Sustainability Overview

Sustainable Actions for a Better Tomorrow

Sustainability is a core element of Zydus’ corporate identity. It is deeply embedded in Zydus’ strategic approach across its operations, supply chain, and stakeholder engagement. Aligned with its vision “To be a global life sciences Company transforming lives through path breaking discoveries,” Zydus’ sustainability framework is built on three core pillars: combating global climate change, promoting employee and community wellbeing, and upholding strong governance practices..

Zydus recognises the urgent need to address the global challenges of climate change and social fragmentation, and act proactively to build a resilient, sustainable future.

Zydus is committed to advancing the UN Sustainable Development Goals (SDGs) through targeted initiatives and measurable sustainability commitments that reinforce its long-term sustainability agenda and ensure accountability across operations.


ESG Governance

Zydus adopts a top down approach to sustainability, ensuring accountability and positive impact at every level. The Corporate Social Responsibility (CSR) and Environment, Social and Governance (ESG) Committee of the Board of Directors serves as the central authority for driving sustainable value creation.

By embedding environmental stewardship, social responsibility, and sound governance into every facet of its operations, Zydus strives to deliver enduring value to stakeholders while contributing meaningfully to a sustainable future.

Sustainability
ESG Policies
Corporate Social Responsibility and ESG Committee

Environment

Zydus’ approach to environmental stewardship is comprehensive and action‑oriented. Zydus focuses on energy efficiency, emissions reduction, water stewardship, and robust waste management to minimise environmental impact. It actively promotes biodiversity conservation and product stewardship, creating a holistic strategy that supports sustainable development and benefits local communities.

Social

Zydus is committed to social responsibility, upholding human rights and ethical labour practices across its operations. Zydus’ rigorous health and safety standards ensure a secure workplace, while healthcare programs support physical and mental well being. Through continuous training and development, Zydus fosters a culture of growth and empowerment, enabling employees to thrive both professionally and personally.

Governance

Through Board level oversight by the CSR and ESG Committee, Zydus upholds ethical conduct, compliance with laws, and transparent disclosures. Zydus’ governance framework builds trust with investors, regulators, and communities, while robust risk management and accountability systems ensure long term sustainability and resilience across its operations.

With growing relevance of ESG, Zydus restructured its CSR Committee into the CSR & ESG Committee. The committee provides strategic guidance and oversight, reviews ESG performance biannually, responds to emerging ESG challenges, and ensures sustainable practices that create long term stakeholder value. Its key responsibilities include overseeing ESG policies and strategies, guiding management, monitoring performance and disclosures, engaging stakeholders, tracking ESG trends, and improving external ESG ratings.

Corporate Social Responsibility & ESG Committee

ESG Goals

Zydus’ ESG goals focus on driving sustainable growth through responsible environmental practices, fostering social well being, and upholding good governance practices to create long-term value for stakeholders while contributing positively to communities and the planet.

Targets
Performance
SDG Alignment
Alignment with other ESG frameworks & Standards

Environment

A. CLIMATE CHANGE (GHG Emissions)

  • 45% reduction in GHG Intensity reduction with baseline of FY21-22
  • Net Carbon Neutral by 2035
  • 50% energy requirements from renewable sources by 2030

B. WATER MANAGEMENT

  • Net Water Neutral by 2028

C. WASTE MANAGEMENT

  • Waste disposal via co-processing up 40% for India operations by 2026

Social

A. GENDER DIVERSITY

  • Gender Diversity of 12% by 2028

B. EMPLOYEE WELL-BEING

  • Employee satisfaction survey for 100% of employees

C. SUPPLIERS ASSESSMENT

  • 100% strategic suppliers to be compliant with ESG framework by 2027

D. EMPLOYEE TRAINING

  • Ensure 100% completion of mandatory training to applicable employees

Governance

A. REGULATORY COMPLIANCE

  • 100% compliance to applicable legal requirements

B. CERTIFICATIONS

  • 100% India operations to be certified with ISO14001 & ISO45001 by 2026

C. ESG PRACTICES

  • Company’s ESG disclosures in alignment with Global ESG Standards & Frameworks

Environment

A. CLIMATE CHANGE (GHG Emissions)

  • 29% reduction in GHG Intensity in FY2025 w.r.t FY2021-22
  • 38% of renewable energy in the total energy mix in FY2025

