Article

Piramal Pharma is embarking on an ambitious journey to significantly reduce its environmental footprint, targeting a 42% reduction in absolute Scope 1 and 2 emissions and a 25% drop in Scope 3 emissions by 2030, using fiscal year 2022 as the baseline. This shift marks a pivotal evolution in the company's approach to sustainability, transitioning from mere compliance-driven reporting to integrating environmental, social, and governance (ESG) principles into the fabric of its business model.

Over the past four years, Piramal Pharma has laid the groundwork for a robust sustainability framework, establishing baselines and formalizing disclosures while driving measurable impact. The company's operational achievements include conserving over 210,000 kiloliters of freshwater and achieving zero hazardous waste to landfill, alongside a steadily increasing share of renewable energy sources in its energy mix. Notably, diversity initiatives are also gaining momentum, with women representing 63% of campus hires this year and comprehensive ESG training reaching all employees.

As the pharmaceutical sector grapples with unique challenges, including energy-intensive operations and complex supply chains, Piramal Pharma recognizes that transitioning to renewable energy sources is fraught with difficulties. However, the company has made strides in enhancing its renewable energy share, which now constitutes nearly one-fifth of its total energy consumption. Furthermore, the intricacies of global supply chains necessitate responsible sourcing and collaboration with suppliers, all while ensuring the uninterrupted delivery of essential medicines.

With transparency expectations on the rise, the need for robust sustainability reporting underpins the company's commitment to demonstrating measurable impacts backed by global frameworks. Piramal Pharma is determined to show that strong ESG performance can coexist with the fundamental goal of patient care.

Regulatory compliance remains a cornerstone of operations for the pharmaceutical industry, and Piramal Pharma’s success in passing 36 global inspections, including two by the US FDA, exemplifies its commitment to a culture of compliance. By adopting a quality-by-design framework and integrating risk assessments at each operational stage, the company ensures robust monitoring and documentation. Comprehensive employee training further fortifies their commitment to maintaining high standards.

Reflecting on the lessons learned from four years of sustainability reporting, Piramal Pharma has recognized that real impact arises when ESG goals are embedded into decision-making across all levels. Looking ahead, the company has identified three key sustainability priorities: promoting gender diversity, integrating ESG training for all employees, and linking sustainability efforts to organizational resilience and stakeholder trust.

Digital transformation plays a vital role in enhancing quality and scalability across operations. Through initiatives like Catalyst NXGEN, which leverages SAP S/4HANA, Piramal Pharma is redefining how it approaches quality and agility. The integration of procurement, manufacturing, and logistics enables quicker decision-making, essential for navigating fluctuating demand cycles, particularly during public health emergencies.

Recent achievements include a 6% reduction in Scope 1 and 2 emissions and an 8% increase in renewable energy use, the result of a structured decarbonization strategy that prioritizes energy efficiency and sustainable partnerships. This multi-faceted approach is pivotal as the company aims to meet its ambitious emission reduction targets by 2030.

Achieving zero hazardous waste to landfill and a 90% recycling rate for non-hazardous waste in the fiscal year 2025 was a collaborative effort that involved building a circular mindset throughout operations. Investments in technology and partnerships with certified vendors facilitate innovative waste solutions, ensuring that hazardous materials are processed responsibly.

However, the pharmaceutical sector faces ongoing sustainability challenges, particularly concerning climate resilience and scope 3 emissions, which largely stem from supply chain complexities. To address these, Piramal Pharma is committed to fostering collaborative partnerships that enhance sustainability across the value chain while engaging with the broader community through initiatives that promote health, education, and skills development.

Looking forward, the next wave of sustainability challenges will hinge on climate resilience, responsible innovation, and embedding an ESG culture throughout the organization. By prioritizing these elements, Piramal Pharma aims to demonstrate that sustainable practices can lead to long-term value creation, ultimately benefiting both the planet and patient care.