Our Sustainability and ESG Goals
Sustainability is deeply embedded in our purpose and forms the core of our organization.
Access
Serving maximum patients globally and working toward serving 1.5 billion patients by 2030.
Affordability
Delivering care affordably through operational excellence, first-to-market launches, and productivity.
Patient-centric Innovation
Improving standards of care and addressing unmet patient needs through innovative solutions.
Responsible growth
Advancing ESG goals across climate, water, supply chain, communities, inclusion, and governance.
Our journey began with APIs in 1984, and we evolved from small molecules to large molecules and from APIs to finished formulations over the decades. Amidst this evolution, what has remained constant at the heart of our organization is a deep commitment to patients and the customers we serve through our core principles of collaboration and sustainability.
Sustainability is deeply embedded in our purpose and forms the core of our organization.
By the end of FY2026, we had served over 699 million patients and continue our endeavours to reach over 1.5 billion patients globally by 2030. This means almost one in every five people on this planet will use Dr. Reddy’s product or service. The health of people is strongly linked to the health of our planet. That's why our integrated report also shows how sustainability and business are strongly linked.
Dr. Reddy’s integrated annual and sustainability report for FY2026 reflects the company’s continued focus on access, affordability, patient-centric innovation, responsible operations, and community impact. Sustainability remains embedded in the organisation’s purpose and business strategy, linking patient health with the health of the planet.
- Access: Serving maximum patients globally and working toward serving 1.5 billion patients by 2030.
- Affordability: Delivering care affordably through operational excellence, first-to-market launches, and productivity.
- Patient-centric innovation: Improving standards of care and addressing unmet patient needs through innovative
solutions. - Responsible growth: Advancing ESG goals across climate, water, supply chain, communities, inclusion, and
governance.
The FY2026 update strengthens the ESG narrative by highlighting continued progress across disclosure quality, environmental performance, and responsible operations. The report also reflects wider coverage of ESG KPIs and adoption of additional reporting frameworks such as IFRS S1 & S2 and SASB.
- Enhanced ESG disclosures with wider KPI coverage and additional reporting frameworks.
- Zero material deviations recorded during the year under corporate governance.
- Continued progress on climate, water, supply chain engagement, and responsible operations.
Building the future responsibly
Our ESG goals are embedded in business strategy and guide efforts to create long-term positive impact for patients,
communities, the planet, suppliers, and stakeholders.
Environment – Planet First
| Theme | Description | Target | FY2026 Progress |
|---|---|---|---|
| Reducing carbon emissions | Adopting renewable power | 100% renewable power by 2030 | 78% renewable power consumed in operations |
| Progressing toward carbon neutrality | Carbon neutrality in direct operations (Scope 1 & Scope 2) by 2030 | 72% of operations are carbon neutral | |
| Reducing carbon emissions in the supply chain | 12.5% reduction in Scope 3 emissions from FY2021 baseline by 2030 | 12% reduction achieved | |
| Net Zero transition | Science-based decarbonisation pathway | Net Zero GHG emissions across the value chain by FY2045 | First Indian pharmaceutical enterprise to adopt a science-based Net Zero target by FY2045 |
| Water positivity | Maintain water-positive status | Maintain water-positive status after achieving target in FY2023 | Continued to be water positive |
| Groundwater reduction | Reduce groundwater withdrawal | 30% reduction in groundwater withdrawal from FY2025 baseline by 2030 | 12% reduction in groundwater withdrawal with respect to FY2025 |
| Sustainable supply chain | Embedding ESG principles across strategic suppliers | 100% ESG-compliant strategic suppliers by 2030 | 94% of strategic suppliers assessed |
Social – Healthcare Reach and Equitable Growth
| Theme | Description | Target | FY2026 Progress |
|---|---|---|---|
| Access | Serving maximum patients globally | Serve 1.5 billion patients by 2030 | ~699 million patients reached through products |
| Affordability | Introducing first-to-market generics | 40% of new launches in priority markets to be first-to-market by 2030 | 43% first-to-market launches in priority markets |
| Innovation | Improving standard of care to address unmet needs | 3 innovative solutions every year from 2027 | 5 deals signed for innovative products for India and Emerging Markets |
| Gender diversity | Promoting representation across the workforce | Gender parity by 2035 | 21.6% gender diversity |
| Employees with disabilities | Enhancing inclusion of persons with disabilities | Include at least 3% PwDs in workforce by 2030 | 116 differently abled employees |
| Capability building | Upskilling employees | Continued workforce capability development | 97% employees trained for skill upgradation |
Governance – Trusted Relationships
| Theme | Description | Target | FY2026 Progress |
|---|---|---|---|
| Corporate governance | Upholding high standards of compliance and ethics | Meet the highest standards on compliance and ethics backed by robust corporate governance | Zero material deviations recorded during the year |
| ESG disclosures | Transparency and communication around ESG performance | Enhance disclosure on ESG progress to reach top quartile | Enhanced ESG disclosures with wider KPI coverage and frameworks including IFRS S1 & S2 and SASB |
| Strategic suppliers | Embedding ESG principles across the supply chain | 100% strategic suppliers compliant with chosen ESG framework by 2030 | 94% of strategic suppliers assessed |
Our ESG (Environment, Social & Governance) Goals:
Being committed to environmental stewardship
- Reducing carbon emissions
- 100% renewable power by 2030
- Carbon neutrality in our direct operations (Scope 1 & Scope 2) by 2030
- 12.5% reduction in indirect carbon emissions across our supply chain (Scope 3 emissions) by 2030
- Reducing carbon emissions
- 100% renewable power by 2030
- Carbon neutrality in our direct operations (Scope 1 & Scope 2) by 2030
- 12.5% reduction in indirect carbon emissions across our supply chain (Scope 3 emissions) by 2030
Making our products accessible and affordable for patients
- Access
- Serve 1.5 billion patients by 2030.
