Our commitment to environmental sustainability is fundamental to building trust with society and aligns with our goal of manufacturing high-quality, affordable medicines. Sustainable operations are paramount to our mission of improving lives, ensuring our efforts are not compromised by adverse environmental impact.
We continue to reduce emissions, water consumption, and waste disposal in our operations, in line with our 2025 targets. In 2023, we integrated environmental sustainability as a criteria into supplier contracts and started working with them to define actions to reduce emissions across our supply chain.
| Focus Area | Target | Progress |
|---|---|---|
 Climate and Energy |
Reduce our Scope 1 and Scope 2 GHG emissions by 38% from 2022-23 levels by 2030 (aligned to a 1.5 degree science-based reduction pathway) | Achieved 21% reduction in Scope 1 & 2 from the previous year (Scope 1: 29% reduction and Scope 2: 19% reduction) |
 Addressing Water Security |
Recycling 50% of our total water withdrawal in our Indian operations by 2025 | 44% of total water withdrawn recycled in FY24 |
 Waste Management |
70% of the hazardous waste generated in our Indian operations will be sent to cement plants for coprocessing by 2025 | 89% of total incinerable hazardous waste sent to cement plants for coprocessing Goal Achieved |
Our environmental governance, guided by our EHSS policy, focuses on resource efficiency, pollution prevention, energy conservation, water recycling, and waste reduction. Our ESG Committee monitors compliance with environmental legislation and measures the effectiveness of our management systems.
All our sites are ISO 14001 certified and adhere to robust environmental management systems. We regularly monitor our EHSS practices and performance, reporting findings comprehensively. Our EMS audit strengthens this process, ensuring regulatory compliance. Results are shared with the Board once in six months, facilitating discussions around critical EHSS aspects and identifying areas for improvement. This enables us to address gaps and continuously enhance our environmental performance and management system. We have initiated an EHSAS reward recognition program for employees and contractors for exemplary contributions to ESG targets, GHG emission reductions, water-saving initiatives, etc.
As a responsible and resilient business, we acknowledge the potential impact of climate change on the environment, society, governance, and the economy. Our comprehensive decarbonization strategy enables us to understand our environmental impact better and ensure we implement necessary measures to reduce it. This includes procurement of renewable energy, comprising captive solar and wind generation and a switch over to briquette boiler operations with renewable fuel sources.
Lupin Limited joins the Science Based Targets initiative and sets 2030 GHG emission targets.
| Energy Management | ||
|---|---|---|
 Energy Efficiency |
We have undertaken a phased study across all our facilities to evaluate their energy efficiency potential. This comprehensive assessment helps us identify opportunities for improvement and determine the optimal energy sources for each site. Replacement of outdated conventional luminaires with energy efficient LED lights. Upgrading conventional AC motors to DC electronically commutated motors in air handling units. Optimizing refrigeration plants, fine-tuning pumping systems, and improving the efficiency of boiler and utility equipment. These efforts have yielded substantial improvements in energy efficiency and significant reductions in power costs. We have installed screw press for dewatering of sludge over conventional methods thereby reducing the energy consumption and CO2 reduction. |
|
 Renewable Energy Adoption |
We have significantly bolstered our commitment to renewable energy at our Ankleshwar and Dabhasa sites, adding approximately 5.3 MW to our renewable power capacity. We are constantly looking to scale up the utilization of renewable electricity to power our operations by installing rooftop solar panels and through open access of solar and wind energy. Our overall total renewable energy mix has enhanced from 5.3% to 10.6%. | Through our energy saving interventions, we avoided the use of approximately 29,684 MWh of energy across India manufacturing operations in FY24. |
 Embracing Alternate Fuels |
We embrace the use of alternate fuels for our operational processes to reduce our reliance on non-renewable sources, such as the use of biomass. We have introduced Agro waste boilers as a more environmentally friendly fuel source at all our sites including Nagpur, Mandideep, Pithampur, Sikkim, Tarapur, Dabhasa and Vizag. | |
Reducing GHG emissions, particularly CO2 emissions, is critical to mitigating the adverse effects of climate change. We are taking concrete steps towards decarbonizing our operations.
Of our total emissions, Scope 1 and Scope 2 emissions comprise 5% and 21% of our GHG footprint, respectively. 74% are emitted from our value chain (Scope 3). Most of our Scope 1 (direct) emissions originate from boilers used in operations for producing steam, electricity, and wastewater treatment facilities, while our Scope 2 (indirect) emissions are from purchased electricity for running facilities and operations. Our Scope 3 (indirect) emissions include those from purchased goods and services, capital goods, processing of sold products, and others. We align our reporting and monitoring practices with the SBTi requirements and develop systems to reduce our Scope 1 and Scope 2 emissions, reaffirming our commitment to responsible environmental stewardship.
The scope 1 and scope 2 emissions reduced by 29% and 19%
respectively, owing to dedicated investments into phase out of
fossil fuels and adoption of renewable power for our operations.
By 2030, we aim to reduce our Scope 1 and Scope 2 GHG
emissions by 38%, benchmarked against FY23 levels.
