Dr. reddy's step towards ESG!

Dr. Reddy’s Laboratories integrates ESG (Environmental, Social, and Governance) principles into its business practices through a comprehensive, multi-layered approach aligned with global standards and ambitious internal targets:

Environmental Integration

• Carbon Neutrality: Committed to achieving carbon neutrality in direct operations (Scope 1 and 2 emissions) by 2030 and a 12.5% reduction in indirect (Scope 3) emissions by 2030.

• Renewable Energy: Targets 100% renewable power usage by 2030; as of the latest reports, over 26% of total power is already from renewables.

• Water Positivity: Aims to be water positive by 2025, with 78% water neutrality already achieved.

• Waste Management: Implements waste reduction and circularity projects, including sustainable packaging, hazardous waste co-processing, and plastic reduction in product packaging.

• Green Chemistry: Applies green chemistry principles and process optimization to reduce hazardous waste and environmental impact in manufacturing.

Social Integration

• Access and Affordability: Strives to serve 1.5 billion+ patients by 2030 by expanding access to affordable, high-quality medicines and launching innovative products3.

• Diversity and Inclusion: Targets at least 35% women in senior leadership by 2030, gender parity by 2035, and 3% of workforce to be Persons with Disability (PwD) by 2030.

• Living Wages: Ensures 100% living wages for the extended workforce by 2025.

• Community Engagement: Invests in education, skilling, and health initiatives through Dr. Reddy’s Foundation and partnerships with NGOs.

Governance Integration

• Board Oversight: ESG strategy and performance are overseen at the highest levels, with direct CEO accountability and regular board engagement.

• Supplier Standards: Aims for 100% of strategic suppliers to comply with Dr. Reddy’s internal ESG framework by 2030.

• Transparency and Reporting: Regularly publishes sustainability and ESG reports based on global frameworks (GRI, UN SDGs, TCFD, SBTi), and seeks to reach top quartile in ESG disclosures by 2025.

• Ethics and Compliance: Maintains robust corporate governance, compliance, and ethics programs to ensure responsible business conduct.

Operational Excellence and Innovation

• Industry 4.0 Adoption: Facilities recognized by the World Economic Forum’s Global Lighthouse Network for using advanced digital and sustainable manufacturing technologies.

• Continuous Improvement: Implements cost-improvement and sustainability projects across operations, including energy efficiency, water conservation, and process excellence.

Through these integrated strategies, Dr. Reddy’s embeds ESG principles into every aspect of its value chain, from R&D and manufacturing to supply chain and community engagement, aiming for long-term sustainable growth and positive societal impact.