What's Happening?
Dr Reddy’s Laboratories Ltd, a global pharmaceutical company, has announced its commitment to achieving Net Zero emissions across its entire value chain by the fiscal year 2045. This commitment has been
validated by the Science Based Targets initiative (SBTi), making Dr Reddy’s the only Indian pharmaceutical company with an SBTi-approved Net Zero target for FY2045. The company plans to reduce its absolute Scope 1 and 2 emissions by 80% and Scope 3 emissions by 51.6% per INR value added by FY2030, using FY2023 as the reference year. By FY2045, Dr Reddy’s aims to achieve a 90% absolute reduction in Scope 1, 2, and 3 emissions. The company has already made significant progress, sourcing 68% of its electricity from renewable sources in FY2025 and plans to eliminate coal and furnace oil from its operations by the end of FY2026.
Why It's Important?
This commitment by Dr Reddy’s Laboratories is significant as it sets a precedent for the pharmaceutical industry, particularly in India, to align with global climate goals. By adopting a science-based approach to emissions reduction, the company is not only contributing to global efforts to combat climate change but also enhancing its sustainability credentials. This move could influence other companies in the sector to adopt similar targets, thereby accelerating the transition to a low-carbon economy. The pharmaceutical industry, known for its high energy consumption, stands to benefit from reduced operational costs and improved public perception by embracing sustainable practices.
What's Next?
Dr Reddy’s Laboratories will continue to implement its climate roadmap, focusing on eliminating coal and furnace oil from its operations by FY2026. The company will also work towards increasing its reliance on renewable energy sources and further reducing emissions across its value chain. As the company progresses towards its 2045 Net Zero target, it may face challenges such as technological advancements and regulatory changes. However, its commitment to sustainability and alignment with global climate pathways positions it well to navigate these challenges and potentially lead the pharmaceutical sector in climate action.
