In FY24, we conducted a materiality assessment applying the principles of double materiality, guided by the Corporate Social Responsibility Directive framework. Double materiality allows us to evaluate our stakeholders’ perspectives on our societal and environmental impacts and the potential effects of external events on our business. This evaluation helps us identify potential vulnerabilities that could impact our ability to deliver medicines and treatments while enabling the company to manage its impact and better understand stakeholder perceptions.
Furthermore, materiality assessments help us address issues such as water resource management, the potential impact of excessive water extraction on climate change, and the subsequent impact on our future business. Our materiality assessment process includes multiple steps landscape analysis, stakeholder engagement, prioritization of material issues, application of double materiality and finalization of topics.
Based on the materiality assessment, we identified 18 high-priority topics, applying a double materiality lens to determine their financial and impact materiality and plotted these on a materiality matrix.
These identified material topics have guided our Enterprise Risk Management Framework, enabling us to manage risks and opportunities effectively and allocate resources efficiently. Through this process, we have identified key risks and opportunities and developed strategies to mitigate risks and capitalize on opportunities.
| Material Risk or Opportunity | Accessibility and Affordability | Water Management | Responsible Supply Chain and Decarbonization |
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With our portfolio of generics and extensive global presence, we are well-equipped to provide patients globally with access to essential medicines and meet the increasing demand for pharmaceutical products. Barriers to access, such as pricing and availability negatively impact the ability to obtain necessary medications and may pose challenges to our vision and long-term growth potential. | Effective water and waste management is crucial for the company to create a positive environmental impact. Prioritizing efficient water usage, minimizing waste generation, and ensuring proper disposal are essential to showcase our commitment to a sustainable future and a healthier planet. | The pharmaceutical industry’s dependence on the supply chain for critical raw materials and the final delivery of medicines could mean that any disruption can affect business continuity and product quality. Reliance on nonsubstitutable suppliers poses a risk to the consistent availability of essential raw materials. |
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The company’s innovation and research efforts boost brand value by providing diverse, accessible, and affordable products. These offerings help address unmet patient needs and improve access in low and middleincome countries. | Persistent high water consumption in areas experiencing water stress increases the risk of rising operational costs, which can disrupt manufacturing capabilities and result in overall revenue loss. Inadequate management of environmental impact can lead to legal, regulatory, and financial consequences, damage to reputation and stakeholder trust, and, ultimately, a loss of license to operate. | Partnerships with
suppliers can be
impacted if they fail
to meet the required
regulatory and ESG
standards, resulting in a
loss of business value. Dependence on nonsubstitutable and critical raw material suppliers poses a risk to the business in the event of unforeseen disruptions. |
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We are dedicated to building a resilient and varied product portfolio through strengthening cross-functional synergies, organizational capabilities, project management, and governance. Our focus is on identifying, developing, planning, and launching new products. We prioritize developing and commercializing advanced generics, supported by operational excellence initiatives aimed at improving yields, ensuring supply chain continuity, and maintaining sufficient inventories. | We monitor our water consumption on a regular basis. Our efforts are concentrated on optimizing water usage, minimizing withdrawals, and enhancing water recovery. We aim to implement Zero Liquid Discharge at our facilities to treat all manufacturing wastewater responsibly. Additionally, we are committed to prudent water use in regions facing water scarcity, reducing our environmental impact. | We are actively seeking ways to mitigate supply chain risks by assessing alternative suppliers for critical or irreplaceable raw materials. Our suppliers are required to uphold the company’s ESG standards as outlined in our Supplier Code of Conduct. |
| Material Issues for External Stakeholders | Ethical Marketing and Labeling | Anti-Microbial Resistance | Data Privacy and Cyber Security |
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Ethical marketing and clear labeling ensure that patients receive accurate and comprehensive information about their medications. This includes dosage instructions, potential side effects, contraindications, and interactions with other drugs. | AMR can lead to higher mortality rates as infections that were once treatable become resistant to antibiotics, making them harder to cure, resulting in prolonged illnesses and increased complications. Resistant bacteria can spread within communities and healthcare settings, leading to outbreaks that are difficult to control. | The security and integrity of the IT system across the entire business is directly impacted by risks related to Cyber Security and Data Privacy. |
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Community in general | Community in general | Community in general |
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Miscommunicating drug uses or prescriptions, along with any incorrect labeling, can cause serious harm to patient’s health and safety, which has reputational risks alongside risks related to loss in revenues. | Lupin’s inaction as a pharmaceutical company regarding AMR stewardship can lead to a loss of reputation, which in turn leads to a loss of customer loyalty and customers. | Lack of a robust data integrity and security mechanism could increase the rate of data breaches and result in the loss of valuable data that may have an adverse impact on the business. Breach of customer/ stakeholder data may potentially expose us to litigations, fines and penalties. |
Driven by our mission to be the most trusted patient centric company, we are committed to addressing environmental and social challenges impacting our patients and communities. We actively pursue relevant initiatives to meet critical issues, such as combating climate change and addressing social inequities.
