The company aims to cut absolute Scope 1 and 2 emissions by 42% and Scope 3 emissions by 25% by 2030
In its fourth annual Sustainability Report, Piramal Pharma charts an evolution from foundational ESG reporting to embedding sustainability in its business strategy. According to the report, the company reports strong progress on emissions reduction, zero hazardous waste to landfill, digital transformation, and employee engagement -- all while successfully navigating 36 regulatory inspections, including USFDA audits in FY25. In an exclusive interview, Ganesh Tripathy, SVP and Global Head, Sustainability & EHS, Piramal Pharma discusses on achieving sustainability goals and the next big sustainability challenge faced by the pharma industry.
This is Piramal Pharma's fourth annual Sustainability Report under the theme "Innovating Responsibly. Growing Sustainably." How has your sustainability vision evolved since the first report?
When we published our first sustainability report four years ago, our primary focus was on building the foundational blocks of ESG, establishing baselines, formalising disclosures, and creating a unified governance framework across Piramal Pharma globally.
Over time, our vision has matured from compliance-driven reporting to embedding sustainability into the very core of our business model. For example, today we operate with targets approved by SBTi, aiming to cut absolute Scope 1 and 2 emissions by 42% and Scope 3 emissions by 25% by 2030, from base line year nos of FY2022.
Operationally, we conserved over 2.10 lakh KL of freshwater in FY25, achieving zero hazardous waste to landfill, or steadily increasing the share of renewable energy and biofuels in our energy mix. At the same time, our people's agenda has become more inclusive, with 63% women among campus hires this year and ESG training extended to 100% of employees.
In short, our journey has been one of evolution from measuring and disclosing, to driving measurable impact, and now to shaping a resilient, inclusive, and low-carbon growth model. where patient well-being, environmental stewardship, and long-term value creation reinforce each other.
Pharma is often seen as a high-impact sector in terms of energy, compliance, and supply chain complexity. What unique challenges does the industry face on its sustainability journey?
The pharmaceutical industry operates at the intersection of science, regulation, and patient safety, which makes its sustainability journey uniquely complex. Our processes are energy-intensive and highly regulated - every change whether in solvents, processes, or packaging must meet the highest standards of quality, efficacy, and compliance standards.
Transitioning continuous operations to renewable energy or biofuels is far more challenging than in any other sectors, yet, we have steadily increased our renewable and bioenergy share, which today accounts for almost nearly one fifth of our total energy consumption.
Global supply chains add further complexity. Ensuring responsible sourcing, reducing Scope 3 emissions, and building resilience while maintaining uninterrupted supply of essential medicines is a task that requires both collaboration and innovation. At Piramal Pharma, we assess critical suppliers on sustainability parameters and build their capacity to move collectively towards greener operations.
Finally, transparency expectations are rising. Sustainability reporting today must show measurable impact, backed by global frameworks and independent assurance. For pharma, the biggest challenge and opportunity is proving that strong ESG performance can coexist with uncompromised patient care.
Regulatory compliance is critical in pharma. What measures helped the company achieve 36 successful regulatory inspections globally, including USFDA audits?
For a pharmaceutical company, regulatory compliance is not just an operational requirement it is the very foundation of patient trust. At Piramal Pharma, our approach has always been to treat compliance as a culture rather than a checklist. The fact that we successfully completed 36 global inspections in FY25, including two by the USFDA, with zero observations of concern, reflects this deeply embedded mindset.
Several measures have helped us achieve this consistency. We go beyond statutory norms with a Quality by Design framework that integrates risk assessment at every stage, from sourcing to batch release. Digital tools strengthen monitoring, documentation, and traceability across sites, ensuring consistency and accuracy.
Second, we focus heavily on people. All employees undergo regular training on cGMP and evolving regulatory standards, with 100% coverage on Code of Conduct and compliance training in FY25. Alongside this, we run proactive internal audits and encourage customer audits -- 165 in FY25 as an additional assurance layer.
This approach has enabled us to maintain an unbroken record of "no OAI" from the USFDA since 2011. For Piramal Pharma, regulatory compliance is a strategic enabler of trust, reinforcing our ability to deliver safe, high-quality medicines worldwide.
Over the past four years of sustainability reporting, what has been the biggest learning curve for Piramal Pharma that could serve as a blueprint? What is PPL's top three sustainability priorities for the next five years?
Our biggest learning over the past four years has been that sustainability cannot remain a parallel function. Early efforts focused on building baselines and strengthening governance, but real impact came once ESG goals were embedded into decision-making across capital allocation, operations, and supply chains. Independent assurance and alignment with global frameworks like GRI, S&;P Global, and UNGC have further strengthened accountability and credibility.
Looking ahead, our top three sustainability priorities for the next five years are clear.
Women already form 63% of campus hires, and ESG training has reached 100% of employees. In essence, our learning has been that sustainability is a journey of integration and accountability linking ESG priorities directly to resilience, growth and stakeholder trust.
Can you share how digital transformation initiatives like Catalyst NxGen (S/4HANA) are shaping quality, agility, and scalability at Piramal Pharma and how it can set new benchmarks for quality excellence across the industry?
Digital transformation has become a critical lever in reimagining how pharma companies deliver on quality, agility, and scalability and at Piramal Pharma, Catalyst NxGen (our SAP S/4HANA initiative) is central to this journey. For us, it is not just an IT upgrade; it is an enterprise-wide transformation that is embedding digital intelligence across operations, supply chains, and quality systems.
