Sustainability anchors growth: ITC CMD urges corporates to balance economic progress with societal value

ITC chairman and managing director Sanjiv Puri has said sustainability and inclusive growth must be an integral part of the corporate sector's business model, a model his conglomerate has followed.

"Economic progress cannot be seen in isolation from sustainability. Both have to go together... Corporates must create economic value, because that creates the foundation to go beyond. But it must be both economic and societal value. And that is what we call responsible competitiveness," Puri said in his keynote address at the TOI Social Impact Summit.

He called upon organisations to go beyond creating shareholder value. "This is going to become increasingly important in the future, not merely because regulations are more and more evolving in this space, but such behaviour is being asked by regulators - whether the regulations are related to the environment or social systems. Global trade regulations are also emerging, but also stakeholders are demanding it." He said it made business sense to work out models that help society.


Puri said the world was facing multiple challenges from geopolitical turmoil to weaponisation of tariffs and the climate crisis, which were putting pressure on livelihood, and food and nutrition security. "We are actually in a perfect storm. This convergence of challenges, uncertainty and rapid change call for novel strategies," he said, adding the vulnerable face maximum threat.

He called for a joint effort from government, corporate sector and civil society to deal with climate change while noting India has chosen a low carbon growth path.

Citing ITC's example, he said it created an entire ecosystem - from R&D to growing trees that do not suck out water and working with small farmers - to reduce dependence on pulp for the paperboard business, a model extended to fruit juices.

On CSR, Puri said it should be looked at as a business venture and its outcome evaluated. "You have to first invest in building capacity at the community level so that the initiatives are sustained and built upon. Otherwise, over a period of time, it can wither away."