Fuel consumption in boilers forms a significant part of our Scope 1 emissions. To reduce this, we have replaced oilfueled boilers with biomass briquette boilers.
Biomass briquettes, made from biodegradable waste, significantly lower GHG emissions compared to FO/LSHS/ LDO. They are typically produced from organic waste such as rice husk, sawdust, bagasse, groundnut shells, and other agricultural or forest waste. Biomass briquette boilers not only have lower emissions but also provide farmers with an alternative to monetize agro-waste.
Additionally, the biomass briquette supply chain has strengthened over time to fulfill the necessary demand. Ten of our twelve manufacturing sites in India make use of biomass briquette boilers for steam generation. Installation is underway at one additional site and is expected to be completed in FY25.At Lupin, we recognize the importance of being resilient and protecting our business and stakeholders against external threats. To this end, we prioritize monitoring and addressing a wide range of external factors to ensure that we are able to mitigate any risk. In our commitment to combating climate change, we fully support the Paris Agreement and aim to reinforce our response to risks posed by climate change. We will do this by limiting the rise in the global average temperature to well below 2°C and endeavor to limit the temperature increase to 1.5°C to minimize severe climate change.
To achieve this goal, we launched strategic initiatives to comprehensively understand the effects of climate change on our business and therefore have put in place, measures to combat the same. Further to the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD), we conducted a climate risk assessment, including scenario analysis, in FY23 to study the impact of climate change on the business in different climate scenarios. This risk assessment covered both physical climate risks and transition-related risks to the business, adhering to leading internal frameworks and guidelines, such as the TCFD and the Carbon Disclosure Project.
Physical Risk Assessment
Our physical risk assessment encompassed 16 locations/
sites globally, based on the IPCC AR5 Risk Assessment
Framework. We analyzed two climate scenarios:
SSP 2 (Middle of the Road) and SSP 5 (Fossil-fueled
Development). Anomaly (difference from the average or
baseline) was calculated for various indicators such as
temperature, precipitation, cooling degree days, cyclones,
and water stress. For both scenarios, we have considered
two time periods – 2020-2039 and 2040-2059, to develop
a composite climate risk index and a vulnerability index,
taking into account exposure, sensitivity, and adaptive
capacity. Key risks that Lupin’s units potentially might face
include
| Risk Type | Location | Impact | Adaptation Measure |
|---|---|---|---|
| Cyclones | Mumbai Visakhapatnam USA |
Disconnection or disruption of internet and/or phone services or electricity leading to disruption in operations. Infrastructure failures due to cyclones/winds, such as the collapse of the Galvalume roofing system, failure of connections/structures, progressive collapse of roof steel trusses, and breakage of window panes at the plants and office locations. |
|
| Sea Level Rise | Mumbai Visakhapatnam |
Saltwater inundation. |
|
| High Temperature | Vadodara Kalpataru, Mumbai Aurangabad Mandideep |
Temperature increase impacting the building structures. Building energy use will increase if climate extremes become the norm. High temperature variability impacting the comfort level and the productivity of the staff. Heat waves are the leading causes of weather-related morbidity and mortality and will directly impact the health of the staff/community in the vicinity. |
|
| Dry Spell and Water Stress | Mumbai Vadodara Indore Mandideep |
Dry spells may not directly impact the Lab’s infrastructure except through water scarcity. This will impact its cooling systems, water requirements, pools etc. Water scarcity can cause Health and Safety issues. Reduced water availability may also impact sanitation and hygiene needs. |
|
Water stewardship is integral to our Sustainable Development Plan 2030, underscoring its critical role in our business operations and broader societal wellbeing. Recognizing the significance of water quality and availability, we remain steadfast in our commitment to developing sustainable water supply systems across our operations. Operating in water-scarce regions, we prioritize compliance with all water related regulations and maximize the use of recycled water from our effluent treatment and reverse osmosis facilities for utilities.
At the community level, we extend our water conservation efforts through initiatives such as rainwater harvesting projects facilitated by our CSR team. Furthermore, we continuously optimize freshwater usage and enhance water efficiency within our operations. To mitigate groundwater risks, we implement projects that place emphasis on surface water sources and deploy desalination plants. Moreover, our commitment to responsible wastewater management is evident through the establishment of wastewater recycling and zero liquid discharge in most of our sites. These initiatives ensure the safe disposal of treated waste, minimizing the risk of groundwater contamination and reinforcing our commitment to environmental sustainability.Water conservation plays a critical role in our sustainability journey. We actively invest in the latest technologies to reduce our freshwater consumption and are constantly exploring newer avenues to strengthen it.
We launched the Water Saving League 2023, a gamified initiative under ‘Mission Jal Shakti’ to optimize water usage in our Pithampur facility. As part of this program, awareness camps were held, and employee participation was actively sought to discuss innovative ideas to reduce water usage at the site. Our employees shared several novel ideas, which were implemented at Pithampur.
Lupin’s waste management strategy is driven by the 3R principle: Reduce, Reuse and Recycle. We diligently inventory our waste streams, including hazardous waste, non-hazardous waste, e-waste, biomedical waste, and more, and ensure their recycling or disposal through third parties, adhering to all relevant government regulations.
