Date: 29 September 2026

ESG Performance Highlights

Environmental Performance

  • 15.86% reduction in absolute carbon emissions (Scope 1 and 2) compared to baseline year 2020
  • 48.64% decrease in specific intensity for Scope 1 and 2 carbon emissions compared to 2020
  • 16.05% reduction in absolute water consumption compared to 2020 baseline
  • 48.72% decrease in specific intensity for water consumption compared to 2020
  • 43% energy sourced from renewable sources
  • Total energy consumption: 12,50,041.83 MWh (Renewable: 5,35,375.34 MWh, Non-renewable: 7,14,666.49 MWh)
  • Scope 1 emissions: 42,973.33 tCO2e (inclusive of refrigerants: 93,059 tCO2e)
  • Scope 2 emissions (market-based): 3,36,537.43 tCO2e
  • Total waste generated: 65,534.53 MT (Hazardous: 33,478.67 MT, Non-hazardous: 32,040.65 MT, E-waste: 15.21 MT)
  • 37.93% of hazardous waste disposed was co-processed
  • Water withdrawal: 41,48,177 KL (Surface: 8,13,040 KL, Groundwater: 15,87,030 KL, Third party: 17,48,107 KL)
  • Water consumption: 24,28,862.03 KL

Social Performance

  • 17.97% female representation across global workforce
  • 13.44% Women in top Management Positions
  • 26.39% Women in revenue generating functions
  • 25.29% Women in STEM related positions
  • Total workforce: 55,124 employees (72.01% permanent, 27.99% contingent workers)
  • Employee turnover rate: 18.37% (Voluntary: 11.21%)
  • INR 2,068 million CSR spend
  • Nearly 2.23 million lives touched in India through CSR initiatives
  • Total training man hours: 28,54,267 hours
  • Average training hours per employee: 71.90 hours
  • Average spending per FTE on training: INR 6,518
  • 49 discrimination complaints reported, with 89.80% closure rate
  • Zero cases of corruption, bribery, customer privacy breaches, conflicts of interest, money laundering or insider trading

Governance Performance

  • 95.24% Average Board meeting attendance
  • 50% Independent Board Directors
  • Board comprises 8 Directors (4 Executive, 4 Independent)
  • 2 Female Directors (25% of Board)
  • Average board tenure: 6.0 years
  • CEO-to-employee pay ratio: 119.17
  • Management ownership: Mr. Dilip Shanghvi (7,597.98 multiple base salary), other executives average 129.80 multiple
  • Promoter Group ownership: 54.48%
  • Government institution ownership: Life Insurance Corporation of India (5.23%)

Corporate Governance & Ethics

Board Changes

  • Mr. Dilip Shanghvi stepped down as Managing Director effective September 01, 2025, continues as Executive Chairman
  • Mr. Kirti Ganorkar appointed as Managing Director for five years commencing September 01, 2025 to August 31, 2030
  • Ms. Satyavati Berera appointed as Non-Executive Independent Director from May 08, 2026 to May 07, 2031
  • Ms. Vidhi D. Shanghvi appointed to the Board effective May 22, 2025
  • Dr. Andreas Eugen Busch appointed as Non-Executive Independent Director from May 12, 2026 to May 11, 2031
  • Ms. Rama Bijapurkar retired from the Board on May 20, 2026
  • Dr. Pawan Goenka appointed as Lead Independent Director

Board Committees

  • Audit Committee (A)
  • Nomination and Remuneration Committee (NRC)
  • Stakeholders Relationship Committee (SRC)
  • Corporate Social Responsibility Committee (CSR)
  • Risk Management Committee (RMC)
  • Corporate Governance and ESG Committee (CGESGC)

ESG Governance

  • Corporate Governance and ESG Committee (CGESGC) at Board level provides oversight on ESG initiatives
  • ESG Council at executive level consisting of C-suite members supported by Global Head - ESG
  • ESG Strategy, Goals, targets and performance presented periodically to Board

Business Ethics

  • Zero cases of corruption, bribery, customer privacy breaches, conflicts of interest, money laundering or insider trading
  • 49 breaches reported on Discrimination or Harassment
  • Global Code of Conduct strengthened to cover anti-bribery, gifts, political contributions, charitable contributions, and third-party engagement
  • Comprehensive Whistleblower Policy managed by independent third-party
  • Trade association contributions: INR 678.61 million in FY2026 (INR 422.80 million in FY2025)

Tax Strategy and Reporting

  • Earnings before tax: INR 1,51,18,88,00,000
  • Reported Tax: INR 35,54,36,00,000
  • Effective tax rate: 23.51%
  • Cash Taxes Paid: INR 32,94,64,00,000
  • Tax Refund Received: INR 9,80,70,00,000
  • Net Tax Paid: INR 23,13,94,00,000
  • Cash tax rate: 21.79%

