Dr. Reddy's Sets Net Zero Targets: 80% Scope 1 & 2 GHG Cut by FY2030
Dr. Reddy's Laboratories commits to Net Zero greenhouse gas emissions by FY2045. Near-term targets include an 80% reduction in Scope 1 & 2 emissions and a 51.6% reduction in Scope 3 emissions by FY2030 (vs. FY2023 baseline). The company is also on track for coal- and furnace oil-free operations by FY'26.
Setting Net Zero targets is a significant strategic move that can impact operational costs, supply chain management, and brand reputation, but the immediate financial impact is not quantifiable from this announcement alone.
The announcement details ambitious and science-based climate targets, demonstrating a strong commitment to sustainability and environmental responsibility, which is generally viewed positively by stakeholders.
Dr. Reddy's Laboratories Ltd. has announced its science-based Net Zero greenhouse gas emissions targets, approved by the Science Based Targets initiative (SBTi). The company commits to achieving Net Zero across its value chain by FY2045.
In the near term, Dr. Reddy's aims to reduce absolute Scope 1 and 2 greenhouse gas (GHG) emissions by 80% and Scope 3 emissions by 51.6% per INR value added by FY2030. These targets use FY2023 as the base year. For the long term, the company commits to reducing absolute Scope 1, 2, and 3 emissions by 90% by FY2045, also from the FY2023 baseline. This makes Dr. Reddy's the only company in India's pharmaceutical sector to commit to a science-based Net Zero target by FY2045.
Previously, Dr. Reddy's had announced near-term SBTi targets in October 2020. Based on its current progress and commitment to sustainability, the company has revised its goals to include Net Zero targets in accordance with the latest SBTi Framework.
Sanjay Sharma, Global Head Operations and Chief Human Resources Officer, stated, "As an early adopter of sustainability, we have consistently advanced through thoughtful and impactful climate actions. With a forward-looking vision, we are committed to achieving Net Zero by FY2045, reflecting both ambition and accountability towards our planet. Guided by science-based targets, we strive to align with global climate goals and set the benchmark for the pharmaceutical sector."
Sharma also added, "Additionally, we are on track to achieve coal- and furnace oil-free operations by the end of FY’26, and with 68% of our power in FY’25 sourced from renewables, we are demonstrating the tangible impact of our climate actions on the ground."
What to do with a filing like this
Dr. Reddy's Laboratories Limited filed this with the NSE as a statutory disclosure, categorised under business responsibility and sustainability report (brsr). It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by Dr. Reddy's Laboratories Limited. Read the original for the full detail.