On quality, advanced analytics and real-time visibility allow predictive assurance by tracking deviations, monitoring batch performance, and strengthening traceability. This ensures patient safety and compliance with global standards.
On agility, the platform integrates procurement, manufacturing, and logistics, enabling faster decision-making and responsiveness to fluctuating demand cycles, including during public health emergencies.
On scalability, Catalyst NxGen creates an unified digital backbone across geographies and business lines, harmonising reporting and standardizing quality practices as we expand our global CDMO and critical care presence. As Piramal Pharma expands its global CDMO presence and critical care portfolio, the system ensures consistent processes, harmonised reporting, and standardised quality practices across sites.
We believe this sets an industry benchmark, showing how digital transformation can hardwire quality, resilience, and sustainability into pharma operations. It reflects our ethos of innovating responsibly while building an agile, future-ready organisation.
With a 6% reduction in Scope 1 & 2 emissions achieved and increased renewable energy use by nearly 8%, what enabled these achievements and what are the next milestones on your decarbonisation glidepath?
Achieving a 6% reduction in Scope 1 and 2 emissions in FY25 and scaling up renewable energy contribution by nearly 8% is the outcome of a deliberate, multi-pronged approach to decarbonisation. For us, these are not isolated initiatives but part of a structured glidepath aligned to our science-based targets approved by SBTi.
The key enablers were:
Energy transition: Expanding renewables (solar, wind, biofuels) to nearly 20% of our energy mix, supported by energy-efficiency initiatives like process optimization and equipment upgrades.
Culture and discipline: Embedding energy efficiency into daily operations and training 100% of employees on ESG awareness and accountability.
Partnerships: Collaborating with suppliers, technology providers, and renewable energy partners to adopt cleaner solutions and prepare for long-term Scope 3 reductions.
Looking ahead, we aim to reduce Scope 1 & 2 emissions by 42% and Scope 3 by 25% by FY30 (baseline FY22). This includes accelerating renewable procurement, piloting green hydrogen and advanced biofuels, and expanding circularity initiatives to lower process-related emissions.
The fourth annual Sustainability Report for FY2025 mentioned achieving zero hazardous waste to landfill and a 90% recycling target for non-hazardous waste. Could you detail the systems or innovations you implemented?
Achieving zero hazardous waste to landfill using co-processing of waste in cement Kilns, and recycling nearly 90% of our non-hazardous waste in FY25 was not the result of a single initiative, but of building a circular mindset into our operations.
The first enabler has been robust segregation and tracking at all sites, with hazardous waste directed only to authorised recyclers or for co-processing in cement kilns -- ensuring no landfill disposal. Non-hazardous waste like paper, plastics, and packaging is segregated at source and routed to certified recycling channels. The second is investment in technology and partnerships. Advanced effluent treatment and zero-liquid-discharge systems enable water recovery and minimise sludge. Collaborations with certified vendors allow innovative reuse of by-products, such as using hazardous residues in cement kilns.
Third, we have embedded a culture of waste minimization. Cross-functional "Green Teams" identify opportunities to reduce material intensity, redesign packaging, and cut down single-use plastics. Going forward, our goal is not only to maintain zero hazardous waste to landfill, but to push towards closed-loop systems that maximize recovery and reuse. By doing so, we are creating a blueprint where pharma manufacturing can be both world-class in quality and exemplary in environmental stewardship.
Can you brief us on the role of cross-industry collaboration in achieving shared sustainability goals?
Sustainability challenges such as climate change, water scarcity, and circularity cannot be solved in silos they demand cross-industry collaboration. For the pharmaceutical sector in particular, value chain is deeply linked with chemicals, energy, packaging, and logistics -- making partnerships essential for systemic change.
At Piramal Pharma, we collaborate with renewable energy providers and innovators to pilot advanced biofuels and green hydrogen. In supply chains, we assess critical suppliers on sustainability parameters -- 26.5% already covered -- and aim to reach 30% by value by FY26. This builds capacity for Scope 3 reductions collectively.
We are active members of platforms like ICC and IPA and align with global frameworks such as GRI, CDP, S&P Global, and UNGC, which drive benchmarking and shared learning. Collaborations with regulators, audit agencies, and academic institutions also help raise common standards.
Through the Piramal Foundation, we extend this approach to communities by partnering with governments and NGOs in health, education, and skilling. In essence, collaboration turns ESG from a competitive agenda into a shared mission. The sectors that succeed will be those that move together to safeguard the planet, strengthen communities, and build long-term resilience.
Looking ahead, where do you see the next big sustainability challenges for the pharma sector?
The next wave of sustainability challenges for the pharmaceutical sector will be shaped by both global megatrends and sector-specific realities. At the top of the list is climate resilience. Pharma manufacturing depends heavily on energy, water, and complex global supply chains all of which are increasingly vulnerable to climate risks. Transitioning to low-carbon, resource-efficient operations while maintaining affordability and access will be critical.
Scope 3 emissions remain another major hurdle, as most emissions come from purchased goods, chemicals, packaging, and logistics. Building supplier capacity, ensuring traceability, and driving circular partnerships will be essential but complex.
Responsible innovation will also come under greater scrutiny. As biologics, digital health, and new therapies expand, lifecycle emissions, ethical clinical practices, and equitable access must be addressed upfront in R&D and product strategies.
Finally, embedding ESG into organizational culture will be crucial. Reskilling talent, fostering diverse leadership, and ensuring sustainability is lived across functions will determine credibility with regulators, investors, and patients.