Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment, Health and Safety
• Corporate Social Responsibility
• Antimicrobial Resistance (AMR)

Environmental Achievements

• Augmented wastewater treatment capacities at two major API manufacturing facilities; added Membrane Bio-Reactor (MBR) technology for better wastewater treatment.
• Planted 10,000+ saplings of indigenous plants.
• Received SA 8000 accreditation for two formulations manufacturing facilities.

Social Achievements

• CSR initiatives touched the lives of 50,000+ students and 67,000 families.
• Invested in building social assets such as schools, hospitals, and toilets.
• Provided basic amenities such as safe drinking water and nutritious food to various communities.

Governance Achievements

• Adopted an amended Code of Conduct to regulate, monitor, and report trading by Designated Persons and their Immediate Relatives.
• Established a Whistle Blower Policy.
• Constituted an Internal Complaints Committee in compliance with the Sexual Harassment of Women at Workplace Act, 2013.

Climate Goals & Targets

Environmental Challenges

• Increased competition in the pharmaceutical industry.
• Pricing pressures for generics in the US market.
• Unfavorable changes in laws and regulations.
• Dependency on China for raw material import.
• Regulatory compliance risks.
• Patent protection risks.
• Environmental, Health and Safety (EHS) risks.
• Cybersecurity risks.

Mitigation Strategies

• Strategic acquisitions to expand market presence and diversify product portfolio.
• Cost optimization through process improvements and vertical integration.
• Timely product launches to build market share.
• De-risking global procurement and ensuring timely services to customers.
• Strengthening systems and controls to monitor and upgrade registrations.
• Robust quality systems and control measures.
• Investing in upgrading environmental facilities and implementing best practices.
• Robust IT controls, disaster recovery site, and cybersecurity measures.
• Developing a robust M&A process with due diligence and integration planning.

Supply Chain Management

Responsible Procurement

• Strict sourcing code of conduct; evaluation of EHS resources and compliance of key suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: National Voluntary Guidelines (NVGs)

Certifications: ISO 14001:2015 (9 units certified), SA 8000 (2 facilities)

Awards & Recognition

• IP Excellence in INDIA 2018
• Best CSR Practices in Responsible Business Awards
• Outstanding Export Award for FY2017-18
• INDIASTAR - 2017
• HR Best Practices Awards-2018
• Certificate of Achievement from BML Munjal Awards
• HR Frame award
• Certificate of merit in ‘Top 7 Rising Stars of HR Competition’
• IDMA Best API Patents Award 2017-18

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced carbon emissions by implementing energy conservation projects (details in report)
• Avoided 13,280 tonnes of carbon emissions through energy conservation initiatives
• Generated 4000 MWh solar energy, avoiding 32,000 tonnes of CO2e emissions
• Generated 13,000 GJ of energy using biomass/briquettes, eliminating 1,300 tonnes of CO2e emissions
• Increased export shipments by sea to reduce carbon footprint

Social Achievements

• Launched various employee well-being programs including medical webinars, counselling, and remote work options
• Made monetary and non-monetary contributions to COVID-19 relief efforts
• Improved gender diversity through a Diversity Management Programme
• Implemented Pink Packing Lines managed by women
• Various employee training programs (Quality Marshal, Value Champions, Leadership at its Best, Nalanda, TWI-JI, Operators Skill Development Programme, Aurobindo Technical Training and Development Centre)

Governance Achievements

• Established a robust Enterprise Risk Management (ERM) framework
• Implemented a Whistle Blower Policy
• Established a policy and framework for reporting sexual harassment cases
• Conducted regular awareness programs on prevention of sexual harassment
• Adopted an amended Code of Conduct to regulate insider trading

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting supply chains, logistics, production, demand, and sales volumes
• High dependency on China for raw material imports
• Pricing pressures in the generic drug market
• Competition from other pharmaceutical companies
• Regulatory compliance challenges

Mitigation Strategies

• Developed alternative sourcing strategies for raw materials
• Implemented a business continuity plan for COVID-19
• Improved inventory management and logistics
• Negotiation tactics to manage pricing pressures
• Investing in R&D for innovative products
• Strengthening compliance systems and controls
• De-risking of single sourced material and reducing geographical concentration risk

Supply Chain Management

Responsible Procurement

• Standard Operating Procedure for vendor selection and approval
• Evaluating EHS resources, developing long-term supplier partnerships, vendor development and compliance of key suppliers and vendors for key raw material intermediates and API sourcing

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: National Voluntary Guidelines (NVGs)

