Climate Change Data

Environmental Metrics

ESG Focus Areas

• Patient Equity
• People Equity
• Social Equity
• Environmental Equity
• Stakeholder Equity

Environmental Achievements

• 18% reduction in absolute Scope 1 and Scope 2 emissions (vs FY20 baseline)
• 53% of electricity from green power
• 100% of wastewater recycled and reused
• ~5,500 tonnes of high-calorific waste sent for reuse as fuel
• 400,000 liters of incremental water savings per day achieved through installation of a new ZLD effluent treatment plant
• 17,092 tCO2 reduction from switchover to natural gas from furnace oil

Social Achievements

• ~61,000 patient visits at Biocon Foundation-run eLAJ smart clinics
• ~2,200 people screened for oral cancer using mHealth app
• 700+ biotech graduates upskilled at Biocon Academy
• Repurposed Itolizumab for treating COVID-19 patients (27,000+ lives impacted)
• 185,000 RT-PCR Tests for COVID-19 conducted
• 3.1 million patients reached globally through biosimilars
• 96.8 million in CSR spending

Governance Achievements

• Robust governance policies (Code of Conduct, Whistle-blower policy, etc.)
• Five Board committees
• Strong Quality Management System aligned with GxP
• Appointed a team of 120 Local Ethics Officers (LEOs) to ensure compliance to the Code of Conduct
• Zero tolerance for child labor

Climate Goals & Targets

Environmental Challenges

• Inequity in global healthcare access
• COVID-19 pandemic impact

Mitigation Strategies

• Partnerships with UNAIDS, CHAI, etc.
• ‘Mission 10 cents’ insulin initiative
• Repurposing Itolizumab for COVID-19 treatment
• Proactive COVID-19 safety measures for employees

Supply Chain Management

Responsible Procurement

• Local sourcing
• Responsible raw material sourcing

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001:2015 & ISO 45001:2018

Sustainable Products & Innovation

• Reusable insulin pens

Awards & Recognition

• ISPE Facility of the Year Award (Honorable Mention)
• Avtar Women’s lists of ‘Best Companies for Mothers’ and ‘Most Inclusive Companies’
• UN Women recognition for promoting gender diversity
• DivHERsity Awards for ‘Most Innovative Practices’

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Access to Medicines
• Sustainable Operations
• Responsible Supply Chain

Environmental Achievements

• Increased green power usage to 60.4% of total power requirement.
• Reduced CO2 emissions by 120,950 tons through renewable energy and fuel switching.
• Commissioned India’s largest biomass boiler for process steam, reducing CO2 emissions.
• Achieved 75% renewable energy at major sites in Q4 FY23.

Social Achievements

• Launched several employee well-being programs.
• Secured USD 1.2 billion Sustainability Linked Loan (SLL) tied to ESG targets.

Governance Achievements

• Established robust sustainability governance framework and strategy.
• Board-level oversight of climate-related issues.
• ESG linked performance in employee scorecards (5% weightage).

Climate Goals & Targets

Environmental Challenges

• Water stress impacting operations.
• Risk of flooding at manufacturing sites.
• Reputational risks from stakeholder concerns on climate action.
• Unsuccessful investment in new technologies.
• Enhanced emissions-reporting obligations.
• Heat stress impacting employee health and operations.

Mitigation Strategies

• Implementing water conservation measures (recycling, reuse, storage).
• Developing business continuity plans for extreme weather events.
• Transparent reporting on climate strategy and measures.
• Robust quality and manufacturing systems for low-carbon transitions.
• Integrating climate risks into enterprise risk management.
• Employee benefits and wellness programs, engineering controls.

Supply Chain Management

Supplier Audits: 28 GMP audits in FY23

Responsible Procurement

• Supplier Code of Conduct
• ESG criteria for vendor evaluation
• Sustainability requirements

Climate-Related Risks & Opportunities

Physical Risks

• Water stress
• Flooding
• Heat stress

Transition Risks

• Technological change
• Market shifts
• Regulatory changes

Opportunities

• Resource efficiency
• Market demand for low-carbon products
• Renewable energy

Reporting Standards

Frameworks Used: TCFD, GRI, BRSR, UNGC

Third-party Assurance: DNV

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

Initiatives contribute to these goals through renewable energy adoption, emissions reduction, and community projects.

