Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Sustainability
• Social Sustainability
• Environmental Sustainability

Environmental Achievements

• Reduced energy consumption through process optimization, use of turbo foil agitators, LED lighting, and auto tube cleaning technology in heat exchangers.
• 25% of electricity requirements for Manufacturing Unit 1 projected to be met by solar power by the end of FY 2018-19.
• 25% of total water used is recycled.
• Zero reportable injuries and fatalities for both full-time and contractual workforce.

Social Achievements

• Certified as a 'Great Place to Work' in the Biotechnology, Pharmaceuticals & Healthcare sector in 2018.
• Spent over INR 43 million on community development activities.
• Provided integrated postgraduate course and internships to students, constructing a chemistry laboratory at Andhra University.
• Organized a mega science exhibition for high school students.

Governance Achievements

• Established processes and guidelines for risk management with oversight at Board and Senior Management levels.
• Implemented a Supplier Code of Conduct.
• Maintained a whistleblower policy.

Climate Goals & Targets

Environmental Challenges

• Industry downturn
• Competition in domestic and international markets
• Regulatory risks
• Lack of niche products and processes
• Inadequate capacity to meet customer demands

Mitigation Strategies

• Building economies of scale
• Strengthening customer relationships
• Cost improvement initiatives
• R&D initiatives
• Robust processes to monitor product trends and plant capacities

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: OHSAS 18001:2007, ISO 14001:2015

Awards & Recognition

• National Safety Award (2012, 2014)
• NSCI Safety Appreciation Certificate (2015)
• NSCI Safety Award (Level 4, 2016)
• 'Great Place to Work'

Environmental Metrics

ESG Focus Areas

• Economic Sustainability
• Social Sustainability
• Environmental Sustainability

Environmental Achievements

• Reduced raw material consumption and effluents by about 10% in two key products through yield-improvement programs.
• Increased solvent recovery by about 4–8% (equivalent to about 500,000 liters of recovered solvents).
• Increased recovery of the product from disposable mother liquors, increasing yields by about 15% and reducing effluent and energy consumption.
• Reduced solvent consumption in cleaning by about 80%.

Social Achievements

• Certified as a ‘Great Place to Work’ for the second consecutive year in 2019.
• Implemented comprehensive mechanisms to identify high-potential talent and provide opportunities for career progression.
• Conducted various training programs, knowledge-sharing sessions, and offsite training programs/seminars to ensure continuous learning for employees.
• Organized several interactive activities at schools to impart scientific knowledge in practical ways, including a mobile laboratory ('Science on Wheels').
• Donated 480,000 doses of Hydroxychloroquine (HCQ) tablets and ₹45 million in total contributions to help governments respond to Covid-19.

Governance Achievements

• Implemented a robust risk management and internal controls framework.
• Established clearly defined procedures that govern sustainability initiatives.
• Actively assessed, monitored, and mitigated potential risks through a specialized cross-functional team.
• Manufacturing practices designed to stay ahead of the curve in terms of emerging legislation, cGMP compliance, and innovations in the sector.

Climate Goals & Targets

Environmental Challenges

• Downturn in the industry
• Competition in domestic and international markets
• Highly regulated pharmaceutical business
• Lack of niche products and processes
• Inability to manage vendor-customer relationships
• Inadequate capacity
• Environmental, Health, and Safety regulations

Mitigation Strategies

• Building economies of scale, strengthening customer relationships, cost-improvement initiatives, R&D initiatives, efficient review mechanisms, robust processes to examine plant capacities, preventive maintenance, alterations to plant designs, process safety audits, safety culture programs, process safety programs, determining causes of incidents and developing remediation plans, continued training and awareness activities.

Supply Chain Management

Responsible Procurement

• Transparent procurement practices & assessment
• Abiding by all applicable laws
• Supplier evaluation based on sustainability criteria (quality, environment, financial status)
• About 95% of requirements met from more than one source
• About 30% of procurement done from within India

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI (Core Option), UN Sustainable Development Goals (SDGs)

Certifications: OHSAS 18001:2007, ISO 14001:2015

Awards & Recognition

• Porter Prize 2019
• National Safety Awards 2017
• Pharmexcil Outstanding Export Performance Award 2018-2019
• India Pharma Innovation of the Year Award
• Consistently retained a place in India’s Fortune 500 list since 2017
• Great Place to Work certification (2 consecutive years)

