building of the future due to

its early adoption of sustainable construction and one of the members, who were involved to

make this vision of ITC possible is Mr Niranjan Khatri, GM WelcomEnviron initiative. It is one

of the largest buildings built in an area of 1,70,000 square feet. It has platinum rating from US

Green Building Council in year 2005:

Developed by U.S. Green Building Council, LEED (Leadership in Energy and Environmental

design) is recognized as third party certification based on concise framework for identifying and

implementing practical and measurable green building design, construction, operations and

maintenance solutions (LEED, 2010; see Exhibit 1).

LEED has three rating system which starts from silver, gold and highest of them all is

platinum. It was a proud moment for ITC employees to listen to an encouraging and

motivating speech by Secretary of State, Ms Hilary Clinton. They were also happy for the

fact that the ITC has created a pioneered eco-friendly building for the hospitality industry

to follow, but they knew that the real challenge was to adopt the same sustainability

measures in the hotel building, which has already been built. Ms Clinton gave huge

complements and support to the path that ITC, as a company, consciously chose, to make

the future more sustainable for generations to come. She highlighted the commitment that

Indian Private Companies along with government of India is making towards sustainable

future:

Thanks to all of you for making us feel so welcome, once again, here in this historic capital, and

particularly in this remarkable building. As you notice, other than the lights that are up there for the

television cameras, there are no lights on. And there are so many features of this building that

really demonstrate the viability of the kind of low-carbon but very attractive and efficient approach

to saving energy and doing it in a way that, as we heard, saves water and solid waste, and

certainly lowers the carbon footprint. The tour that we have, the information that we were given,

certainly underscores the importance of the ITC commitment and the partners who work with ITC.

The ITC Green Center may not be a regular stop on the tourist map, and no one would confuse it

with the Taj Mahal. But it is a monument in its own right. This Green Center not only represents the

promise of a green economy, it demonstrates the importance of partnership between India and

the United States in the 21st century. And today the Green Center is one of 11 buildings in India

that has earned the elite platinum designation, the highest you can get. Now, certainly the

business leaders with whom I have spoken are talking about how the private sector can play a

role, along with government. Just consider the potential here. If all new buildings were designed

to the same standards as the ITC Green Center is, we could eventually cut global energy use and

greenhouse pollution by more than 20 percent, and save money at the same time. We need to

scale up our efforts. We need to move from the smart design of individual green buildings to the

DOI 10.1108/20450621111159859 VOL. 1 NO. 2 2011, pp. 1-13, Q Emerald Group Publishing Limited, ISSN 2045-0621 j EMERALD EMERGING MARKETS CASE STUDIES j PAGE 1

Anjana Singh, Meghna

Rishi, and Rati Shukla are

Assistant Professors at the

Institute for International

Management and

Technology, Gurgaon,

India.

Disclaimer. This case is writtensolely for educational purposesand is not intended to representsuccessful or unsuccessfulmanagerial decision making.The author/s may havedisguised names, financial, andother recognizable informationto protect confidentiality.

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smart design of whole communities to the retrofitting of buildings and communities, which will

then lead to cities and countries. While improving energy efficiency is critical, it is only half the

battle. We also need to accelerate efforts to bring clean power to the people of India by

expanding the use of renewable energy, particularly for rural electrification, so that hundreds of

millions of men, women, and children will have real energy options.

I will find inspiration from the ITC Green Center, this monument for the future. It uses half as much

energy as conventional buildings, and energy savings means that it will pay back its additional

up-front costs in only six years. So, this building is a model of environmental stewardship and

economic development, all wrapped up in one. And it is an inspiration. And it will keep us going

through the long days and nights of actually hammering out an agreement, one that is fair and

understanding, and doesn’t sacrifice economic progress, one that we will be proud of, and one

that we will then be able to tell our children in generations to come, When the crisis was upon us,

we took action, and we took it together. Thank you all very much (US Department of state, 2009).

Mr Khatri, offered his visiting card to the media personnel, which was half the breadth of the

predictable size. This conversation with the media revealed that ITC Green Center which has

the offices of ITC’s hotels division was planned to be designed as another plain yellow

building. However, some advice came from the Confederation of Indian Industry (CII) in year

2003, which convinced ITC to conduct an experiment with green technology:

We stopped work to introspect a bit. An analysis of what we had already done would get us a gold

rating, but the chairman said; let’s go for a platinum rating[1] (said Khatri).

