Climate Change Data

Environmental Metrics

ESG Focus Areas

• Community Investment
• Employee Well-being
• Quality and Compliance

Environmental Achievements

• Installation of energy-efficient equipment (LED lights, VFDs, economizers) resulting in energy savings.
• Replacement of boiler fuel with briquettes, reducing energy consumption.
• Use of solar energy at Mandva API plant.

Social Achievements

• Launched various employee engagement initiatives (Star Awards, Service Awards, Applaud Awards).
• Provided 30,000+ person days of training in FY17.
• Undertook various CSR initiatives (healthcare, education, vocational training, environment conservation).

Governance Achievements

• Successful US FDA inspections at Daman, Baddi, and Ankleshwar facilities.
• Implementation of a Whistle Blower Policy.
• Establishment of an Internal Complaints Committee to address sexual harassment complaints.

Climate Goals & Targets

Environmental Challenges

• Expansion of NLEM list leading to price cuts in India.
• Temporary hardships due to demonetization.
• Pricing pressure in the US market due to buyer consolidation.
• Regulatory compliance risks, exchange rate volatility, and geopolitical risks for exports.

Mitigation Strategies

• Outperformance of the market through volume growth, new product launches, and improved field force productivity.
• Cost optimization measures and improved operating efficiencies.
• Focus on key international markets and differentiated products.
• Continued investment in R&D and accelerated ANDA filings.

Supply Chain Management

Responsible Procurement

• Green procurement initiatives focusing on raw materials, packaging, and finished goods.
• Use of organic/bio fuels (80% of inputs for utility).

Climate-Related Risks & Opportunities

Awards & Recognition

• EY Entrepreneur of the Year Award (Samprada Singh and Basudeo N. Singh)
• Emerging Pharma Leader of 2016 (Sandeep Singh)
• CEO of the Year 2016 (Prabhat Agrawal)
• Brand of the Year (Pan)
• HR Tech Award for Best use of Technology in Human Resources
• Emerging Dermatology Brand 2015 (Melbild)
• Silver Award, New Introduction of the Year, Chronic Category (Melbild)
• Brand of the Year (Clavam)

Environmental Metrics

ESG Focus Areas

• Healthcare
• Education
• Environment
• Sports
• Rural Development

Environmental Achievements

• Planted over 1 million trees
• Installed solar street lights
• Developed a door-to-door garbage collection system
• 90.49% wastewater reused
• 25.80% hazardous waste disposed of sustainably
• 16.75% energy from renewable sources

Social Achievements

• Impacted over 10 lakh lives across India
• Positively impacted 3 lakh lives through early cancer detection, anaemia-free panchayats, and supporting surgeries
• Provided scholarships and developed infrastructure for education
• Supported sports personalities with ₹10 Million for training
• Empowered rural women and youth through Project Saksham, Project Swavalamban, and Alkem Aatma Nirbhar Gram
• Supported cochlear implants, spine surgeries, and cataract surgeries

Governance Achievements

• 25% women’s representation on the board
• Established a robust monitoring and evaluation mechanism for CSR programs

Climate Goals & Targets

Environmental Challenges

• Limited accessibility and affordability of healthcare in India
• High TB burden in India, particularly in Sikkim
• High rate of anaemia among women and children
• Limited infrastructure and recognition for lesser-known sports

Mitigation Strategies

• Partnered with Tata Memorial Centre (TMC) to provide cancer care
• Established mini cancer units and a home-based palliative care unit
• Launched Alkem Anaemia Mukti Abhiyaan (AAMA)
• Supported training programs for emerging sports talents
• Developed health centers and mobile health units to improve healthcare access

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• 9th National CSR Times Award
• CSR Excellence Award by Economic Times (India Pharma World Awards 2023)
• CSR Excellence Award by Global Business School, Amity Pune

Environmental Metrics

ESG Focus Areas

• Environment, Health, and Safety (EHS)
• Climate Change
• GHG Emissions
• Biodiversity
• Energy Management
• Waste Management
• Water Management
• Product Quality
• Occupational Health & Safety
• Human Resource Development
• Sustainable Supply Chain
• Human Rights
• Community Engagement
• R&D and Innovation
• Data Privacy and cybersecurity
• Clinical Trial Conduct
• Pharmacovigilance
• Environmental Compliance
• Corporate Governance
• Business Continuity
• Resilient Business Performance
• Sales and marketing practices
• Combatting counterfeit medicines

Environmental Achievements

• 10.2% reduction in total volume of water consumption
• 11.5% reduction of total electricity consumption (from non-renewable source - Grid)
• 4,189.0 MT Waste recycled
• 53.48% NOx reduction
• 32.94% SOx reduction

Social Achievements

• Certified as a “Great Place to Work” for the fourth time
• Featured in India’s Top 100 best companies to work for
• Launched ‘Alkemites Assistance Program’ for employee well-being
• Enhanced term life insurance coverage for employees
• Launched impactful signature training programs
• 11 lakh Lives benefited through CSR initiatives

Governance Achievements

• Appointment of Dr. Vikas Gupta as Chief Executive Officer
• Appointment of Mr. Nitin Agrawal as Chief Financial Officer
• Creation of the Chief Executive Officer position
• Strengthened leadership team

Climate Goals & Targets

Environmental Challenges

• Supply chain challenges in the US
• Subdued growth in certain acute therapies in India
• Stiff competition from multiple competitors
• Inadequate control on internal processes impacting product quality
• Adverse pricing regulations affecting essential products
• Disruption in production or supply chain at Sikkim Facility
• Non-compliance with regulatory requirements
• Changes in science and technology impacting R&D costs
• Redundancy in technology used, lack of proper technological support or lack of awareness of information security among employees
• Lack of energy efficiency consciousness
• Lack of water resources at key locations
• Violation of human rights principles
• Gaps in pharmaceutical supply chain
• Non-compliances with environmental regulations
• Unethical behaviour or corporate misconduct
• Poor corporate governance practices
• Disruption to normal business operations
• Presence of counterfeit products in the market

Mitigation Strategies

• Cost optimization initiatives
• Investing in R&D to develop unique products
• Strong adherence to CGMP guidelines
• Investing significantly in R&D to develop molecules/drugs ahead of competition
• Robust cost control measures
• Setting up alternative in-house manufacturing facilities and using contract manufacturing
• Compliance and integrity measures
• Astute business planning
• Regular VAPT and IT audits
• Implementing Microsoft Active Directory
• Specialized pharmaceutical courses
• Multiple initiatives for energy management
• Monitoring and reducing water consumption
• Rainwater harvesting and effluent treatment plants
• Well-structured Human Rights policy
• Code of Ethics for stakeholders
• Comprehensive business continuity measures
• Integrating ESG risks into Enterprise Risk Management system
• Anti-counterfeiting Security features

Supply Chain Management

Supplier Audits: 90% of new suppliers screened on ESG criteria by FY’25

Responsible Procurement

• Code of Ethics for suppliers, vendors, and contractors
• ESG screening criteria for new suppliers
• Associate Membership with Pharmaceutical Supply Chain Initiative (PSCI)

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather events causing business disruptions

Transition Risks

• Regulatory changes impacting essential products

Opportunities

• Increased demand for healthcare services due to climate change impacts

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14001, ISO 45001, ISO 50001

Third-party Assurance: DNV Business Assurance India Pvt. Ltd.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Great Place to Work
• India’s Best Companies to Work For - Top 100
• EY Entrepreneur of the Year in Life Sciences
• Hurun India Lifetime Achievement Award
• APEX India Foundation CSR Excellence Award 2023