Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• 340 KW capacity in-house solar power generating systems
• Moved from TFL/CFL/SVL to energy-efficient LED lights
• Recycled 29,675 KL of water from steam condensate and reused it for steam generation
• Collected and recharged 9,947 KL rainwater
• Treated 1,20,267 KL of wastewater and reused it

Social Achievements

• Free vaccination program for all employees and their families
• Expanded insurance coverage for COVID-19
• Provided full medical assistance for impacted employees and their families
• Ran a 24x7 COVID-19 helpline
• Support for deceased employees' families: two years’ gross salary
• Conducted 8,480 hours of training for global workforce
• Arogyadham healthcare centers providing free consultations and subsidised medicines
• Donated ventilators, sanitisers, masks, and food to communities
• Built nine self-sustaining RO water units

Governance Achievements

• 50% of the Board consists of Independent Directors
• Managing Director and Chairman are different executives
• Robust policies and procedures including Code of Conduct, Board Diversity Policy, etc.
• Quality Fabric initiative to strengthen quality culture

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations, lower pharmacy footfalls, lower elective surgeries, weak demand for certain products
• Disruptions in manufacturing operations depleting safety stocks
• Significant cost increases from logistics and failure to supply due to COVID-19
• Price erosion for portfolio

Mitigation Strategies

• Prioritised health over profits
• Increased air shipments to minimise failure to supply
• Focus on building in-market safety stocks and supply chain efficiencies
• Focused product selection strategy
• Continued investment in R&D portfolio

Supply Chain Management

Responsible Procurement

• Sustainable sourcing
• Sourcing from local and small producers
• Supplier Code of Conduct (in development)

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 6
• Goal 1

Strides' CSR goals align with UN SDGs related to health, education, water, and poverty.

Sustainable Products & Innovation

• Molunupiravir Capsules
• Emtricitabine/Tenofovir Fixed-Dose Combination
• Tenofovir/Lamivudine/Dolutegravir Fixed-Dose Combination

Environmental Metrics

ESG Focus Areas

• Employee and workforce Health & Safety (EHS)
• Labour Practices
• Talent Attraction and Retention
• Governance
• Management of the Legal and Regulatory Environment
• Energy
• Water Stewardship
• Waste Management
• Physical Impact of Climate Change
• Human Rights
• Inclusive Growth and Equitable Development
• Consumer Engagement

Environmental Achievements

• 3 out of 5 Strides’ sites are Zero Liquid Discharge (ZLD) sites
• Implemented water conservation through reduce, reuse, recharge, and recycle approach within manufacturing locations
• Achieved 2.23% of in-house clean energy generation in FY 2022-2023. Target is to achieve at least 5% of total power consumed from in-house renewable energy sources, from FY 2023-24 onwards.

Social Achievements

• Implemented robust EHS management system & policies, including a dedicated software for reporting and monitoring EHS incidents.
• Annual Manpower Planning exercise based on zero base budgeting for all functions.
• Formal Grievance Redressal policy available for employees and workers.
• SEEK app provides confidential grievance reporting for employees and workers.

Governance Achievements

• Robust internal financial controls and governance system in place.
• Periodic review of regulations and compliance with statutory requirements.
• Risk Management Committee (RMC) periodically reviews ESG initiatives and reporting.

Climate Goals & Targets

Environmental Challenges

• Non-compliance to EHS standards resulting in health and safety issues.
• Inadequate manpower planning process resulting in delays in hiring.
• Lack of establishment of effective internal financial controls.
• ESG compliance risk linked to non-adherence with standards of regulatory agencies.
• Environmental risks related to climate change.
• Physical impacts of climate change impacting business continuity.

Mitigation Strategies

• Robust EHS management system & policies, including audits, event reporting & hazard reporting.
• Annual Manpower Planning exercise.
• Financial SOPs, management testing of internal controls.
• Periodic review of regulations and compliance mechanisms.
• Waste management to attain net-zero impacts, comprehensive resource management plans.
• Business continuity and disaster strategy.

Supply Chain Management

Responsible Procurement

• Vendor code of conduct
• Encourages local sourcing

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters, extreme temperatures

UN Sustainable Development Goals

• SDG 1
• SDG 3
• SDG 4
• SDG 6

CSR goals align with these SDGs.

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Impact
• Responsible Governance

Environmental Achievements

• ~44% of energy consumed was derived from renewable energy sources.
• 43.9% of water consumed was recycled and reused
• All Strides India facilities are ISO 14001 certified

Social Achievements

• 119,000+ learning hours achieved globally, focusing on technical, behavioral, and compliance aspects.
• Zero fatalities.
• 600+ students gained employment opportunities through Strides Foundation’s skill development programmes.

Governance Achievements

• Board-level Risk Management Committee for strict supervision over ESG matters.
• ISO 27001 certified Information management systems and robust IT security and privacy infrastructure.
• ESG success metrics integrated into the performance scorecard and incentive structures of Executive Directors.

Climate Goals & Targets

Environmental Challenges

• Under-performance of international stressed assets resulting in impairment risk
• Inability to achieve intended strategic M&A outcomes within the timelines envisaged resulting in loss of shareholder value
• Cyber-attacks could lead to loss of confidentiality, data, information and loss of reputation
• Non-fulfillment of contractual obligations resulting in financial and reputation loss
• Critical inspection observations related to facilities/systems/deployment could culminate into regulatory action disrupting supply and delaying product approval
• Product liability claims and potential recalls arising from nitrosamine related impurities
• Impact on Environment and Society and related impact on operations
• Emergence of Artificial Intelligence (AI) based technologies, with integration across pharma operations, accompanying challenges and adverse outcomes.
• Escalating Geopolitical Tensions and Societal Unrest leading to significant operational disruptions across the supply chain, increasing costs, thereby impacting profitability.
• Attracting and retaining skilled talent in the workforce, while addressing talent shortages in the pharmaceutical industry

Mitigation Strategies

• Implemented initiatives such as optimising receivables, improving Sales & Operations Planning (S&OP), exploring liquidity options, and reducing costs.
• Strengthened approach to M&A risk assessments and due diligence.
• Implemented various initiatives to enhance cybersecurity measures, including a monthly dashboard, firewalls, and IT and cybersecurity training.
• Utilise a centralised tool that serves as a repository for all contracts.
• Implemented various initiatives to enhance our cybersecurity measures.
• Ensure our facilities are well-maintained through a targeted action plan.
• Continuously working toward regulating environmental impact of our operations by investing time and capital in various critical areas.
• Implementing advanced workforce analytics, flexible recruitment approaches, and investing in ongoing training programmes.
• Evaluating critical dependencies and establishing backup plans with qualified alternate suppliers.
• Implementing a comprehensive risk management framework specifically for AI technologies.
• Investing in training programmes and fostering continuous learning.

Supply Chain Management

Supplier Audits: 100% of employees trained on Code of Conduct, 33 critical suppliers assessed (63.3% of procurement value)

Responsible Procurement

• Vendor Code of Conduct incorporating ESG principles
• Sustainable Procurement Strategy in development

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards 2021, UN Sustainable Development Goals (SDGs), SASB standards, BRSR disclosures

Certifications: ISO 14001, ISO 27001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Sustainable packaging

Awards & Recognition

• Excellence in Sustainable Packaging Award
• Best Organization for Women Empowerment
• Great Indian Women Leaders Awards 2024 (three women leaders)