Certifications: ISO 14001:2015 (14 units)

Awards & Recognition

• Best Innovative Packaging Award
• Gold Medal from Andhra Pradesh Governor
• INDIAPACK-2018 awards
• 14th National BML Munjal Award
• Special Commendation Award in Golden Peacock Environmental Management Awards
• Best Energy Efficient Organization

Environmental Metrics

ESG Focus Areas

• Responsible Manufacturing
• Sustainable Sourcing
• Social Equity
• Access to Healthcare
• Effective Governance
• Corporate Social Responsibility

Environmental Achievements

• Reduced carbon footprint by 5.5% compared to FY20 (52,725 tCO2e reduction)
• Reduced energy consumption by 3,38,332 GJ compared to FY20
• Recycled and reused 2,73,815 kl of water
• Avoided 13,883 tCO2e emissions by substituting coal with biomass
• Avoided 13,117 tCO2e emissions from steam recovery
• Avoided 12,079 tCO2e emissions by shifting shipments from air to sea
• Avoided 2,16,706 tCO2e emissions through solvent recovery
• Planted over 60,000 trees, sequestering 14,439 tCO2e
• Generated ~40,000 MWh of solar electricity

Social Achievements

• Launched a ‘Diversity Management Programme’ to improve diversity and inclusion
• Implemented AMFORI BSCI in select units
• Rolled out OECD-aligned SA8000 in select units
• Implemented various employee wellbeing programs (WoW, Disha Counselling)
• CSR programs benefitted 9.24 lakh individuals
• Provided COVID-19 relief to over 6,63,463 individuals

Governance Achievements

• Established a Sustainability Council to oversee implementation of the Sustainability Framework
• Established a robust Enterprise Risk Management (ERM) framework
• Implemented various policies (CSR, Board Diversity, Whistleblower, etc.)

Climate Goals & Targets

Environmental Challenges

• Increasing energy costs
• Location-specific water stress
• Groundwater depletion
• Dynamic regulatory landscape
• Health risks associated with AMR
• Supply chain disruptions due to COVID-19
• Competition
• Regulatory compliance
• EHS risks
• Intellectual property protection
• Financial risks
• People-related risks
• IT and cybersecurity risks

Mitigation Strategies

• Strategic plan to become carbon neutral/positive
• Implementation of solar rooftop projects and carbon offset programs
• Execution of water conservation programs (rainwater harvesting)
• Strengthening water reuse and recycle
• Strategic collaboration to combat AMR
• Proactive management of COVID-19 risks through strategic mitigation efforts
• Diversified product basket and consistent product launches
• Enterprise Risk Management (ERM) framework
• Various policies and procedures
• Continuous efforts to ensure ZERO reportable incidents across operations
• Supplier assessment program covering ESG aspects
• Formulating Supplier Code of Conduct

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• SA 8000 audits
• ESG performance evaluation of key raw material suppliers

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001:2015 (14 units)

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 5: Gender Equality
• Goal 6: Clean Water and Sanitation
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 10: Reduced Inequalities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 16: Peace, Justice and Strong Institutions
• Goal 17: Partnerships for the Goals

Aurobindo Pharma's sustainability strategy is aligned with the UN SDGs, with initiatives contributing to various goals across its six sustainability pillars.

Awards & Recognition

• Energy Efficient Unit (CII National Award for Excellence in Energy Management)
• Best Employer Award (Promoting Health in the workplace, Innovative HR Practices)
• 3 awards at India Packaging Award-2020
• Telangana CSR Leadership Awards 2020
• Special Commendation Award in Golden Peacock Environmental Management Awards 2019
• Gold Medal from the Governor of Andhra Pradesh
• 14th National BML Munjal Award for Business Excellence

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• 1.2% Reduction in energy consumption (75,612 GJ reduction compared to FY21)
• 10% Reduction in carbon emissions against target of 12% Reduction from baseline year FY20 (97,211 tCO2e from baseline year)
• 31% Treated wastewater / re-used (298,804 KL)
• 7% Renewable energy used in operations against target of 20% (155,545 GJ)
• 43,000 MWh of solar energy generated and consumed

Social Achievements

• 9% Women in workforce
• 8.64 lakh Lives impacted through CSR interventions
• Various programmes for employee development (Sankarman, Sarathi, Quality Marshal, Nalanda, TWI, ATDC, Kaizen, Udgam, SLD)