ITC and its associates continued to be very active in spreading the sensitization and

urgency of sustainability and environmental degradation. Mr Khatri has presented various

papers in reputed institutes of India and abroad. Mr Khatri has decided to continue his

passion of educating other stakeholders including community, believing that change of

attitudes, behavior and habits does take time.

The next step for the Sustainability Committee (Exhibit 2) of ITC was to contemplate future

prospects of existing hotels of ITC towards sustainability. The main challenge for the committee

was to change and start each sustainable activity for existing hotels under the ITC Hotels

Division. Hotels work 24 £ 7 and due to its intangible nature, services are produced and

consumed simultaneously in different segments like rooms, restaurants, health clubs, beauty

parlours, etc. All these revenue center departments are supported by back office or

administration block and some of them includingkitchen, linen room and laundry work 24 hours

like kitchens, linen room and laundry. The prime concern of the sustainable committee was to

identify solutions for hotels that were already built and had the limitation of design and

construction. This was because such hotels directly affect the environment. The measures

had to be in sync with hotel operations and guests’ convenience due to close proximity

between customer and hotel services. As all the employees were not part of this drive, due to

running of operations and handling of customers, hence another challenge was to devise

such strategies that would encourage the involvement of all stakeholders (Exhibit 3) and

promote Green Management within the organization once it is implemented.

ITC: history

August 24, 1910 was the day when one of the key players of the corporate world was

incorporated in the name of Imperial Tobacco Company of India limited. In 1970, the

company changed its name to India Tobacco Company Limited as the company ownership

Indianized with time. Finally, in 1974, the company came to be known as ITC. Limited.

And owing to the diverse business portfolio of the company, in 2001, it named as ITC

Limited. The 1970s embarked the company’s transformation from just cigarettes and leaf

tobacco to various other businesses. In 1975, ITC entered the domain of hotel business by

acquiring its first hotel in Chennai, which then got rechristened as ’’ITC-Welcomgroup Hotel

Chola’’. The key idea behind ITC’s stepping into this new business was to create value for the

nation by encouraging tourism infrastructure, making foreign exchange and creating

employment. Recently ITC stands as a proud owner of over 100 properties across the nation.

PAGE 2 jEMERALD EMERGING MARKETS CASE STUDIESj VOL. 1 NO. 2 2011

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ITC: sustainable approach

‘‘At ITC, we believe that businesses exist to subserve larger societal goals’’ words of

Chairman Y.C. Deweshwar, and this has been confirmed through significant activities and

values created for the society and did not ignore the sustainable business. ITC has

artistically ability to create only one of its kind business models that accommodate long-term

shareholder value with increasing societal capital. This assurance has been reflected in

ITC’s ‘‘Triple Bottom Line’’ approach of contributing to the economic, environmental and

social resources of the country. ITC’s contribution in:

Economic. ITC’s diverse business ranges from hotels and information technology,

Agriculture Business, Paperboards and Packaging, FMCG with a turnover of US $6 billion

and market capitalization of nearly US$30 billion. The company provides direct employment

to 29,000 people.

Environmental. ITC has maintained its sustainable practices by being carbon positive for five

years in a row and water positive for eight consecutive years and waste recycling positive for

the last three years. Out of the total energy consumed by ITC nearly 31 per cent is from

renewable sources. Environment, health, and Safety Management Systems in ITC conform

to the International Standards. ITC’s Royal Gardenia[2] and Green Center are the world’s two

largest buildings which have LEED platinum rating.

Social. ITC has made a huge impact on the society by generating livelihood for five million

people. ITC’s worldwide accepted e-choupal programme is the world’s major rural digital

communications benefitting over four million farmers and the company’s watershed

development brings water to 54,000 hectares of dry lands and moisture-stressed areas. ITC

also has a forestry initiative which has greened over 107,000 hectares of land and its

sustainable community development idea includes ‘‘women empowerment, supplementary

education and integrated animal husbandry programmes’’.

ITC’s endeavor towards sustainable environment is guaranteed by Ernst & Young[3] and it

has also been established Aþ level by global reporting initiative (GRI)[4]. ITC’s vision of

making a contribution in sustainable development incorporates unique business models that

synergize business demand without compromising on the respect towards natural

environment (ITC Sustainability Report, 2009, 2010).

