In response to the global push for sustainable business practices, Tata Consumer Products Ltd (TCPL) has significantly elevated its commitment, going beyond mere goal-setting to redefine corporate social responsibility. At the intersection of environmental awareness and corporate dedication, a vital question arises: Can a company authentically balance growth with an unwavering commitment to the planet and its people?
TCPL's recent sustainability milestones for FY 2025-26 directly confront this question, embodying an ongoing commitment to evolving corporate responsibility. The company is actively shifting its strategy toward sustainability, exemplified by an impressive 18% reduction in Scope 1+2 emissions and a reliance on renewables for 19% of its energy. These achievements are further solidified by the successful recharge of 314 million litres of water through Project Jalodari, spotlighting tangible environmental contributions.
Going beyond, TCPL has charted a course towards global carbon neutrality, setting an ambitious 35% renewable energy target and adopting a Zero Waste to Landfill policy. The company's commitment to social impact is equally commendable, with initiatives that have impacted 1.75 million individuals through community projects and elevated women's participation in the workforce above 35%. These figures encapsulate the company's decisive strides in reshaping its environmental and social impact.
In an exclusive interview with TheCSRUniverse, Mr. Tarun N P Varma, Global Chief Human Resources Officer, and Mr. Vishwa Bandhu Bhattacharya, Director of Sustainability, Tata Consumer Products, offer nuanced insights into TCPL's sustainability journey, emphasizing impactful CSR initiatives that positively affect beneficiaries, with a goal to reach 2 million by FY30. The discussion extends to TCPL's commitment to 'Better Sourcing, Better Planet, Better Communities, and Better Nutrition,' guiding responsible business practices. This includes innovative R&D for sustainable products, renewable energy endeavours, and collaborations with ETP, trustea, and Rainforest Alliance, emphasizing responsible sourcing. The interview also reveals insights into monitoring CSR impact and ensuring transparency in sustainability reporting.
Explore the full interview below for deeper insights into TCPL's sustainable journey and its potential future trajectories.
Q&A
Q.Could you provide an overview of TCPL's current sustainability efforts and key CSR initiatives, highlighting the most impactful projects and the long-term goals the company aims to achieve?
A. Sustainability is becoming one of the key deciding factors during a consumer’s buying journey and this trend is shaping how the FMCG industry evolves. At Tata Consumer, ESG is ingrained in the way we think and operate and is a core part of our culture. Our ESG agenda has evolved to become sharper and more integrated, as we set out to achieve our ambition of becoming a leading FMCG Company.
We are committed to growing our business in a responsible manner, respecting the environment and strengthening our sustainability efforts. We have made commitments across specific areas with the intent of laying out a clear roadmap to achieve our sustainability goals.
Our key long term commitments include:
• Net Zero across all geographies by 2040
• Water neutral across all operations by 2030
• Zero waste to landfill across all geographies by 2030
• 100% of packaging material to be recyclable, compostable, or reusable across all geographies by 2030
• 50% diverse workforce across all geographies by 2030
• Positively impacting 2 Mn beneficiaries through our community initiatives by 2030
• 100% sustainably sourced critical raw materials by 2040
A business is truly successful when it can create meaningful positive change and benefit communities. At Tata Consumer, we believe that shared prosperity is paramount, and we will continue to do our bit to build resilient communities. We have been focusing on environmental welfare and social progress for over a decade now.
Our CSR projects are based on 5 themes. 1) Affordable healthcare, 2) Empowerment of differently abled, 3) WaSH - Water, Sanitation & Hygiene, 4) Rural development, & 5) Education and Skilling.
Key CSR initiatives are as below:
• Under WaSH we have Project Jalodari at Assam and Himachal.
• Under Empowerment of differently abled we have Srishti and Swastha in Munnar and Coorg
• Under Rural development we have multiple projects in Mithapur
• Under affordable health care we have RHRC hospital in Assam
We have so far touched 1.25 million beneficiaries and aim to touch 1.75 million beneficiaries by FY26 and 2 million by FY30.
Q. How does TCPL integrate its ESG framework with the pillars of 'Better Sourcing, Better Planet, Better Communities, and Better Nutrition,'? How do these pillars shape and influence the company's overall CSR and sustainability strategy towards responsible and impactful business practices?
