Climate Change Data

Environmental Metrics

ESG Focus Areas

• Community Healthcare
• Sanitation & Hygiene
• Education & Knowledge Enhancement
• Social Care & Concern
• Environment, Health & Safety

Environmental Achievements

• Achieved major reduction in waste generation
• Utilization of waste as an alternative fuel
• Conservation of energy to reduce environmental impact
• Disposed-off more than 60% high calorific value hazardous waste for Co-processing / Pre-processing in cement industries
• Efforts to use canteen food waste and biological waste from ETP for generation of bio gas

Social Achievements

• Swadhar community healthcare facility renamed Sumangal and integrated into Rangtarang hospital complex
• Sumangal operates with enhanced scope including specialized consultations
• 1,00,311 patients benefited from Sumangal
• Donations amounting to ` 10.74 crores to various organisations
• Donated ` 20.00 crores to PM – CARES Fund

Governance Achievements

• Re-appointment of Shri Samir Mehta as Executive Chairman
• Appointment of Shri Jinesh Shah as Director and Whole-time Director
• All the recommendations of all the Committees were accepted by the Board

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to COVID-19 pandemic
• Downward pricing pressure from increasing competition
• Stringent government regulations and regulatory compliance leading to higher regulatory costs
• Potential API and generic shortages
• Postponement of new product launches due to COVID-19

Mitigation Strategies

• Risk mitigation plan including reduction on dependency on one region or country for input raw materials
• De-risking the product by developing capabilities to manufacture the product at different locations
• Embracing digitization in day to day operations and remote working
• Careful market research for selection of new products, detailed project planning and continuous monitoring
• Careful patent analysis prior to development & launch of the generic products and strategy of early settlement with the patent holders

Supply Chain Management

Responsible Procurement

• Suppliers Code of Conduct
• Evaluation of the EHS resources and their compliance by suppliers and vendors

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate change and energy management
• Emissions
• Waste and water management
• Employee engagement, safety and well-being
• Equality
• Ethics and business integrity
• Adherence to laws
• Information security
• Community development

Environmental Achievements

• CO2 emission reduction by 3%
• NOX emission reduction by 11%
• SOX emission reduction by 11%
• Waste disposal reduction by 1%
• Groundwater use reduction by 7%
• Over 55% of waste produced being recycled
• ~87% of water consumed being recycled

Social Achievements

• Impacted 71,000 lives through CSR programmes
• REACH initiative benefiting several villages
• Organised regular safety trainings and conduct audits to ensure a safe workplace for all
• Fostered a zero discrimination policy

Governance Achievements

• Strong Board oversight
• Robust internal controls
• Compliance management systems and continuous monitoring
• Independent assessments and audits

Climate Goals & Targets

Environmental Challenges

• Pandemic-induced uncertainties and related economic slowdown
• Lack of new approvals in the US due to pending re-inspection of facilities by USFDA
• Supply chain disruptions due to COVID-19
• Intensification of competition and threat of new entrants
• Price erosion
• Risk of price regulation
• Challenges and uncertainties inherent in innovation and development of new products
• Non-compliance with regulations
• Geo-political, economic and currency fluctuation risks

Mitigation Strategies

• Chronic-based business model, patient centricity and business continuity processes
• Upgrading quality systems at facilities
• Filing double-digit ANDAs every year
• Working on increasing cost competitiveness
• Continuous portfolio optimisation and various cost initiatives to sustain margins
• Strong governance mechanism based on ‘zero tolerance to non-compliance’
• Careful market research for selection of new products, detailed project planning and continuous monitoring
• Seeking suitable alliances with partners
• Foreign Exchange Risk Management policy
• Alternate sourcing, higher inventory levels, vertical manufacturing integration, digital interventions for remote working
• Alternate manufacturing sites
• Loan License Manufacturing (LLM) and P2P

Supply Chain Management

Responsible Procurement

• Supplier code of conduct
• Capability-building programmes for suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Integrated Reporting (IR) Framework of the International Integrated Reporting Council (IIRC)

Certifications: ISO 14001, ISO 45001, ISO 50001

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• 36% increase in renewable energy generation
• 48% water recycled
• 78% waste recycled
• 53% reduction in landfill waste disposal compared to previous year
• Reduced 21% Scope 1 and Scope 2 emissions from 2020 levels

Social Achievements

• Launched REACH program, extending to 1000 villages, screening 7,500+ malnourished children
• Provided hygiene kits to 14,000+ adolescent girls
• Launched Shiksha Setu Phase III to enhance primary education
• 4.86+ lakhs man-hour trainings conducted
• 85% employees upskilled

Governance Achievements

• Adopted a structured ESG framework & strategy based on international standards
• Implemented a robust vigil mechanism to report unethical behavior
• Established a Corporate Social Responsibility and Sustainability Committee

Climate Goals & Targets

Environmental Challenges

• Pricing pressures in the US base business
• Lack of new launches pending re-inspection of facilities by USFDA
• Intensification of competition in Germany
• Muted market growth recovery in Germany
• Supply chain disruptions

Mitigation Strategies

• Initiated cost optimization measures
• Completed CAPAs and submitted closure report to USFDA
• Strengthened cost and price competitiveness in Germany
• Developed alternate sourcing strategies
• Implemented various ‘business continuity’ measures

Supply Chain Management

Supplier Audits: 100% critical suppliers assessed on ESG Parameters

Responsible Procurement

• Supplier Code of Conduct
• ESG parameters integrated into supplier assessment

Climate-Related Risks & Opportunities

Opportunities

• Renewable energy
• Energy efficiency

Reporting Standards

Frameworks Used: GRI, SASB, UN SDGs

Certifications: ISO 14001:2015, ISO 45001:2018, ISO 50001

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 12
• Goal 13

Initiatives contribute to various SDGs through community healthcare, education, women's empowerment, environmental stewardship, and responsible business practices.

