Lupin became the first Indian pharmaceutical company to top the Global ESG Ratings for the sector globally. The company also debuted on the Dow Jones Best-in-Class World and Emerging Markets Indices, secured CDP's highest 'A' rating for Climate Change and Water Security and earned SBTi validation for its 1.5°C-aligned climate targets. In an exclusive interaction with Moneycontrol, Ramesh Swaminathan, Executive Director and Global CFO, Head of IT and API Plus SBU, Lupin, discusses how sustainability is driving operational efficiency, risk management and long-term value creation at Lupin.
Sustainability has long been part of Lupin's operating philosophy. However, our sustainability journey took a more structured approach in 2021, when we made a deliberate decision to transition ESG from a peripheral corporate responsibility agenda into an operational business strategy. S&P Global's recognition is encouraging; we see it as a result of consistent execution rather than the end objective.
Over the years, we have strengthened governance, established clear accountability mechanisms and set measurable targets across our focus areas of Planet, People and Patients. These priorities are reviewed regularly by our Board-level Sustainability and CSR Committee as well as the ESG Core Committee.
We have also linked ESG-related metrics to executive and key management performance, reflecting our belief that sustainability outcomes should be managed with the same discipline as other business priorities. Our focus is on building a more resilient organization that can create long-term value for patients, communities and shareholders.
Today, sustainability is no longer viewed as a compliance requirement or stakeholder expectation alone. It is increasingly being recognized as a driver of resilience, operational excellence and long-term value creation.
Capital markets favor this forward-looking approach, viewing it as a sign of strong governance, trustworthy reporting, and lower credit risk.
At Lupin, we adopt various measures. For instance, by proactively migrating our freight model from air transport to sea freight, we reduced our air shipment share from 34 percent in FY24 to 17 percent in FY26. This single shift, while generating significant savings on logistics, did something more for us – it drastically reduced our Scope 3 transport emissions. This is how we view our responsibility towards our stakeholders and the planet.
Similarly, our transition toward renewable energy, biomass and agro-waste-based fuel sources has strengthened energy security and reduced our exposure to fossil fuel price volatility. Today, nearly 50 percent of our energy consumption in India comes from renewable sources.
Hence, we believe that sustainability delivers its greatest value when embedded in business strategy. It allows organizations to simultaneously improve efficiency, manage risk, strengthen competitiveness and create enduring value.
Respiratory therapy is one of our flagship capabilities, but conventional propellants used in pressurized Metered Dose Inhalers (pMDIs) historically accounted for nearly 35% of Lupin's overall Scope 3 carbon footprint.
Our R&D teams are actively developing next-generation green propellant inhalers using low-global-warming-potential (GWP) formulations. This research could eliminate over 90% of emissions associated with inhaler usage. As healthcare systems across North America, Europe, and Asia increasingly prioritize low-carbon medical procurement, Lupin stands to gain significant commercial opportunities and market differentiation.
Securing validation from the Science Based Targets initiative (SBTi) was an important milestone for us. The approval confirms that our climate commitments align with the Paris Agreement's 1.5°C pathway, placing Lupin among a select group of pharmaceutical companies with independently validated, science-based decarbonization targets.
Operationally, we had set out to achieve a 42 percent absolute reduction in Scope 1 and Scope 2 emissions by FY30 against an FY23 baseline. Supported by investments of Rs. 52.8 crore in FY25 and over Rs. 30 crore in FY26 in renewable energy and green infrastructure, we have already achieved over 40 percent absolute reduction in Scope 1 and 2 emissions in FY26. On Scope 3, we are committed to a 61.07 percent intensity reduction per unit physical value by FY33 from an FY24 baseline.
We also recognize that the biggest decarbonization challenge for the pharmaceutical industry lies beyond our own operations. For most companies in our sector, 80-90 percent of emissions reside within the value chain, making supplier engagement and ecosystem collaboration critical. Accordingly, we have committed to reducing Scope 3 emissions intensity by 61.07% by FY33 from an FY24 baseline, while strengthening ESG assessment, capability building and transparency across our supplier network.
Water stewardship is critical to ensuring continuous, uninterrupted plant operations. We at Lupin have maintained Water Positive status for five consecutive years, recharging more water than we consume. Through advanced industrial water treatment and recovery infrastructure, we currently recycle 45 percent of our total water withdrawal across our India facilities, putting us well ahead of our 50 percent target for 2030. Furthermore, six of our key manufacturing facilities operate as full Zero Liquid Discharge (ZLD) units, ensuring 100 percent of wastewater generated during API and formulation processes is treated, recovered, and reused on-site.
We have also achieved our long-term target of a 10 percent absolute reduction in freshwater withdrawal from FY21 levels. This protects our operations against regional drought shocks and safeguards manufacturing continuity.
In API manufacturing, traditional synthesis often involves heavy solvent consumption and hazardous waste generation. By embedding green chemistry principles directly into process development, we are redesigning API reaction routes to minimize chemical inputs, maximize atom economy, and replace volatile solvents. The goal is to design processes that are inherently more efficient, safer and less resource-intensive from the outset.
The benefits are tangible across both operational and financial dimensions. More efficient processes help reduce raw material consumption, improve yields, lower energy and solvent requirements, and decrease waste generation at source. Reducing hazardous waste volumes also helps lower treatment, transportation and disposal costs while supporting safer operations.
Our focus extends beyond waste reduction to circularity. For unavoidable incinerable hazardous waste generated in India, 90 percent is channelled to pre-processing and co-processing in energy recovery facilities, ensuring material value is recovered wherever possible rather than sent for conventional disposal. This supports circular economy principles while improving resource efficiency across the value chain.
This exclusive interview was first published in the Moneycontrol on October 22, 2026
