Measurement and Tracking of Sustainability at Tata Consumer Products
Sustainability is becoming a core aspect of business operations globally, influencing decision-making processes and stakeholder interests. Tata Consumer Products Ltd. (TCPL), a leading FMCG company, recognizes the critical importance of sustainability in its operations. With a market capitalization exceeding INR 1 Lakh Crore (USD 12 billion) and as a member of the Nifty50 Index in India, TCPL is committed to integrating sustainable practices. In this interview, Vishwa Bandhu Bhattacharya, Director of Sustainability at TCPL, elaborates on the company’s sustainability strategies, initiatives, and future goals.
Edited Excerpts:
What is the relevance of Sustainability at Tata Consumer Products Ltd?
Over the last few years, Sustainability has emerged as a crucial factor in the decision-making process for consumers and this trend is increasingly seen to be guiding the way businesses are evolving globally. In line with this trend, sustainability strategies of Corporates have also become a key consideration for all stakeholders, from shareholders to employees to business partners. Tata Consumer Products is a company with a market capitalisation of more than INR 1 Lakh Crore (USD 12 billion) and a member of the Nifty50 Index in India. This brings heightened interest from investors on our ESG practices as well as greater scrutiny of our performance in the form of BRSR (Business Responsibility and Sustainability Reporting) for SEBI (Securities and Exchange Board of India) compliance.
As a premier FMCG Company, we recognise the critical importance of integrating sustainability into our operations, not only to mitigate risks and ensure long-term viability, but also to drive positive societal impact. This is one of the reasons why Sustainability is one of the six strategic pillars at Tata Consumer Products. Our Sustainability strategy has been crafted meticulously, having drawn insights from a wide range of sources, including the UN Sustainable Development Goals (SDGs), comprehensive materiality assessment with diverse stakeholders, industry trends, regulations, and science-based targets.
In our goal towards building a sustainable future, in 2023 we released our ESG ambition – #ForBetterLiving, which encompasses the four pillars of – For Better Sourcing, For Better Planet, For Better Communities and For Better Nutrition. This strategic framework spans our business operations and the full spectrum of stakeholders and is aligned with the Tata Group commitments under ProjectAalingana – the group’s roadmap for a sustainable future. It is also aligned with the relevant regulatory frameworks in every market that we operate in. These commitments cover a range of areas, including achieving Net Zero status, water neutrality, circular economy of plastics, diversity in the workforce, sustainable products, and sustainable sourcing, among others.
By taking this comprehensive approach, we ensure that sustainability is more than just a buzzword at Tata Consumer Products. It is a guiding principle that shapes our actions and propels us towards a future where ‘For Better Living’ becomes a reality for all.
What are the key areas or initiatives that TCPL has undertaken in terms of sustainability?
A business is said to be truly successful when it can create meaningful positive change and benefit communities. At Tata Consumer we prioritise shared prosperity, and since inception, we have been committed to environmental stewardship and social progress In line with this philosophy, our initiatives vis-à-vis our sustainability strategy are aligned with the global ESG priorities.
Some of the initiatives Tata Consumer Products has undertaken under our Four Pillar framework are:
Better Sourcing
The sourcing strategy at Tata Consumer is focussed on adopting responsible practices. We are the founding members of the ‘Trustea’ initiative in India, which is a sustainability code and verification system for the Indian tea sector, and we are also founder members of the Ethical Tea Partnership (ETP) in the UK, which is a non-commercial partnership of tea companies committed to improving the lives of tea workers and their environment.
Better Planet
With a vision to promote clean energy, replenish water, preserve biodiversity and pioneer circular economy, we published our Environment Policy in FY 2023-24, which guides the work under the Pillar of Better Planet. The initiatives cover many critical areas, including achieving Net Zero emissions by 2040 through promotion of energy efficiency and use of green energy sources, being resource efficient, aiming for water neutrality and 100% recyclable packaging 2030 and Net Zero by 2040.
Protecting biodiversity and preserving nature form an integral part of this commitment, and we are committed to be continuously on the lookout for better ways to operate in a manner that is in sync with the planet’s sustainability. We actively contribute to biodiversity conservation, particularly in natural habitats situated around our operations in India like plantations in Coorg, Munnar, Anamallais and Assam. The conservation strategies encompass various initiatives aimed at safeguarding forests from human interference, nature-centric approaches that cover projects like ecosystem restoration, safeguarding ecosystems and addressing ecosystem-specific concerns.
In line with our commitment towards conscious plastic use, we comply with the Extended Producer Responsibility requirements in India. Further to this, we are a founding member of the India Plastics Pact and are also a member of the UK Plastics Pact and the Europe Plastics Pact. Through such forums, we act collaboratively with regulators, peers and other stakeholders towards limiting the impact of plastics and packaging on the planet.
Better Communities
Taking into consideration the welfare of the communities around our operational areas is imperative for us. In keeping with this thought, we undertake socially relevant projects that create a lasting positive impact. This sense of responsibility also drives our engagement with employees, further manifesting across areas pertaining to health and safety, employee diversity and equal opportunity.