Environmental Metrics

ESG Focus Areas

• Occupational health and safety
• Product safety and quality
• Physical impacts of climate change
• Opportunities in clean tech
• Emissions
• Waste management
• Energy consumption
• Water management
• Resource consumption
• Product design and lifecycle
• Impact on biodiversity
• Stakeholder management
• Protection of human rights
• R&D Focus on innovation
• Community Engagement
• Responsible Pricing
• Supplier engagement and capacity building
• Diversity at workplace (gender, ethnicity, disability)
• Collective bargaining/freedom of association
• Fair and equal compensation
• Sourcing from local/small suppliers
• Capacity building of employees
• Development of competing drugs
• Product Labelling
• Cyber security
• Data privacy
• Responsible public policy advocacy
• Transparent ownership & legal holdings
• Tax transparency
• Focus on corporate governance
• Business integrity
• Promoting ethical behaviour
• Leadership, policy, and oversight on sustainability
• Transparency and reporting
• Zero tolerance for forced labour
• Effective board management
• Anti-fraud
• Regulatory compliance

Environmental Achievements

• Waste recycled: 2,273 MT
• Energy recycled: 172.8 TJ (from solar panels)
• Water consumed: 12,23,192 KL (with 11,914 KL reduction through improved processes)
• Yield improvements of 3%-10% in five different products, minimizing waste
• Significant reduction in GHG emissions through renewable energy programs and reduction in conventional energy sources
• Increased proportion of renewable energy (in units 1 and 3) from 2% to 13%

Social Achievements

• Launched 'Spandana' program supporting COVID-19 impacted employees and their families
• Donated medicines and safety kits to PM CARES Fund and CM Relief Fund
• Provided 18 days of paid leave to COVID-impacted employees
• Granted COVID-19 hardship bonus to all employees
• 90% retention rate for female colleagues who took parental leave
• 98% retention rate for male colleagues who took paternity leave
• 99,000 total man-hours of training
• CSR expenditure: INR 5.82 Crore
• Supported 10+ Organizations/NGOs, 5000+ Families, 4000+ Students, and 10+ Hospitals

Governance Achievements

• Zero incidents of non-compliance with regulations
• 50% Independent directors on Board
• Robust corporate governance framework implemented
• Five board committees functioning efficiently
• Zero whistle-blower and sexual harassment cases

Climate Goals & Targets

Environmental Challenges

• Industry risks (bans on goods, demand fluctuations, price changes)
• Competition risk
• Regulatory risk
• Innovation risk
• Operating risk (natural catastrophes, pandemics)
• Capacity planning and optimization risk
• Financial risk (currency volatility, liquidity contractions)
• Environmental and climate-related risks
• Supply chain disruptions due to COVID-19

Mitigation Strategies

• Business continuity strategy to reduce procurement, production, and distribution process risks
• Economies of scale in manufacturing, distribution, and procurement to maintain cost advantage
• Improved review mechanism to ensure regulatory compliance
• Strong R&D capabilities and proven track record
• De-risking vendor strategy based on country risk and single-source perspective
• Currency hedging plan
• Increased focus on energy sustainability and process safety audits
• Increased inventory levels, expedited material movement, customs clearances, strategic vendor partnerships, and development of alternative domestic sources

Supply Chain Management

Responsible Procurement

• Sustainable procurement policy
• Periodic assessment of key vendors
• Compliance with environmental, social, and ethical standards
• Supplier code of conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IIRC Integrated Reporting Framework, GRI Standards, NVG on Social, Environmental and Economic responsibilities, UN Sustainable Development Goals (UN SDGs), SASB, MSCI ESG

Certifications: ISO 14001:2015 (Environmental Management System), ISO 45001:2018 (Occupational health and Safety Assessment system)

Sustainable Products & Innovation

• New green catalyst replacing expensive precious metal catalyst
• Novel approach to scale high-pressure hydrogenation process using low-pressure autoclave

Awards & Recognition

• Golden Peacock Award
• Golden Peacock Award for Excellence in Corporate Governance
• India Pharma Leader Award
• Most Promising Company of the Year Award
• Great Place to Work® certification (3 consecutive years)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced waste by recycling 2,273 MT
• Ensured all effluents are treated properly before release
• Improved yields by 3%-10% in five products, resulting in long-term cost and ecological benefits
• Manufacturing facilities certified under OHSAS 18001:2007 and ISO 14001:2015

Social Achievements

• Certified as a Great Place to Work for the third consecutive time
• Implemented skill-based and behavioral safety training
• Established MoUs with Krishna University and Gitam University for student training and employment
• Installed safe drinking water plants in Munnaluru and Dibbapalem villages
• Organized ‘Science on Wheels’ mobile laboratory program
• Donated to ‘Nadu-Nedu’ education infrastructure initiative
• Supported Telangana and Andhra Pradesh governments in COVID-19 relief efforts

