Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Increased renewable energy share by 54% in three years
• Zero liquid discharge water treatment plants implemented to reduce carbon footprint
• Hazardous waste offset from landfills increased from 87% to 92%

Social Achievements

• Launched various employee well-being programs including mindfulness, yoga, and meditation sessions
• Implemented a grievance redressal mechanism for employees
• Spent ₹60.7 million on CSR activities

Governance Achievements

• Received Bronze medal in the 2021 EcoVadis Global Sustainability Assessments
• Implemented a robust Enterprise Risk Management (ERM) framework
• All manufacturing and R&D facilities certified with ISO 14001:2015, ISO 45001:2018, and ISO 50001:2018

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations
• Reducing water and energy consumption
• Achieving zero waste to landfill

Mitigation Strategies

• Implemented innovative measures to protect employees and mitigate business risks during the pandemic (shift working system, work clusters, RFID-tagged badges, touchless systems, Aragen-organized transport)
• Implemented various water conservation projects and initiatives
• Implemented various waste reduction initiatives

Supply Chain Management

Supplier Audits: Over 90% of critical suppliers audited annually

Responsible Procurement

• Aragen follows Global Pharmaceutical Industry Principles for Responsible Supply Chain Management (PSCI Principles)

Climate-Related Risks & Opportunities

Physical Risks

• Reduced quality and availability of raw water due to climate change

Reporting Standards

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

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

UN Sustainable Development Goals

• Not disclosed

Aragen has identified 6 SDGs as focus areas, but specific goals are not listed.

Sustainable Products & Innovation

• Green chemistry principles applied in product design to increase yield, reduce time cycle, number of stages, and reagents/chemicals.

Awards & Recognition

• Bronze medal in 2021 EcoVadis Global Sustainability Assessments
• Supply Chain Strategy Award at the 30th Inflection Conference
• International Safety Award from the British Safety Council
• Declared #1 firm in pharmaceutical manufacturing sector by CII Southern Region EHS Excellence Committee

Environmental Metrics

ESG Focus Areas

• Climate change
• Energy efficiency
• Water management
• Waste management
• Biodiversity
• Employee wellbeing
• Safety
• Diversity, equity, and inclusion
• Human capital management
• Stakeholder engagement
• Community engagement
• Corporate Governance
• Supply chain management
• Human rights

Environmental Achievements

• Renewable energy consumption increased from 3.2% in FY21 to 22.3% in FY23
• 21% reduction in GHG emission intensity (MTCO2e/MnR) in FY23 compared to base year FY21.
• 95.62% eco disposal index in FY23.
• Replaced coal with bio briquette as boiler fuel at Manufacturing - Hyderabad, resulting in 57% and 82% reduction in scope-1 GHG emissions of Unit-1 compared to FY22 respectively.
• Reduced hazardous waste generation.
• Recycled almost 95.62% hazardous waste in FY23.

Social Achievements

• Achieved 0.20 Total Recordable Injury Rate (TRIR) in FY23 as compared to 0.25 in FY22
• Increased average training hours per employee from 18 hours in FY22 to 25.6 hours in FY23.
• 20.5% female employees contributing to a diverse workforce
• Completed 30.76 million-man hours without lost time incident since 3rd July 2019
• Skill development center setup and run by Aragen by IICT Habsiguda, Telangana
• IDA Mallapur Park developed by Aragen, will be used by 30 neighbouring colonies for recreational purposes.
• Vaccination drives for industrial workforce
• Donated a fully equipped ambulance to Government of Telangana

Governance Achievements

• 100% of Aragen’s operations are assessed for risks related to corruption. No significant risks related to corruption identified.
• 100% of the Board of Directors have received training on anti-corruption.
• No confirmed incidents of corruption were reported during the last two years.
• Comprehensive set of guidelines that outlines commitment to preventing and addressing all forms of harassment.
• Prohibits discrimination against employees or job applicants based on certain protected characteristics.

Climate Goals & Targets

Environmental Challenges

• Climate risk (physical and transition risks)
• Financial risks (debt, increased environmental management expenditure, delayed payments)
• Supply chain risks (disruptions, supplier inability to manage risks)
• Technology risks (integration failures, data loss, compliance issues)
• Market risks (currency fluctuations, interest rates, inflation)
• Product quality risks (failure to meet regulatory expectations)
• Data security risks (cybersecurity breaches)
• Geopolitical risks (unstable political conditions)
• Legal and regulatory non-compliance
• Increasing competition
• Stakeholder dissatisfaction risk

Mitigation Strategies

• Decarbonizing operations, reducing GHG emissions, utilizing renewable energy
• Continuous benchmarking, operational excellence, cost optimization, M&A prioritization
• Supply reliability assessment, audits, development of secondary sources, advanced planning
• Establishing internal ‘Scientific Board’, partnering with universities, licensing tie-ups
• Internal financial controls, correct assessment of business, anticipatory planning
• Quality Management System (QMS)
• Extensive IT security systems and controls, business continuity plan
• Strengthening sales force, exploring opportunities in other regions
• Identifying & mapping compliance requirements, internal control framework
• Specialization, horizontal consolidation, vertical integration
• Periodical stakeholder engagement

Supply Chain Management

Supplier Audits: >90% of critical suppliers/vendors audited annually

Responsible Procurement

• Green Supply Chain Management (GSCM) policy
• Supplier code of conduct
• Supplier awareness sessions
• Incentivizing program for green champions

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Water scarcity
• Heat
• Sea level rise
• Severe weather events

Transition Risks

• Carbon pricing
• Regulatory frameworks
• Cost of and access to capital

Opportunities

• Decarbonizing operations
• Energy efficiency
• Green chemistry
• Low carbon technologies

