Our ESG (Environment, Social & Governance) Goals

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.

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.

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.

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).