- Affordability
- 25% of our new-launches to be first-to-market by 2027.
- Innovation
- 3 innovative solutions to improve the standard of treatment every year from 2027.
Contributing to a fairer and more socially inclusive world
- Equity, diversity, and inclusion
- At least 35% women in senior leadership by 2030
- Gender parity by 2035
- Include at least 3% persons with disabilities (PwD) in our workforce by 2030.
- 100% living wages for our on-premises extended workforce by 2025.
Enhancing trust with our stakeholders
- Highest standards of compliance
- Meet the highest standards on compliance and ethics backed by robust corporate governance ESG disclosures.
- ESG Disclosures: Progressively enhance disclosure on our ESG progress to reach top quartile by 2025.
- Strategic Suppliers: 100% strategic suppliers to be compliant with our ESG framework by 2030.
- Affordability
- Innovation
What We Achieved in FY2026
US$ 3.6
billion total revenue
US$ 820
million EBITDA with a margin of 22.8%
220
New products launched globally
128
New DMFs filed globally
212
Dossiers filed, including 15 ANDAs
~699
Million patients reached through products
43%
First-to-market launches in priority markets
21.6%
Gender diversity and 116 differently abled employees
97%
Employees trained for skill upgradation
72%
Carbon neutrality achieved and 78% renewable power share
56%
Water reused/recycled and continued water-positive status
12%
Scope 3 emissions reduction against FY2021 baseline
94%
Strategic suppliers assessed
~1,138,233
Lives impacted through CSR initiatives
₹1,124
Million CSR spend
82.1
Million KL water saved through agri-water saving techniques
Sustainability & Green Chemistry in Dr. Reddys API Operations
ESG remains an important priority in pharmaceutical operations. Within API and related B2B businesses, the focus continues to be innovation-led affordability, sustainable process design, responsible manufacturing, and lowering environmental impact while maintaining quality and reliability across development and manufacturing value chains.
Green Chemistry and Product Stewardship
- 18% waste reduction for 6 high-volume products through green chemistry practices.
- Continued focus on improving resource efficiency, reducing hazardous materials, and applying green chemistry
principles across selected high-volume products. - Green chemistry remains a key lever in Scope 3 and value-chain decarbonisation.
Sustainability in Operations
- Coal has been eliminated from the primary boiler fuel mix, with boilers converted to biomass, briquettes, or piped
natural gas. - Energy-efficiency initiatives include HHO augmentation, steam condensate recovery, Closed Circuit Reverse
Osmosis, and digitalised Zero Liquid Discharge systems. - The company is progressing toward 100% renewable electricity consumption across operations by FY2030.
国別の要件がある場合は、お手伝いいたします。
Highlights for the year
Active Pharmaceutical Ingredients
- 128 new DMFs filed globally in FY2026 (1750 Cumulative total DMFs).
- 212 dossiers filed, including 15 ANDAs.
- 220 new products launched globally, supported by product innovation and launch excellence.
- 24 manufacturing facilities globally and 5 state-of-the-art R&D facilities.
Our Community Initiatives
| Focus area | FY2026 impact | Key initiatives |
|---|---|---|
| Education | 44,412 individuals impacted | Kallam Anji Reddy Vidyalaya; KARY Junior College; School Improvement Programme; Sashakt scholarship and mentorship programme |
| Livelihood | 74,505 individuals impacted | Youth skilling; PwD skilling; healthcare skilling; MITRA and farmer training programmes |
| Healthcare | 960,582 individuals impacted | Community Health Intervention Programme; PHC strengthening; palliative care; Roshni Helpline |
| Environmental sustainability | 58,734 community members reached; 82.1 billion litres of water saved | Action on Climate & Environment; regenerative agriculture; agroforestry; wildlife and biodiversity conservation |
Education
- Kallam Anji Reddy Vidyalaya enrolled over 2,243 students from Kindergarten to Grade X in FY2026.
- KARV Junior College supported more than 761 students.
- School Improvement Programme benefited 35,446 students across 100 government schools.
- 179 Sashakt Scholars were supported in engineering, sciences, and MBBS.
Livelihood
- Over 2,454 youth received training in FY2026.
