Piramal Pharma Earns Strong ESG Rating for FY24

With a NSE Sustainability rating of 61 for financial year 24, Piramal Pharma's commitment to environmental, social, and governance (ESG) criteria is evident. This success underlines Indian pharmaceutical businesses' growing emphasis on sustainability. 

The NSE Sustainability Alpha assessment rates companies using factors including emission reduction, employee well-being, and moral governance. Utilizing energy-efficient manufacture and incorporating renewable energy, Piramal Pharma lowered its Scope 1 and 2 emissions by 20% with operations in 30 countries, sourcing 15% of its electricity from wind and solar. Its water recycling initiatives saved 1.2 million litres; 90% of its packaging is now recyclable, hence meeting Indias Extended Producer Responsibility (EPR) standards. 

Given its 10% share of industrial pollution, India's pharmaceutical sector with a worth of $50 billion is under pressure to adopt environmentally friendly practices. Piramals' zero-waste-to-landfill set a norm in three locations. High costs for green technology implementation--estimated at $500 million year--and regulatory inconsistencies across states, however, create difficulties. X posts applaud Piramals' ranking but underscore the need for industry-wide standards. 

With just 10% of providers audited for sustainability, detractors point out that Scope 3 emissions from supply chains still have a flaw; socially, Piramal assists 500,000 people through healthcare access initiatives; its governance includes 40% women in leadership roles. By 2027, the company seeks to have spent 1,000 crore in green manufacture. 

Piramal Pharma's ESG rating stresses its sustainable leadership. Taming supply chain emissions and expanding green projects will be necessary to sustain India's pharma sector. 

Source: Moneycontrol