Towards A Bigger, Better Tomorrow

"At Tata Consumer Products, we stand ‘For Better’— a reflection of our commitment to improvement by pushing boundaries and aiming for better every day for all stakeholders," says Sunil D’Souza, MD & CEO, Tata Consumer Products (TCPL).

With strong sustainability governance and emphasis on sustainable agriculture, TCPL has initiated several programmes in its drive towards a sustainable future. In FY22, about 24 per cent of renewable energy was used in the supply chains in India. The company also had a threefold increase in distributors as compared to the previous year and a fourfold increase in rural and semi-urban distributors as compared to the previous year. 

Almost 500 tonnes of plastic packaging was reduced through packaging (made from low-impact material) optimisation, and in the salt category 80 per cent recyclable laminate is used. Cent per cent of the company’s packaging vendors are compliant with sustainable sourcing norms and expected to deliver on social, ethical and environmental factors. This is ensured both through audits as well as contractual terms built into contracts. 

With a presence in over 40 countries, the FMCG company is the world's second-largest manufacturer and distributor of tea and a major producer of coffee. It has registered standalone revenues from operations of Rs 7,932 crore in FY22 and standalone profit after tax of Rs 886 crore. It also financed climate change vulnerability and risk assessment studies in tea-growing areas in India.  

"We believe that progress is not just about achieving numbers and metrics, but also about meeting the needs of all our stakeholders. Since we operate in the FMCG space, we have the opportunity to touch over 200 million households in India besides international markets like the US, UK, Europe, Canada, Middle East and Australia, through our brands," states D’Souza. 

Notably, the company’s Rainforest Alliance is aimed at conserving biodiversity and supporting sustainable livelihoods. The alliance has launched a new certification with a focus on building climate resilience, cultivating rural prosperity, protecting forests and biodiversity, and advancing human rights. 

As regards diversity and inclusion and employee wellness, the company has initiatives such as health insurance for the partners of employees of the LGBTQ+ community and the launch of the women’s inclusion network. In the previous year, nearly a third of all open positions for external hiring were filled by women. 

"We truly believe that in order to effectively connect and resonate with a diverse consumer base, it is crucial to embrace diversity within their workforce. We believe that leveraging the diversity of our employees, investing in their capabilities, and creating a culture that promotes a growth mindset is critical to achieving our aspiration of becoming a premier FMCG organisation," he asserts.

"We are working on improving women’s representation in our business, sensitising employees, and investing in policies and infrastructure to support a diverse workforce. Our diversity, equity, inclusion (DEI) framework encompasses four key elements -- strengthening the culture of inclusion, improving infrastructure, policies, and processes, continuous communication and enhancing the representation of women in our workforce," D’Souza adds. 

Challenges & Goals

Around the globe, sustainability is emerging as a crucial factor in consumers’ buying decisions and this trend is shaping businesses. It is also increasingly becoming a key consideration for all stakeholders, including shareholders, employees and business partners. "Guided by a commitment toward a better tomorrow, we are working consciously to reduce our impact on the product value chain, encourage sustainable livelihoods and be the consumer’s first choice," informs D’Souza.

D’Souza also believes embedding sustainability into the business strategy will help create better value for all stakeholders. His company's sustainability strategy draws upon learnings from various sources, including the UN’s Sustainable Development Goals (SDGs), materiality analysis conducted with a broad cross-section of stakeholders, industry trends, regulatory requirements and science-based targets. 

"These commitments are aligned to the Tata Group’s sustainability vision and goals under Project Aalingana which embodies the group's vision of protecting the planet and securing the future by innovating and acting today," says D’Souza. 

Collaboratively developed with group companies, Project Aalingana has been launched with sustainability commitments from seven Tata companies, including TCPL. With this project acting as ‘One Tata platform’, the company is aiming to make a positive impact on the environment, communities and the value chain.

Interestingly, the breadth of TCPL's operations presents challenges as well as opportunities for the company to create a positive impact on sustainability. Some of the key challenges in embedding sustainability across the value chain include creating shared awareness and commitment and making sure there is a well-defined roadmap that helps guide and track progress.   

"As a consumer-centric company, understanding evolving consumer needs is critical for us. Consumers are increasingly more aware of sustainability and are interested in knowing where the products they consume are sourced from," asserts D’Souza. 

The Strategy

In FY 2022-23, TCPL released its ESG report, which lays out its sustainability strategy to achieve net zero status, water neutrality, circular economy of plastics, diversity in the workforce, sustainable products, and sustainable sourcing, among others. 

Its sustainability strategy rests on the following — for a better planet, better communities, better sourcing, and better nutrition. D'Souza, however, thinks that the company has a long way to go but TCPL has already made some progress on these commitments.