Climate Change Data

Zydus Wellness Limited

Climate Impact & Sustainability Data (2022-04 to 2023-03, 2023-04 to 2024-03, 2023-24)

Reporting Period: 2022-04 to 2023-03

Environmental Metrics

Total Carbon Emissions:21,551 tCO2e (FY 2021-22)
Scope 1 Emissions:3,490 MT CO2e (FY 2022-23)
Scope 2 Emissions:9,928 MT CO2e (FY 2022-23)
Renewable Energy Share:5,126 MWh (FY 2022-23)
Total Energy Consumption:2430 MWh (FY 2022-23)
Water Consumption:0.356 Million m³ (FY 2022-23)
Waste Generated:96.72 MT (FY 2022-23)
Carbon Intensity:0.06 (FY 2022-23)

ESG Focus Areas

  • Environmental Responsibility
  • Social Impact
  • Governance Excellence

Environmental Achievements

  • Reduced energy intensity to 2.04 (FY 2022-23) from 2.31 (FY 2021-22)
  • Lowered scope 1 & 2 emissions intensity to 0.06 (FY 2022-23) from 0.11 (FY 2021-22)
  • Reduced water intensity to 1.7 (FY 2022-23) from 2.2 (FY 2021-22)
  • Ahmedabad plant achieved 100% Zero Liquid Discharge in the FY 2022-23
  • Signed the term sheet for 2MW solar power project
  • Reduced the food loss and waste intensity by 0.14% in the FY 2022-23 compared to the FY 2021-22

Social Achievements

  • Invested 1,660 man-hours in safety related employee trainings in FY 2022-23, which is 18% increase compared to FY 2021-22
  • Zero fatalities and lost days in all plants in the FY 2022-23
  • Established the R&D facility emphasizing food science and nutrition
  • Total permanent women workforce has increased by 7% in the FY 2022-23 compared to the previous year

Governance Achievements

  • Defined roles and responsibilities for ESG involvement at the governance level involving various committees and leads involving the CEO, CSR & ESG committee, Steering committee, ESG Leads, and ESG Working council
  • Ahmedabad and Sikkim plants are ISO 14000 and ISO 45001 certified and certification is in progress for Aligarh plant
  • Created and revised multiple ESG-related policies such as ESG, Diversity & Inclusion, Anti- Bribery and Anti-Corruption, Human Rights, Biodiversity, Occupational Health & Safety, Environment, Human Rights and Ethical and Responsible Marketing

Climate Goals & Targets

Medium-term Goals:
  • 15% emission reduction by FY 2028-29
  • 15% increase in renewable energy by FY 2028-29
  • 20% reduction in energy intensity by FY 2028-29
  • 15% water intensity reduction by FY 2028-29
Short-term Goals:
  • Reduce packaging material by 1,000 tons by 2027

Environmental Challenges

  • Data Privacy & Cybersecurity
  • Plastic & Product packaging
  • Water Stress
Mitigation Strategies
  • The Company follows the cybersecurity protocols implemented across the Zydus Group. We have recently updated our cybersecurity policy. Information Security Management Systems (ISMS) are currently being implemented across the Group.
  • We work with the Government approved waste collection agencies and recyclers to meet and exceed our EPR commitments.
  • Effective water management is crucial to ensure the long- term sustainability of our operations.

Supply Chain Management

Supplier Audits: 25 critical suppliers (FY 2022-23)

Responsible Procurement
  • Environmental & social criteria are essential prerequisites in the procurement of materials

Climate-Related Risks & Opportunities

Opportunities
  • Green power (2MW solar power for Aligarh plant)

Reporting Standards

Frameworks Used: BRSR

Certifications: ISO 14001, ISO 45001, FSSC 22000

Third-party Assurance: Intertek India Private Limited

Awards & Recognition

  • Great Place To Work - Certified from January, 2024 to January, 2025
  • Great Place To Work - Certified from March, 2022 to March, 2023

