ITC's latest annual report shows the company has surpassed its 2030 sustainability targets, harvesting rainwater six times its net consumption. The focus on water security in regions like Bengaluru and Chennai helps mitigate operational risks for the company's massive agri-business and manufacturing footprint.
What Happened
In its annual report for the fiscal year 2025-26, ITC Limited revealed that it has exceeded its 2030 sustainability targets regarding water management. The conglomerate has intensified its efforts in water-stressed urban centers, specifically Bengaluru and Chennai. The company is now harvesting rainwater at a scale that is more than six times its net water consumption for the fiscal year. This update, released on Friday, provides insight into how the company is managing its natural resource footprint amidst growing environmental concerns.
Why Sustainability Matters for Operations
For a conglomerate like ITC, which operates across FMCG, paperboards, and large-scale agri-businesses, water is a critical raw material and a vital input for manufacturing. Persistent water stress in industrial hubs or key agricultural sourcing regions can pose direct operational risks, including supply chain disruptions and higher input costs. By investing in water-positive initiatives—such as groundwater recharge and rainwater harvesting—the company aims to secure its resource base and reduce its vulnerability to regional water shortages.
The Scale of Water Stewardship
According to the report, the company's integrated watershed projects now cover approximately 1.98 million acres. As of March 31, 2026, ITC has successfully harvested over 67 million kiloliters of rainwater. The company has also achieved water-positive status in four specific river sub-basins: Ghod (Maharashtra), Kolans (Madhya Pradesh), Upper Bhavani (Tamil Nadu), and Murreru (Telangana). Additionally, the company has received global validation for its efforts, with nine of its units achieving the Alliance for Water Stewardship (AWS) Platinum certification, making it the second-largest holder of this certification globally.
Focusing on Agri-Efficiency
Beyond traditional manufacturing, ITC's water management strategy includes a heavy focus on the agriculture sector, which is the company's largest water-consuming vertical. Through its 'more crop per drop' initiative, the company introduced micro-irrigation and better farming practices across 2.01 million acres in 12 states. These interventions reportedly saved over 1,520 million kiloliters of water in 15 different crops, ranging from wheat to spices. By helping farmers reduce water usage, the company also indirectly lowers the environmental impact of its supply chain.
What Investors Should Track
Investors tracking ESG (Environmental, Social, and Governance) performance may look for how these long-term sustainability investments translate into cost efficiency and regulatory compliance over time. While these programs contribute to the company's overall water-positive status, the key monitorable for the business remains the sustained execution of these projects at the river sub-basin level. Ongoing progress in these public-private partnerships, such as the one in the South Pennar river basin in Karnataka, will indicate the company's ability to maintain its leadership in water stewardship while continuing to scale its core business operations.