Aarti Pharmalabs Limited
Climate Impact & Sustainability Data (2022-23, 2023-04 to 2024-03)
Reporting Period: 2022-23
Environmental Metrics
Total Carbon Emissions:117137 tCO2e (Scope 1 & 2)
Scope 1 Emissions:37,390 Metric Tonnes of CO2
Scope 2 Emissions:79,746 Metric Tonnes of CO2
Renewable Energy Share:3.5%
Total Energy Consumption:787489.121 GJ
Water Consumption:716243 KL
Waste Generated:5,737.96 Metric Tonnes
Carbon Intensity:7.81 Metric Tonnes of CO2/INR/million
ESG Focus Areas
- Environment, Health and Safety (EHS)
- Corporate Social Responsibility (CSR)
- Sustainability
Environmental Achievements
- Reduced carbon footprint (Scope 1 & 2 emissions) by 7% YoY to 1.25 kgCO2e per kilogram of product.
- Achieved a 3.6% reduction in specific water consumption compared to 2020.
- Reduced hazardous waste for disposal by approximately 18 MT per month.
Social Achievements
- Reduced employee turnover by ~1% from 11.81% in 2020-21 to 11.08% in 2022-23.
- Invested 16000 man-hours on Skills and Competencies building programme.
- Total CSR spend of ₹65 Lakhs
Governance Achievements
- Successful demerger of pharmaceutical business from Aarti Industries Limited.
- Established a Vigil Mechanism and Whistle Blower Policy.
- Implemented a Compliance Management System
Climate Goals & Targets
Environmental Challenges
- Regulatory risks
- R&D risks
- Competition risks
- Raw material risks
- Quality risks
- Health, Safety & Environment risks
Mitigation Strategies
- Robust internal control system
- Significant investment in R&D
- Differentiated products through R&D
- Long-standing relationships with suppliers
- RM-plus pricing mechanism
- Dedicated quality experts and IT-enabled quality assurance
- Comprehensive safety programs and HSE management system
Supply Chain Management
Responsible Procurement
- Responsible Procurement Policy
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: GRI, BRSR
Certifications: ISO 9001, ISO 14001, ISO 45001, USFDA, EUGMP, PSCI, Star Kosher, HACCP, Sedex SMETA-4PillarP, FSSC-22000 (GFSI), GMP
Reporting Period: 2023-04 to 2024-03
Environmental Metrics
Total Carbon Emissions:183865.78 tCO2e/year
Scope 1 Emissions:88101.32 tCO2e/year
Scope 2 Emissions:95764.46 tCO2e/year
Renewable Energy Share:0%
Total Energy Consumption:1283728.34 GJ/year
Water Consumption:391904 KL/year
Waste Generated:13676.33 tons/year
Carbon Intensity:6.62 Metric tonnes of CO2 equivalent per tonne of production (FY2024)
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- Implemented Zero Liquid Discharge (ZLD) across all units.
- Underway with a solar energy project in Akola, Maharashtra (expected completion December 2024).
Social Achievements
- 100% of permanent employees covered by health insurance.
- Implemented robust grievance redressal mechanism for human rights issues.
Governance Achievements
- Comprehensive Code of Conduct and Vigil Mechanism policy emphasizing anti-corruption and anti-bribery practices.
- Regular internal audits and reviews of all policies and processes.
Climate Goals & Targets
Environmental Challenges
- High GHG emissions exposing the company to regulatory penalties and reputational damage.
- Material sourcing and efficiency risks leading to supply chain disruptions.
- Supplier environmental and social assessments revealing risks related to environmental standards and labor practices.
Mitigation Strategies
- Implement emission reduction strategies and invest in cleaner technologies.
- Implement stringent supplier assessments and sustainable sourcing practices.
- Conduct regular environmental and social audits and engage in supplier development programs.
Supply Chain Management
Supplier Audits: 48.72% of key raw material suppliers assessed
Responsible Procurement
- Responsible Procurement Policy
- Supplier Code of Conduct
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: NGRBC
Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, SMETA 4 pillar
Third-party Assurance: SustainEDGE Business Solutions Private Limited (AA1000AS v3 ‘Type 2 - Moderate’ Assurance)