Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced groundwater usage to 34% compared to 55.75% in FY 2020-2021
• 51% waste recycling rate
• Zero environmental violations of legal regulations
• Agreement for captive Wind Solar Hybrid power project

Social Achievements

• Organised over 3000 awareness sessions on various diseases
• Conducted several disease screening camps
• CSR expenditure of Rs. 44,79,01,270
• Improved employee engagement score to 90%

Governance Achievements

• 80% independent directors on the Audit Committee
• 67% independent directors on the Nomination & Remuneration Committee
• Zero whistleblower complaints received

Climate Goals & Targets

Environmental Challenges

• Increase in energy consumption and GHG emission due to new projects and expansion
• Increase in waste generation due to new projects and expansion

Mitigation Strategies

• Mapping and working on new technologies for energy and GHG emission management
• Implementing “wealth from waste” strategy for waste management
• Captive Wind Solar Hybrid power project to increase renewable energy mix

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change
• Waste Management
• Water Management
• Corporate Governance and Ethics
• Human Capital and Welfare
• Community Engagement
• Anti-Bribery and Corruption
• R&D and Innovation
• Responsible Marketing, Selling Practices and Product Labelling
• Sustainable Supply Chain
• Product Quality and Safety
• Employee health and safety
• Biodiversity

Environmental Achievements

• Reduction in GHG intensity by 20% in FY2023 w.r.t FY2022
• Reduction in water intensity by 9% in FY2023 w.r.t FY2022
• Reduction in energy intensity by 8% in FY2023 w.r.t FY2022
• 150% increase in utilization of renewable energy in FY2023 w.r.t FY2022
• Reuse of over 40% of water consumed in FY23
• Increase in waste disposal by co-processing by 24% in FY2023 w.r.t FY2022
• 195 tons of reduction in material consumed in packaging of injectable product in two FYs (FY21-23)
• Total virgin paper consumption reduction (304895 Kg paper saved in FY 2021-2022 & 170102 Kg paper saved in FY 2022-2023)

Social Achievements

• Launched various employee wellbeing programs including Zydus Wellbeing, Zydus Cares, Zydus Clubs, and Zydus “Khel Ka Mahasangram”, resulting in 77% employee satisfaction.
• Awarded the “Great Place to Work” certification for 03 consecutive years (FY2021 to FY2023).
• 470 employees promoted internally to senior roles in the past seven years.
• 310 women employees underwent leadership development programs.
• Various community engagement programs including awareness camps on cancer, Fibroscan camps, Hepatitis screening camps, and BMD awareness camps.

Governance Achievements

• Established a CSR & ESG Committee with 33% board independence, including an ESG professional.
• Implemented a robust risk management framework, including climate scenario-based analysis.
• Zero whistleblower complaints received.
• Zero incidents of violation of governance and ethics practices/code of conduct.

Climate Goals & Targets

Environmental Challenges

• Climate change, including extreme weather events and rising global temperatures.
• Inefficient waste management.
• Water scarcity and responsible water consumption.
• Breach of ethics or integrity.
• Employee retention.
• Maintaining quality standards and complying with regulations.
• Supply chain disruptions.
• Potential threats and risks to biodiversity.

Mitigation Strategies

• Climate adaptation and resilience strategies, including renewable energy adoption and energy efficiency improvements.
• Responsible waste management practices, including co-processing and recycling.
• Zero Liquid Discharge (ZLD) approach to water management.
• Zero-tolerance policy for breach of ethics and integrity; Code of Business Ethics and Conduct.
• Comprehensive employee development programs and wellbeing initiatives.
• Robust quality management system and risk assessment programs.
• Thorough supplier evaluation process and a Supplier Code of Conduct.
• Biodiversity risk assessment and mitigation measures, including tree plantation and green belt maintenance.

Supply Chain Management

Supplier Audits: 859 suppliers assessed via desk assessments (FY22-23)

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme climatic events (intense rainfall, cyclones, flooding), unstable raw material procurement, increased temperatures impacting energy efficiency.

Transition Risks

• Stricter environmental laws and regulations, carbon tax, increased emissions reporting requirements, market shifts, changing consumer preferences.

Opportunities

• Building resilient infrastructure, increasing renewable energy, implementing energy efficiency measures.

Reporting Standards

Frameworks Used: GRI, BRSR, SASB

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)
• SDG 7 (Affordable and Clean Energy)
• SDG 13 (Climate Action)

Initiatives such as Zydus Medical College and Hospital, renewable energy adoption, and waste management contribute to these goals.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• CII - National Environmental Best Practices Award (July 2023)
• Industry Innovation Award for 2022 from National Organization for Rare Disorders (NORD), US

Environmental Metrics

ESG Focus Areas

• Climate Change
• Waste Management
• Water Management
• Corporate Governance and Ethics
• Human Capital and Welfare
• Community Engagement
• Anti-Bribery and Corruption
• R&D and Innovation
• Responsible Marketing, Selling Practices and Product Labelling
• Sustainable Supply Chain
• Product Quality and Safety
• Employee health and safety