Reporting Period: 2023-04 to 2024-03

Environmental Metrics

Total Carbon Emissions:31,304 tCO2e/year (Scope 1); 8,798 tCO2e/year (Scope 2); 26,521.5 tCO2e/year (Scope 3)
Scope 1 Emissions:31,304 tCO2e/year
Scope 2 Emissions:8,798 tCO2e/year
Scope 3 Emissions:26,521.5 tCO2e/year
Renewable Energy Share:54.32% (Aligarh plant)
Total Energy Consumption:104,631.41 MWh/year
Water Consumption:0.366 million m³/year
Waste Generated:1081.4 MT/year
Carbon Intensity:0.17 (Scope 1+2 emissions/ turnover in lakhs) in FY 2023-24

ESG Focus Areas

  • Environmental Responsibility
  • Social Impact
  • Governance for Sustenance

Environmental Achievements

  • Committed to a 25-year deal to generate 2MW of solar power at its Aligarh plant.
  • Assessed and responded to biodiversity-related risks and opportunities across all manufacturing units.
  • Recycled and safely disposed of 7392.2 tons of post-consumer plastic packaging waste, exceeding its EPR target.

Social Achievements

  • DoodhShakti initiative strengthens engagement with local dairy farmers, supporting animal husbandry, nutrition, and milk production.
  • Fosters a safe, inclusive, and empowering workplace.

Governance Achievements

  • CSR & ESG committee meets annually, chaired by the Chairman, providing updates to the Board of Directors.
  • ESG goals are key non-financial performance indicators for the leadership team.

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2040
Medium-term Goals:
  • Reduce freshwater consumption by 25% by 2030
  • Achieve 50% renewable energy use by 2030
  • Reduce GHG emissions in Direct Operations by 50% by 2030
Short-term Goals:
  • Reduce water consumption by 5-10%
  • Reduce energy consumption by 3-5%

Environmental Challenges

  • Supply chain disruptions due to prolonged rainy season and unprecedented floods impacting raw material procurement.
  • Evolving regulations on plastic packaging.
  • Water scarcity impacting operations, especially in Aligarh and Ahmedabad.
Mitigation Strategies
  • Collaboration with government-approved waste collection agencies and recyclers.
  • Initiated projects to save 280 tons of packaging material annually.
  • Transitioning to fully recyclable materials by 2027.
  • Exploring the use of Post-Consumer Recycled (PCR) material.
  • Implementing rainwater harvesting, reusing treated water, and investing in advanced water treatment technologies.

Supply Chain Management

Supplier Audits: 106 suppliers audited in FY 2023-24

Responsible Procurement
  • Supplier Code of Conduct
  • ESG Checklist
  • ESG Risk Assessment Framework

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events (floods, cyclones, landslides)
  • Rising temperatures
  • Water stress
Transition Risks
  • Regulatory compliance costs
  • Changes in consumer preferences
  • Higher costs due to adoption of low-carbon technologies
Opportunities
  • Renewable energy adoption
  • Operational efficiency improvements
  • Circular packaging systems
  • Sustainable farming practices

Reporting Standards

Frameworks Used: BRSR (Business Responsibility and Sustainability Report)

Certifications: ISO 14001:2015 (Ahmedabad, Aligarh, Sikkim plants), FSSC 22000 (Ahmedabad, Aligarh, Sikkim plants), ISO 45001:2018 (Ahmedabad, Aligarh, Sikkim plants)

Third-party Assurance: Intertek India Private Limited

Sustainable Products & Innovation

  • I’M Lite
  • Mayonnaise Lite
  • Retail Mayonnaise
  • Nycil Jar
  • Glucon D Jar

Awards & Recognition

  • Great Place to Work certification (3 consecutive years)
  • Product of the Year Gulf 2024 Award (Sugar Free D’lite)

Reporting Period: 2023-24

Environmental Metrics

Scope 1 Emissions:31,304 tCO2
Scope 2 Emissions:8,798 tCO2
Renewable Energy Share:79%