Our organizational goals are aligned to two pillars: ESG SMART goals and Perpetual Commitments. ESG SMART goals have specific targets and timelines, which are monitored every quarter. Our Perpetual Commitments represent our ongoing efforts to improve, track, and report monthly progress. Some significant milestones in our progress toward these goals has been shared.
| Theme | Sub Theme | Goal Description | Target | Target Year | FY24 Status |
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 Environment Stewardship |
Climate Change | 38% absolute reduction in Scope 1 & 2 by 2030 | 38% | 2030 | 21% |
| Water Recycling | Recycling of 50% of our total water withdrawal in our India operations by 2025 | 50% | 2025 | 44% | |
| Circular Economy | 70% of incinerable hazardous waste generated in India operations will be sent for coprocessing by 2025 | 70% | 2025 | 89% Goal Achieved | |
| ISO 14001 & ISO 45001 Audits | Certification of all the India sites including LRP and Biotech for ISO 14001 and ISO 45001 | All sites | 2024 | Goal Achieved | |
| LCA | Completion of the LCA assessment of at least 10 products | 10 products | 2024 | Goal Achieved | |
| Biodiversity Assessment | Completion of Biodiversity assessment of at least 3 sites | 3 sites | 2024 | Goal Achieved | |
 Human Capital Development |
Diversity, Equity, and Inclusion (DEI) | 15% Women at Workplace in Indian operations by 2030 | 15% | 2030 | 9% |
| Accessibility audit for PWD for all India locations by 2030 | All sites | 2030 | New Goal | ||
| Community Engagement | Employee Volunteering Program (Hours) | 50,000 | 2030 | 19,188 | |
| Employee Wellbeing | Achieve and maintain an employee satisfaction score of 80% or higher on annual surveys by 2025 | 80% | 2025 | 80% Goal Achieved | |
 Stakeholder Management |
Supply Chain Sustainability | Undertake detailed ESG audits of 100% of only raw material and packaging materials Tier 1 suppliers by 2025 | 100% Tier 1 Direct Material Suppliers | 2025 | Audits completed for 250 Tier 1 suppliers |
| Incorporation of ESG aspects in the evaluation criteria for onboarding all new vendors by 2025 | 2025 | New Goal | |||
 Patient Centric Innovation |
Product Launches | Complex Generics launches in Regulated Markets by 2028 | 2028 | ||
| Complex Inhalation products | 10 | 1 | |||
| Complex Injectables | 5 | 1 | |||
| Ophthalmology, Dermatology and Women’s Health | 5 | 1 | |||
| Product Portfolio | Should be more than 70% in complex dosage forms | 70% | 2024 | 74% Goal Achieved | |
| Biosimilar and Novel Complex Products | Completion of 3 biosimilar filings in regulated markets by 2028t | 3 | 2028 | 4 programs in development. Recruitment completed for a phase III trial. Agreement signed for MENA region. | |
 Access & Affordability |
Access to Medicines | Targeting 80+ registrations of anti-TB and ARV medicines in 2024 | 80 | 2024 | 80+ Goal Achieved |
| Implementation of Patient Assistance Programs | Two programs by 2025, each benefitting 100,000 patients | 100,000 | 2025 | 11,521 - JAI 6,000 - Jeet 11,862 - Humrahi 29,383 - Total | |
| Education for Patients and Doctors | Education and awareness programs for patients and doctors | ||||
| 1 million Patients by 2028 | 1,000,000 | 2028 | 557,013 | ||
| 20,000 doctors by 2030 | 20,000 | 2030 | 9,247 | ||
| Local Manufacturing Partnerships | Developing partnership with African firm by 2027 to improve accessibility | 1 | 2027 | Currently evaluating different options to try and shift the production to the local manufacturing partner | |
| Diagnosis | By 2030, assist in the diagnosis of lung disease using fractional exhaled nitric oxide FENO and Spirometry tests for more than 1 million patients | 1,000,000 | 2030 | 874,212 | |
| Target the diagnosis of breast cancer in 1,400 women in FY24 | 1,400 | 2024 | 2,700 Goal Achieved | ||
| Rehabilitation | Lungs on Care campaign: Provide inclinic services for Interstitial Lung Diseases ILD rehabilitation in 300 clinics by 2030 | 300 | 2030 | 50 | |
| Atharv Ability, our Neuro Rehabilitation Centre, is targeting an outreach to 10,000 patients in FY24 | 10,000 | 2024 | 19,448 Goal Achieved | ||
| Full Care | Lyfe provides post ACS (acute coronary syndrome) patient care, aiming to reach 25,000 patients in FY24 | 25,000 | 2024 | 2,988 |
| Theme | Sub Theme | Goal Description | Progress/Deviation FY24 |
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 Environmental Stewardship |