Sustainable Products & Innovation

• Biodegradable sanitary napkins
• Complex generics
• NDDS products

Environmental Metrics

ESG Focus Areas

• Sustainable practices
• Responsible resource management
• Shared value creation for stakeholders

Environmental Achievements

• 3.74% Reduction in Scope 1 and Scope 2 Emissions
• 6.3% Reduction in energy consumption
• 55% of total rainwater harvesting potential achieved
• Zero waste landfill at several facilities
• 64% of total waste generated being recycled

Social Achievements

• Contribution of ₹26 crores towards CSR initiatives
• 44,800+ children screened for malnourishment and anaemia
• 100% employees obtained training on health and safety
• 4,196 new employees onboarded
• Initiatives for women's health and sanitation
• Establishment of a dedicated hospital for children and adults providing free critical care services

Governance Achievements

• 100% Compliance to Code of Conduct, resulting in zero conflict of interest
• 6 out of 10 Board Members are Independent Directors
• 7 out of 10 are Non-Executive Directors

Climate Goals & Targets

Environmental Challenges

• Intense competition and threat of new entrants
• Commoditization of products
• Pricing control risks
• R&D risks
• Compliance risks
• Quality and product liability risks
• Risks of operating in overseas markets
• Business continuity risks
• Environmental, social, and governance risks
• Information technology risks

Mitigation Strategies

• Specialty-driven approach and building big brands
• Innovative products
• Portfolio optimization and cost initiatives
• Careful market research, project planning, and continuous monitoring
• Strong governance mechanism and zero tolerance for non-compliance
• Robust pharmacovigilance function
• Due diligence and hedging currency exposures
• Diversifying supplier base and alternative sourcing strategies
• Adopting a structured ESG framework and strategy
• Robust IT framework and information security policy

Supply Chain Management

Responsible Procurement

• Supplier sustainability requirements
• ESG factors considered in vendor selection

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Integrated Reporting Framework (IIRC), Global Reporting Initiatives (GRI), UN Sustainable Development Goals (UN SDGs)

Certifications: ISO 14001, ISO 45001, ISO 50001

Sustainable Products & Innovation

• Methylcobalamin nasal spray
• Various FDCs and NDDS initiatives

Environmental Metrics

ESG Focus Areas

• Product Quality and Safety
• Innovation: Strengthening R&D Pipeline
• Water and Wastewater Management
• Energy Efficiency and Renewable Energy
• Employee Engagement, Safety and Well-being
• Equality
• Ethics and Business Integrity
• Adherence to Laws

Environmental Achievements

• 24.3% Reduction in non-renewable energy consumption
• 1.70 MW Solar energy capacity installed
• 25.1% Reduction in carbon footprint
• 30.2% Share of renewable energy in total energy consumption
• 6,766 MT tonnes Waste recycled and reused

Social Achievements

• 649 Employees on-boarded (Net)
• 5.20+ Lacs Manhours of training imparted
• 100% Employees obtained training on health and safety
• 31,000+ children Screened through the medical camps
• 1,87,000+ OPDs Carried out across 11 centres

Governance Achievements

• 100% Compliance to Code of Conduct, resulting in zero conflict of interest

Climate Goals & Targets

Environmental Challenges

• Intense competition and threat of new entrants
• Regulatory agencies regulating prices
• Uncertainty of clinical outcomes, regulatory approvals, and commercial success in R&D
• Varying regulatory landscapes across geographies
• Geopolitical, economic, and currency fluctuation risks in overseas markets
• Evolving ESG risks
• Risk of loss or disclosure of trade secrets
• Potential disruption or failure of operations due to unexpected events

Mitigation Strategies

• Specialty-driven approach and building robust brands
• Innovative products in diverse dosage forms
• Continuous portfolio optimisation and cost initiatives
• Thorough market research, detailed project planning, and continuous monitoring in R&D
• Robust governance mechanism and zero tolerance for non-compliance
• Due diligence during new investments and hedging currency exposures
• Adopting a structured ESG framework and strategy
• Complete IT Framework with ISMS policies, multi-layer control mechanism, and vulnerability assessments

Supply Chain Management

Responsible Procurement

• Evaluation and selection of vendors based on EHS resources and compliance

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Integrated Reporting Framework, GRI, UN SDGs

Certifications: ISO 14001, ISO 45001, ISO 50001

Third-party Assurance: Grant Thornton Bharat LLP