Governance Achievements

• Won the Golden Peacock Award for Excellence in Corporate Governance 2020
• Board comprises an optimal combination of Independent, Non-Executive, and Executive Directors
• Established a Risk Management Committee

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on operations and supply chains
• Industry downturn risk
• Competition risk
• Regulatory risk
• Innovation risk
• Operating risk
• Capacity planning and optimization risk
• Financial risk (currency fluctuations)
• Environmental, health, and safety risks

Mitigation Strategies

• Focused execution on managing manufacturing and supply chain
• Set up a dedicated team to assess liquidity position
• Implemented precautionary measures for employee safety
• Building economies of scale
• Strengthening customer relationships
• Cost-improvement initiatives
• R&D initiatives
• Robust currency hedging strategy
• Process safety audits
• Safety culture program
• Process safety program
• Continued training and awareness activities

Supply Chain Management

Responsible Procurement

• Transparent procurement practices

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: OHSAS 18001:2007, ISO 14001:2015

Awards & Recognition

• Golden Peacock Award for Excellence in Corporate Governance 2020
• India Pharma Leader Award
• Most Promising Company of the Year (CNBC-TV18)

Environmental Metrics

ESG Focus Areas

• Education
• Healthcare
• Environment
• Sports
• Rural Development

Environmental Achievements

• Maintenance of Gardens at Tirumala
• Support to ICRISAT for Agriculture

Social Achievements

• Renovation and maintenance of Government schools in AP and Telangana
• Support to Universities in AP
• Maintenance support for Sparsh Hospice Centre in Hyderabad
• Building of OPD Block for LV Prasad Eye Institute in Vizag
• Support to Hrudaya Foundation (Star Hospitals) for Children heart operations
• Support to Society for aid hearing
• Support to promote sports
• Enhancement of fundamental infrastructure elements such as roads, electricity, water supply, and sanitation

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: OECD DAC Evaluation Criteria

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Laurus acknowledges the relevance and critical importance of the 17 SDGs

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Product safety
• Ownership and control
• Waste management and circularity
• Leadership policy and oversight on sustainability
• Tax transparency and labeling
• Protection of human rights
• Occupational health and safety

Environmental Achievements

• 16,640 MT Hazardous waste recycled
• 5.36 MT Non-hazardous waste recycled
• 880 MWh Total renewable energy consumed
• Conducted the first physical climate risk assessment on all its facilities
• Commenced scope 3 emissions accounting across all its units

Social Achievements

• Awarded ‘Great place to work’ for the fourth consecutive year
• CSR expenditure of INR 11.7 Crore
• 0 Lost Time Injury Frequency Rate (LTIFR)
• 64,337 Total man-hours of training

Governance Achievements

• 50% Independent directors on Board
• Improved tax planning with segment analysis

Climate Goals & Targets

Environmental Challenges

• Industry risk
• Regulatory risk
• Competition risk
• Sectoral and market downturns
• Innovation risk
• Financial risks
• Capacity optimization risk
• Operational risk

Mitigation Strategies

• Strengthening and promoting a safety culture program and awareness across the company
• Conducting periodic audits in high-risk sites
• Implementing a business continuity plan to minimize risks
• Improving compliance/regulatory requirements review mechanism
• Building economies of scale in manufacturing, distribution and procurement to maintain cost advantage
• Strengthening long-term relationships with key customers by offering better quality and service know-how
• Introducing cost-improvement initiatives and enhancing manufacturing efficiency at plants
• Undertaking R&D initiatives, focusing on optimizing raw material consumption and increasing manufacturing capability
• Implementing a strong currency hedging plan/strategy and periodically evaluating derivatives to address risks
• Tracking trends and horizon scanning to keep up with the market and deliver and satisfy customer needs
• Implementing plans to ensure plant capacities meet market expectations
• Process optimization and improving efficiency to reduce production-related risks such as plant malfunctions
• Stabilizing vendor risks and challenges by the implementation of action plans
• Forging long-term partnerships with regional and global pharmaceutical companies to ensure revenue visibility

Supply Chain Management

Supplier Audits: 64 vendors evaluated on sustainability criteria

Responsible Procurement

• Supplier code of conduct
• Sustainable supply chain questionnaire

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Natural disasters
• Flooding
• Heat waves
• Water stress
• Sea level rise
• Increased precipitation