- More than 836 persons with disabilities were trained through the GROW programme.
- Healthcare skilling empowered 846 women from low-income families to secure employment as allied health workers.
- Over 56,477 farmers were trained in advanced agronomic methods.
Healthcare
- Healthcare services reached 351,946 patients through 519,549 consultations under CHIP.
- 8 Primary Health Centres were upgraded in FY2026, bringing the total to 25 upgraded PHCs.
- Additional initiatives included palliative care through Life at Your Doorstep and mental wellbeing support through the Roshni Helpline.
Environmental Sustainability
Promoting sustainable agriculture practices and wildlife conservation through:
- Climate Smart Agriculture and Regenerative Agriculture practices
- Conserving Tigers and their habitat in the Eastern Ghats.
Sustainability in the pharma industry is a vital aspect. Our strength in innovation, ethical values, and focus on bringing critical, life-saving products early to market secures a unique kind of sustainability for us. In addition, our leadership across global markets indicates our strong alignment with our & Good Health Can’t Wait agenda.
Pharmaceutical companies’ sustainability is an increasingly important topic for the entire world. While we renewed our goals in 2023 to adapt to changing stakeholder expectations, address climate change, and our resolve to work on material issues, we continued to examine more ways to make an impact. We consulted a more extensive set of global pharmaceutical sustainability and pharmaceutical standards and frameworks, and these findings guided our ESG reviews with the leadership and Board.
Combining a top-down and bottom-up approach, using more tools such as our updated enterprise risk management findings, we set 14 bold and ambitious goals across the ESG dimensions to form our vision for 2030. Each of these goals considers our critical material topics, the external environment in which we operate, and the business and social impact we can create.
Our Sustainability Framework
At Dr. Reddy’s, we are committed to taking meaningful action for a sustainable future. With our long-standing commitment to protecting the environment, we are working on solutions that help minimize the impact of our operations, driving improvements in multiple areas at various stages of the product life cycle.
Looking at issues of maximum importance to our stakeholders and the business, we are in the process of identifying material issues and building our strategic sustainability framework. We will develop ambitious goals and management targets for each focus area, with multiple milestones, incorporating governance systems and processes, monitoring, and disclosing our performance for each goal, and ensuring independent third-party assurance.
We are determined to play our part in upholding the more prominent global perspective and sustainable development in pharmaceutical industry. We will align ourselves with the United Nations sustainable development goals (UN SDGs), mapping them with our top material issues, allocating internal resources, taking relevant actions, and building technical capabilities. We are also working on greater integration of ESG into our business and building stronger stakeholder relationships by intensifying dialogue and communicating our vision and progress around material issues.
We are determined to play our part in upholding the more prominent global perspective. We will align ourselves with the United Nations' sustainable development goals (UN SDGs), mapping them with our top material issues, allocating internal resources, taking relevant actions, and building technical capabilities. We are also working on greater integration of ESG into our business and building stronger stakeholder relationships by intensifying dialogue and communicating our vision and progress around material issues.
The ESG principles underlie our business strategy. We address customer needs and create value for all stakeholders by addressing unmet needs. We are conscious of our footprint and impact and believe that addressing sustainability challenges is the need of the hour. Therefore, we continue to follow the best practices to make our business more sustainable.
R&D Operations Guided by Sustainability Framework
Since 2010, Dr. Reddy’s has been committed to the UN Global compact corporate responsibility initiative and its principles in the environment, sustainability, and green chemistry. As an active pharmaceutical ingredient supplier, our primary goal is to develop products that will provide a reliable supply of products of superior quality for the pharmaceutical industry. Also, we ensure that our APIs are produced using eco-friendly processes so that our customers can sustainably access our APIs.
Robust Supply chain
Our supply chain process is based on a strategic model to ensure a practical, reliable, and sustainable supply of goods and services based on a segmented operation. A scorecard is generated for all the KPIs, and we monitor the progress toward each goal. In addition, a well-defined Supplier Code of Conduct (SCOC) governs our supply chain management. We also have a dedicated SCM (Supply Chain Management) team that addresses all sustainable sourcing elements with special emphasis on supply continuity, quality and compliance, supplier relationships, capacity and capability building, supplier, and performance management, and aligning the partners with our vision of sustainability.
- Strong partner network - Intelligence to get early alerts on issues, enabling us to take corrective actions.
- Cross-industry collaboration groups - Support groups of transporters, shippers, airlines, etc. came together for information sharing and solutions.
- We are opening ourselves to new possibilities - Adopting new solutions such as moving cold chain products by road and sea, expanding our logistics footprint to new ports and airports, introducing new origin and destination pairs, and exploring digital technology (e.g., digital signatures for regulatory documents).
To know more about our Sustainability/ESG initiatives and programmes read our full sustainability report here.
Deepak Sapra,
CEO, Pharmaceutical Services & Active Ingredients.
"Sustainability is at the core of our mission at Dr. Reddy’s. We are committed to minimizing our environmental footprint, empowering communities, and ensuring ethical business practices. Together, we can build a healthier planet for future generations".
