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Dr Reddy’s was ranked at ??10th place globally in the Emerging Market Index of the Dow Jones Sustainability Index on the back of responsible waste management and supply chain sustainability
Photo Credit : Canva
Dr. Reddy’s is the only pharmaceutical company to have made it to the top performers in this year’s list of India’s most sustainable companies. In FY 21, the total revenue of Dr. Reddy’s grew by 9 per cent over the previous year and the gross profit went up by 10 percent. The profit after taxes reduced by 12 per cent.
During the year, the company launched 273 new products including medicines for Covid-19 such as ??Redyx, Avigan and 2-DG developed in collaboration with Defence Research and Development Organisation laboratories. The company also received Emergency Use Authorisation for Sputnik V from the Drugs Controller General of India, making it the third enterprise in India that has been authorised to supply Covid-19 vaccines.
Sustainability strategy
The strategic direction for sustainability at Dr Reddy’s is provided by the company’s Board and the sustainability agenda is driven by the co-chairman and managing director who is responsible for the approval of ESG strategy, goals and the review of climate risks. This year, Dr Reddy's completed the Task Force on Climate-Related Financial Disclosures assessment, achieved a “B” in Climate Strategy and an “A” in CDP-SC (supply chain) disclosure and were ranked at ??10th place globally in the Emerging Market Index of the Dow Jones Sustainability Index.
In FY21, Dr Reddy’s implemented 161 energy conservation projects which resulted in cost savings of Rs 154 million. It sourced 21 per cent of power from renewable sources, reduced groundwater footprint by 15 per cent and recycled 49.6 per cent of the total freshwater consumption. Through the adoption of internal carbon price, the company is able to drive emissions reduction projects. Its efforts to inject sustainability in manufacturing processes are driven by initiatives like the Green Chemistry Index.
Responsible waste management
100 per cent of non-hazardous waste generated at Dr Reddy’s manufacturing facilities was sent to cement manufacturing plants to be used as fuel. 98.73 per cent of hazardous waste was sent to cement industries and recyclers for co-processing and recycling. The company’s newly formed cross-functional team, the Sustainable Packaging Council (SPC) is tasked with minimising the company’s environmental footprint through redesigned packaging that includes initiatives like alternate packaging of plastic bottles, stretch/ shrink/ bundling films, cartons, liners recycling and pallets.
Supply chain sustainability
Starting FY21, the company revised its safety, health, and environmental policy and principles to cover subsidiaries, joint ventures, licensees, and suppliers. Ninety-nine suppliers were audited under environmental, social and governance parameters. All critical business partners contributing to 80 per cent of sales value undergo assessment and
reassessment at a fixed frequency depending. The company also collaborates with a third party for an independent assessment at suppliers' sites, categorising them into high, medium, and low-risk suppliers. The company also provides training on resource conservation (energy, water, materials) to its suppliers. The company has also established a supplier hotline which guarantees suppliers confidentiality and anonymity.