Sustainable Products & Innovation

• Low-carbon APIs identified through LCA

Awards & Recognition

• S&P Global Sustainability Yearbook
• BW Businessworld Annual Rating
• Golden Peacock Award for Sustainability
• UNWEP India award
• Best Sustainability Practices in Procurement award

Environmental Metrics

ESG Focus Areas

• Product quality
• Research and Development
• Access & affordability
• Environmental performance
• Future ready workplace
• Digitization
• Supply chain sustainability
• Community engagement
• Inclusion and diversity
• Governance
• Ethical sales and marketing
• Climate

Environmental Achievements

• Recycled 78% of water (up from 60% the previous year)
• Recycled 83% of waste generated
• 58% of total power consumed sourced from renewable sources
• 18,765 tCO2e GHG emissions (Scope 1 and Scope 2) offset
• 155,414 metric tons of CO2 emissions avoided due to energy saving initiatives
• 100% of wastewater generated (India Operations) recycled and reused

Social Achievements

• Achieved 17.6% women in workforce at Biocon Limited
• Biocon Biologics reached out to 1,100+ patients through donation programs in low- and middle-income countries
• Donation of approximately 12,500 insulin glargine injection pens and 1,000 glargine vials
• Collaboration with Action4Diabetes (A4D) to supply insulin at subsidized costs

Governance Achievements

• Implemented an anti-corruption and anti-bribery policy
• Established ‘Corporate Social Responsibility and Environmental, Social and Governance Committee’

Climate Goals & Targets

Environmental Challenges

• Product quality risks (recalls, safety, regulatory compliance)
• Environmental performance risks (regulatory compliance, climate change)
• Future ready workplace risks (safe workplace, talent retention)
• Supply chain sustainability risks (disruptions, dependencies)
• Governance risks (ethics, compliance)

Mitigation Strategies

• Stringent quality control measures, automated processes, digital initiatives, improved quality culture, continuous training
• Sustainable practices (renewable energy, water usage, waste management), climate risk considerations in business strategy
• Robust safety procedures, continuous improvement initiatives, employee well-being programs, talent mobility, succession planning
• Integrated approach, cost-effective logistics, supplier audits, Supplier Code of Conduct, alternative vendors, inventory management
• Global best practices in corporate governance and risk management, independent compliance tracking

Supply Chain Management

Supplier Audits: 11 critical vendors/suppliers assessed at BL, 127 critical vendors assessed at BBL

Responsible Procurement

• Supplier Code of Conduct
• Biocon Biologics’ Business Partner Code of Conduct
• Periodic audits on business sustainability parameters

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory pressures

Opportunities

• Resource conservation
• Energy efficiency

Reporting Standards

Frameworks Used: GRI Standards 2021, UNGC, S&P Global Dow Jones Sustainability Indices (DJSI), BRSR (Core) framework by SEBI, AA1000AS v3

Certifications: ISO 14001, ISO 45001, ISO 27001:2013, GMP

Third-party Assurance: Emergent Ventures India Pvt. Ltd.

Awards & Recognition

• S&P Global’s Sustainability Yearbook for 2024
• EcoVadis Silver Medal

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced energy usage by 3%
• Achieved 82% power from renewable sources
• Saved 78,225 Kiloliters of water through recycling and reuse
• Recycled 96% of total hazardous and non-hazardous waste
• Achieved zero waste to landfill at all facilities

Social Achievements

• Contributed to funding of IISc Post Graduate medical school and hospital
• Contributed to the new Bangalore metro
• Extended Synquizitive science quiz to 7,500 students
• Revamped employee induction process
• Achieved 88% employee engagement score

Governance Achievements

• Committed to Science-Based Targets (SBTi) for greenhouse gas emissions reduction
• US FDA approval for API manufacturing facility in Mangalore
• Received ISO: 50001 certification for energy conservation
• Recognized as one of ‘India’s Best Managed Companies’ by Deloitte India

Climate Goals & Targets

Environmental Challenges

• Challenging financing environment in US biotech impacting Discovery Services revenue and margins
• Price sensitivity from clients and price aggression from competitors
• Slowdown in outsourcing due to normalization of biotechnology funding levels

Mitigation Strategies

• Expanded operations in Hyderabad with integrated chemistry and biology services
• Commissioned automated compound management facility
• Acquired new capabilities such as oligonucleotide synthesis
• Focus on digitization and automation to drive efficiency
• Leveraging customer-centric mindset to build partnerships
• Investment in robust leadership, exceptional talent and cutting-edge technology

Supply Chain Management

Responsible Procurement

• ESG assessment of critical suppliers
• Upskilling sessions for suppliers
• Commitment to decarbonization aligned with SBTi goals

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SBTi

Certifications: ISO 45001, ISO 50001

Awards & Recognition

• India’s Best Managed Companies (Deloitte)
• Best Overall Sustainable Performance Award
• Silver Award in Environmental Excellence
• Best Energy Efficient Case Study (CII)
• Supply Chain Champion in Pharmaceutical Sector (ISCM)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• 58% electricity came from green power
• 100% waste water recycled & reused
• 118K tCO2 GHG offset

Social Achievements

• Top 5 among global pharma & biotech employer since 2012
• Published Human Rights Policy
• Recognized by UN Women for efforts to promote diversity
• Rs. 11 Crore in CSR Spend
• 13% increase in women in workforce
• 5.3M patients reached through biosimilars

Governance Achievements

• Board Committees, policies for global governance
• Published 1st Tax Policy & Transparency Report, Supplier Code of Conduct
• Published 1st GRI aligned ESG & BRSR Report for FY22

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

UN Sustainable Development Goals

• UN Sustainable Development Goals (SDGs)

Biocon has drawn up a manifesto to deliver on its commitment to universal healthcare.