Environmental Achievements

• Generation of solar power at manufacturing locations
• Improving energy efficiency of energy consuming equipment
• Increase in utilization of bio fuel / hybrid fuel
• Plans to procure and use solar-wind hybrid power in FY24
• Adopting Zero Liquid Discharge (ZLD) approach to recycle and reuse water resources
• Use of water efficient technologies
• Disposal of waste in a responsible manner
• Complying with applicable regulations for waste generation and disposal
• More emphasis on reduction of waste generation

Social Achievements

• Zydus wellbeing initiatives (annual health checkups, subsidized treatment)
• 24X7 medical assistance with ambulance services
• Medical insurance policy for employees and workers
• Zydus Cares initiative for pregnant women
• 05 days of paternity leave
• Zydus Clubs for employee well-being
• Zydus “Khel Ka Mahasangram” sports events
• Adherence to human rights, safety, health and hygiene protocols

Governance Achievements

• Adopting a zero tolerance policy for breach of ethics and integrity
• Adopting Code of Business Ethics and Conduct
• All new joiners are oriented on the Code of Business Ethics and Conduct
• Processes in place to avoid/manage conflict of interests involving members of the Board

Climate Goals & Targets

Environmental Challenges

• Climate change, extreme weather events, rising global temperatures
• Inefficient waste management
• Stringent regulations for water reuse and recycle
• Breach of ethics or integrity
• Operations in multiple locations across the globe posing challenges with respect to corrupt practices
• Access control, archival and retrieval of R&D data
• Tenure of scientific pool / knowledge transfer
• Unethical marketing / promotion activities
• Supply chain disruptions
• Failure to maintain quality standards and comply with regulations

Mitigation Strategies

• Climate adaptation and resilience initiatives
• Improving energy efficiency / operational efficiency
• Plans to procure and use solar-wind hybrid power
• Responsible waste disposal and compliance with regulations
• Adopting ZLD approach
• Use of water efficient technologies
• Zero tolerance policy for breach of ethics
• Code of Business Ethics and Conduct
• Comprehensive Code of Business Ethics and Conduct policy
• Digital storage of R&D data with access control
• Implementation of Good Laboratory Practices (GLP)
• Policy for ethical marketing, advertising and sales practices
• Thorough evaluation process before onboarding critical vendors
• Mandatory acceptance of Supplier code of conduct
• Annual online vendor assessment based on ESG parameters
• Creating multiple supplier base
• Robust quality management system
• Implementation of Quality Risk Assessment Program

Supply Chain Management

Supplier Audits: 15% coverage

Responsible Procurement

• Supplier code of conduct
• Annual online vendor assessment based on ESG parameters
• Creating multiple supplier base

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, TCFD, SASB

Certifications: ISO 14001, ISO 45001, ISO 27001:2013, Europe GMP Certificate, EU GDP Certificate, GMP certificate from State FDA

Third-party Assurance: Intertek Assuris

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-Being)

Zydus Medical College and Hospital

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental, Social, and Governance (ESG)

Environmental Achievements

• Renewable energy consumption went up to 39% of total energy consumption
• Six manufacturing sites achieved “Zero waste to Landfill” objective
• 30% reduction in GHG Intensity achieved w.r.t the baseline

Social Achievements

• Launched grass-root innovation program
• Various Skill development programs conducted for specially abled students
• Various community care programs carried out

Governance Achievements

• Established dedicated CSR & ESG committee to oversee ESG performance
• Increased board independence to 60%
• Gender diversity of ESG committee is 33% and overall board gender diversity is 20%

Climate Goals & Targets

Environmental Challenges

• Climate changes, especially the extreme weather events and rising global temperatures
• Inefficient management of waste
• Stringent regulations for reuse and recycle of treated water
• Operations in multiple locations across the globe with diversified manpower may pose challenges with respect to resorting to corrupt practices

Mitigation Strategies

• Generation of solar power at manufacturing locations
• Improving energy efficiency / operational efficiency of energy consuming equipment
• Increase in utilization of bio fuel / hybrid fuel
• Increase in procurement of solarwind hybrid power
• Disposal of waste in a responsible manner
• Complying with applicable regulations for waste generation and disposal
• More emphasis on reduction of waste generation
• Increase in waste disposal via eco friendly pro processing and co processing
• Adopting Zero Liquid Discharge (ZLD) approach
• Use of water efficient technologies
• Implementing efforts to achieve water neutrality
• Adopting a zero tolerance policy for breach of ethics and integrity
• Adopting Code of Business Ethics and Conduct

Supply Chain Management

Responsible Procurement

• evaluation of suppliers on sustainability indicators
• Mandatory acceptance of Supplier code of conduct by the vendor
• Annual desk assessment of vendor based on ESG parameters

Climate-Related Risks & Opportunities

Physical Risks

• extreme weather events and rising global temperatures

Opportunities

• climate adaptation and resilience

Reporting Standards

Frameworks Used: GRI, NGRBC

Certifications: ISO 14001, ISO 45001, ISO 27001:2013, Europe GMP Certificate, EU GDP Certificate

Third-party Assurance: Intertek India Private Limited