How ITC Leads the Sustainability Charge with EVs

In a dynamic move towards sustainability, ITC, a titan in the FMCG industry, is spearheading a green logistics revolution. By embracing electric vehicles (EVs) for their last-mile operations, ITC is setting an inspiring example for traditional FMCG players worldwide.

Traditionally known for its legacy in tobacco and hospitality, ITC made a conscious shift towards sustainability decades ago. Today, they stand at the forefront of a global movement to infuse eco-friendliness into every facet of their business operations. Their introduction of electric vehicles is a pivotal step in this journey towards greening their value chain.

ITC’s EV focus

The FMCG behemoth is not merely jumping on the EV bandwagon; they’re accelerating it. ITC aims to more than double their use of EVs to cover over 75,000 trips in the fiscal year 2024. Currently, their EV program is operational in key cities across India, including Delhi, Kolkata, Bangalore, Mumbai, Hyderabad, Pune, Siliguri, and Patna. Over 30,000 trips annually are already being made through these EVs, and the program is steadily expanding.

What sets ITC’s initiative apart is its focus on last-mile deliveries. They recognise that smaller-sized EVs are the ideal solution for covering shorter travel distances, aligning perfectly with their vision of green logistics. It’s not just about saving money on fuel; it’s about reducing their carbon footprint and contributing to a cleaner, greener planet.

ITC’s Sustainability Agenda 

ITC’s vision is aligned with the government’s net-zero emission commitments and the Gati Shakti master plan, which promotes the use of green logistics. As part of its Sustainability 2.0 agenda, ITC aims to meet 50% of its total energy needs with renewable sources by 2030, with 43% already being met by renewables. Their commitment extends to optimising logistics across divisions, focusing on enhancing operational efficiency through better transportation routes, higher-capacity vehicles, and transitioning to lower-emission modes like rail, waterways, and sea routes.

ITC has strategically positioned its Integrated Consumer Goods Manufacturing and Logistics (ICML) facilities near their markets, allowing for direct shipments to customers. This strategic move streamlines logistics and significantly reduces the environmental impact.

To fulfil its EV vision, ITC is collaborating with various EV aggregators and original equipment manufacturers (OEMs) for their green logistics programs. This partnership not only reduces their carbon footprint but also enhances their cost competitiveness. Shifting to EVs translates into annual savings on fuel expenditure.

In a nutshell

ITC’s journey to green logistics is not just a corporate responsibility; it’s a significant stride towards sustainability that showcases how traditional FMCG players can adapt, innovate, and lead the way in greening the world of fast-moving consumer goods. As they scale up their green logistics efforts, they embody their bold and ambitious Sustainability 2.0 Vision, leaving an indelible mark on the industry and contributing to a greener and cleaner Earth.

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