At Lupin, we strive to conduct our business in a sustainable manner and when feasible, give back to the environment more than we consume. To us, natural capital is an asset that must be preserved, enhanced, and deployed sustainably to create long-term value for all our stakeholders.

Clean air, water and the environment are essential to the health and well-being of everyone. In all our locations around the world, optimizing our use and impact of natural capital is an important consideration. We continuously strive to adhere to and exceed environmental regulations and norms in all regions of our operations.

42%

Total Water Recycled

as a percentage of total water withdrawal in Indian operations

8%

Total GHG Emissions Reduction

compared with FY21 (In India)

Water
positivity -
replenished 476%

of total water withdrawn through watershed management projects

We are committed to upholding the highest standards of environmental governance within our Environment, Health, Safety & Sustainability policy, which lays down our commitments for management of environmental impact within our operations as well as business value chain. We extend our environmental stewardship activities beyond our premises and we actively educate and encourage our employees, partners, and suppliers to adopt environment friendly practices. We are continuously innovating new ways to reduce our reliance on fossil fuels, procure renewable energy sustainably, manage our water consumption,

increase our water recovery, and manage the disposal of waste from own operations and in the downstream from post-consumer plastic packaging waste. Almost 50% of our sites in India are Zero Liquid Discharge (ZLD). The efficient management of effluents within our manufacturing sites is in accordance with the standards prescribed by regulatory authorities. This is also a first step towards our commitment to Anti-Microbial Resistance (AMR) stewardship and we strive to ensure that there is no antibiotic releases to the environment.


Energy Management49

Our energy consumption profile across our 13 Indian locations and three overseas locations in Brazil, Mexico and Somerset U.S. is presented below:


We are constantly evaluating ways to reduce our dependence on non-renewable energy sources. Among the measures we have taken are:

Scope 1 energy consumption in Indian operations

(in GJ)

Scope 2 energy consumption in Indian operations

(in GJ)

Greenhouse Gas (GHG) Emissions50

Carbon emissions from fossil fuels are the greatest challenge facing humanity in the twenty-first century. Climate change is expected to create threats to lives and livelihoods through increased incidents of extreme weather events, the spread of diseases and the rapid degradation of built infrastructure.

We recognize our responsibility in abating GHG emissions by managing our energy consumption from fossil fuels using the latest technologies, switching to cleaner sources of fuels, and accelerating the transition to renewable energy.

The table below provides our total GHG emissions:

Luforbec® Achieves Carbon Neutrality Certification

Our commitment to climate stewardship also contributes to product innovation in the development phase. Lupin Healthcare U.K.’s product, Luforbec® has recently achieved Carbon neutrality certification1.

Lupin Healthcare offsets the total emissions from the production, use and disposal of the inhaler, thus achieving carbon neutrality. This is expected to significantly augment the NHS’ green agenda to achieve net zero emissions.

GHG emissions in Indian operations

(tCO2e)

Emission Targets

To support global efforts to limit global warming below 1.5 degrees from pre-industrial levels, Lupin has taken on ambitious commitments for decarbonization to reduce our Scope 1 and Scope 2 GHG emissions by 15% from 2019-20 levels, by 2030.

This will be achieved through process and product efficiency, expanding the use of captive renewable energy in our operating locations, and preferentially procuring green energy from the grid and implementing energy efficiency measures at our operating sites.


Water Management53

Since industries, agriculture, and domestic consumption compete for water resources, we are committed to responsibly utilizing the scarce water resources and maximizing the reuse and recycling of water in our own operations. In FY22, we conducted a baseline assessment of the current water risk at our manufacturing locations in India. While overall, Lupin’s water consumption is offset by CSR activities in watershed management, but water-scarcity risks in manufacturing poses risks to Lupin’s operations. Through this process, we identified the sites exposed to Baseline Water Stress by 2030. The baseline water stress measures the ratio of total water withdrawals to available renewable surface and groundwater supplies. Five of our operating locations – Pithampur, Nagpur, Jammu, Aurangabad and Ankleshwar - are in regions of Extremely High-Water Risk by WRI Aqueduct water risk atlas tool. Our strategy for ensuring business

Continuity and water risk mitigation includes technical interventions such as the installation of water recycling plants, reusing AHU condensate and rainwater, water efficiency mechanisms, and raising awareness about water conservation among our stakeholders. Our industrial by-products and waste streams are treated to ensure compliance with all applicable norms of the State Pollution Control Boards. Further, six of our sites in India are Zero Liquid Discharge54 and we ensure that effluents from our processes are not discharged to water bodies through run-offs. At nine of our sites in India, the wastewater after primary treatment is further processed in state-ofthe- art water recovery plants consisting of Reverse Osmosis (RO), Multiple Effect Evaporator (MEE) and Agitated Thin Film Dryer (ATFD) plants to efficiently recover water from the wastewater. The recovered water is utilized in utilities, flushing, housekeeping and landscaping.

Water withdrawal and recovery in Indian operations

(in kL)

Through the water stewardship activities undertaken by the Lupin Foundation in India over the past decade in the rural regions of Maharashtra and Andhra Pradesh, Lupin has been able to give back to nature more than we consume. As of 31st March 2022, we have been able to create water recharge potential of the order of 476% of our total water withdrawn, thereby making our operations overall water positive.

Targets

At Lupin, we have taken a target of recycling 50% of our total water withdrawal in our operations by 2025. The goal will be achieved through process interventions and increased uptake of recycled water in operations in activities such as landscaping and housekeeping.


Waste Management55

Lupin strives to embed principles of circularity and waste recycling to reduce waste disposal to landfills or incineration. In India, in FY22 approximately 45% (3,099 MT) of the incinerable hazardous waste generated at our sites was sent for co-processing/ pre-processing in cement plants instead of incineration. This year, however, was an anomalous year due to the contracting arrangement with the waste co-processor and the fraction of waste sent to cement plants has reduced from 57% (in FY21) to 13% in FY22. With all arrangements in place in FY23, we expect to achieve similar levels of waste co-processing in the coming year.

Further, spent solvents generated in the API manufacturing processes are either recovered and reused in-situ or sent to authorized recyclers or registered disposal facilities. Spent or used oil generated from our operations is sent to authorized recyclers or registered disposal facilities. Further, as a part of our resource conservation initiatives, we sent spent calcium sulphate (6,298 MT) to cement plants for utilizing as alternate fuel and raw material in their operations.

Hazardous waste generation profile (Global)

FY22 in MT

Non-hazardous waste from our operations, such as canteen wastes, and mycelia wastes (5,844 MT) are either send to piggeries or composted to convert into usable organic fertilizer. The agro-waste boiler ash (1,500 MT) is sent for brick manufacturing, soil enrichment and landfilling. recycled

We are committed to minimizing waste by:

As part of our Extended Producer Responsibility obligations around post-consumer plastic waste management, we are recovering an equivalent quantity of the post-consumer plastic waste generated from our products in India and the plastic waste is being channelized to create recycled products or being utilized as an alternate energy source. Further, we have eliminated patient information leaflets from our products by digitizing them. In addition to reducing costs, this has also reduced paper consumption and waste.

Waste management in Indian operations

in MT

Targets

Lupin has committed to ensure that 60% of the hazardous waste generated in its Indian operations will be sent to cement plants for co-processing by 2025. This will reduce the quantum of hazardous waste being diverted to landfilling or incineration which creates significant health risks for society.