ITC Green Center

WelcomEnviron is ITC’s Welcome group vision for a greener world. Its multifaceted

programme has begun to publicize environmental issues in the cities where ITC hotels are

situated. ITC Green Center is the headquarter of hotels businesses and is a physical

evidence of ITC’s commitment to sustainability. ITC welcome group is actively committed to

the environment and ITC Green Center is an example of the same. The guiding principle is

‘‘Reduce, Reuse and Recycle’’. The stakeholders are also involved in the campaign, ‘‘Give

back as much as you take from the environment’’. ITC believes that mere compliance with

the natural world is not enough and hence they are committed to conduct business with

passion by parallel showing respect for the environment.

ITC Green Center is the second building in India after CII Godrej Building, in Hyderabad,

and seventh in world, to obtain platinum rating from ‘‘Green Building Council’s Leadership in

Energy and Environmental design’’ (LEED):

With a total area 170,000 sq feet, ITC Green Centre is the world’s largest 0% water discharge,

noncommercial Green building, and compared to similar buildings, ITC Green Centre has a 30%

smaller carbon footprint.

The strongest point of the ITC Green Center lies in systems and design. A lot of thought has

been devoted in design and systems of ITC Green Center to make sure that all propositions

work in synergy and an integrated manner. One such example is Central Atrium, which

allows glare free natural light thereby dropping the usage of artificial lights. The remaining

part of the atrium remains in shade and the cooling effect is maintained by the judicious

usage of water located around the building (ITC Green Center, 2010). ITC Green Center is

VOL. 1 NO. 2 2011 jEMERALD EMERGING MARKETS CASE STUDIESj PAGE 3

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water efficient building as the building has proper measures to harvest the rainwater and the

water in the water closets is 100 per cent recycled through sewage treatment facility.

Landscaping in the premises is also done intelligently by using plants that thrive on less

water. Irrigation of the plants and lawns are done with the recycled water. Another efficient

technique to control use of water in the premises is the use of water free urinals in the

building. All these aspects of ITC Green Center make it ‘‘A Monument to the Future’’ as

stated by Hilary Clinton during her visit to ITC Green Center on July 19, 2009.

Niranjan Khatri

Niranjan Khatri was appointed as General Manager – WelcomEnviron Initiatives of ITC

Welcomgroup in year 2000. He started his career as management trainee with ITC and has

served as General Manager in many brands of ITC Welcomgroup Hotels in India. He also

worked as senior advisor and head for a year in their renewable energy cell. He built eco-rating

systems for the Delhi Government which was also translated in Marathi and further distributed

to around 8,000 schools approximately. He was a Faculty member of the Railway Staff

College, Baroda and conducted 30 sessions on eco-designing for senior management of the

Indian Railways. He took various training sessions for public and private sector industries like

‘‘BHEL, CEL, TATA BP SOLAR, WIPRO and Karnataka Pollution Control Board/Power Finance

Corporation’’. He also targeted educational institutions like ‘‘IIT-Delhi and Mumbai, Delhi

University & for management institutes like XLRI, S.P. Jain, MDI, IIMT-OBU’’ to inspire our

young generation and other social institutions like the CII, FICCI, PHD, Assocham on

eco-designing. He was also member of power & water committee of CII northern region. Apart

from sustainability, he has been a member with ARUNIM, an division of ministry of social

justice glancing at concerns of people with manifold disabilities. He received Hellan Kellar

Award in 2006 for his contribution in the cause of disable and physically challenged. He also

presented a paper on eco-design based his research on Welcomgroup Bay Island in Port

Blair/Landbase India limited (Eco-Tourism Society of India, 2011).

Sustainability and environment management in hotels of India

Five-star hotels’ contribution in damaging the environment and wasting the natural resources

is very evident. This has been happening because of regular operational activities and

providing luxury services. The hotel industry as a main service sector of the hospitality

industry has benefited from environmental initiatives through improving corporate image

and increasing resource and energy efficiency. But only few hotels have been in spotlight for

their vision and strategies (Manaktola and Jauhari, 2007; Gustin and Weaver, 1996).

