Cipla Limited has released its Business Responsibility and Sustainability Report for the Financial Year 2025-26, as mandated by SEBI regulations. The report details the company’s performance across environmental, social, and governance (ESG) parameters. Key highlights include efforts in reducing emissions, managing waste, ensuring employee well-being, and transparent governance practices. The company emphasizes its commitment to sustainable operations and stakeholder engagement.
Cipla Releases FY 2025-26 Business Responsibility and Sustainability Report
Cipla Limited has officially published its Business Responsibility and Sustainability Report for the Financial Year 2025-26. This comprehensive report, submitted in accordance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, provides an in-depth overview of the company’s commitment to responsible business conduct and sustainable practices.
Key Disclosures and Performance Highlights
Section A: General Disclosures
The report outlines Cipla’s corporate identity, including its CIN (L24239MH1935PLC002380), year of incorporation (1935), and registered office address. It details the company’s primary business activities, with manufacturing of pharmaceuticals accounting for 69.03% of turnover and wholesale trading at 21.06%. Cipla has engaged DNV Business Assurance India Private Limited for assurance on its BRSR Core indicators and for limited assurance on other selected indicators.
Section B: Management and Process Disclosures
Cipla has a robust framework of policies covering various ESG principles, all approved by the Board. The company emphasizes transparency and accountability, with policies extending to its value chain partners. Details of environmental and social impact assessments, continuous improvement initiatives, and disaster management plans are also presented.
Section C: Principle-Wise Performance Disclosure
Principle 1: Conduct with Integrity
The report details training programs on ESG parameters for the Board of Directors, Key Managerial Personnel (KMP), and employees. Cipla maintains a strict zero tolerance policy for bribery and corruption, with a dedicated Anti-Bribery and Anti-Corruption Policy in place. Grievance redressal mechanisms are active for various stakeholder groups, including communities, investors, shareholders, employees, and customers.
Principle 2: Sustainable Goods and Services
Significant investments are made in R&D (100% of R&D expenses) and Capex (17% in FY 2025-26) towards improving environmental and social impacts. Cipla promotes sustainable sourcing, with 21.61% of procurement expenditure from ESG audited suppliers. Robust waste management procedures are in place for plastics, e-waste, and hazardous waste, with expired products disposed of safely through incineration.
Principle 3: Employee Well-being
The company provides comprehensive measures for employee well-being, including health, accident, and term-life insurance. An Equal Opportunity Policy is in place, aligned with the Rights of Persons with Disabilities Act, 2016. Grievance redressal mechanisms are available for all employee categories, with a focus on inclusivity and a supportive work environment.
Principle 4: Stakeholder Responsiveness
Cipla engages in structured stakeholder consultations to identify and manage ESG issues. Inputs from these consultations are incorporated into policies and activities. The company actively addresses the concerns of vulnerable and marginalized groups through targeted CSR and social impact programs focused on public health, education, and livelihood enhancement.
Principle 5: Human Rights Promotion
Human rights requirements are integrated into business agreements and contracts with partners and suppliers. The Ethics Committee is responsible for monitoring and addressing human rights impacts. The report details the number of complaints related to sexual harassment and discrimination, with mechanisms in place to prevent adverse consequences for complainants.
Principle 6: Environmental Protection
The report provides detailed data on energy consumption from renewable and non-renewable sources, with energy intensity figures. Water withdrawal, consumption, and discharge are reported, with a focus on areas of water stress. Cipla has implemented a Zero Liquid Discharge (ZLD) system at several manufacturing facilities. Air emissions data, including NOx, SOx, and particulate matter, are disclosed, alongside greenhouse gas emissions (Scope 1, 2, and 3) and their intensities. Waste management practices focus on reduction, reuse, recycling, and safe disposal, with significant amounts of plastic waste and hazardous waste managed annually.
Principle 7: Policy Engagement
Cipla is affiliated with numerous national and international trade and industry chambers, actively participating in policy advocacy. The company advocates for regulatory clarity on various pharmaceutical processes, including bioavailability/bioequivalence studies, critical input imports, and streamlined licensing procedures, ensuring responsible and transparent engagement with public and regulatory policy.
Principle 8: Inclusive Growth
The company confirms compliance with applicable environmental laws and regulations. While no negative social impacts were identified from Social Impact Assessments, Cipla promotes inclusive growth through job creation in smaller towns and supports CSR projects benefiting vulnerable and marginalized groups in areas such as palliative care, primary healthcare, education, and skill development.
Principle 9: Consumer Value
Cipla has established robust mechanisms for consumer complaint and feedback resolution, including dedicated helplines and online platforms. The company provides comprehensive product information and labeling, engaging healthcare professionals and consumers on safe product usage. Measures are in place to inform consumers about potential service disruptions. While there were 26 voluntary recalls and 7 forced recalls in FY 2025-26, the company conducts thorough root cause analyses and implements corrective actions to prevent recurrence.
Source: BSE