Governance Achievements

• 44% Of the Board comprises Independent Directors, of which two are women

Climate Goals & Targets

Environmental Challenges

• Commodity price volatility significantly affected margins and profitability
• Increasing competition on pricing of formulations vis-à-vis unprecedented rise in input materials
• Overdependence on raw material procurement, input prices and logistical performance
• Supply chain difficulties faced this year with sourcing from China

Mitigation Strategies

• Diversified spread of product portfolio and vast number of markets minimized negative impact
• Developing new markets, balancing domestic and global demand
• Moderating impact over time by driving injectables business and biosimilars portfolio growth
• Leveraging the PLI schemes
• Expanding China operations
• Diversified sourcing base and import substitution

Supply Chain Management

Supplier Audits: 45% New supplies screened on environmental criteria

Responsible Procurement

• EHS Policy
• POSH policy
• Sourcing Code of Conduct

Climate-Related Risks & Opportunities

Awards & Recognition

• Excellence in Business Partnering, Economic Times Human Capital Awards
• Significant Achievement in HR Excellence, 12th CII National HR Excellence Award
• Transformance Forums “HR Innovation & Tech Fest 2021” winner
• Golden Peacock Occupational Health & Safety Award – 2021

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Management
• Waste Management
• Renewable Energy
• Diversity & Inclusion
• Employee Well-being
• Corporate Social Responsibility
• Supply Chain Sustainability
• Regulatory Compliance
• Human Rights

Environmental Achievements

• Reduced carbon emissions by 17% from baseline year FY20 (exceeding 2025 target)
• 62% of hazardous waste sent for co-processing (exceeding 2025 target)
• 29% reuse of treated wastewater
• ~12% utilization of renewable energy in operations

Social Achievements

• Launched various CSR initiatives impacting 7.38 lakh lives
• Implemented Diversity Management Programme, achieving 12% women in the workforce
• Implemented comprehensive Performance Management System (PMS) and reward and recognition programs
• Zero fatalities and 0.02 LTIFR

Governance Achievements

• 50% of the Board comprises Independent Directors, of whom 2 are women
• Established a three-tier sustainability governance model
• Implemented a comprehensive Code of Conduct and Whistleblower Policy
• Successfully completed US FDA audits for Unit VII and Unit XI

Climate Goals & Targets

Environmental Challenges

• Challenging macro environment and intense industry competition
• Price erosion in US generics business and high input price inflation
• Supply chain disruptions
• Water scarcity in some locations
• Antimicrobial resistance (AMR)
• Regulatory compliance in various markets
• Competition risks
• Pricing pressures
• Market risks (concentration in US and Europe)
• Patent protection risks
• Financial risks (currency fluctuations, interest rates, liquidity, credit)
• People risks (high attrition rates, labor unrest)
• Information technology (IT) and cyber security risks

Mitigation Strategies

• Implemented initiatives to enhance efficiency and offset margin pressures
• Transferred API business to Apitoria Pharma Pvt. Ltd.
• Developed alternative sourcing strategies for raw materials
• Implemented water conservation programmes and rainwater harvesting
• Implemented wastewater treatment measures
• Collaborated with AMR Industry Alliance
• Established robust quality systems and compliance measures
• Leveraged R&D capabilities to develop new products
• Diversified product portfolio and geographic presence
• Implemented robust IP protection strategies
• Implemented a robust risk governance framework
• Implemented comprehensive HR strategies for talent acquisition, development, and retention
• Upgraded IT infrastructure and implemented cybersecurity measures

Supply Chain Management

Supplier Audits: 50% of key starting material suppliers in India assessed on Supplier Code of Conduct in FY23

Responsible Procurement

• Supplier Code of Conduct
• ESG aspects incorporated into supplier evaluation
• Prioritising local sourcing

Climate-Related Risks & Opportunities

Opportunities

• Renewable energy transition
• Green fuels
• Carbon sequestration

Reporting Standards

Frameworks Used: Integrated Reporting (IR) Framework, Science Based Targets initiative (SBTi), Pharmaceutical Supply Chain Initiative (PSCI), AMR Industry Alliance

Certifications: SA 8000, ISO 14001:2015, ISO 9001:2015

Awards & Recognition

• Significant Achievement in HR Excellence, 13th CII National HR Excellence Award, 2022
• Excellence in Business Partnering, Economic Times Human Capital Awards, 2022
• IKON Talent Acquisition Awards – HR Guru, 2022
• “L&D Excellence” and “Best L&D Team ” in 12th Edition Learning and development Summit & Awards 2023
• “23rd National Award for Excellence in Energy Management 2022”