Reporting Standards

Frameworks Used: GRI Standards 2021, UN Sustainable Development Goals (SDGs), Science Based Targets initiative (SBTi)

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

Third-party Assurance: TÜV India Private Limited

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 6 (Clean water and sanitation)
• Goal 13 (Climate action)
• Goal 8 (Decent work and economic growth)
• Goal 12 (Responsible consumption and production)
• Goal 4 (Quality education)
• Goal 3 (Good health and well-being)

Aragen's initiatives contribute to these goals through various environmental, social, and governance programs.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• CDP disclosure ratings
• Great Place to Work
• GreenCo Silver Rating
• Featured in CEO Insights Magazine
• Silver Medal in Sustainability Rating from Ecovadis
• CDP Water Security Rating: “B-“, CDP Climate Change Rating: “C”
• International Safety Award from the British Safety Council
• Global CSR Award
• Hero of the Year
• Best of Breed COVID champion award
• Procurement Team of the Year
• Digital Transformation Awards
• Best-in-class Supply Chain Sustainability

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• 37% reduction in Scope 1 GHG emissions by replacing coal with bio briquettes at Hyderabad manufacturing unit
• Renewable energy consumption increased from 3.2% in FY21 to 26% in FY24
• 98.4% Eco disposal index in FY24
• 66% reduction in Scope 1 GHG emission intensity compared to FY21
• 17.46% reduction in water withdrawal intensity compared to FY21
• 38% increase of recycle water quantity compared to FY21

Social Achievements

• Launched several programs under AWE (Accelerating Women Empowerment) initiative to foster a supportive and inclusive environment for women
• Increased average training hours per employee to 30
• Zero sexual harassment complaint
• Zero confirmed corruption cases reported

Governance Achievements

• Enhanced governance practices by fostering independent judgments on strategic areas through Board-level Committees
• Zero confirmed corruption cases reported
• Zero confirmed information security incidents reported
• Zero confirmed whistle-blower incident reported

Climate Goals & Targets

Environmental Challenges

• Slight downturn in economic performance due to recession in US & European market and reduced funding to small biotech companies
• Climate change presenting significant physical and financial risks
• Supply chain risks including disruptions and vulnerabilities
• Data security risks related to cybersecurity breaches and cyberattacks
• Technology risks related to uncertainties of transformational technologies and disruptions in critical systems
• Market risks including currency exchange rate fluctuations
• Product risks related to product quality and regulatory compliance
• Increasing competition in the industry
• Stakeholder dissatisfaction due to public scrutiny and unmet expectations
• Geopolitical risks including international and interstate political conflicts

Mitigation Strategies

• Decarbonizing operations, reducing GHG emissions, and utilizing renewable energy
• Allocating funds on energy efficiency, resource efficiency, green chemistry, and low-carbon technologies
• Continuous benchmarking with peer companies and operational excellence initiatives
• M&A prioritization based on strategic plan
• Detailed business case and synergy planning
• Sensitivity analysis for key business decisions
• Proactive cost management
• Forward-looking planning and monitoring
• Supply reliability assessment and audits
• Development of secondary sources for key materials
• Development of own solvent storage facility
• Vendor development for project-based requirements
• Extensive IT security systems and controls (ISO 27001:2022 certified)
• Business continuity plan
• Stress testing of systems and ethical hacking
• Standard Operating Procedures (SOPs)
• Cybersecurity training and awareness programs
• Confidential Disclosure Agreements (CDAs)
• Secure mobile and IT solutions
• Data privacy policies and compliance
• Incident response and recovery plan
• Secure data management practices
• Specialization in value chain segments and niche technologies
• Horizontal consolidation and vertical integration
• Acquiring business from big pharma companies
• Periodical stakeholder engagement and consultation
• Early involvement of operational team in project evaluation
• Establishing industry-leading project management group
• Strengthening sales force in key geographies
• Exploring opportunities in other regions
• Onshoring/near-shoring of emerging business
• Continuous audit of facilities
• Quality Management System (QMS)

Supply Chain Management

Supplier Audits: 183 in FY24

Responsible Procurement

• Supplier Code of Conduct
• Green Supply Chain Management (GSCM) checklist
• GSCM training programs
• Responsible Supply Chain Policy
• Risk Management

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Water scarcity
• Heat
• Sea level rise
• Severe weather events

Transition Risks

• Carbon pricing
• Regulatory frameworks
• Cost of and access to capital

Opportunities

• Development of energy-efficient products
• Transitioning to a low-carbon economy

Reporting Standards

Frameworks Used: GRI, SBTi, TCFD (planned adoption), UNGC, PSCI

Certifications: ISO 14001:2015, ISO 45001:2018, ISO 50001:2018, ISO 27001:2022

Third-party Assurance: Verifica Private Limited

UN Sustainable Development Goals

• SDG 3
• SDG 5
• SDG 8
• SDG 12
• SDG 13
• SDG 17

Aragen’s ESG vision is intricately aligned with the UN SDGs; specific targets and indicators are set to measure progress

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Silver Rating in EcoVadis Global Sustainability Assessment (2023 and 2022)
• Greenco silver rating from CII
• Listed as “ESG Warriors of India”
• International Safety Award from the British Safety Council
• CII Southern EHS Excellence Awards
• Green Leaf Platinum Award by Apex India Foundation
• Gold Award for Excellence in Supplier Relationship Management
• Gold Award in Sustainable Leadership Awards
• Gold Award in Excellence in Innovation & Creativity
• Recognized as Best Contract research organization