Climate Change Data

Dr. Reddy's Laboratories Limited

Climate Impact & Sustainability Data (2003-04, 2004-05, 2009-10, 2015-04 to 2016-03, 2016-04 to 2017-03, 2018-04 to 2019-03, 2019-20, 2020-04 to 2021-03, 2021-04 to 2022-03, 2023-04 to 2024-03)

Reporting Period: 2003-04

Environmental Metrics

Total Carbon Emissions:66,955.81 t CO2 eq
Total Energy Consumption:1,020.31 thousand GJ
Water Consumption:949.20 thousand cu.m
Waste Generated:17,023.28 tons

ESG Focus Areas

  • Economic Performance
  • Environmental Footprints
  • Social Responsibility

Environmental Achievements

  • Commissioned a zero liquid discharge plant (ZLDP) at Miryalguda plant, recycling 100% of industrial effluents.
  • Reduced water usage per unit sale.
  • Reduced hazardous and non-hazardous waste by 8%.
  • Reduced CO2 emissions by over 500 tons in the Generics plant, resulting in annual savings of Rs. Six million.
  • Achieved ISO 14001 and OHSAS 18001 certifications for Generics plant.

Social Achievements

  • Implemented the CAP-SCOPE project, benefiting over 7000 children.
  • Launched LABS program, providing livelihoods to more than 15,000 unemployed youth.
  • Supported Naandi Foundation's initiatives, impacting over a million underserved people.
  • Implemented the 'Power of 10' initiative, where employees contribute to Naandi Foundation.
  • Created Ankur, a corporate university, for employee development.

Governance Achievements

  • Established a robust SHE policy and management system.
  • Implemented a global matrix organizational structure.
  • Awarded the ICSI National Award for Excellence in Corporate Governance in 2002.

Climate Goals & Targets

Long-term Goals:
  • Create one million livelihoods by 2010 through the Dr. Reddy’s Foundation for Human and Social Development.
Medium-term Goals:
  • Make all six API plants zero industrial effluent discharge plants.
Short-term Goals:
  • 15% reduction in water use over three years starting from 2003.

Environmental Challenges

  • Water security threats.
  • Greenhouse gas emissions.
  • Wastewater discharge.
  • Hazardous waste management.
  • Safety incidents at construction sites.
  • Transportation of hazardous materials.
Mitigation Strategies
  • Installed 250 water meters, conducted process reviews, and created awareness campaigns to reduce water usage.
  • Implemented energy conservation initiatives, resulting in significant CO2 emission reductions.
  • Invested in multiple effect evaporators for wastewater treatment and recycling.
  • Implemented responsible waste disposal practices, including incineration, landfilling, and recycling.
  • Developed internal guidelines for contractor safety and training manuals for contract workers.
  • Developed detailed guidelines for the transportation of hazardous materials by road.

Supply Chain Management

Supplier Audits: First-line suppliers inspected for statutory compliance.

Responsible Procurement
  • Continuous advice and periodic meetings with suppliers regarding SHE.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI)

Certifications: ISO 14001, OHSAS 18001

Third-party Assurance: Ernst & Young Pvt. Ltd.

Awards & Recognition

  • Express Pharma Pulse Award for excellence in research
  • National Award from CII for energy conservation
  • ICSI National Award for Excellence in Corporate Governance (2002)
  • Various awards for employee engagement and HR practices.

Reporting Period: 2004-05

Environmental Metrics

Total Carbon Emissions:68114.39 t CO2eq
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:1059.51 thousand GJ
Water Consumption:912.42 thousand cu.m
Waste Generated:26030.15 tons
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Economic performance
  • Environmental footprint
  • Social responsibility

Environmental Achievements

  • Reduced water consumption by 4%
  • Reduced effluent discharge by 68%
  • Commissioned zero liquid discharge plants at three API units
  • Achieved a 12673 KL/annum reduction in effluent generation at API Unit 2
  • API Unit 2 won CII awards for energy and water efficiency

