Climate Change Data

Hetero Labs Ltd., Hetero Drugs Ltd., Hetero Biopharma Ltd., Annora Pharma Private Ltd., Aspiro Pharma Ltd.

Climate Impact & Sustainability Data (2019-04 to 2020-03, 2021-04 to 2022-03, 2022-04 to 2023-03)

Reporting Period: 2019-04 to 2020-03

Environmental Metrics

Total Carbon Emissions:402399 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:236347 tCO2e/year
Scope 2 Emissions:166052 tCO2e/year
Renewable Energy Share:30% of total energy use
Total Energy Consumption:3769.09 TJ/year
Water Consumption:557.8 ML/year
Waste Generated:6467 tons/year
Carbon Intensity:4.50 tCO2e/Mn Rs Revenue in 2019-20

ESG Focus Areas

  • Water and wastewater
  • Climate change and energy
  • Process safety

Environmental Achievements

  • Reduced freshwater consumption by 13%
  • 53% of wastewater gets into the system
  • 55% of effluent reaches ZLD
  • Reduction in GHG intensity by 6% from 2017-18
  • Renewable fuel usage nearly doubled in last four years
  • Nearly 30% of total power consumed is derived from renewable power sources

Social Achievements

  • Launched four biosimilar products (‘Darbapoetin alfa’, ‘Rituximab’, ‘Bevacizumab’ & ‘Adalimumab’) in shortest time
  • Implemented various employee recognition programs
  • Average training of 5.78 days per employee
  • 10% women in workforce and about 40% in contracted workforce

Governance Achievements

  • Established a sustainability committee reporting to the board of directors
  • Implemented Hetero Sustainable Guiding Principles
  • Completed updating sustainability data management portal

Climate Goals & Targets

Short-term Goals:
  • Reduce specific fresh water consumption by 5% by 2022
  • Reduction of Greenhouse gas (GHG) emissions by 2% by 2022
  • Increase in waste water recycling by 5% by 2022
  • Reduction of landfill waste disposal by 10% by 2022

Environmental Challenges

  • Water stress in operational areas
  • Increase in energy consumption despite energy efficiency measures
  • Supply chain disruptions due to COVID-19 pandemic
  • One fatality at Nakapalli unit
Mitigation Strategies
  • Increased water use efficiency, rainwater harvesting, and recycled water usage
  • Increased direct renewable energy consumption
  • Aligned operations with government guidelines to protect employee health
  • Incident investigations to identify gaps and eliminate similar incidents

Supply Chain Management

Supplier Audits: 90% vendor qualification audits for raw materials

Responsible Procurement
  • Sustainable procurement policy
  • Communication of requirements on sustainable practices to vendors
  • Assessment of vendor sustainability practices through Monkey Survey

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (Core Options)

Certifications: ISO 14001, ISO 45001, ISO 50001

Third-party Assurance: BSI (AA1000 assurance standards)

Awards & Recognition

  • EHS Excellence Award 2019
  • Golden Peacock Award for Occupational Health and Safety
  • Excellent Energy Efficient Unit Award
  • IDMA Margi Memorial ‘Best International Patent Award’ 2018-19
  • Outstanding Export Performance Award – Silver Star
  • Suraksha Puraskar (Occupational Health and Safety Award)
  • Best S&OP Planning Practice Award
  • Excellence in Pharma Packaging

Reporting Period: 2021-04 to 2022-03

Environmental Metrics

Total Carbon Emissions:461670 tCO2e/year (Scope 1 and 2)
Scope 1 Emissions:273409 tCO2e/year
Scope 2 Emissions:188260 tCO2e/year
Renewable Energy Share:6%
Total Energy Consumption:3092.77 TJ + 259.89 TJ (wind) + 857.89 TJ (grid) = 4210.55 TJ
Water Consumption:381.65 ML/year
Waste Generated:10403 MT/year
Carbon Intensity:3.701 tCO2e/million INR revenue

ESG Focus Areas

  • Environment
  • Social
  • Governance
  • Supply Chain
  • Data Security and Privacy

Environmental Achievements

  • Reduced freshwater consumption by 16% in 2021-22
  • Achieved a record of zero fatality and high consequence work-related injuries
  • Increased wastewater recycling by 5% by 2022 (base year of 2017)
  • Reduction of waste disposed of in landfills by 10% (base year 2017)
  • Reduction of GHG emissions by 2% (base year of 2017)
  • Elimination of furnace oil from energy portfolio
  • Increased biomass utilization in boilers

Social Achievements

  • New hire attrition rate reduced by nearly 17% compared to the previous year.
  • Increased total employee strength by 11.67%
  • Implemented an annual retention bonus at specific levels to reduce attrition.
  • Revamped and enhanced implementation of policies to attract, motivate and retain talent.
  • Strengthened induction program, leadership connect with trainees, feedback process, and provided incentives.

Governance Achievements

  • Achieved ISO 27001 certification for information security.
  • No significant fines or penalties or legal action pertaining to environment, unethical practices or corrupt practices during the year FY21-22.
  • Implemented a sustainable procurement policy.