The Orchid Mumbai, an independent hotel in Mumbai, was first ‘‘Ecotel’’ certified hotel in

Asia in year 1997. ITC Sonar Bangla was again the first one to obtain climate credits issued

by Clean Development Mechanism, verified under the rules of Kyoto Protocol (Global

Hospitality Insights, 2008). All the initiatives by hoteliers under environmental management

range from operations planning to construction design. Operations planning includes

comact florescent lamp’s bulbs, recycled water, reuse linen, etc. while construction design

will have shaded atrium to reduce heat, rooftop swimming pools, etc. Apart from social

responsibility, these initiatives give huge incentives to the company and brand building

among customers. Even government has taken few steps in this direction like specifying

energy performance through energy conservation building code for all commercial

buildings, to be constructed in India after year 2007.

Studies conducted by International Hotels Environment Initiatives (IHEI) with Accor revealed

that 90 per cent of guests preferred to stay in green hotels (IHEI, 1996). These behavior are

influenced by numerous factors like social pressure, knowledge and an opportunity to

behave in an eco-friendly way (Exhibit 4).

ITC is enthusiastically dedicated to the green initiatives. As a responsible company,

they recognize their dedication for sustainability and green environment. Their

green programme called the WelcomEnviron, is based on three guiding principle,

‘‘Reduce, Reuse and Recycle’’ and it is used to promote environmental causes in the local

PAGE 4 jEMERALD EMERGING MARKETS CASE STUDIESj VOL. 1 NO. 2 2011

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areas. Each hotel under ITC has its unique programme involving all the share holders

including customers, employers, suppliers, government and community.

Green practices at ITC Green Centre

The achievement of receiving the platinum rating by Green center was primarily due to a

conspicuous approach in optimizing the use of water, energy, the air quality, materials used

and design of the building (Exhibit 5). The key elements of design in ITC Green Center

integrated creativity with technology like:

B The L shaped building helped in glare free natural light and heat in the building and the

other remaining part prevented the entrance of heat and light.

B The high ceilings have been affecting the inside temperature and airquality, hence affecting

the usage of air conditioners which in turn affecting the total cost related to energy used.

The fresh water or usable water is only 1 per cent of the Earth’s water. The ITC Green Center

has been most effective with the consumption and usage of water like:

B They yield and recycle 100 per cent of the water received through rain and consumed in

the building.

B They have waterless urinals which saves up to 3,00,000 litres of drinkable water.

B They have separate treatment plant for different kinds of water used for different

purposes.

B They have water flow restrictors in all the taps used in the building.

At ITC Green Center, there have been concentrated efforts on temperature control and

lighting:

B The high albedo roof plaster decreases the heat absorption by reflecting 90 per cent of

the radiations and reducing the temperature by 30 degrees.

B The use of hydochlorofloro carbons in air conditioners reduces the cost and prevents the

ozone layer.

B The 250 mm thickness of the wall, double glazed windows and high performance glass

reduces the solar heat by 65 per cent.

ITC Green Center has been ensuring that air used inside the building remains clean and

healthy by using intelligent solutions like:

B The usage of small levels of volatile organic compounds in the supplies used in structure,

paints, woods, adhesives make sure that no harmful circumstances are affecting the

population or the building.

B There are designated smoking zones and exhausts for the same and copy printer room.

B There are sufficient open able windows, if required.

B There is external air economizer which draws 100 per cent air from outside to vacant

building in case of low temperature and make the working environment suitable to work

for next day.

B CO2 monitoring system helps to check and maintain the co2 levels within the building (ITC

Green Center, 2011).

ITC has been putting all its concentrated efforts on solid waste management. All the waste

generated by the building are segregated at source and dealt differently to make it zero solid

waste building. ITC has a very effective and awarded strategy named as wealth out of waste.

Under this strategy all the waste is collected and recycled into some resource which can be

used further.

Niranjan Khatri also emphasized on the accountability towards the planet. He mentioned that

more than 40 per cent of the resources used in ITC Green Center were accessible with in

800 km from the site. Most of the materials used in the building like ceramic tiles, aluminum

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and steel were recyclable. Bricks used in the building trims down mercury pollution and

overheads by 20 per cent, which is less than any conventional brick. The carpets made from

recyclable yarn and timber in the structure has been either Forest Stewardship Council

(FSC) qualified[5] or medium density fibreboard[6] (ITC Green Center, 2011).

Asked him about the costs and he replied, ‘‘I would imagine the project costs to be anywhere

20-30 per cent higher but results are tremendous’’ (Exhibit 6). He recalled the days when he

embarked on the journey of green building and cited it as:

[. . .] exciting because there were many unknown territories to cover each day, there were process

and product barriers, but we overcame challenges by networking and many times by applying

out of the box thinking.

