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.

Committed to RE100 global initiative with 100% renewable power target by 2030 (50% by FY25). Approach includes installing solar rooftops, JV/solar plant acquisition, cogeneration boilers, Inter-State Open Access PPAs, and Virtual PPAs. Biologics facility and FTO 11 have inaugurated on-site solar power plants. FTO 2 has rooftop solar plus windmill, with 90%+ of power utilised from solar. Currently at 26% renewable power.

Level 4 of carbon neutrality roadmap focuses on carbon sequestration through afforestation both within and beyond the fence, and climate-smart sustainable agriculture (ACE programme). Group-wide target to plant 1.5 million trees by 2030 - more than 78,123 native trees planted. ACE programme has shifted 5,875 acres from Transplanted Rice to Direct Seeded Rice and 8,000 acres to zero tillage, reducing emissions by 9,600 tCO2e.

• Energy efficiency via Industry 4.0 and digital lighthouse

  106 energy conservation projects implemented in FY22, reducing 6,763 tCO2e and saving ₹267 million. Digital lighthouse at FTO 3 reduced manufacturing cost per 1000 pills by 43%, production lead time by 30%. FTO 2 uses Honeywell Forge for HVAC closed-loop machine learning optimisation, electronic commutated fans, saving ₹3.4 million per annum and 369 tCO2e.

• Fuel switching: coal/furnace oil to PNG and biomass briquettes

  Level 3 of decarbonisation roadmap: green fuel switchover with time-bound plan to shift to cogeneration or briquette-based fuel. FTO 2 switched from fuel oil to piped natural gas (PNG) for combustion and replaced conventional thermal boilers with green boilers, achieving 83.6% reduction in CO2 emissions year-on-year.

• Internal carbon price guides CAPEX decisions

  Adopted Internal Carbon Price (ICP) using project-specific capital cost, lifetime, O&M cost, energy-saving and emissions reductions to evaluate energy conservation projects and create climate impact-resilient financial model for CAPEX investments. All new infrastructure to adhere to certified Green Building design norms.

• Green chemistry to cut process mass intensity

  Green chemistry programme uses AI/ML-based Route of Synthesis prediction to limit synthesis stages, improve yield and solvent recovery. Solvents and water contribute 80% of process mass intensity (PMI). Goal is to reduce or replace hazardous solvents with greener solvents. Flow chemistry and continuous processing enable cleaner API synthesis. Green Chemistry Council drives commercial adoption.

• Supplier ESG engagement and PSCI-aligned audits

  100% strategic suppliers to be compliant with internal ESG framework by 2030. Supplier Code of Conduct modelled on PSCI Principles, with 40% weightage to ESG factors in audits. 275 suppliers underwent on-site ESG risk assessment in last three years. Featured on CDP Supplier Engagement Leaderboard 2021. TCFD-aligned supplier climate vulnerability assessment in 2020 covers all supplier sites.

• Downstream logistics: air-to-sea freight shift

  Reduced downstream transportation emissions by 15,215 tCO2e by shifting from air to sea freight (Scope 3 cat 9). The air-to-sea conversion at FTO 2 alone resulted in 19,515 tCO2e reduction; 27% of total export shifted from air to sea mode improving $6m logistics cost annually. 74.8% of FTO 2 products use sea freight.