Climate Goals & Targets

Short-term Goals:
  • Reduce fresh water usage by 5% by 2022 (achieved earlier)

Environmental Challenges

  • Rising energy prices impacting operational expenses and revenues.
  • Water stress in manufacturing locations.
  • Vast and geographically diverse supply chain requiring enhanced sustainability oversight.
  • Data security and privacy challenges in the pharmaceutical sector.
Mitigation Strategies
  • Implementing energy efficiency measures (estimated savings of more than 3.1 million kWh/year and INR 90 million).
  • Reducing dependence on groundwater sources.
  • Strengthening supplier code of conduct and implementing sustainable procurement policy.
  • Implementing ISO 27001 and updating privacy policy.

Supply Chain Management

Responsible Procurement
  • Strengthened supplier code of conduct
  • Sustainable procurement policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards 2021, UNGC Principles

Certifications: ISO 50001, ISO 45001, ISO 27001

Third-party Assurance: BSI (AA1000 Assurance Standard, AA1000AS v3)

UN Sustainable Development Goals

  • SDG 3 (Good Health and Well-being)
  • SDG 4 (Quality Education)
  • SDG 6 (Clean Water and Sanitation)
  • SDG 7 (Affordable and Clean Energy)
  • SDG 8 (Decent Work and Economic Growth)
  • SDG 9 (Industry, Innovation and Infrastructure)
  • SDG 13 (Climate Action)

CSR initiatives contribute to these goals through education, healthcare, infrastructure, and water access programs.

Awards & Recognition

  • Best COVID-19 Solutions for Community Care award

Reporting Period: 2022-04 to 2023-03

Environmental Metrics

Total Carbon Emissions:213,330 tCO2e/year
Scope 1 Emissions:188,260 tCO2e/year
Scope 2 Emissions:199,131 tCO2e/year
Renewable Energy Share:22.23% (based on total energy consumed)
Total Energy Consumption:4006 TJ/year
Water Consumption:974 ML/year
Waste Generated:28,592 MT/year
Carbon Intensity:2.71 tCO2e/million INR revenue

ESG Focus Areas

  • Climate Change
  • Water Stewardship
  • Waste Management
  • Employee Well-being
  • Diversity & Inclusion
  • Supply Chain Responsibility
  • Governance
  • Drug Safety
  • Human Rights
  • Product Quality and Safety
  • Labor Relations
  • Indirect Economic Impact
  • Access to Medicine at Affordable Prices

Environmental Achievements

  • 10.6% reduction in total Scope 1 & Scope 2 GHG Emissions (Absolute)
  • Around 8% increase in recycled water
  • Doubled renewable fuel usage
  • 28% decrease in the consumption of non-renewable fuels

Social Achievements

  • 23% increase in new hires
  • 25% increase in average training hours
  • Zero Safety Incidents

Governance Achievements

  • Revisited materiality as per GRI Standards
  • 100% compliance with laws and regulations
  • Revisited ESG Goals and targets set
  • Six new ESG topics identified
  • Achieved Gold Rating from EcoVadis for one entity

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero emissions by 2045
  • Become Zero Waste to Landfill Company by 2030
Medium-term Goals:
  • Establish Scope 3 inventory by 2030
  • Increase renewable energy sources by 30% by 2030
  • Undertake water stress and risk assessment by FY 2030
  • Set up ISO31000 Risk Management Processes by 2028
Short-term Goals:
  • Reduce carbon emissions (Scope 1 & 2) – 25% by 2030 (base year 2022)
  • Improve the percentage of women employees to 10% by 2026
  • Increase wastewater recycling by 5% annually
  • Assess 80% critical suppliers for ESG compliance by 2028

Environmental Challenges

  • Water stress in operating locations
  • Increased waste generation due to expansion and product mix
  • Increased attrition rate (44% increase over previous year)
Mitigation Strategies
  • Implementing water-efficient initiatives and effluent reduction strategies
  • Improving resource utilization and minimizing waste generation through the 3Rs (reduce, reuse, recycle)
  • Strengthening policy implementation, improving corporate culture, and offering an annual retention bonus to improve employee retention.

Supply Chain Management

Supplier Audits: Annual vendor audits, facility visits, offsite assessments, and online surveys.

Responsible Procurement
  • Supplier Code of Conduct
  • ESG compliance assessments

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Regulatory changes
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards 2021, UNGC Principles, UN SDGs

Certifications: ISO 14001, ISO 45001, ISO 50001, ISO 27001

Third-party Assurance: TUV India

UN Sustainable Development Goals

  • SDG 3
  • SDG 4
  • SDG 6
  • SDG 8
  • SDG 11
  • SDG 13

CSR initiatives are aligned with these SDGs through various programs focused on health, education, water, sanitation, livelihoods, sustainable cities, and climate action.

Awards & Recognition

  • Gold Award – National Awards for Manufacturing Competitiveness
  • Certificate of Appreciation for Manufacturing Sector National Safety Council India Safety Awards
  • Prashansa Patra for Manufacturing Sector National Safety Council India Safety Awards
  • CII-SR EHS Excellence Awards