Social Achievements

  • Increased R&D investment by 41%
  • Implemented DuPont's STOP program, reducing first-aid cases significantly
  • Created 20,000 livelihoods through LABS program (against a target of 10,000)
  • Invested 8016 person-days in employee training
  • Improved offer-to-acceptance ratio in recruitment to 96%

Governance Achievements

  • Strengthened internal controls through SOX compliance
  • Implemented a Code of Business Conduct and Ethics
  • Established a three-tier SHE management structure

Climate Goals & Targets

Long-term Goals:
  • Create a million livelihoods by 2010
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • 3% decline in revenues
  • Decline in revenue from key products
  • Increased greenhouse gas emissions due to increased energy consumption
  • Decline in hazardous material transport compliance
Mitigation Strategies
  • Increased investment in drug discovery and pipeline building
  • Implemented energy-saving measures and process improvements
  • Implemented measures to improve hazardous material transport compliance
  • Implemented cost control measures and process excellence initiatives

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: Global Reporting Initiative

Certifications: ISO 14001, OHSAS 18001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Best Management Award from Andhra Pradesh State Government
  • CII Energy & Water Management Awards
  • WorldStar award for packaging excellence

Reporting Period: 2009-10

Environmental Metrics

Total Carbon Emissions:278,000 tCO2e (increase of 11% from previous year)
Total Energy Consumption:1,847,000 GJ
Water Consumption:558,000 m³ (recycled)
Waste Generated:13,045 tons (hazardous); 18,578 tons (non-hazardous)

ESG Focus Areas

  • Affordable and Innovative Medicines
  • Product Responsibility
  • Being an Employer of Choice
  • Environmental Management and Climate Change
  • Sustainable Sourcing
  • Caring for Communities

Environmental Achievements

  • Reduced wastewater discharged to 3,740 m³ compared to 37,000 m³ the previous year.
  • Reduced hazardous waste disposed by 37% to 13,045 tons.
  • 28% of water requirement met through recycled water (increased by 9% to 558,000 m³).

Social Achievements

  • Sparsh program benefited 4,250 underprivileged cancer patients.
  • Power of 10™ employee giving program raised over INR 2,440,000.
  • Various community initiatives in education and livelihood development.

Governance Achievements

  • Implementation of Quality by Design (QbD) approach.
  • Enhanced regulatory compliance and proactive engagement with regulatory bodies.
  • Increased automation to enhance quality, reliability, and consistency.

Climate Goals & Targets

Environmental Challenges

  • Global economic slowdown and pricing pressures.
  • Increased government regulations.
  • Two product recalls.
  • Environmental concerns about water usage and discharge.
  • Impact of global epidemics on the industry.
Mitigation Strategies
  • Strategic alliances with GSK and other companies.
  • Implementation of Quality by Design (QbD) and enhanced quality systems.
  • Proactive engagement with regulatory bodies.
  • Water conservation initiatives and wastewater treatment facilities.
  • Self-initiated voluntary product recalls and improved pharmacovigilance.

Supply Chain Management

Responsible Procurement
  • Sustainable sourcing initiatives; working with suppliers to improve their sustainability quotient.

Climate-Related Risks & Opportunities

Reporting Period: 2015-04 to 2016-03

Environmental Metrics

Renewable Energy Share:10%

ESG Focus Areas

  • Environment
  • Employee Well-being
  • Stakeholder Engagement
  • Human Rights
  • Equitable Development
  • Customer Value

Environmental Achievements

  • All plants are zero discharge; 86% of organic waste upcycled; more than 10% of energy needs met from renewable sources; 31 energy conservation projects implemented, saving ₹63.54 million; solar energy consumption of 39.0 million kWh, reducing carbon footprint by 38,611 MT of CO2e.
  • Reduction in resource use (energy, water, raw materials) for Fexofenadine, Sumatriptan, and Azacitidine.