ITC Green Center and stakeholders

Hotels and other corporate buildings comparatively have lesser damaging effect on the

environment as compared to other industries (see Exhibit 7). They represent an excellent

platform to spread the green message in terms of numbers of employees and other

shareholders involved. Mr Nakul Anand mentioned in his interview to top story magazine

that:

It was in fact, crucial to the whole exercise that employees were educated and trained about the

hotel’s objective that there was a need to create awareness about efforts to draw sincere

cooperation from them in eco practices. A substantial amount of training had to be done so that

our associates were made aware. Our concern was to continuously talk to them so that our green

initiatives become a belief and not empty rituals that they have to perform.

Niranjan Khatri had put it evocatively, ‘‘ITC Buildings have been collecting green pebbles on the

seashore of knowledge over the last two decades and hope that this knowledge will transform

our stakeholders.’’ Mr Khatri has been motivating his employees and every individual,

he interacts with for individual social responsibility. He has sensitized training programmes for

different stakeholders, be it suppliers, employees and every individual who is part of this planet.

Mr Stephen Farrell from Flourish, Training and Consultancy which has many offices in the UK

and India has recognized the impact of his training programme. He mentioned that the

executives trained under him gained a wonderful insight into India and its people, peppered

with great examples of leadership. There was a significant impact on the executives and the

opportunity to found out about his work helped illustrate the key themes. ITC also has different

steps for supply chain model, if taken, it would correct the systems and procedures, hence a

cleaner, eco-friendly production practices. Mr Krishan Sachdev, Director Marketing and

Strategy, Carrier Airconditioning and Refrigeration, mentioned that how they customized their

product to meet the energy efficiency needs of ITC by designing it to be power saving,

low maintenance and completely reliable. ‘‘When it came to choosing this product, we selected

this one because it is unique and perfectly designed to handle large variations in loads’’.

He has been having various tie ups and relationships with productive NGO’s like Give India

where they provide help and support to domestic help, provide jobs to physically

challenged, plant saplings, etc. They have also tied up with Delhi Government and TERI on

various Eco-Green programmes running in schools and colleges to educate our future

generations. Ms Radhika Khosla, Center for Market Innovation, Natural Resources Defense

Council has also congratulated Mr Khatri on the green practices of the ITC’s building and

continual work on environmental leadership. She said:

We had great meeting and tour at the ITC building during our recent India visit. It was a very

valuable experience for us to exchange information and share your experience with us regarding

energy efficiency in buildings. ITC’s building and continual works on environmental leadership

are both very impressive.

ITC’s future endeavor for attaining sustainability for its existing hotels

Mr Khatri was content that all new hotels under ITC were not only sustainable, but also

excelled in guest satisfaction. He realized the fact that any customer who is environmental

conscious will also not like to compromise the luxury associated with five-star properties.

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The Sustainability Committee had to ensure the core need of comfort and sustainability in

already built hotels under ITC.

The Sustainability Committee of ITC was aware of the fact that eliminating ecological gaps

from hotels that were already built will be a gradual process. It would require a lot of

brainstorming and meetings with experts before finalizing an implementation programme for

existing hotels that had a limitation of design and construction. The committee knew that

these changes had to be done in phases to avoid inconvenience for both guests and

employees. The challenge lied in assuming the considerations that had to be kept in mind

before devising an implementation programme for the existing hotels.

To remain eco-friendly and involve all the stakeholders, another challenge with the

Sustainability Committee was to monitor the systems implemented and involve all the

stakeholders to equally participate in this initiative of eco-drive.

Notes

1. Platinum rating by LEED is the highest rating available.

2. ITC Gardenia, Bengaluru has been rated the World’s largest and Asia’s first LEED platinum rated

hotel.

3. Ernst & Young is a global leader in assurance, tax, transaction and advisory services. Worldwide,

141,000 people are united to share values and an unwavering commitment to quality.

4. The GRI is a large multi-stakeholder network of thousands of experts, in many countries worldwide,

that has pioneered the sustainability reporting framework. UN Global Compact and Global

Reporting Initiative works closely on the platforms common to them.

5. FSC for effectively managing the forests so it meets the needs of present and future generations.

6. Medium density fibreboard is the man made wood made for making furniture and can be very well

used with paint.

