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.

Two-pronged decarbonisation: energy efficiency innovation + renewable energy scale-up. 55 MWp captive solar power open access, 2.7 MVA captive wind power open access and 8.4 MWp solar rooftop installations across India. Biomass accounted for 11% of energy consumption in FY2023-24. Renewable energy reached 29% of global energy mix (up from 27% in FY22-23); 33.6% in India manufacturing ops. Target: 50% renewable electricity in India manufacturing by December 2025. Avoided 81,054 tCO2e via renewables (12.4% increase YoY).

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.

• Energy efficiency in manufacturing operations

  Efforts in FY2023-24 supported energy savings of approximately 4,127 MWh through DG-Grid Synchronisation, BacComber System, Air Handling Unit (AHU) Operation Optimisation, Electronically Commutated (EC) Blowers and Chiller Operation Optimisation. Capital investment of INR 7.8 crores in energy conservation equipment. 31 manufacturing units have undergone energy audits aligned to ISO 50001:2018.

• 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.

• 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.

• 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.

• 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.

• Low-GWP propellant inhalers (use-of-sold reduction)

  Investments in sustainable inhaler solutions using low Global Warming Potential (GWP) propellants. Propellants identified as the greatest contributor to Scope 1 and Scope 3 emissions. Conducted Product Carbon Footprint LCA assessment of four anaesthetic inhaler products (Sereflo, Kelhale, Becloformo) per ISO 14067 and ISO 14040/44.

• Process innovation to eliminate hazardous solvents

  Eliminated Class 2 organic solvents from product coating process for one product, replaced with aqueous coatings. Developed single-stage coating replacing two-stage seal+film coating. Initiatives to replace normal phased chiral methods with reverse phased chromatography to substitute Toluene and Dichloromethane.

• 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).

• 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).

• Scope 3 supplier decarbonisation (Cat 1 Purchased Goods)

  Identified key suppliers crucial for decarbonising Scope 3 Category 1 (Purchased Goods and Services). Developed year-by-year plan to support strategic suppliers via ESG capability-building programs including training on sustainable procurement and transition to green energy. Workshops with Institute of Supply Chain Management covering all 15 Scope 3 categories, SBTi and net-zero strategies.

• Upstream & downstream transportation optimisation

  Continuous Improvement Programme focused on cost-effective procurement, reducing API costs and supply disruption risks. Alternate Vendor Development (AVD) strategy promoting local manufacturing. Cat 4 includes both upstream and downstream transportation given financial responsibility. Cat 4 emissions rose from 67,377 to 110,882 tCO2e YoY.