A. In our goal towards building a sustainable future, our ESG strategy is centred around ‘Better Living’, which encompasses the four pillars of ‘For Better’ — Sourcing, Planet, Communities and Nutrition. These span our business operations and the full spectrum of stakeholders.
Sourcing: We prioritize responsible sourcing practices that include working with organizations like Trustea, Rainforest Alliance and Ethical Tea Partnership to ensure that our sourcing is environmentally friendly, socially fair, and ethically sound. This ensures that our raw materials are sourced responsibly and meet the stringent environmental and social criteria of these standards.
Planet: We actively engage in reducing our environmental footprint, emphasizing resource efficiency, waste reduction, and the use of eco-friendly materials in our packaging. Our 'zero waste to landfill' practices in our beverage factories in India and adherence to Plastic Waste Management Rules exemplify our dedication to protecting the planet. We have committed to become Carbon Neutral for Scope 1 and 2 emissions by FY26. This reflects our consistent endeavour to employ green fuel and renewable energy in our operations. We have a target to source 35% of our electricity demand from renewable sources by FY26.
Communities: We aim to create shared long-term value for the communities in which we operate. We are strong believers in the Tata Group philosophy of giving back to the community and acknowledge the role played by communities in the growth of our business. Our CSR programmes are designed for the betterment of communities with focus on critical areas spanning healthcare, nutrition, water management, education, and skill development for vulnerable groups in the communities we operate in.
Nutrition: As a food and beverage company, we prioritize the quality of our offerings, ensuring they meet health and safety standards. This pillar also influences our product development, encouraging the creation of products that promote consumer health and nutrition.
These pillars serve as the foundation of our commitment to 'For Better,' guiding us in our journey to improve lives and communities while minimizing our environmental footprint and embracing ethical and sustainable sourcing practices. This holistic approach reinforces our dedication to responsible and impactful business practices that align with our 'Better Living' mission.
Q. Considering TCPL's past sustainability achievements, how was the company able to meet its previous targets, what were the primary strategies instrumental in achieving these milestones, and what were the key challenges and learnings derived from these experiences?
A. Good Governance forms the cornerstone of our business and we are constantly improving our policies and practices where needed.
At TCP, we stand ‘For Better’ — a reflection of our commitment of improvement by pushing boundaries and aiming for a better everyday for all stakeholders. Guided by a commitment toward a better tomorrow, we take a strategic approach to meet our environmental, social, and governance (ESG) goals. As a global F&B company, we are working consciously to reduce our impact on the product value chain, encourage sustainable livelihoods and be the consumer’s first choice.
While we focus on quality and delivering the best-in-class products, we also want to create shared long-term value for all our stakeholders and make them a part of our ESG journey. Guided by our six strategic pillars, and ‘For Better’ being the epicenter of everything we do, we are developing our ESG strategy which will enable us to strengthen our sustainability focus and embed it into core business operations.
Q. With the notable progress in renewable energy usage and the emergence of new options, what are some of the challenges and opportunities TCPL anticipates in further scaling up the use of renewable energy to fulfil 35% of the company's power requirements?
A. At Tata Consumer, we have put into practice several measures aimed at encouraging green energy sources, enhancing efficiency of existing machinery and processes, reducing the amount of energy we use, and certification to ISO 50001 as a framework for managing energy.
The main challenge we have is that our solar installation capacities have reached to the maximum potential possible basis the contracted demand. Due to operational viability few options like solar farming and buying solar energy are being explored. We believe the need of the hour is not just to keep a check on the increase in demand, but to also rationalise existing consumption and incorporate viable and economically feasible renewable sources in the energy mix.
Q. What specific measures and initiatives enabled TCPL to successfully reduce Scope 1+2 emissions by 18%? With what innovative strategies does TCPL plan to achieve its ambitious carbon neutrality goals by 2025-26?
A. We are aligning our GHG emissions targets with the larger Tata Group. We have been actively investing in solar energy to fulfil its our energy requirements. Our UK factory uses offsite solar power for its operations and has also installed a biomass boiler for reducing its GHG emissions. Our factories in India have also commissioned solar PV modules using the latest multi-crystalline technology. Also, several energy conservation measures have been implemented at our packeting centers, including new multitrack packing machines, LED lights, motor upgrades, among others which has helped us reduce our Scope 1 and 2 emissions.