Social Achievements

  • Extended Self-Managed Teams (SMTs) program; People Management Effectiveness Programme; rolled out the People Management Effectiveness Programme; Community Health Intervention Programme (CHIP) benefited over 7,500 people; School Improvement Programme benefited more than 12,000 students; trained over 7,000 young adults for livelihood; Annual Week of Giving.
  • Launched Medznat, a digital information platform in Russia for healthcare professionals.

Governance Achievements

  • Rewired quality systems; upgraded quality incident investigation (QII) system; implemented Intelligent Integration project for supply chain; institutionalised PACE, a productivity enhancement programme; piloted a business continuity plan; strengthened Quality Management Systems; implemented Enterprise Risk Management (ERM) initiative; buyback of shares.

Climate Goals & Targets

Environmental Challenges

  • USFDA warning letter following inspections of three plants, leading to delayed product launches and increased costs; economic problems in Russia and devaluation of the rouble; economic crisis in Venezuela, restricting repatriation of funds beyond US$4 million.
Mitigation Strategies
  • Comprehensive plan of corrective and remedial actions submitted to USFDA; strengthening pipeline with complex generics, better OTC offerings, and increasing institutional/hospitals business; decided to supply medicines to Venezuela only against letters of credit or pre-payment.

Supply Chain Management

Responsible Procurement
  • Code of Conduct for partners; 60% of procurements from domestic producers; initiatives to improve capacity and capabilities of local producers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Sustainable Products & Innovation

  • Fexofenadine, Sumatriptan, Azacitidine; Zembrace™ SymTouch™; Sernivo™ Spray.

Reporting Period: 2016-04 to 2017-03

Environmental Metrics

Total Carbon Emissions:1,54,808 tCO2e
Scope 1 Emissions:1,54,808 tCO2e
Scope 2 Emissions:3,06,000 tCO2e
Renewable Energy Share:12%
Total Energy Consumption:19,61,034 GJ
Water Consumption:16,89,330 KL
Waste Generated:21,241 MT (hazardous); 24,827 MT (non-hazardous)
Carbon Intensity:5.9 tCO2e/Rs. Million sales (FY 2016-17)

ESG Focus Areas

  • Affordable and innovative medicines
  • Being an employer of choice
  • Caring for communities
  • Environmental management and climate change
  • Sustainable sourcing
  • Product responsibility

Environmental Achievements

  • Achieved zero hazardous waste to landfill across all API manufacturing units in India.
  • Reduced specific energy consumption by 6.7% over the previous year.
  • Reduced specific water consumption by 58% compared to the base year 2010 (40% target by 2020 achieved).

Social Achievements

  • Launched Purple Health®, a patient-centric innovation platform.
  • Implemented various initiatives under Purple Health® (PHAP, SPARSH, MITR, CHEER, Livpositive, Ecocamp, Purple Pack®) improving patient adherence and access to medicines.
  • Increased the number of women in the workplace significantly, ranking first in the “Diversity in Asia” report by Carnstone.

Governance Achievements

  • Revised Code of Business Conduct and Ethics (COBE) to reflect changing stakeholder expectations.
  • Implemented a control tower approach for ensuring overall compliance with product quality requirements.
  • No Class 1 product recalls during the reporting year.

Climate Goals & Targets

Long-term Goals:
  • Reduce specific energy consumption by 40% by 2020.
  • Become water neutral by 2020.
  • Reduce specific generation of hazardous waste by 40% by 2020.
  • Reduce hazardous waste sent to landfills/incineration by 40% by 2020.
Medium-term Goals:
  • Achieve 25% renewable energy by 2020.
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Changing market dynamics and increased competition.
  • Shift in regulatory enforcement mechanisms.
  • Pricing pressures in emerging markets.
  • Economic slowdowns in some markets.
  • Lower offtake of some key molecules in the API portfolio.
  • Loss of a contract worker highlighting the criticality of workplace safety.
Mitigation Strategies
  • Integrated all manufacturing processes and support functions under a unified 'Global Quality Management System'.
  • Significant investments in upgrading manufacturing infrastructure and quality systems.
  • Structured capability building across all levels.
  • Integrating safety and quality into the core of the manufacturing system.
  • Implementing reliability centered maintenance (RCM) approach for maintenance operations.
  • Mechanization and automation initiatives to improve efficiency and reduce errors.

