Climate Change Data

IOL Chemicals and Pharmaceuticals Limited

Climate Impact & Sustainability Data (2023-04 to 2024-03)

Reporting Period: 2023-04 to 2024-03

Environmental Metrics

Total Carbon Emissions:175343 tCO2e/year
Scope 1 Emissions:49521 tCO2e/year
Scope 2 Emissions:6179 tCO2e/year
Scope 3 Emissions:119643 tCO2e/year
Renewable Energy Share:81%
Total Energy Consumption:2405.2 TJ/year
Water Consumption:245135 KL/year
Waste Generated:4421.57 tons/year
Carbon Intensity:0.000002611 MtCO2e / Rs (Scope 1 & 2)

ESG Focus Areas

  • Climate Change
  • Water Management
  • Waste Management
  • Employee Well-being
  • Community Investment
  • Supply Chain Sustainability
  • Diversity & Inclusion

Environmental Achievements

  • Reduced Scope 1 and 2 emissions by 3.91% against the baseline emissions of FY 2022-23.
  • Achieved 81% renewable energy contribution.
  • 100% Zero liquid discharge facility.
  • 100% Water Neutral Facility.
  • Reduced water consumption by 6.81% KL/ton of production (from 1.76 to 1.64).

Social Achievements

  • CSR spend of ₹ 11.83 crores.
  • ~2 lakh beneficiaries of CSR initiatives.
  • 15% input material directly sourced from within the district and neighbouring districts.
  • 4.91% input material directly sourced from MSMEs/small producers.
  • 2,380 employees received skill-development training.
  • Zero LTIFR & LTISR

Governance Achievements

  • Established an ESG program.
  • Implemented robust compliance management system.
  • Implemented comprehensive internal control system to oversee fraud prevention and detection.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Increase the share of renewable energy to 25% within the next five years.
  • Reduce Scope 1 emissions by 40% by 2035.
  • Achieve Scope 2 emissions neutrality by 2026.
  • Reduce Scope 3 emissions by 40% by 2035.
Short-term Goals:
  • Reduce energy consumption by 10% within the next three years.
  • Reduce energy losses by 5% by the end of the fiscal year.
  • Retrofit 50% of existing equipment with energy-efficient alternatives within two years.

Environmental Challenges

  • Decline in selling prices affecting turnover.
  • Geopolitical disturbances and the Red Sea crisis leading to higher freight costs.
  • Headwinds in the Specialty Chemicals segment due to a temporary mismatch between input and output prices.
  • Stringent regulations in key markets impacting production and export processes.
  • Global economic slowdown potentially dampening demand.
Mitigation Strategies
  • Increased volumes to mitigate the decline in selling prices.
  • Passed increased freight costs on to customers in new sales contracts.
  • Backward integration to reduce reliance on external vendors.
  • Diversification of product portfolio and expansion of geographical reach.
  • Implementing hedging measures to manage foreign exchange exposure.
  • Investing in state-of-the-art technology and infrastructure to enhance safety and compliance standards.

Supply Chain Management

Supplier Audits: 100% of key raw material suppliers underwent internal assessments on ESG factors.

Responsible Procurement
  • Sustainable procurement policy aligned with ISO 20400 best practices.
  • Supplier code of conduct.
  • Prioritising local suppliers and MSMEs.

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Stringent regulations
  • Market shifts
Opportunities
  • Development of energy-efficient products
  • Increased use of renewable energy

Reporting Standards

Frameworks Used: International Integrated Reporting Council (IIRC), GRI Standards, Science Based Targets initiative (SBTi)

Certifications: ISO 14001:2015, ISO 45001:2018, ISO 50001:2018, SA 8000:2014, US FDA, EUGMP, KFDA, TFDA, WHOGMP

Third-party Assurance: TUV SUD South Asia Private Limited (limited assurance)

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 4 (Quality Education)
  • Goal 3 (Good Health and Well-being)
  • Goal 17 (Partnerships for the Goals)

Various initiatives contribute to these goals as detailed in the report.

Sustainable Products & Innovation

  • Development of new APIs with non-infringing routes; Sitagliptin development; Edoxaban acquisition.

Awards & Recognition

  • Ecovadis Bronze Medal