Q. Can you share insights into TCPL's comprehensive approach to waste management, including the implementation of the Zero Waste to Landfill policy globally and any plans for the future replication of these practices across different geographies?
A. At TCPL, our commitment to sustainability extends to every facet of our operations. We implement the 3Rs approach - reduce, reuse, and recycle - for effective waste management across facilities. We also ensure that our packaging is fit-for-purpose and made from low-impact or recyclable materials. All beverage factories have achieved zero waste to landfill status, with all waste being disposed through authorized vendors who recycle or repurpose it to prevent it from reaching landfills. Under the Plastic Waste Management Rules in India, the company has implemented an Extended Producer Responsibility (EPR) Plan for the collection and reprocessing of 100% plastic packaging waste on a brand-neutral basis, furthering our commitment to environmental sustainability and waste reduction.
Q. Can you explain the key principles and actions behind "Project Jalodari" and its potential for replication and scalability in water-scarce areas?
A. Project Jalodari is executed by our implementation partner Himmothan. In 2001, the Sir Ratan Tata Trust (SRTT- Now Know as Tata Trusts) initiated the Himmothan Pariyojana (HMP) in Uttarakhand, to focus on causes of rural poverty in the Indian central Himalayan region. In 2004 this involvement was strengthened by a MoU signed between the state government of Uttarakhand and the SRTT for a period of 10 years, to collaboratively work on issues of rural development. In March 2014, the MoU was re-signed between the Uttarakhand Government and the SRTT for another 10-year period (2014-24). In 2007 the Trust set up the Himmotthan Society, Dehradun to consolidate and extend existing activities, to initiate work in the adjoining state of Himachal Pradesh, and to act as a nodal agency for the initiative. Improving community health through drinking water supply and sanitation is one of the key focus areas of the Himmothan Society, and it has carried out several projects within this initiative since 2002. .The drinking water supply and sanitation (WaSH).projects, with an added focus on hygiene, are being implemented through village-based water and sanitation committees, which plan, design, implement and manage their own schemes. Three Phases have been successfully completed, covered 129 villages, benefiting 7,000 households comprising 46,794 beneficiaries. .A total of 200 drinking water schemes, 573 Rain Water Harvesting Structures (RWHS).and 7,000 sanitation units were constructed.
Q. How does TCPL ensure that its supply chain partners adhere to similar sustainability and ethical standards, and what mechanisms are in place to promote responsible sourcing practices and support the overall sustainability goals of the company?
A. TCPL is one of the founding members of the Ethical Tea Partnership (ETP) internationally and of trustea in India, they ensure the welfare of small tea growers and address a spectrum of crucial issues within the tea industry. These issues encompass the improvement of working conditions, the health and safety of tea workers, tackling water pollution, enhancing food safety, combating soil erosion and contamination, addressing gender-related concerns, and mitigating the adverse effects of climate change.
The Ethical Tea Partnership (ETP) is a membership organization that collaborates with tea companies, development organizations, and governments to drive positive, long-term change across three thematic areas in the tea industry: economics, equality, and the environment. ETP operates on a global scale, supporting communities through various programs in Africa and Asia. TCPL, as a founding member, has a longstanding partnership with ETP, and we are proud to hold the SA 8000 (Social Accountability) certification. Furthermore, we expect our vendors to adhere to the principles and practices outlined in the SA 8000 standards, which encompass crucial aspects such as child labor, forced labor, health and safety, freedom of association and the right to collective bargaining, discrimination, disciplinary practices, working hours, remuneration, and management systems.
Additionally, TCPL is actively involved with trustea, an ISO 9001:2015 certified organization that operates within the ISEAL framework, driving sustainable agriculture practices for the benefit of the planet and farmers. This program has gained recognition as the world's largest sustainable agri-certification initiative and is transforming the Indian tea industry. It has significantly improved conditions for women in the workforce, enhanced market access and pricing for small tea growers, established a structured grievance redressal system, facilitated better housing, access to potable drinking water, and a uniform wage payment system for tea workers. Trustea has cumulatively verified more than 871 million kg of tea till March 2023, which accounts for over 65% of tea sold in the Indian market. Moreover, it has reached more than 1,10,085 small tea growers, impacting 6.6 lakhs workers.