Ethical marketing and clear labeling ensure that patients receive accurate and comprehensive information about their medications. This includes dosage instructions, potential side effects, contraindications, and interactions with other drugs. | AMR can lead to higher mortality rates as infections that were once treatable become resistant to antibiotics, making them harder to cure, resulting in prolonged illnesses and increased complications. Resistant bacteria can spread within communities and healthcare settings, leading to outbreaks that are difficult to control. | The security and integrity of the IT system across the entire business is directly impacted by risks related to Cyber Security and Data Privacy. |
 Social |
Personnel Safety | 10% YoY reduction in the Lost Time Injury Frequency Rate, Accident Frequency Rate, and Incident Frequency Rate | 4% YoY reduction in LTIFR, 26% YoY reduction in AFR and 21% YoY reduction in Incident Frequency Rate. |
 Patient Centric Innovation |
Process Innovation | Target 15-20 process innovations annually, resulting in USD 2-3 Mn in savings | Continuous exploration for new ideas, breakthrough concepts, and perspectives has instigated innovative thinking in the process development team; to create simple and safe processes with new solutions and approaches. The implementation of the ideas in top leadership molecules' ideas has led to the creation of value of approx. USD 10 Mn. |
| Partnerships | Pursue open innovation partnerships in API, formulations, digital solutions and diagnostics | Lupin has adopted multiple open innovation strategies to strengthen its capabilities and competitiveness in the pharmaceutical industry. | |
 Quality |
Data Integrity | No data integrity related observations in any regulatory audits | No deviation |
| Product Quality | No class 1 recalls | 1 class 1 recall | |
| Regulatory Compliance | Zero sites with Warning Letter status (WL) by FY26 | 2 USFDA sites under Warning Letter |
Our governance framework, driven by transparency, accountability, fairness, integrity, and professionalism, provides the foundation for ethical decision-making and compliant practices throughout our operations.
We prioritize integrity, accountability, and transparency in our governance framework. We put strong emphasis on ethical conduct and culture of responsibility and clear accountability throughout the organization.
The Board of Directors, supported by its various committees, provides strategic direction and oversight. Robust risk management, internal control systems, and a commitment to sustainability further strengthens our governance practices.
Lupin’s robust governance framework is the cornerstone of our sustained growth and expanding global footprint in the highly competitive pharmaceutical sector. The company’s unwavering commitment to the highest ethical standards not only cultivates a foundation of trust and responsibility with its stakeholders but also supports its strategic initiatives for long-term prosperity. This dedication to ethics is bolstered by comprehensive internal controls and systems, which are pivotal for enhancing Lupin’s financial performance and value creation over time.
The diversity within Lupin’s Board of Directors brings together seasoned professionals from a multitude of backgrounds, including international veterans of the pharmaceutical industry. This diversity enriches the board with a vast array of perspectives and skills, essential for navigating the complexities of global markets. The leadership’s primary role is to assess the efficacy of management policies, set corporate goals, provide strategic guidance, and back the senior management team in its efforts to propel growth and maximize shareholder returns.
A key element of Lupin’s governance excellence is the active involvement of its independent Board committees. These committees convene regularly, undertaking a thorough review of governance practices to ensure that Lupin not only adheres to but also sets benchmarks in corporate governance.
The committee is guided by a principle of good faith, with every decision aimed at nurturing Lupin’s success to the advantage of all stakeholders. This systemic approach to governance underscores Lupin’s commitment to ethical business conduct, transparency, and accountability, reinforcing its leadership position in the pharmaceutical industry.
