Redefining Priorities to Deliver Sustained Value

At Lupin, we firmly believe that the identification and integration of ESG aspects which are important for our stakeholders, enables us to build a resilient and sustainable organization.

An ESG materiality assessment was conducted in the current financial year to understand stakeholder expectations, concerns, and interests, including risk factors that may impact our operations.

Stakeholder Engagement

As a global pharmaceutical company with a diverse set of stakeholders spread across geographies, we consistently engage with our stakeholders to explore opportunities for collaboration to enhance our core capabilities and create shared value.

This allows us to understand each stakeholder’s expectations, and approximate emerging risks, thereby leading to efficient decision making within the organization. We believe that stakeholder engagement is critical to build trust within the organization and also encourages a culture of knowledge sharing and continuous learning.

At Lupin, we adopt different approaches to connect with our stakeholders, often through face-to-face interactions at offices, industry associations, public events as well as informal feedback sessions. Whilst the onset of the pandemic limited in-person exchanges, we have ensured alternative channels of communication by leveraging online means.

Materiality

We conducted our first materiality assessment during the current FY. The ESG material topics, identified by our stakeholders, were further validated by the leadership of Lupin, who prioritized these material topics for our business strategy.

The first phase of the materiality assessment involved the identification of key material topics relevant to Lupin. The topics were distinguished through an evaluation of industry megatrends and an assessment of the potential risks and opportunities for our business in the short to medium term. Additionally, relevant materiality topics for the Healthcare and Pharmaceuticals sector were referenced from international sustainability disclosure frameworks such as the Sustainability Accounting Standards Board (SASB) and the Morgan Stanley Capital International (MSCI) Index.

After the initial screening of these topics, we conducted a prioritization exercise with the senior leadership of the company and business function heads. Drawing from the outcomes of the exercise, a ‘priority matrix’ was developed to categorize the topics based on their importance to Lupin.

We believe that the outcomes of this endeavor will guide us in redefining our ESG priorities and will also be fundamental to define the direction of the business strategy in the short to medium term.

Our Material Topics

The high priority ESG aspects have been mapped against the six capitals of the <IR> Framework. This is essential to estimate the impact of these material topics to our value creation process.

Material Topics

The high priority ESG material topics for Lupin and our external stakeholders are provided below:

ESG Themes Key material topics Priority <IR> capital linkages
Governance Corporate governance
  • Business ethics
  • Enterprise-wide risk management
  • Business integrity
  • Tax strategy
Financial capital
Regulatory compliance All 6 capitals
Transparency and reporting All 6 capitals
Data privacy for employee, supplier, customer and patient/consumer data Social and relationship capital
Data integrity Manufactured capital
Cybersecurity Manufactured capital
Pharmacovigilance Intellectual Capital
Product and
customer
Consumer and patient safety Social and relationship capital
Counterfeit products Manufactured capital
Responsible pricing Enhanced availability, accessibility and affordability of medicines Social and relationship capital
Focus on R&D
  • Product innovation/innovative medicines
Intellectual capital
Responsible sales and marketing of products Manufactured capital
Employment
practices
Protection of human rights Human capital
Occupational health and safety
Human resource development
Environmental
performance and
climate change
Waste management
  • Management of operational and consumer waste
  • Recycling
Natural capital
Water management
  • Water consumption
  • Manage water scarcity and water stress
  • Water management across the supply chain
Energy consumption and efficiency
Physical impacts of climate change
Supply chain
management
Sustainable sourcing Natural Capital, Social and relationship capital
Social, environmental and economic standards in our supply chain
Priority
High priority for both internal and external stakeholders
High priority for external stakeholders
High priority for Lupin