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.
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.
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.
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.
The high priority ESG material topics for Lupin and our external stakeholders are provided below:
|ESG Themes||Key material topics||Priority||<IR> capital linkages|
|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|
|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
|Responsible sales and marketing of products||Manufactured capital|
|Protection of human rights||Human capital|
|Occupational health and safety|
|Human resource development|
|Energy consumption and efficiency|
|Physical impacts of climate change|
|Sustainable sourcing||Natural Capital, Social and relationship capital|
|Social, environmental and economic standards in our supply chain|