Keywords:

Sustainable development,

Green management,

ITC Green Center,

Environmental management

References

Eco-Tourism Society of India (2011), ‘‘Ecotourism Society of India, National Body for Responsible

Tourism, Profile of Mr. Niranjan Khatri’’, available at: www.ecotourismsocietyofindia.org/profile.

asp?id¼9&search¼ founding (accessed March 18, 2011).

Energy Management in your hotel (2008), ‘‘Energy Management in your hotel – Bureau of Energy

Efficiency’’, British High Commision, New Delhi, ICF International, available at: www.emt-india.net/

ECBC/ECBC-Guidebooks/guidebook-Hotel.pdf (accessed March 10, 2011).

Global Hospitality Insights (2008), ‘‘Hospitality going green – Ernst & Young’’, available at: www.ey.com/

Publication/vwLUAssets/Global_Hospitality_Insights_-_a_publication_for_the_hospitality_industry_-/

$FILE/Global%20Hospitality%20Insights.pdf (accessed March 20, 2011)).

Gustin, M.E. and Weaver, P.A. (1996), ‘‘Are hotels prepared for the environmental consumer?’’,

Hospitality Research Journal, Vol. 20 No. 2, pp. 1-14.

IHEI (1996), Challenge and Change: 1992-2000, International Hotels Environmental Initiatives, London.

ITC Green Center (2011), ‘‘ITC Green Center – a blue print for protecting the future’’, available at: www.

itcwelcomgroup.in/custom/ITC_GREEN.pdf (accessed March 14, 2011).

LEED (2010), ‘‘Leadership in energy and environmental design’’, available at: http://leadership-in-

energy-and-environmental-design.co.tv/ (accessed March 20, 2011).

Manaktola, K. and Jauhari, V. (2007), ‘‘Exploring consumer attitude and behavior towards green

practices in the lodging industry in India’’, International Journal of Contemporary Hospitality

Management, Vol. 19 No. 5, pp. 364-77.

US Department of state (2009), ‘‘Remarks following ITC green building tour and discussion’’,

available at: www.state.gov/secretary/rm/2009a/july/126206.htm (accessed March 14, 2011).

VOL. 1 NO. 2 2011 jEMERALD EMERGING MARKETS CASE STUDIESj PAGE 7

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Exhibit 1

Figure E1 Flow chart for certification

Property assessment

Roadmap for certification

Wastemanagement

Energymanagement

Employee educationand shareholdersinvolvement

Watermanagement

Audit for certification

Certification andtraining

Exhibit 2. Board of directors

Chairman

Y.C. Deveshwar

Executive Directors

Nakul Anand. He holds responsibility of the Hospitality, Travel & Tourism Businesses of ITC.

P.V. Dhobale. He holds responsibility of the Finance and IT functions, Paperboards &Specialty Papers and Packaging businesses of the Company.

Kurush N. Grant. He oversees ITC’s FMCG businesses – Cigarettes, Foods, Personal Care,Lifestyle Retailing, Education and Stationery Products, Matches and Agarbattis.

PAGE 8 jEMERALD EMERGING MARKETS CASE STUDIESj VOL. 1 NO. 2 2011

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Exhibit 3

The ITC Vision. Sustain ITC’s position as one of India’s most valuable corporations throughworld class performance, creating growing value for the Indian economy and the company’sstakeholders.

The ITC mission. To enhance the wealth generating capability of the enterprise in aglobalizing environment, delivering superior and sustainable stakeholder value.

Sustainability Committee

The role of the Sustainability Committee is to review, monitor and provide strategic directionto the company’s sustainability practices towards fulfilling its triple bottom line objectives.The committee seeks to guide the company in integrating its social and environmentalobjectives with its business strategies.

Composition. The Sustainability Committee comprises the chairman of the company and fivenon-executive directors, three of whom are independent directors. The chairman of thecompany is the chairman of the committee.