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Reduced scope 2 emissions by 2.0% Y-o-Y
  • Reduced electricity consumption by 2.0% Y-o-Y
  • Achieved zero waste to landfill
  • 3 out of 4 plants operating under Zero Liquid Discharge protocols
  • Saved 2.0% ground water consumption/ton at Aligarh plant and 4.3% surface water consumption at Ahmedabad and Sikkim plants
  • 25-year deal to generate 2MW of solar power for Aligarh plant

Social Achievements

  • Launched employee well-being program
  • Invested 2,183 man-hours in safety-related employee trainings (32% increase compared to FY 2022-23)
  • Achieved zero incidents & fatalities reported for the year
  • Conducted awareness programs for 1,600 farmers and distributed 12,000 large deworming, 6,000 small deworming and 1,500 mineral mixture packets
  • Increased female employees to 7.3% from 6.8% in the previous year
  • Zero data breaches

Governance Achievements

  • Substantial improvement in S&P Global ESG score
  • Developed and embedded comprehensive policies within operations
  • Ahmedabad and Sikkim Plants are ISO 14001:2015 and 45001:2018 certified

Climate Goals & Targets

Long-term Goals:
  • Reduce Scope 1 & 2 emissions by 15.0% by FY 2028-29 (base FY 2021-22)
  • Reduce energy intensity by 20.0% by FY 2028-29 (base FY 2021-22)
Medium-term Goals:
  • Achieve 15.0% increase in renewable energy by FY 2028-29 (base FY 2021-22)
  • Transition to fully recyclable multi-layer plastic for packaging by FY 2027-28
Short-term Goals:
  • Reduce water consumption by 15.0% by FY 2028-29 (base FY 2021-22)
  • Decrease packaging material by 1,000 tons over the next 3 years, starting FY 2023-2024

Environmental Challenges

  • Demand pressure for both urban and rural markets due to erratic monsoon and low growth in agriculture sector
  • Subdued rural demand in general trade leading to increased cost to serve
  • Concerns raised by global regulatory body over the impact of consumption of non-nutritive sweeteners
  • Unseasonal rains impacting Glucon-D off-takes
  • Competition and price pressure
  • Evolving customer tastes, preferences, and behavior
  • Risk of litigation
  • Macro Economic and geopolitical risks
  • Under Penetration of Category
  • Impact on business due to risk of shift or delay in seasons
  • Counterfeit Products
  • Supply chain disruptions
  • Cyber Security
Mitigation Strategies
  • Calibrated price increases and efficient hedging strategy for key inputs
  • Released videos in vernacular language assuring safety of consumption of Sugar Free
  • Organised conferences with veteran doctors and key opinion leaders
  • Strong distribution, category expansion and investments in product innovations, media campaigns, sales promotions, and digital initiatives
  • Portfolio diversification to reduce single product dependency
  • Localization of manufacturing to reduce forex dependence
  • Expanding into new and stable geographies
  • Continuous innovation to meet customer expectations
  • Flexibility in supply chain to manage inventory
  • Legal action against counterfeit products
  • Adaptive distributed manufacturing footprint
  • Harmonious labor practices
  • Sufficient inventory and multiple sources of critical supplies
  • Necessary security tools to safeguard against cyber-attacks
  • Well-defined risk management mechanism

Supply Chain Management

Supplier Audits: 14 critical vendors (25% of total vendor value) initially assessed; plan to extend to all vendors

Responsible Procurement
  • Quality checklist
  • Vendor audits during onboarding
  • ESG Vendor checklist
  • Code of Conduct for Vendors

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SEBI BRSR

Certifications: FSSC 22000, ISO 14001:2015, ISO 45001:2018, GMP

Third-party Assurance: Intertek India Private Limited

Awards & Recognition

  • National awards for manufacturing competitiveness (NAMC) 2023
  • Integrated Manufacturing Excellence Initiative (IMEXI) 2023
  • Product of the Year Gulf 2024 Award