Reporting Standards

Frameworks Used: IIRC Integrated Reporting Framework, GRI Universal Standards, UN Sustainable Development Goals (UN SDGs), Science Based Targets initiative (SBTi)

Certifications: ISO 9001-2015, ISO 14001-2015, ISO 45001-2018

Awards & Recognition

• E&Y, Entrepreneur of the Year 2021
• Economic Times ‘Corporate Excellence Awards’
• Business Today’s India’s Best CEO, Pharma & Health Care
• Honorary doctorate degree from Vignan University
• Forbes Billionaires ranks
• India’s Best Leaders in Times of Crisis 2021
• HR Leader Award
• Golden Peacock Award for Excellence in Corporate Governance
• India Pharma Leader Award
• Most Promising Company of the Year
• Emerging Company of the Year 2021

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Social Responsibility
• Ethical Governance

Environmental Achievements

• 40.02% reduction in scope 1 & scope 2 emission intensity by 2019-20 levels
• 123,514 GJ renewable energy consumption
• 21,900 KL of water recycled
• 50% waste utilized for coprocessing in cement kilns
• 100% sites ISO 14001 and ISO 50001 certified

Social Achievements

• 1,045 New employee hires
• INR 17.9 crore Investment in community and social projects
• 0.23 Lost Time Injury Rate
• Great place to work certified for the 4th Consecutive year
• 100% employees trained on code of conduct and ethics

Governance Achievements

• Zero cases of unethical business practices against the company
• Zero class I and class II Product Recalls
• ESG score as per S&P Global’s CSA rose to 43 from 13 in 2021
• Silver Medal by EcoVadis for sustainability initiatives
• 100% sites are CGMP compliant

Climate Goals & Targets

Environmental Challenges

• Relentless pricing pressures in ARV business
• Inflationary effects on expenses
• Upfront costs associated with new production facilities
• EHS incidents
• Industry and market downturns
• Rapidly changing regulatory environment
• Increased price competition
• Inability to meet dynamic customer needs
• Foreign exchange rate fluctuations
• Geopolitical crises
• Weaponisation of Generative AI
• AMR

Mitigation Strategies

• Increased focus on sustainable energy
• Strengthening and promoting a safety culture
• Analysing industry trends and periodic horizon scanning
• Implementing a business continuity plan
• Improving compliance/regulatory requirements review mechanism
• Building economies of scale
• Strengthening customer relationships
• Introducing cost improvement initiatives
• Implementing a strong currency hedging plan
• Maintaining strategic partnerships
• Robust cybersecurity measures
• Data privacy regulations
• Cybersecurity awareness

Supply Chain Management

Supplier Audits: 1558 Tier 1 suppliers assessed

Responsible Procurement

• Sustainable Procurement Policy
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Sea level rise
• Increased precipitation
• Flooding
• Rise in temperature
• Heat waves
• Water stress
• Increased relative humidity

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Renewable energy investments

Reporting Standards

Frameworks Used: IIRC Framework, GRI Standards

Certifications: ISO 14001, ISO 50001, ISO 9001-2015, ISO 45001:2018

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 7: Affordable and Clean Energy
• Goal 9: Industry, Innovation and Infrastructure
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action

Initiatives contributing to these goals are described throughout the report

Sustainable Products & Innovation

• Orally Disintegrating Films (ODFs)
• Stable Trientine HCl

Awards & Recognition

• CII EHS Excellence Awards
• OSH India Award
• EcoVadis Silver Medal
• Fortune India – Best CEOs of Year 2022

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Safety
• Sustainability

Environmental Achievements

• Carbon Emission Intensity (FY23 vs. 22 per Revenue): 6% reduction
• Water Intensity (FY23 vs. 22 per Revenue): 14% reduction
• 4% Energy from Renewable sources
• 77% of hazardous waste recycled / co-processed
• Swapped fuel-based vehicles with E-vehicles
• Installed VFDs across sites to regulate energy consumption

Social Achievements

• Launched “SANKALP” to Enhance Organizational Safety Excellence
• Consistently Certified Great Place to Work

Governance Achievements

• Rated “BBB” by leading MSCI ESG Ratings
• FY 2023 Integrated report published highlighting enhanced sustainability strategy and commitments
• Double materiality assessment introduced (aligned with GRI, SASB)

Climate Goals & Targets

Environmental Challenges

• Pricing Headwinds in ARV APIs and FDF

Mitigation Strategies

• Growth in existing and new CMO contracts (Diabetic & CV portfolio) across key markets
• Key product approvals and better visibility in ARV business
• Ramp-up of new capacity implemented

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: ISO 50001:2018