Supply Chain Management

Supplier Audits: Independent third-party audits; 100% of high-risk suppliers have corrective action plans.

Responsible Procurement
  • Supplier Code of Conduct based on ILO, UDHR, SAI, ETI, and GRI standards; procedures to procure from local and small producers; supply chain excellence initiatives.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 14001, OHSAS, SA8000

Third-party Assurance: DNV GL Business Assurance India Private Limited

UN Sustainable Development Goals

  • Goal 3: Good health and well-being
  • Goal 6: Clean water and sanitation
  • Goal 7: Affordable and clean energy
  • Goal 9: Industry, innovation and infrastructure
  • Goal 12: Responsible consumption and production
  • Goal 13: Climate action

Sustainability activities linked to relevant UN SDGs.

Sustainable Products & Innovation

  • Differentiated formulations for easier and calibrated dosages; green chemistry initiatives in drug development and manufacturing (Sildenafil, Rivaroxaban).

Awards & Recognition

  • Golden Peacock Award for Sustainability 2016
  • Listed in Dow Jones Sustainability Indices for emerging markets
  • Frost & Sullivan Green Manufacturing Excellence Award (GMEA)
  • CII Environmental best practices award

Reporting Period: 2018-04 to 2019-03

Environmental Metrics

Total Carbon Emissions:96,364 tCO2e (avoided)
Renewable Energy Share:7.7%
Total Energy Consumption:4,257,859 GJ
Water Consumption:1,717,560 KL
Waste Generated:20,298 MT (recycled)

ESG Focus Areas

  • Environmental Management and Climate Change
  • Sustainable Sourcing
  • Caring for Communities
  • Being an Employer of Choice
  • Providing Affordable and Innovative Medicines
  • Product Responsibility

Environmental Achievements

  • 188 energy efficiency/conservation projects implemented, resulting in ₹233.7 million cost savings and avoided carbon emissions of 96,364 tCO2e
  • 8.92% reduction in indirect energy consumption
  • 7.7% renewable energy in total energy mix; 49.4 million kWh solar energy consumption (avoided 46,473 tCO2e)
  • 42,165 tCO2e carbon emission avoided from Air Vs Sea shipment initiative
  • 21% reduction in specific energy consumption from 2009-10 baseline
  • 59% reduction in specific water consumption from 2009-10 baseline
  • 20,298 MT waste co-processed and recycled
  • 51% reduction in hazardous waste generation from 2009-10 baseline
  • Achieved zero waste to landfill at all API facilities

Social Achievements

  • LIV Positive program benefited 1743 patients
  • SPARSH program benefited 2000 patients
  • Jagruti program had 148 new patient enrollments
  • 8 flagship medical education programs with high Net Promoter Scores (NPS)
  • ₹262 million total contribution towards community development (2.05% of profit after tax)
  • 327,104 people benefited from community-based initiatives
  • Inclusion in the Bloomberg Gender-Equality Index for the second time

Governance Achievements

  • Strong and independent Board maintaining high corporate governance standards
  • Full compliance with SEBI and NYSE corporate governance norms
  • Robust governance structure and periodic internal audits supporting Code of Business Conduct and Ethics (COBE) implementation
  • Comprehensive Enterprise Risk Management (ERM) system

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Achieve 3 MW capacity of rooftop solar installations and 96 MW capacity through joint venture
Short-term Goals:
  • Achieve ZLD status at all Formulation operations by 2020

Environmental Challenges

  • Regrettable attrition of entry-level hires in the second year (<=10%)
  • Supply chain disruptions due to changes in China's environmental policies
  • Limited availability of high-caliber talent in the pharma industry
  • Rapid technological change
Mitigation Strategies
  • Proficient performance appraisal systems and on-the-job training programs
  • De-risking single sources out of China and focusing on India's domestic market
  • Upskilling initiatives and comprehensive training needs analysis
  • Investing in the brightest minds and continuously refreshing talent pool

