Climate Change Data

Environmental Metrics

ESG Focus Areas

• Ethical business practices
• Affordable medicines
• Environmental impact minimization
• Community development

Environmental Achievements

• All manufacturing units certified for ISO 14001 (Environmental Management System)
• Zero discharge of waste from all manufacturing facilities due to effluent treatment plants
• Over 50% of materials procured from local suppliers, reducing transportation costs and emissions
• Approximately 20% of solvents recycled and reused

Social Achievements

• Price cuts up to 76% on three major anti-cancer drugs
• Affordable pricing of iron chelators
• Launch of Trioday, a cost-effective triple-drug antiretroviral combination
• Training programs for teenage students on various life skills (806 sessions in 16 schools, covering about 8500 students)
• Free palliative care services to cancer patients through Cipla Palliative Care and Training Centre

Governance Achievements

• Adoption of a Business Code of Conduct promoting ethical, responsible, and transparent business practices
• Implementation of a Vigil Policy to address unethical behavior and fraud
• Regular monitoring and review of BR performance by the CEO
• Cipla's Corporate Responsibility Policy is based on the National Voluntary Guidelines on Social, Environmental and Economical Responsibilities of Business

Climate Goals & Targets

Environmental Challenges

• Determining product-wise resource consumption due to a multi-product, multi-facility production system
• Addressing stakeholder concerns and managing expectations

Mitigation Strategies

• Ongoing review of product affordability
• Continuous stakeholder engagement through customized mechanisms
• Adoption of world-class environmental and social practices at manufacturing locations
• Use of best-in-class technology for pollution abatement

Supply Chain Management

Responsible Procurement

• Encouraging and supporting local suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business (NVG-SEE)

Certifications: ISO 14001, OHSAS 18001

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced Scope 1 and Scope 2 emissions by 16% compared to FY 2020-21
• 100% equivalent amount of plastic waste collected through waste management agency and co-processed, recycled and/or converted to energy.
• 84% of hazardous waste channeled for recycling, co-processing; 6% disposed to secured landfill.
• All API manufacturing sites located in India and formulations manufacturing site located in Sikkim are zero liquid discharge sites.

Social Achievements

• Various training and awareness programs for employees on topics such as ESG parameters and targets, corporate governance practices, employee well-being, innovation and R&D and various other regulatory updates.
• Implemented measures for employee well-being (details on page 78 of Human Capital)
• Implemented mechanisms to receive and redress grievances for employees and workers (details on page 79 of Human Capital)

Governance Achievements

• Anti-corruption and anti-bribery policy implemented (link provided in report)
• Conflict of Interest Policy and Policy on Related Party Transactions in place (links provided in report)
• Stakeholder Relationship Committee responsible for reviewing ESG/sustainability matters

Climate Goals & Targets

Environmental Challenges

• Scope 3 emissions data not available
• No LCA conducted for products

Mitigation Strategies

• Initiated processes for collating Scope 3 emissions data for FY 2022-23
• Endeavors to conduct LCA for select products in FY 2022-23

Supply Chain Management

Supplier Audits: Null (details on page 90 of Relationship Capital)

Responsible Procurement

• Sustainability Policy and Code of Conduct
• Assessment of suppliers based on ESG parameters
• Capacity building workshops for critical suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001:2015 (all manufacturing sites in India), ISO 45001:2018 (all manufacturing sites in India)

Third-party Assurance: DNV Business Assurance India Private Limited

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Product Quality and Safety
• Supply Chain Disruptions
• Availability and Affordability of medicines
• Corporate Governance

Environmental Achievements

• Goa manufacturing sites achieved Zero Waste to Landfill certification.
• 33.6% renewable energy sourced in India manufacturing operations.
• 1.6% reduction in water withdrawn compared to FY 2022-23 in India manufacturing operations.
• 48% water recycled of total water withdrawn in India manufacturing operations.
• Reduced absolute Scope 1 & 2 emissions by 28% compared to baseline.

Social Achievements

• Launched Tuffies campaign to improve respiratory care among children.
• Breathefree counselled more than 36 lac patients in FY 2023-24.
• Cipla Foundation distributed 4,57,292 medicine parcels to patients in FY 2023-24.
• Patient assistance programs helped 20,464 patients gain access to Cipla medications.

Governance Achievements

• 58% of directors are independent.
• Average board meeting attendance was 96.2%.
• Robust risk management framework implemented.
• Zero instances of corruption and bribery reported.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions.
• Climate change impacts (water stress, carbon pricing).
• Regulatory changes in pharmaceutical industry.
• Misuse of Artificial Intelligence.
• Potential for human rights violations in supply chain.

Mitigation Strategies

• Continuous Improvement Programme for supply chain optimization.
• Investments in renewable energy and energy efficiency initiatives.
• Framework for ongoing monitoring and compliance with regulations.
• Robust ISMS policies and guidelines for data privacy and cybersecurity.
• Due diligence process for business agreements and supplier ESG program.

Supply Chain Management

Supplier Audits: 225 audits conducted (desk-based and on-site)

Responsible Procurement

• Supplier Code of Conduct
• Responsible Sourcing Policy
• ESG assessment framework for vendors.

Climate-Related Risks & Opportunities

Physical Risks

• Water stress

Transition Risks

• Carbon pricing

Opportunities

• Increased renewable energy consumption

Reporting Standards

Frameworks Used: DJSI, TCFD, TNFD, GHG Protocol

Certifications: ISO 14001, ISO 45001, ISO 27001, ISO 50001:2018, ISO 14067, ISO 14040/44

Third-party Assurance: DNV Business Assurance India

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Low carbon emission inhalers

Awards & Recognition

• Not disclosed