Dr Reddy's Laboratories

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.

Dr. Reddy's has committed to RE100 with a goal of 100% renewable power by 2030 and 50% by FY2025. In FY22, 26% of power was sourced from renewables. Measures include rooftop solar installations (Biologics facility and FTO 11 inaugurated solar plants), JV/solar plant acquisition, Cogeneration Boilers, Inter-State Open Access PPA, and Virtual PPAs. The company also signed up to EP100 for energy productivity.

Removals strategy focuses on carbon sequestration through afforestation (1.5 million trees target by 2030; 78,123 native trees already planted using Miyawaki technique with ~90% survival) and climate-smart sustainable agriculture through the ACE programme. ACE shifted 5,875 acres from transplanted rice to direct-seeded rice and 8,000 acres to zero tillage, reducing emissions by 9,600 tCO2e and saving 5.7 million KL of water. No durable removals (DAC/BECCS) disclosed.

• Scope 2 reduction via renewable electricity (PPAs, rooftop solar)

  Primary lever for Scope 2 cuts is shifting purchased electricity to renewables — rooftop solar at Biologics and FTO 11, PPAs, and Virtual PPAs. Internal carbon price guides capex decisions on energy projects.

• Energy efficiency and operational excellence

  Implemented 106 energy conservation projects in FY22 reducing 6,763 MT CO2e (Scope 1+2) and saving INR 267 million. Energy Ambassador Programme with 49 active ambassadors identifies efficiency opportunities. Digital lighthouse at FTO 3 cut manufacturing cost per 1000 pills by 43% and improved energy use.

• Fuel switching: coal/furnace oil to natural gas and biomass

  Scope 1 lever — switching from fuel oil to piped natural gas (PNG) and using biomass briquettes in boilers. FTO 2 switched to PNG and green boilers, achieving 83.6% reduction in Scope 1+2 emissions. Bagasse briquette used as biogenic fuel (10,652 tCO2e biogenic emissions in FY22).

• Supplier ESG compliance and engagement

  Target: 100% strategic suppliers compliant with internal ESG framework by 2030. SCOC modelled on PSCI Principles, signed by 100% of suppliers. 275 suppliers underwent onsite ESG risk assessment in last 3 years; 40% weighting on ESG factors in supplier audits. Featured on CDP Supplier Engagement Leaderboard 2021 and 2022.

• Downstream logistics: air-to-sea freight shift

  Shifted significant share of international outbound transportation from air to sea freight, reducing downstream Scope 3 transportation emissions by 15,215 MT CO2e (90% reduction at FTO 3 air-to-sea conversion). 27% of total export at FTO 3 shifted from air to sea mode.