B. WATER MANAGEMENT

  • 20% reduction in water intensity in FY2025 w.r.t FY2021-22
  • Creation of water recharge structures in progress

C. WASTE MANAGEMENT

  • 44% waste disposal via co-processing in FY2025

Social

A. GENDER DIVERSITY

  • Gender Diversity of 8% in FY2025

B. EMPLOYEE WELL-BEING

  • Zydus have been recognised as a Great Place to Work for 05 times in a row

C. SUPPLIERS ASSESSMENT

  • ~40% strategic suppliers compliant with ESG framework in FY2025

D. EMPLOYEE TRAINING

  • 100% employees complied with mandatory training

Governance

A. REGULATORY COMPLIANCE

  • 100% compliant to all applicable legal requirements

B. CERTIFICATIONS

  • ~80% India operations certified with ISO 14001 & ISO 45001

C. ESG PRACTICES

  • Company’s ESG disclosures in alignment with GRI, TCFD, DJSI, UN SDG, CDP, BRSR, IR, UNGC, SASB

Environment

  • Affordable and Clean Energy
    Climate Change (Energy and Emissions)
  • Clean Water and Sanitation
    Water Management
  • Responsible Consumption and Production
    Waste Management and Extended Producer Responsibility
  • Climate Action
    Climate Change (Energy and Emissions)
  • Life on Land
    Biodiversity Conservation

Social

  • No Poverty
    Corporate Social Responsibility
  • Zero Hunger
    Corporate Social Responsibility
  • Good Health and Wellbeing
    Employee Health and Safety
  • Gender Equality
    Community Engagement
  • Decent Work and Economic Growth
    Human Capital and Welfare
  • Sustainable Cities and Communities
    Community Engagement

Governance

  • Industry, Innovation and Infrastructure
    Research and Development and Innovation
  • Responsible Consumption and Production
    Sustainable Supply Chain, Responsible Marketing, Selling Practices and Product Labelling
  • Peace, Justice and Strong Institutions
    Anti-Bribery and Corruption, ESG Reporting and Performance
  • Partnerships for the Goals
    Corporate Governance and Business Ethics

Disclosures and Report

Zydus’ ESG disclosures reflect its commitment to transparency and accountability, providing stakeholders with clear insights into its environmental, social, and governance performance. Through integrated annual reports, BRSR, and ESG reports, Zydus communicates progress, highlight key initiatives, and ensure alignment with global standards to drive trust and long term value creation.

BRSR Report
ESG Report
Annual Report
Net Zero

BRSR Report

Zydus’ Business Responsibility and Sustainability Report (BRSR) reflect its commitment to providing stakeholders with comprehensive and reliable information on its ESG performance.

Year
FY 2024-25
FY 2023-24
FY 2022-23
Reports
  • ISO Certification
  • FTSE4Good Certification
  • Assurance Statement
  • ISO Certification
  • FTSE4Good Certification
  • Assurance Statement
  • ISO Certification
  • FTSE4Good Certification
  • Assurance Statement

ESG Report

Zydus’ ESG Report presents a comprehensive view of its sustainability initiatives, governance practices, and social impact. It communicates progress on key ESG goals, aligns with global standards, and demonstrates its dedication to long term value creation.

Year
FY 2024-25
FY 2023-24
FY 2022-23
Reports
  • ISO Certification
  • FTSE4Good Certification
  • Assurance Statement
  • Biodiversity Commitment Report 2
  • Climate-related Financial Disclosure
  • TNFD Report
  • Biodiversity Commitment Report
  • Product Carbon Footprint Report
  • Biodiversity Commitment Report
  • Biodiversity Commitment Report
  • ISO Certification
  • FTSE4Good Certification
  • Assurance Statement

Annual Report

Zydus’ Integrated Annual Report provides a nuanced and comprehensive analysis of its performance across the six capitals that holistically capture its performance: Financial, Manufactured, Intellectual, Human, Natural, and Social & Relationship.

Year
FY 2024-25
FY 2023-24
FY 2022-23
Reports
  • ISO Certification
  • FTSE4Good Certification
  • Assurance Statement
  • ISO Certification
  • FTSE4Good Certification
  • Assurance Statement
  • Biodiversity Commitment Report 3
  • Climate-related Financial Disclosure
  • TNFD Report
  • Biodiversity Commitment Report
  • Product Carbon Footprint Report
  • Biodiversity Commitment Report
  • Biodiversity Commitment Report

Net Zero

Zydus has outlined a robust sustainability framework to achieve Net Zero greenhouse gas emissions by 2050. Using FY2022 as the baseline, Zydus is reducing Scope 1 and Scope 2 emissions through energy efficiency, renewable energy adoption, carbon credits, and operational enhancements. This science driven plan, formally accepted by the Science Based Targets initiative (SBTi), underscores Zydus’ dedication to environmental responsibility, resilient operations, and long term value creation for stakeholders.

