Cipla

Carbon per million dollars of revenue. The legacy industry-standard reference (CDP, MSCI). Useful for cross-sector context, but distorted by margin — high-margin firms appear artificially efficient. Read alongside the operational and asset intensities for the full picture.

OpEx (operating expenditure) is the running cost of the business — staff, services, energy, materials. This shows how carbon-intensive operations are per million dollars of spend. Removes the margin distortion that revenue-based ratios introduce.

EVIC (Enterprise Value Including Cash) is the firm's total capital footprint — equity + debt + cash + minority interest. The EU's standard intensity measure (SFDR PAI 3) — answers: how much carbon does each million of capital deployed in this business produce?

PP&E (Property, Plant & Equipment) plus leased real-estate assets is the firm's physical infrastructure on the balance sheet. This shows the carbon intensity of that physical footprint — uses Scope 1+2+3 for consistency with the other headline intensities. Surfaces stranded-asset risk for asset-heavy firms.

Cipla pursues a two-pronged decarbonisation approach: energy efficiency plus increased renewables. As of 31 March 2024, 55 MWp captive solar open access, 2.7 MVA captive wind open access, and 8.4 MWp solar rooftop installed across India sites. In FY2023-24, 29% of global energy was renewable (vs 27% in FY22-23); 33.6% of India manufacturing energy was renewable. Biomass accounts for 11% of total energy. Target 50% renewable electricity for India manufacturing by December 2025.

Cipla does not disclose any DAC, BECCS, biochar or durable removal volumes. Its carbon-neutrality pathway for India manufacturing by Dec 2025 is built on absolute reductions via renewable energy and energy efficiency, not removal credits. In line with the Kunming-Montreal Global Biodiversity Framework, the firm commits to nature-based solutions including afforestation efforts to address biodiversity dependencies, but no quantified removal target is provided.

• Alternative fuels — biomass substitution for fossil fuels

  Biomass accounted for 11% of energy consumption in FY2023-24, reducing dependence on fossil fuels. Ash from briquette usage at Kurkumbh units is being captured in the waste inventory, indicating expanded biomass use.

• Energy efficiency in API and formulation manufacturing

  Energy savings of ~4,127 MWh achieved in FY2023-24 through DG-Grid Synchronisation, BacComber System, AHU optimisation, EC blowers and chiller optimisation. Capital investment of INR 7.8 crores in energy conservation equipment. 31 manufacturing units have undergone energy audits; target across 10 sites was 4,443 MWh savings.

• Low-GWP propellant inhalers (use-phase emissions)

  Propellants identified as the single largest contributor to Cipla's Scope 1 and Scope 3 emissions. The firm is investing in low-GWP propellant inhaler development as part of its respiratory portfolio to reduce both manufacturing and use-phase emissions; Scope 3 Cat 11 (Use of Sold Products) at ~2.48 MtCO2e dominates the value-chain footprint.

• Renewable electricity sourcing for India operations

  India manufacturing reached 33.6% renewable energy in FY2023-24; global mix 29%. Sourcing via captive solar (55 MWp open access), wind (2.7 MVA), rooftop solar (8.4 MWp) and long-term REC purchase contracts. Target 50% renewable electricity for India manufacturing by Dec 2025.

• Upstream/downstream transportation optimisation

  Scope 3 transportation emissions rose from 67,377 to 110,882 tCO2e in FY23-24. Cipla is incorporating green transportation strategies into supply chain decision-making via training (Institute of Supply Chain Management workshops covering all 15 Scope 3 categories, SBTi and decarbonisation strategies).

• Supplier decarbonisation for Scope 3 Cat 1 (Purchased Goods)

  Cipla identified key suppliers crucial for decarbonising Scope 3 Category 1 (Purchased Goods and Services, ~1.8 MtCO2e). Year-by-year plan developed to support strategic suppliers via ESG capability programs, training on sustainable procurement and green energy transition. 205 critical vendors assessed in FY23-24 (incl. 61 via EcoVadis); 30 vendors via on-site assessments; PSCI audit-sharing covered 37 vendor audits (~INR 500 cr spend).