Figure E2 Organization structure and hierarchy of five-star deluxe hotel

General manager

Assistant general manager

Resident manager

Directorof

house-keeping

Assistantexecutive

house-keeper

Assistantfrontoffice

manager

Frontoffice

manager

Chieftelecom-

municationoperator

Supervisorenergy

management

Supervisoradministration

Supervisorpreventativemaintenance

-Inventory-Work orders-Purchasing

-HVAC-Electric-Water

-Utilities

-Sous chef-Kitchen staff

-Purchasing agent-Storeroom staff

-Front office cashiers-Restaurant cashiers-Timekeeper

-Banquet-Captains

-Steward

-Service staff

-Bartenders

-Tool

-Plumbing-Electric-Carpentry-HVAC-Painting-Masonry-Grounds

-Recruitment

-Account executives

-Security officers

-Benefits-Payroll-Training-Laborrelations

-Television-Upholstery-Pool

Frontdesk

agents

Valetparking

Telecom-munication

operator

Chiefengineer

Assistantchief

engineer

Assistantmanagers

AssistantF/B

director

Executivechef

Directorsecurity

Super-visors

Super-visors

Guestroom

attendants

Directorhuman

resources

Directorfood andbeverage

Directorsales

Salesmanager

Controller

Assistantcontroller

F/Bcontroller

Conventioncoordinator

Conventionservicesmanager

Director ofcatering

Generalcashiers

Executive

Restaurantmanagers

Beveragedirector

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Exhibit 5

Exhibit 4

Survey of more than 10,000 US properties by the American Hotel & Lodging EducationalFoundation and conducted by Smith Travel Research, Eco-Conscious Travel for year 2008and 2009.

Findings for year 2008

B About 68 per cent of properties report using energy-efficient lighting.

B About 21 per cent of respondents are planning to incorporate Leadership in Energy andEnvironmental Design (LEED) standards into their properties in the next 12 months;20 per cent note they have already incorporated LEED elements during the past 12 months.

Findings for year 2008

B Properties using energy-efficient lighting jumped from 68 per cent in 2008 to 88 per cent.

B Appearing on the survey for the first time, 44 per cent of participants said they have or areworking toward a green certification.

Responsible travel: US trends and statistics

B Travel and tourism generated $113.0 billion in direct tax revenue for US local, state andfederal governments.

B According to a Mintel report, responsible tourism will grow by 25 per cent year on year,while a Lonely Planet survey of 24,500 people found 93 per cent of those surveyed intendto travel more responsibly in the future.

B In 2007, luxury eco-tourism was the fastest growing market in the tourism industry.

B About 23 per cent of travel agents have booked environmentally friendly or green traveloptions.

http://www.responsibletravel.org/news/Fact_sheets/Fact_Sheet_-_US_Ecotourism.pdf

Figure E3

Energy consumption within ITCacross businesses in 2009-2010

Note: Please find comparison and break up of energy consumed in year 2005-2006 and in year 2009-2010

Offices

Foods and personalcare products

Packaging

Hotels

Leaf

Cigarettes

Paper

0.2%

0.9%

1.2%

2.0%

2.2%

2.3%

91.2%

Energy consumption (%) by ITC businesses

Cigarettes (3.6)Paper (89.1) Hotels (2.9)

Leaf processing (3.3)Large office complex (0.2)

Packaging (0.9)

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Exhibit 6

Figure E4

Notes: Please find comparison and break up of wastes generated in year 2005-2006 and in year 2009-2010. Similarly, thehotels business has reduced its specific waste from 12.38 kg to 9.15 kg per room night in 2009-2010, (an improvementof 26.1 percent over 2008-2009)

Breakup of solid waste generated by ITC businesses (%)

Cigarettes (2.8)Packaging

Leaf tobacco (4.1)Paper (87.5) Hotels (2.8)

Business wise breakup of wastesgenerated in ITC(2009-2010)

Paper boards and specialitypapers division - 91.04%

Packaging and printing - 3.69%

Leaf tobacco - 2.13%

Cigarette - 1.34%

Hotels - 0.96%

Foods-0.61%

Personal careproducts - 0.22%

Offices - 0.01%

SUSTAINABILITY REPORT

2010

Table EI Schedule to the accounts of ITC hotel segment (in crores)

External sales Inter segment sales 2010 total External sales Inter segment sales 2009 total

Hotels 904.92 5.89 910.81 1014.56 5.71 1020.27

Segment assets Segment liabilities Segment assets Segment liabilities

Hotels 2669.60 212.25 2368.83 179.94

Capital expenditure Depreciation

Non cash

expenditure

other than

depreciation Capital expenditure Depreciation

Non cash

expenditure other

than depreciation

Hotels 417.94 77.83 4.25 367.02 67.57 3.75

Table EII Hotel segment (in crores)