In addition, TCPL sources Rainforest Alliance certified tea, which aligns with the Rainforest Alliance's mission to conserve biodiversity and support sustainable livelihoods. The Rainforest Alliance focuses on climate resilience, rural prosperity, forest and biodiversity protection, and the promotion of human rights.
TCPL's commitment to sustainability is evident in the fact that 55% of the tea we procure in India is trustea and Rain Forest Alliance certified, and internationally, 100% of the Tetley tea we source is Rain Forest Alliance certified.
Q. Could you share some insights into the innovative research and development initiatives that TCPL is undertaking to develop more sustainable products and packaging solutions, considering the evolving consumer preferences for eco-friendly and ethical goods?
A. “Pack-o-vation” – that’s what we call Packaging Innovation at Tata Consumer. We are driving packaging excellence across the foods and beverages portfolio, not just through consumer facing innovations but also by increasing focus on sustainability in packaging. Our R&D Division includes a specialised team that works on sustainable packaging and innovations, including reducing, optimising, replacing packaging materials with sustainable alternatives, and encouraging consumers to recycle packaging. International markets continue to work towards achieving 100% reusable recyclable or compostable packaging by 2025. In the UK, Tetley tea underwent a significant transformation with a superior blend, plant based tea bags, 100% green energy factory, and recyclable packaging. This is a step change in future-proofing the business and driving the sustainability agenda. In India, we are implementing recyclable packaging for Tata Salt and Tata Tea brands to eliminate the use of multi laminate packaging. We are also maximising the reuse of secondary packaging, resulting in efficient use of resources.
Q. In what ways does TCPL collaborate with other organizations, governments, or non-profits to promote sustainable practices and contribute to broader industry efforts towards environmental conservation and social development?
A. TCPL's sustainability strategy is closely intertwined with the overarching objectives of the group through Project Aalingana. Moreover, our association with the Tata Group grants us access to a wealth of knowledge, positioning us at the forefront of sustainable business practices and innovation.
We are one of the founding members of the Ethical Tea Partnership (ETP) internationally. Additionally, we source Rainforest Alliance certified tea- Tetley is 100% Rainforest Alliance certified. In India, we are one of the founding members of trustea. These organizations are committed to the welfare of small tea growers and address a wide range of critical issues. These include improving working conditions, ensuring the health and safety of tea workers, mitigating water pollution, enhancing food safety, combating soil erosion and contamination, addressing gender-related concerns, and tackling the adverse effects of climate change.
Our commitment to sustainable sourcing in the tea industry was recognized when we were honored with the CII Food Future Foundation (FFF) National Award for Sustainable Sourcing in 2020, a testament to our dedication to ethical and environmentally responsible practices in our sourcing efforts.
Q. What measures does TCPL have in place to monitor and evaluate the social impact of its CSR initiatives, and how does the company prioritize and assess the effectiveness of these programs in creating meaningful and lasting change in the communities it serves?
A. All our CSR projects undergo external assessment on a yearly basis. Various discussions with beneficiaries / stakeholders and on-site assessments are carried out to assess the actual impact of each project. The same is reported in the annual report as well as published as a stand-alone report on our company website for public consumption. Apart from this there are regular quarterly meetings for project reviews and updates. During these reviews and monthly on-site visits we identify unstated needs and new opportunities which are evaluated for inclusion in projects. These needs are verified by a Needs assessment to have a structured approach towards fulfilling them and supporting the communities.
Q. How does TCPL ensure transparency and accountability in its sustainability reporting practices, and what steps are being taken to align the company's reporting standards with global sustainability frameworks and benchmarks?
A. TCPL places a strong emphasis on transparency in reporting, implementing various measures to achieve this goal. We focus on standardizing reporting boundaries and employ digital data capture methods to ensure accuracy and efficiency in our reporting processes. Apart from that, we also undergo rigorous and independent 3rd party verification for our ESG performance to enhance the stakeholder confidence.
Moreover, we go the extra mile to align our reporting practices with global standards. We publish our Annual Report according to the International Integrated Reporting framework, demonstrating our commitment to international best practices in corporate reporting. Additionally, we conduct GRI (Global Reporting Initiative) Index mapping to ensure our disclosures meet global standards, positioning us as a company that values comprehensive, globally recognized reporting practices. This approach ensures that our stakeholders have access to comprehensive and meaningful information about our operations and performance.
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