Supply Chain Management

Supplier Audits: All critical Tier 1 suppliers audited every 2-4 years; risk-based audit system

Responsible Procurement
  • Supply chain code of conduct
  • Vendor risk assessment framework
  • Emphasis on local procurement
  • Integration of sustainability criteria in supply chain management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards – Core option, International Integrated Reporting framework

Certifications: ISO 14001, OHSAS 18001, SA 8000 (some facilities)

Third-party Assurance: DNV GL Business Assurance India Private Limited

Sustainable Products & Innovation

  • Purple Pack intelligent packaging
  • Biodegradable paper fiber board drums
  • Electronic medication guides

Awards & Recognition

  • FTSE4 Good Index Series
  • DJSI Emerging Markets Index
  • India Pharma CSR Program of the Year
  • Top 50 Pharma Innovation Award
  • Excellence in Pharma: IT, eHealth & Digitization
  • Sustainable Organization of the Year 2019 – Pharma Sector
  • CII Environment Excellence Award
  • CII Environmental Best Practice Award
  • SHE Excellence – Pharmaceutical Company of the Year
  • Gold 4 Star – OHSSAI Award 2019 for Sustainability
  • Operational Excellence in Supply Chain award (3 times)

Reporting Period: 2019-20

Environmental Metrics

Total Carbon Emissions:319,190 tCO2e (Scope 1) + 154,836 tCO2e (Scope 2) + 324,723 tCO2e (Scope 3)
Scope 1 Emissions:319,190 tCO2e
Scope 2 Emissions:154,836 tCO2e
Scope 3 Emissions:324,723 tCO2e
Renewable Energy Share:8.8%
Total Energy Consumption:3,096,138 GJ (Direct) + 1,066,051 GJ (Indirect)
Water Consumption:391,288 kl (Municipal) + 452,727 kl (3rd party) + 917,407 kl (Groundwater)
Waste Generated:17,984 tons (Non-hazardous)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Reduced specific water consumption by 61% (target 40%)
  • Reduced specific hazardous waste generation by 48% (target 40%)
  • 100% of non-hazardous waste (17,984 tons) recycled/sold
  • Reduced specific energy consumption by 31% (target 40%)
  • Achieved 8.8% renewable energy share (target 25%)
  • 48% of total freshwater consumption recycled/reused

Social Achievements

  • 3% reduction in employee turnover rate compared to FY2019
  • Zero fatalities
  • Increased number of differently abled employees by 10%
  • Total spending on CSR as a percentage of profit after tax

Governance Achievements

  • No incidents of bribery or corruption
  • Initiated a regulatory and physical climate risk assessment as part of TCFD

Climate Goals & Targets

Long-term Goals:
  • Aligned to SBTi targets
Medium-term Goals:
  • 55% Scope 1&2 reduction (Base Year 2017-18)
Short-term Goals:
  • 50+% Renewable Energy
  • 100% Water Neutrality
  • 100% Waste Circularity including Plastic (Global)
  • 100% Waste Circularity including Plastic (India)

Environmental Challenges

  • Not disclosed
Mitigation Strategies
  • Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • 67.9% of procurement budget spent locally

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: SA 8000:2014 (most facilities)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Many awards listed in the report (see page 6)

Reporting Period: 2020-04 to 2021-03

Environmental Metrics

Total Carbon Emissions:88,820 tCO2e (reduction)
Scope 1 Emissions:349,974 tCO2e
Scope 2 Emissions:177,457 tCO2e
Scope 3 Emissions:471,580 tCO2e
Renewable Energy Share:21.03%
Water Consumption:1,775,831 kl
Waste Generated:18,450 tons (non-hazardous)
Carbon Intensity:24.43 tCOe/INR million of revenue (FY2021)

ESG Focus Areas

  • Improving communities' health
  • Building resilient health systems
  • Investing in digital healthcare solutions
  • Resource efficient buildings and production processes
  • Energy and emissions management
  • Water management
  • Waste management