Beyond the workplace, our dedication to CSR initiatives focuses on impactful projects in five key areas. In affordable healthcare, we support initiatives such as the RHRC Hospital in Assam, India. We empower differently-abled individuals through programs like Shrishti in Munnar and Swastha in Coorg, India. Through initiatives like Project Jalodari, we address critical water challenges in Assam and Himachal Pradesh, India. We also undertake various projects in Mithapur and other regions in India. Additionally, we invest in various education and skill development programs for community upliftment.
Better Nutrition
In keeping with our aim of helping our consumers make healthier choices, we have strengthened our focus on the health and wellness portfolio. Over the last few years, we have launched a number of new products based on the global key consumer trends across health and wellness. With regard to Better Nutrition, our initiatives are aligned with our aim of 100% sustainable products by volume by 2040, and to increase consumer awareness about the nutritional contents of our products.
We have achieved a 2.4 times increase in health and wellness-focused new product launches compared to FY 2020-21. Additionally, we have instituted a ‘For Better’ Nutrition Policy, which is anchored in nutrition science, global recommendations such as the UN Sustainable Development Goals (SDGs), and aligns with local regulations and government recommendations.
How is sustainability performance measured and tracked at TCPL?
At Tata Consumer Products, ensuring proper measurement and tracking of sustainability performance is paramount, and is ingrained within a multifaceted strategy designed to uphold the company’s commitment to environmental stewardship and social responsibility. Having set ambitious goals across key areas, we are committed to ensure effective communication on the progress we are making on them. The goals have been preceded by a comprehensive materiality assessment guided by national and international standards such as the Sustainability Accounting Standards Boards (SASB) and the International Integrated Reporting Council (IIRC) Framework, which help identify and prioritise sustainability risks and opportunities relevant to the Company’s business strategy.
This comprehensive approach integrates several key metrics, meticulously chosen to reflect the company’s ESG targets that cover the four pillars of the #ForBetter strategy. These metrics span the entire spectrum of operations, encompassing environmental impact reduction, ethical sourcing practices, community engagement initiatives, and access to healthy products. Moreover, Tata Consumer Products conducts SDG mapping to align our activities with global sustainability priorities and does reference mapping to internationally recognised Sustainability standards to enhance alignment of our ESG performance and cater to a global audience.
Another aspect of the tracking mechanism is the regular risk assessments that are overseen by the Risk Management Committee, and these considerations are integrated into the Enterprise Risk Management (ERM) framework. This ensures that the ESG risks are systematically identified, evaluated and managed across all operations.
Third-party rating agencies also play a crucial role in our sustainability efforts, as we ensure that our ESG performance is rigorously evaluated by reputable third-party rating agencies like Sustainalytics, MSCI and ISS ESG. These assessments provide valuable insights into our sustainability efforts and help us benchmark our performance against industry standards.
Additionally, we also actively participate in voluntary disclosure initiatives through Third-party rating agencies such as the Carbon Disclosure Project (CDP) and Dow Jones Sustainability Indices (DJSI), demonstrating our commitment to transparency and responsible business practices.
Thus, we ensure that a systematic approach is employed to monitor the sustainability initiatives, utilising a variety of metrics and KPIs aligned with the overall strategic objectives of the organisation. Progress is regularly reported annually to all stakeholders through integrated reports, ensuring accountability and transparency.
The close interplay between various functions to foster value creation for a sustainable business, and robust oversight on the ESG risks has translated into positive ratings in ESG performance and risk rankings.
What are the sustainability goals: Milestones & metrics for FY 2025-26 that TCPL has in mind?
As part of our long-term roadmap towards 2030 and 2040, and our endeavour to make consistent progress and track it by way of milestones and metrics, we are committing to the following goals by FY 2025-26.
In terms of climate adaptation, Tata Consumer Products aims to achieve carbon neutrality on Scope 1 and Scope 2 across all geographies. We are scaling up our efforts to ensure that 35% of all our power requirements are met from renewable sources.
For a circular economy, we are committed to ensuring zero waste to landfill across our operations in all geographies. Additionally, we aim to have 70% of all our packaging materials be recyclable, compostable, or reusable worldwide.
Regarding people and community, we aspire to positively impact 1.75 million lives through our community initiatives. We are working towards having 100% of our operations ISO 45000 certified. Furthermore, we are striving to increase women’s participation in our global workforce to above 35%.
As a Tata Group company, we measure impact not in ratings or rupees, but in the millions of lives we are able to impact in society. This keeps us well aligned to the aspirations and expectations of our communities and other stakeholders while building a Sustainable Business.
As a step towards achieving our ambitions set for 2030/40, Tata Consumer released sustainability commitments for FY 2025-26. These goals reflect our continuous alignment with the aspirations and expectations of our communities and stakeholders, ensuring that our impact is measured not in ratings or rupees but in the millions of lives we positively influence.
(India CSR)