Lupin’s governance structure is fortified by the formation of specialized committees, each with clearly defined roles and responsibilities, to ensure that diverse matters receive the focused attention they require. Operating on a structured schedule, these committees engage in regular meetings to tackle technical or specialist issues. Their role is critical in providing informed guidance and recommendations to the Board of Directors, facilitating well rounded decision making.
Each committee is composed of Board members who bring specific skills and knowledge pertinent to the committee’s area of focus. This strategic composition enables comprehensive discussions at the committee level, enhancing the quality and depth of the advice provided to the Board. By establishing these committees, Lupin reaffirms its commitment to effective governance and meticulous oversight across all aspects of its operations, ensuring the company remains agile, compliant, and aligned with its long-term strategic goals.
Lupin is deeply committed to fostering an environment that emphasizes ethics, compliance, and integrity, not just as abstract principles but as the foundation of all business operations. This commitment is manifested through transparent and impartial interactions with stakeholders and the public, reflecting Lupin’s dedication to maintaining uncompromising integrity in every facet of its business. A zero-tolerance stance on corruption and immoral practices underpins the company’s operational ethos, ensuring that Lupin’s activities are conducted in a manner that is both ethical and responsible.
To reinforce this culture, Lupin has introduced the ‘Preparing Lupin Employees to Demonstrate Governance and Ethical Conduct’ program. Moreover, Lupin’s commitment to ethical practices is supported by robust control systems, subject to regular audits by both internal and external auditors. These systems are integral to maintaining the high standards of compliance and integrity that Lupin is known for. Beyond the Code of Conduct, Lupin has implemented a comprehensive policies and initiatives aimed at preventing workplace harassment. These measures not only create awareness among employees, but also empower them to report any unethical practices they encounter, ensuring that issues can be addressed promptly and effectively.
P.L.E.D.G.E. Program
A cornerstone initiative designed to embed these values deeply within the organization.
Serves as a reminder of the company’s ethical commitments.
Practical tool for enforcing the Lupin Code of Business Conduct and Ethics.
Provides employees with a clear mechanism for reporting violations of the CODE, ensuring they can do so without fear of retaliation or retribution, thereby promoting an open and honest workplace environment.
A key component of Lupin’s ethical framework is the Office of Ombudsperson, established to offer employees a confidential channel for reporting potential issues such as fraudulent business practices, unethical behavior, discriminatory misconduct, or violations of company policies. During the reporting period, the Ombudsperson’s office handled 22 complaints through various reporting channels. These complaints were diligently addressed by teams led by strategic business unit heads or officers designated by the Ombudsperson, in line with Lupin’s whistleblower policy.
Furthermore, Lupin’s Internal Complaints Committee plays a crucial role in investigating and resolving sexual harassment complaints, adhering to the timeframes set forth by the Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013. Over the past year, the committee successfully investigated and resolved three such complaints, demonstrating Lupin’s unwavering commitment to creating a safe, transparent, and respectful work environment for all employees.
Through these initiatives, Lupin underscores its dedication to upholding the highest standards of integrity and ethical conduct, ensuring that its corporate actions are always aligned with its core values.
At Lupin, our commitment to excellence and integrity is underpinned by a comprehensive suite of policies and procedures that guide our operations and interactions. These policies serve as a blueprint for decision-making, ensuring that our business practices are not only compliant with regulatory standards but also aligned with our ethical values and corporate governance principles. They are designed to support our strategic objectives while fostering a culture of transparency, accountability, and respect for all stakeholders.
Lupin’s commitment to Environmental, Social, and Governance (ESG) principles is central to our business ethos, reflecting our dedication to sustainability and social responsibility. Our ESG efforts, led by the ESG Core Committee under our Global CFO & Head Corporate Affairs, are integral to our strategy and operational decisions. This committee ensures ESG considerations are at the forefront of our business planning, aligning departmental goals with our broader ESG objectives. Their work, regularly reviewed by our Board of Directors, emphasizes our resolve to incorporate ESG into every facet of our operations. Through this focused approach, Lupin aims to meet stakeholder expectations and contribute positively to our community and the environment, ensuring our business remains sustainable, profitable, and socially responsible. Furthermore, we also engage with associations such as CII and IPA, to create a positive influence climate alignment policies.
Assurance Statement