Sun Pharma

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.

41% of energy from renewable sources in FY 2024-25, up from 31% in FY 2021-22. Strategy includes captive hybrid wind+solar plant for Gujarat facilities, captive solar at Dewas, captive windmills at Maduranthakam, expanded solar rooftop at Mohali, Poanta Sahib, Sikkim, Guwahati, Romania, Baddi sites, and fuel-substitution from furnace oil/HSD to renewable biomass briquettes for steam generation. Projecting >50% renewable energy share by 2030.

Beyond efficiency and renewables, the company is actively exploring carbon offset projects to neutralize remaining emissions to meet 2050 Net Zero. Biodiversity assessment identified opportunities for carbon sequestration through greenbelt conservation to address residual emissions. No DAC, BECCS, or biochar commitments disclosed.

• Energy efficiency in manufacturing operations

  Deployment of heat pumps for hot water (replacing steam), high-efficiency chillers with smart controls, IE3 motors, VFDs for part-load operations, energy-efficient blowers, compressors, pumps, motion-sensor lighting, and condensate recovery upgrades. Specific energy consumption reduced 7% YoY (12.68 → 11.76 GJ/Revenue Mn INR).

• Fuel switching from furnace oil/HSD to biomass briquettes

  Boiler fuel substitution from conventional furnace oil and high-speed diesel to renewable biomass briquettes for steam generation across most sites. This is the primary driver of Scope 1 decline from 75,970 tCO2e (FY22) to 38,729 tCO2e (FY25) — a ~49% reduction.

• Water stewardship and ZLD

  Zero Liquid Discharge (ZLD) systems implemented at 18 manufacturing sites. 25% reduction in water consumption vs 2020 baseline; transitioning from groundwater to surface water at multiple sites; rainwater harvesting to recharge local aquifers. Target: water-positive by 2030.

• Manufacturing energy efficiency

  Three-pronged strategy: monitor, minimize, decarbonize. ISO 50001:2018 EMS at 6 manufacturing sites. Key measures: heat pumps for hot water (replacing steam), energy-efficient HVAC blowers, high-efficiency chillers with smart controls, IE3 motors, demand-side compressed air management, energy-efficient dryers, motion-sensor lighting, condensate recovery, VFDs for part-load, automatic tube cleaning in chillers. Energy intensity fell from 16.81 to 11.76 GJ/INR Mn revenue between FY21-22 and FY24-25.

• Fuel switching to biomass for boilers

  Fuel substitution initiatives implemented across most sites, replacing conventional boiler fuels such as furnace oil and high-speed diesel with renewable biomass briquettes for steam generation. Drove Scope 1 reduction from 75,970 tCO2e (FY21-22) to 38,729 tCO2e (FY24-25) — a 49% drop over 3 years.

• Purchased goods & services (Scope 3 Cat 1)

  Largest Scope 3 category. Reported 115,140 tCO2e in FY 2024-25 (down from 236,932 tCO2e in FY 2023-24). Suppliers required to abide by Supplier & Third Party Code of Conduct including ESG requirements; 64 suppliers assessed via desk-based ESG audits in FY 2024-25.

• Upstream and downstream transportation

  Scope 3 transport categories total ~44,000 tCO2e in FY 2024-25. Mitigation includes shifting from air to sea shipments where feasible, local sourcing to reduce long-haul logistics emissions, and eco-friendly reusable multi-layered cold storage packaging for one main product to reduce CO2 emissions in distribution.

• Supplier ESG integration

  Supplier and Third Party Code of Conduct mandates ESG compliance. 1,206 Tier-1 suppliers, 180 significant Tier-1 (64% of spend), 268 significant non-Tier-1. 64 suppliers assessed via desk-based ESG audits in FY24-25. CQA audits every 3 years. ESG Council oversees supplier programs; third-party knowledge sharing on supplier ESG.

• Downstream logistics and cold-chain packaging

  Adopted eco-friendly multi-layered cold storage packaging for a key product, designed for reuse after refurbishment and re-qualification, reducing CO2 emissions. Optimizing dependencies on air transport in favor of cost-effective sea shipments to decrease transportation expenses and emissions.