Risk Management

  • Enterprise Risk Management (ERM) framework aligned with ISO 31000:2018 and COSO
  • Risk Management Committee (RMC) oversees ERM framework
  • 13 key risk areas identified including Corporate Governance, Product Quality, Cyber Security, Human Capital, Climate Change, and Supply Chain risks
  • Two emerging risks identified: Geopolitical Fragmentation and Global Tariff Volatility
  • Regular risk training provided to employees

Materiality Assessment

  • 13 high-priority material topics identified through double materiality approach
  • Top material topics include Innovation Management, Climate Change, Environmental Impact Management, Corporate Governance and Business Ethics, Access to and Affordability of Medicines
  • Materiality assessment reviewed every 2+ years
  • External assurance provided by DNV Business Assurance India Private Limited

Product Quality and Safety

  • Comprehensive Quality Management System (QMS) aligned with global standards
  • 51 regulatory inspections by agencies including USFDA, EMA, Health Canada, PMDA
  • 20 Form 483 Observations (or equivalent) in FY2026
  • Zero FDA Warning Letters in FY2026
  • Zero Class I recalls in FY2026
  • 67.50% of Class 2 recall cases investigated and closed
  • R&D investment: INR 35.5 billion (6.1% of sales)
  • Cumulative R&D expenditure: INR 335+ billion till date
  • 2,700+ R&D professionals
  • Patent portfolio: 3,303 filed patents, 2,542 granted patents

Ethical Clinical Trials and Marketing

  • Clinical trials conducted in accordance with ICH-GCP, Declaration of Helsinki, and local regulations
  • Commitment to ethical marketing practices and accurate product information
  • Zero incidents of non-compliance concerning product information and labeling
  • Zero incidents of non-compliance concerning marketing communications
  • Zero monetary losses from legal proceedings associated with false marketing claims

Access to Healthcare

  • 11.9 million units of generic medicines donated in reporting period
  • Patient Assistance Programs, co-pay assistance, and Early Access Program available
  • 2,18,897 patients reached with low-cost access to products
  • 121 medical programs conducted, 38,006 HCPs educated in India
  • Mobile Healthcare Units operating across 188 villages serving 2,18,897 beneficiaries
  • Healthcare infrastructure strengthened through upgradation of 38 PHCs and Ayushman Kendras

Information Security and Privacy

  • Zero data breaches in FY2026
  • ISO 27001:2022 certification for data centres and head office
  • Comprehensive Information Security Policy and Privacy Policy
  • Responsible Artificial Intelligence Policy established
  • 24/7 threat monitoring and security awareness training

Environmental Initiatives

  • 18 sites ISO 14001 certified, 7 sites ISO 50001 certified
  • Zero environmental non-compliance issues reported
  • Capital investment of INR 503.2 million on energy conservation equipment
  • Climate strategy with 35% reduction target for absolute carbon emissions by 2030 (compared to 2020)
  • Net Zero commitment by 2050
  • Biodiversity Policy with commitment to zero deforestation and net positive impact by 2050
  • 1,37,970 saplings planted across 5 states

Workforce and Human Rights

  • Human Rights Policy aligned with UN Guiding Principles
  • 10.25% of workforce covered by management-recognized unions
  • Comprehensive employee benefits including medical insurance, retirement benefits, parental leave
  • Return-to-work rate after parental leave: 92.36%
  • Retention rate after parental leave: 87.05%
  • Gender pay assessment conducted across employee levels
  • Human capital return on investment: 2.44

Supply Chain Management

  • Supplier & Third-Party Code of Conduct covering human rights, labor standards, environmental responsibility
  • 64 suppliers assessed through ESG evaluation platform
  • 68% local sourcing (for SPIL)
  • Inclusive Sourcing Program promoting local economic development
  • Regular supplier audits and assessments conducted

External Assurance

  • Report assured by DNV Business Assurance India Private Limited
  • Limited assurance provided for GRI disclosures
  • Assurance conducted in accordance with ISAE 3000 and DNV's VeriSustainTM protocol
  • Coverage includes corporate office and multiple manufacturing sites across India and Romania

Reporting Frameworks and Scope

  • Report developed with reference to GRI Standards 2021
  • Reporting boundary comprises 44 manufacturing locations and R&D centres
  • 84% coverage of operational sites for EHS indicators (~97% of revenues)
  • 100% coverage for all other indicators (~100% of revenues)
  • Participation in S&P Global CSA, EcoVadis, and CDP assessments