Environmental Achievements

  • Reduced carbon emissions intensity by 27% (against the base year FY2018)
  • Achieved 74% water neutrality potential
  • Achieved 100% plastic waste neutrality in India (two years ahead of 2023 goal)
  • 98.73% of hazardous waste sent as fuel to cement industries and recyclers
  • Over 70% of global manufacturing sites are Zero Liquid Discharge facilities

Social Achievements

  • Donated INR 360.8 million for community development and INR 50 million to the Andhra Pradesh Chief Minister's Relief Fund
  • Mobilized essential resources including INR 50 million worth of N95 masks
  • Served 2.5 million meals to communities
  • Continued flagship Community Health Intervention programme (CHIP) supporting 192,545 people in 155 villages
  • Provided bereavement support to families of colleagues who lost their lives due to COVID-19

Governance Achievements

  • Became a full member of the Pharmaceutical Supply Chain Initiative (PSCI)
  • Improved company-wide gender diversity to 17.18%
  • 167 concerns received through Ombudsperson reporting channels, all investigated and acted upon

Climate Goals & Targets

Long-term Goals:
  • Carbon neutrality
Medium-term Goals:
  • 50% share of renewable energy (power-to-power) by 2025
  • 100% waste neutrality (including plastic waste) in India by 2023
Short-term Goals:
  • 100% water neutrality by 2025
  • 100% waste neutrality (including plastic waste) globally by 2025

Environmental Challenges

  • Supply chain disruptions due to the COVID-19 pandemic
  • Climate change causing a rise in sea level and increasing the risk of flooding
  • Technology disruptions impacting business processes
  • Water crisis
Mitigation Strategies
  • Activated Business Continuity Plan (BCP)
  • Implemented energy conservation projects reducing emissions and saving costs
  • Increased use of renewable power (21% of total power consumed)
  • Developed alternative water sources
  • Implemented Zero Liquid Discharge (ZLD) water treatment at 15 of 21 global manufacturing facilities
  • Developed location-specific responsive mitigation plans for climate-related physical risks
  • Investing in the protection of data and information technology to reduce technology-related risks

Supply Chain Management

Supplier Audits: 99 suppliers audited under ESG parameters

Responsible Procurement
  • Supplier Code of Conduct (SCOC) modeled on PSCI Principles

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
  • Earthquakes
  • Droughts
Transition Risks
  • Phase-out of high-carbon fuels
Opportunities
  • Renewable energy projects
  • Green chemistry
  • Energy efficiency improvements

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Global Compact, UN Sustainable Development Goals (SDGs), Science-Based Targets initiative (SBTi), Task Force on Climate-related Financial Disclosures (TCFD)

Certifications: ISO 14001 (8 global formulations manufacturing sites)

Third-party Assurance: DNV

UN Sustainable Development Goals

  • Goal 3 (Good Health and Well-being)
  • Goal 7 (Affordable and Clean Energy)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)

Initiatives mapped to SDGs throughout the report

Sustainable Products & Innovation

  • CLOHEX -NS interdental brush with recycled packaging

Awards & Recognition

  • CPhI Pharma Awards 2020 (Excellence in Pharma: Sustainability)
  • CMO Leadership Awards 2020
  • North American CandE Awards 2020
  • UN Women 2020 WEP Awards
  • CII-ITC Sustainability Awards 2020
  • CII SCALE Award 2020
  • 28th Infiexion Pharma Supply Chain & Cold Chain e-Expo & Awards
  • SEEM National Energy Management Awards 2020
  • Global Generics & Biosimilars Awards 2020

Reporting Period: 2021-04 to 2022-03

Environmental Metrics

Total Carbon Emissions:887,975 tCO2e/year (Scope 1+2+3)
Scope 1 Emissions:302,466 tCO2e/year
Scope 2 Emissions:166,247 tCO2e/year
Scope 3 Emissions:470,262 tCO2e/year
Renewable Energy Share:26%
Water Consumption:1,838,019 KL/year
Waste Generated:47,094.7 tons/year
Carbon Intensity:3.52 tCO2e/INR million revenue in FY22