ESG Report
Year
2024-25
2023-24
2022-23
Reports
  • ISO Certification
  • FTSE4Good Certification
  • Assurance Statement
  • ISO Certification
  • FTSE4Good Certification
  • Assurance Statement
  • ISO Certification
  • FTSE4Good Certification
  • Assurance Statement

ESG Ratings

The outcome of Zydus’ ESG efforts, assessed by leading rating agencies, reflects its progress in environmental stewardship, social responsibility, and governance excellence. These ESG ratings and scores validate its commitment to sustainable practices, enhance transparency, and strengthen stakeholder confidence in its journey of long term value creation.

2024-25
2023-24
2022-23
78/100
Zydus Lifecience Limited holds the 2nd position in the esg rating by S&P Global for 2024
78/100
Zydus Lifecience Limited holds the 2nd position in the esg rating by S&P Global for 2024
78/100
Zydus Lifecience Limited holds the 2nd position in the esg rating by S&P Global for 2024
2024-25
2023-24
2022-23
2024-25
2023-24
2022-23
29.1
Medium Risk
2024-25
2023-24
2022-23

Importance of Conservation

Zydus acknowledges that safeguarding biodiversity is fundamental to the health of the planet, the resilience of ecosystems, and the sustainability of business operations. As a leading pharmaceutical company, it recognises the interdependence between its operations and ecosystem services and acknowledges its role in preserving nature and minimising ecological disruption.

Biodiversity Commitment
No-Deforestation Commitment

Zydus supports the principles of the UN Convention on Biological Diversity (CBD) and aligns with the Kunming Montreal Global Biodiversity Framework (GBF) vision of “Living in Harmony with Nature by 2050.” Guided by the mitigation hierarchy, it is committed to avoid, minimise, restore, and reduce ecosystem impacts, with a goal of creating a net positive impact (NPI) on biodiversity across its operational sites by 2040.

  • Encourage tree plantation within and around the facilities, ensuring the preservation of flora, fauna, and bird habitat in and around the facilities.
  • Comply with all applicable legal/regulatory and other biodiversity requirements.
  • Promote the use of environmentally sustainable technologies/practices and adoption of innovative practices for pollution abatement and continual improvement in environmental performance.
  • Select, purchase, and use appropriate fuel energy, energy efficient equipment - services and eco-friendly technologies to minimise traditional fossil fuel use.
  • Reduce toxicity in the products and improve the percentage of co-processing and pre-processing of wastes.
  • Build awareness among its vendors, contractors, and service providers to minimise the utilisation of natural resources in raw material, logistics, and recycling material.
  • Conduct biodiversity risk assessments and develop Biodiversity Management Plans for ecologically sensitive site locations through the integration of the mitigation hierarchy to avoid, limit or reduce impacts on nature and restore, wherever necessary.
  • Engage with subject matter experts, local communities, and stakeholders, and participate in relevant governmental and industry platforms to support collaborative efforts in biodiversity conservation

Zydus recognises the vital role forests play in biodiversity, climate regulation, and community well being and therefore is committed to No Deforestation across its operations and supply chain The No-Deforestation Commitment reaffirms its pledge to conduct business activities without contributing to deforestation.

Reduce Paper Consumption

The Company is exploring the feasibility of utilising alternative materials and sustainable packaging practices to mitigate the demand for virgin forest resources.

Encourage Reuse and Recycling

The Company prioritises the reuse and recycling of its packaging material, reducing the need for virgin paper.

Compliance with Regulatory Requirements

The Company adheres to all applicable regulatory requirements related to forest conservation and replacement afforestation.

Awards and Accolades

Zydus state of art vaccine manufacturing facilities are located at two different locations ( Moraiya and Changodar) in Ahmedabad. The vaccine facility located at Changodar is engaged in development and manufacturing of various vaccine products .The vaccine facility located at Moriaya site is engaged in manufacturing of Rabies vaccine.