This Corporate Social Responsibility ('CSR') Policy is framed in terms of the Companies Act, 2013 ('Act’) read with the Companies (Corporate Social Responsibility Policy) Rules, 2014.
Recognising that business enterprises are economic organs of society and draw on societal resources, it is the belief of ITC Hotels Limited (‘ITCHL’) that a company's performance must be measured by its Triple Bottom Line contribution towards building economic, social and environmental capital. ITCHL will integrate its social and environmental objectives with its business strategies.
While ITCHL may undertake any programmes, projects and activities ('CSR Programmes') falling within the purview of Schedule VII of the Act, the focus areas of CSR Programmes will be based on community needs, stakeholder values and societal requirements such as promoting education, skill development,
women empowerment, supporting rural development & tourism projects and protecting national heritage, art & culture.
ITCHL aims:
To develop the required capability and self-reliance of beneficiaries at the grass roots.
To engage in affirmative actions, interventions such as skill building and vocational training.
To pursue CSR Programmes primarily in areas that fall within the economic vicinity of the Company's operations to enable close supervision and ensure maximum developmental impact.
To support development needs in relevant local areas, upon requests by government / regulatory authorities, as may be considered appropriate.
To provide equal opportunities to beneficiaries of the CSR Programmes.
To promote sustainability in partnership with Hospitality Industry related fora and various industry associations.
The Company's CSR Programmes will be implemented (i) directly, or (ii) through external implementing agencies, or (iii) through Trusts, Societies, Foundations or Companies under Section 8 of the Act that may be established by the Company or otherwise as prescribed under the Act and rules made thereunder.
The Company may also collaborate with other companies for undertaking CSR Programmes in such a manner that the respective companies are in a position to report separately on the CSR Programmes being undertaken.
(a) The CSR and Sustainability Committee will review, monitor and provide strategic direction to the Company's CSR and sustainability practices towards fulfilling its Triple Bottom Line objectives. The CSR and Sustainability Committee will also guide the Company in integrating its social and environmental objectives with its business strategies.
(b) Every financial year, the CSR and Sustainability Committee will place for the approval of the Board of Directors of the Company ('Board'), an annual CSR Action Plan ('CSR Plan') delineating the CSR Programmes to be carried out during the financial year, including the budgets thereof, their manner of execution, implementation schedules, modalities of utilisation of funds, monitoring & reporting mechanisms, and the details of need and impact assessments, if any, for the CSR Programmes. The Board will consider and approve the CSR Plan with such modification(s) that may be deemed necessary; the CSR Plan may also be modified by the Board during the financial year, on the recommendation of the CSR and Sustainability Committee.
(c) The Strategic and Executive Management Committee (‘SEMC’) will assign the task of implementation of the CSR Plan within specified budgets and timeframes to such persons or bodies as it may deem fit, and ensure implementation thereof.
(d) The SEMC will form CSR & Sustainability Compliance Review Committee (‘CSR & SCRC Committee’) entrusted with the task of implementing and monitoring the approved CSR Programmes within the specified budgets and timeframes.
The CSR & SCRC Committee will provide reportback to the SEMC on the progress of the CSR Programmes at quarterly intervals, or at such other frequency as the SEMC may direct.
The aforesaid reportback will also include the following:
summary of impact assessment report(s), if required under the Act, for the CSR Programmes highlighting their impact and outcome against the goals and objectives; and
in case of ongoing CSR Programmes (having time schedule of three years or more), progress of their implementation with reference to approved timelines and year-wise allocation.
(e) The SEMC will review the reportback stated under (d) above and issue necessary directions from time to time to ensure orderly and efficient execution of the CSR Programmes in accordance with the Policy.
(f) Once in every six months, the SEMC will provide a reportback to the CSR and Sustainability Committee on the progress of implementation of the approved CSR Programmes carried out during the six-month period, covering details of achievement against planned deliverables for each intervention.
The aforesaid reportback will also include confirmation from the Chief Financial Officer that the funds disbursed for the CSR Programmes are being utilised for the stated purpose and in the specified manner.
(g) The CSR and Sustainability Committee will review the reportback stated under (f) above and keep the Board apprised, once in every six months, on the status of implementation of the CSR Programmes.
(h) At the end of every financial year, the CSR and Sustainability Committee will consider an Annual Report on CSR activities and recommend the same for the approval of the Board. The said Report will be disclosed as part of the Report of the Board of Directors & Management Discussion and Analysis of the Company ('Board's Report').
It will be the Company's endeavour to spend in every financial year, two percent of its average net profits during the three immediately preceding financial years (or such other limit as may be prescribed under the Act), on CSR Programmes in pursuance of the Policy. The CSR expenditure will include all expenditure, direct and indirect, incurred by the Company on CSR Programmes undertaken in accordance with the CSR Plan.
Any surplus arising from the CSR Programmes will be used for CSR activities within six months from the end of the relevant financial year. Accordingly, any income arising from CSR Programmes will be netted off from the CSR expenditure and such net amount will be reported as CSR expenditure.
If CSR expenditure in a financial year exceeds the statutory limit, such excess may be set-off against CSR expenditure for the immediate succeeding three financial years with the approval of the Board, on the recommendation of the CSR and Sustainability Committee.
The Policy will be posted on the Company's website www.itchotels.com and web link thereto will be disclosed in the Board's Report of the Company.
In the event of any inconsistency between the Policy and the applicable laws, the applicable laws will prevail. Any amendment(s), clarification(s), circular(s) etc. issued by the relevant authorities, not being consistent with the terms of the Policy, shall be deemed to have been incorporated in the Policy.
The Policy will be reviewed and / or modified by the Board as and when deemed necessary.
The Policy was approved by the Board on 31st December, 2024