The non-hazardous canteen waste from most of the sites was sent to piggeries/cattle farms. The horticulture waste, i.e., dry leaves, dry grasses, dead branches, etc., was stored inside the premises as it was not disposed of outside the plant.
Our Goa plant utilizes a biocomposter system to convert organic waste from canteens and gardens into compost, which is used as manure within the plant. The biocomposter operates odor-free, with minimal electricity consumption, and produces nutrient rich compost in 15 to 20 days, eliminating the requirement of storing the compost further for maturing and curing.
Lupin recognizes the importance of Antimicrobial Resistance stewardship in our sustainability strategy, as it directly impacts human and ecological well-being. AMR poses a significant threat to public health by reducing the effectiveness of antibiotics and other anti microbial drugs.
The excessive use and improper disposal of these drugs can lead to contamination of water bodies, soil, and food chains, leading to further adverse conditions. We actively assess the ecological impact of the Active Pharmaceutical Ingredients used in the manufacturing processes, discharge into water bodies, potential bioaccumulation in ecosystems, and overall toxicity to organisms. We frequently analyze the anti microbial content in the treated water discharge and ensure that the PNEC values of those AMRs are below the quantification limit. 6 manufacturing plants are Zero Liquid discharge plants where the treated effluent is recycled in the utilities, and there is no discharge outside the premises. We also undertake lifecycle assessments of our top 10 revenue generating products, from cradle to gate, to understand and mitigate the cumulative environmental impact of APIs. The lifecycle assessments will help us to assess the opportunities for reducing the ecological footprint.
Biodiversity holds immense significance for us due to the role it plays in the discovery and development of nutraceuticals. Natural resources serve as invaluable reservoirs for novel chemical compounds and active ingredients, making the preservation of biodiversity crucial to our industry’s innovation and sustainability. Last year, we formalized our commitment to zero deforestation, recognizing the integral link between forest ecosystems and the availability of key resources for drug development. Building upon this commitment, we have embarked on a comprehensive assessment of biodiversity.
We undertook a biodiversity risk assessment in three of our manufacturing sites: Tarapur, Mandideep, and Pithampur. Detailed surveys of flora and fauna within the core and buffer zones (10 km radius) of each site were conducted, focusing on biodiversity aspects. Utilizing the WWF Risk Filter and Encore tools, we identified key risks and dependencies, including physical, political, and reputational risks. Notable physical risks identified are extreme heat, tropical cyclones, pollution, and possible disruptions in water supply.
Our methodology for conducting biodiversity risk assessment included desk research, primary and secondary data collection to conduct vegetation and faunal assessments (including the computation of biodiversity indices) and reporting. Primary data comprises direct field observations across the three sites and remote sensing data. The core zone (plant area) and buffer zone (defined as a radius of 10 km from the plant) at each of the three locations were physically surveyed. Secondary data included details of Environmental Impact Assessments, Plant Operation and Production Reports, Corporate Social Responsibility / Sustainability Reports, Satellite Imagery, etc.
Utilizing the established methodologies endorsed by the Intergovernmental Platform on Biodiversity and Ecosystem Services, we have identified and analyzed dependencies and pressures exerted on biodiversity within the operational areas of the assessed manufacturing plants. The detailed Biodiversity Management Plan outlines recommendations to ensure no net loss of biodiversity, enhance ecological health, avoid degradation of critical habitats, and achieve our long-term sustainability goals.
Lupin employs Life Cycle Assessment tools to evaluate and communicate the environmental performance of our products across their lifecycle. Guided by ISO 14040 and ISO 14044 standards, we completed LCA studies for 10 products this year. The LCA study adopted a cradle-to-gate assessment, which includes emissions from raw material production and the final stage of production. Furthermore, the product use phase and end-of-life stage are excluded as per the system boundary. The LCA software used was SimaPro, and the EcoInvent Database was used for the LCA Database to model the environmental impact of the selected products.
The report presents the data in the form of eleven midpoint indicators (including Ecotoxicity and resource depletion indicators) to evaluate the environmental impacts such as: Climate change/Global Warming Potential (GWP, kg CO2 equivalent), Ozone Depletion Potential (ODP, kg R-11 equivalent, Human toxicity, cancer (CTUh), Human toxicity, non-cancer (CTUh), Particulate matter (kg PM2.5 eq), Ionizing Radiation (kBq U235), Photochemical Ozone Creation Potential (kg NMVOC eq.)/ Photochemical Ozone formation, Acidification Potential (mole H+eq.), Eutrophication, Terrestrial (mole N eq) Eutrophication, Freshwater (kg P eq), Eutrophication, marine (mole N eq), Freshwater Ecotoxicity Potential (FAETP, CTUe), Land use (kg C deficit), Water Use (m3 water eq), Mineral, fossil and ren resource depletion (kg Sb eq).
Further to the study, environmental hotspots which were identified are being addressed through decarbonization strategy and other environment action plans.
Assurance Statement