ESG Focus Areas

  • Environmental stewardship
  • Access and affordability of medicines
  • Equity, diversity and inclusion
  • Good governance

Environmental Achievements

  • Reduced emissions of 21,978 tCO2e
  • Reduced water intensity by 13% compared to FY21
  • 99% waste neutral globally
  • No discharge of wastewater to the environment
  • 100% plastic neutral in India
  • 26% power sourced from renewable sources
  • Reduced downstream transportation emissions by 15,215 MT CO2e by shifting from air freight to sea freight

Social Achievements

  • Reached ~674 million patients globally
  • 83% actively engaged employees
  • 98.1% Employees returned to work after parental leave
  • 62.9 hours Training and development per FTE
  • ~0.5 million Total healthcare stakeholders trained
  • 100 million People from 9000 Indian rural towns reached through rural access programme, Vistara
  • ~28 million Patients reached in low- and middle-income countries
  • 100% Workforce paid more than minimum wages and covered by medical insurance, maternity and paternity benefits
  • Over 4,25,000 individuals have been positively impacted through CSR efforts
  • Trained 378 youth through core employability skills training programme for persons with disabilities

Governance Achievements

  • Sustainability & CSR Board level committee formed
  • 80% Independent Directors on Board
  • 40% Board members are diverse based on gender or ethnicity
  • Project Ethos benchmarking of business ethics policies

Climate Goals & Targets

Long-term Goals:
  • Gender parity by 2035
  • Serve 1.5 billion patients by 2030
Medium-term Goals:
  • 100% renewable power by 2030
  • Carbon neutral in direct operations by 2030
  • 12.5% reduction in indirect carbon emissions by 2030
  • 100% water neutrality by 2025
  • 100% of strategic suppliers compliant with internal ESG framework by 2030
  • At least 35% women in senior leadership by 2030
  • 3% of workforce to be persons with disabilities by 2030
Short-term Goals:
  • Water-positive by 2025
  • 100% waste neutrality (plastic) in India by 2023
  • 50% share of renewable energy by 2025
  • Enhance ESG disclosures to reach top quartile by 2025
  • Living wages for the extended workforce by 2025

Environmental Challenges

  • Price pressures, changing market conditions and cost escalations due to supply chain disruptions
  • Climate-related risks (extreme weather, regulatory changes)
  • ESG risks (inadequate performance, negative ratings)
  • Supply chain disruptions
  • Antimicrobial resistance
Mitigation Strategies
  • Investing in climate-resilient infrastructure, insurance coverage, and supply chain improvements
  • Strengthening ESG policies, controls, and processes
  • Developing alternative sourcing strategies
  • Implementing Project Ethos to improve compliance
  • Promoting responsible manufacturing practices and access to affordable medicines

Supply Chain Management

Supplier Audits: 275 suppliers underwent onsite ESG risk assessment in last three years; 40% ESG factors in supplier audits; 100% suppliers covered under the Supplier Code of Conduct

Responsible Procurement
  • Supplier Code of Conduct (SCOC) modeled on PSCI Principles
  • Supplier screening and assessment
  • ESG framework aligned to PSCI guidelines
  • Training on sustainable procurement

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather, flooding, cyclones, typhoons, hurricanes
Transition Risks
  • Regulatory changes, carbon pricing mechanisms
Opportunities
  • Development of energy-efficient products
  • Increased demand for products and services due to climate-related health hazards
  • Resource efficiency

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Global Compact Communication on Progress

Certifications: ISO 45001 (7 global formulations manufacturing units), ISO 14001 (8 global formulations manufacturing sites)

Third-party Assurance: DNV

UN Sustainable Development Goals

  • Goal 3 (Good Health and Well-being)
  • Goal 7 (Affordable and Clean Energy)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 10 (Reduced Inequalities)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)