Total revenue in year 2010 Total revenue in year 2009

216.64 316.18

Hotel sales in year 2010 Hotel sales in year 2009

904.92 1014.56

For ex-earnings in year 2010 For ex-earnings in year 2009

398.51 486.85

Hotel reservation/marketing expenses in year 2010 Hotel reservation/marketing expenses in year 2009

23.99 28.63

Source: ITC reports and accounts (2010)

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Exhibit 7

About the authors

Anjana Singh is an Assistant Professor at IIMT-OBU, Gurgaon has expertise in the area ofHospitality Operations and Revenue Management and has explored EnvironmentManagement and pedagogical concerns in higher education. She has completed full timeMSc in Hospitality Administration from IHM Pusa, Delhi. She secured first position in All IndiaFinal Examination for MSc Hospitality Administration and was awarded Gold Medal. She hasalso received Certificate of Excellence from Ministry of Tourism. She has published researchpapers in International and National Journals and has contributed various chapters in books.Her research interests lies in Corporate Social Responsibility, Environment Management,concerns in hospitality education and contemporary issues in hospitality industry. In additionto her academic qualifications, she has over seven years of mixed experience in operationsas well as administration. After qualifying MSc in Hospitality Administration, she wasrecruited as an HR Executive in Radisson Hotel, Delhi where she was handling recruitments,induction and remuneration analysis. She has also worked with Hotel Imperial and HyattRegency, Delhi in the various departments of rooms division. Anjana Singh is thecorresponding author and can be contacted at: anjana@iimtobu.ac.in

Meghna Rishi is an expert in the area of marketing and communication management andhas been previously associated with the radio, print and retail industry. She was earlierassociated with the Entertainment Network India Limited (Radio Mirchi) in the sales andmarketing team. She has also been involved with market research with the worlds biggestadvertising agency JWT, New Delhi. In the retail sector, she has assisted brands inrevamping their retail design strategy to synergize the same with their branding strategies.

Figure E5 Determining energy efficiency targets in a typical hotel

Natural gas andOther fuels

39%

Electricity61%

ENERGY MANAGEMENT PAYS...2

Office equipment5%

Cooking5%

Other9%

Lighting12%

Cooling15%

Facility type

50,000 sq. ft.

Assumes facility uses electricity and natural gas and each are about 50 percent of the total energy consumption,and hotel includes on-site food servcie, laundry, and pool.

Source: Energy Management in your hotel (2008), Energy Management in your hotel-Bureau of energy Efficiency, BritishHigh Commision, New Delhi, ICF International, available at: www.emt-india.net/ECBC/ECBC-Guidebooks/guidebook-Hotel.pdf (accessed 10 March 2011)

INR 3,525,000

INR 7,050,000

INR 10,575,000

INR 375,000

INR 750.000

INR 1,125,000

INR 164,500

Figure 2: Typical energy end use in a hotel

INR 329,000

INR 488,800

INR 164,500

INR 329,000

INR 470,000

100,000 sq. ft.

150,000 sq. ft.

If annualenergy costs... Lighting by 20% HVAC by 20%

Water heatingby20%

Estimated annual savings for reductions:

Sources: http://epa.gov/cleanenergy/documents/sector-meeting/4bii_hotelenergy.pdf

Water heating17%

Spaceheating31%

Refrigeration3%

Ventilation4%

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She is a Gold Medallist in English Literature (Hons.) from Rajasthan University and hascompleted her PhD in the area of Internet Advertising from Rajasthan University. Shepublishes internationally as well as in National Journals. She is an active member of reviewpanels for International Journals and Conferences and is on the Editorial Board ofInternational and National Journals. She has contributed various chapters in books and hasalso contributed for the text books being used for postgraduate students perusing a degreein mass communication. Her research interests lie in the area of advertising and marketing,the entertainment and media industry, corporate social responsibility and hospitalitymanagement.

Rati Shukla is an Assistant Professor in IIMT-OBU, Gurgaon is an expert in the area ofBusiness Law and Management. She has a Master’s in Business Administration from NagpurUniversity and Bachelors in Commerce from Allahabad University. She has an experience inteaching for around five years and prior to teaching she possesses industry experience. Sheworked with HDFC bank operations for a year before joining academics. She has publishedresearch papers in International and National Journals. She has explored the areas ofenvironment management, hospitality management and tourism, pedagogical challenge inhigher education, emerging technologies in service industry in research.

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