Initiatives aligned with UN SDGs through various programmes and goals

Sustainable Products & Innovation

  • Green chemistry initiatives
  • Sustainable packaging

Awards & Recognition

  • Dow Jones Sustainability Index
  • S&P Global Sustainability Yearbook
  • Bloomberg Gender-Equality Index
  • CDP Supplier Engagement Leaderboard
  • CII SCALE Award
  • Frost & Sullivan-TERI Sustainability 4.0 Awards
  • American Heart Association Workplace Health Achievement Index

Reporting Period: 2023-04 to 2024-03

Environmental Metrics

Total Carbon Emissions:304185 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:189,530 tCO2e/year
Scope 2 Emissions:114,655 tCO2e/year
Scope 3 Emissions:866,992 tCO2e/year
Renewable Energy Share:48%
Total Energy Consumption:Not disclosed
Water Consumption:1893619 m3/year
Waste Generated:78516.7 tons/year
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • 14% absolute reduction in Scope 1 & 2 emissions from previous financial year
  • 6% absolute reduction in Scope 3 emissions from previous financial year
  • 7% reduction in fresh water intensity from previous financial year
  • 48% of total energy consumption is from renewable sources
  • Water positive by 2025

Social Achievements

  • 100% of our permanent employees and workers are covered under health and accident insurance, and maternity and paternity benefits
  • 99.1% return to work rate and 83.6% retention rate for our permanent employees post parental leave
  • 92% employees and 99.2% workers were provided skill upgradation training
  • Positively impacted 496,618 individuals through CSR initiatives

Governance Achievements

  • Sustainability and CSR Committee act as nodal Committee for ESG related matters
  • No disciplinary action against Directors/KMPs/Employees/ Workers by any law enforcement agencies for charges of bribery/corruption
  • 36.4% of Board members are women directors

Climate Goals & Targets

Long-term Goals:
  • Serve 1.5 bn+ patients by 2030
  • Gender parity by 2035
Medium-term Goals:
  • 100% renewable power by 2030
  • Carbon neutral in direct operations by 2030
  • 12.5% reduction in Scope 3 emissions by 2030
  • At least 35% women in senior leadership by 2030
  • 3% of our workforce to be Persons with Disability (PwD) by 2030
  • Enhance disclosures to reach top quartile by 2025
  • 100% of our strategic suppliers to be compliant with our chosen ESG framework by 2030
Short-term Goals:
  • Water positive by 2025
  • 100% living wages for our extended workforce by 2025

Environmental Challenges

  • Regulatory compliance
  • Pharmacovigilance (PV)
  • Water Management
  • Waste Management
  • Energy and emissions management
  • Talent attraction and retention
  • Combating counterfeit medicines
  • Business continuity
  • Business ethics/bribery and corruption
  • Geo-political risk
  • Data security, data privacy, and cybersecurity
  • Supply chain
  • Product development
Mitigation Strategies
  • Robust quality processes and systems
  • Mature system to monitor benefit-risk profile of products
  • Water management strategy involving water efficiency, alternate sources, and creating freshwater potential
  • Waste management systems at all facilities
  • Decarbonisation strategy focusing on energy mix, conservation, and carbon sequestration
  • Analytics to measure employee performance and address skill gaps
  • Comprehensive measures including DSCSA implementation and serialisation
  • ERM and assurance functions to identify key risks
  • Code of Business Conduct and Ethics (COBE) and Anti-Bribery and Anti-Corruption policies
  • Monitoring geopolitical developments and mitigating exposure
  • ISMS based on ISO 27001 and NIST Cybersecurity Framework
  • Active management of third-party relationships and broad supplier base
  • Upskilling employees and adopting new technologies

Supply Chain Management

Supplier Audits: 25.5% of value chain partners (India direct spend) evaluated on multiple ESG parameters

Responsible Procurement
  • Supplier Code of Conduct with sustainability requirements
  • ESG framework for assessing strategic suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: GRI Standards 2021, UN SDGs, NGRBC

Certifications: ISO 14001, ISO 45001, SA8000

Third-party Assurance: DNV Business Assurance India Private Limited

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • National Award for the Empowerment of Persons with Disabilities