Integrated Annual Report 2023-24
BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT
2024
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Corporate Overview | Strategic Review | Statutory Reports | Financial Statements |
Executive Summary
Our Business Responsibility & Sustainability Report demonstrates our commitment to the nine principles of the National Guidelines on Responsible Business Conduct ("NGRBC") as well as our progress against the stated objectives across environmental, social and governance ("ESG") parameters.
Our Company's purpose of accelerating access to affordable and innovative medicines across the world provides the foundation for ushering in a healthier tomorrow for all.
A legacy spanning over forty years, our core tenets are deep science, progressive people practices and robust corporate governance.
We continue to focus on creating value for all our stakeholders and towards our goal of serving over 1.5 bn patients by 2030.
The BRSR disclosures are in terms of Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 and consists of three sections:
- Section A provides a broad overview of the business, its offerings, business and operations footprint, employees, related parties, Corporate Social Responsibility (CSR) and transparency
- Section B covers management and process disclosures related to the businesses aimed at demonstrating the structures, policies and processes put in place towards adopting the NGRBC Principles and Core Elements
- Section C provides essential and leadership indicator-wise disclosures mapped to the nine principles of NGRBC
For FY2024, DNV Business Assurance India Private Limited ("DNV") has issued Independent Assurance Statement for reasonable assurance of the core indicators of BRSR. DNV has also issued the said statement for limited assurance of other than core indicators of BRSR.
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Key Highlights of BRSR FY2024
General and Management Disclosures
- Reasonable Assurance of BRSR core indicators and Limited Assurance of remaining section of BRSR
- Presence in 75 countries outside India
- 36.4% of Board members are women directors
- 0.3% of workforce are differently abled
- Turnover rate for employees and workers are 18.4% and 9.7%, respectively in FY2024
- Comprehensive disclosure of material risk and opportunities
- Sustainability and CSR Committee act as nodal Committee for ESG related matters
- Comprehensive disclosure of ESG goals and progress made during the year
Principle 1 | Principle 2 | Principle 3 |
Conduct and govern with integrity, and in a manner that is ethical, transparent and accountable
-
70% of our employees and 99% of workers received periodic training, viz., on business, business conduct and ethics, compliance regulations,
and ESG parameter - No disciplinary action against Directors/KMPs/Employees/ Workers by any law enforcement agencies for charges of bribery/corruption
- 0.52% of purchases are from related parties
Provide goods and services in a manner that is sustainable and safe
- We conducted Life Cycle Assessment for 3 of our API products and these have no significant social or environmental risks
- 100% of our inputs are sourced from suppliers who abide by our Supplier Code of Conduct
- 99% of our global hazardous waste are sent to industries and recyclers for co-processing and recycling
- 90% of cold boxes packaging materials are reused at CFA or stockist level
Respect and promote the well- being of all employees, including those in value chains
- 100% of our permanent employees and workers are covered under health and accident insurance, and maternity and paternity benefits
- 99.1% return to work rate and 83.6% retention rate for our permanent employees post parental leave
- 92% employees and 99.2% workers were provided skill upgradation training
- 42.5% employees and 60.7% workers were provided health and safety measures training
- 98.4% of employees have undergone career and performance development reviews
- LTIFR per one mn-person hours worked-0.14
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Principle 4
Respect the interests of and be responsive to all its stakeholders
- Comprehensive stakeholder engagement to understand their expectations, inform our strategy and communicate our progress
- Evolved process for considering feedback of the stakeholders on economic, environment and social topics by the Board
- Evolved process for engagement and support of the vulnerable and marginalised stakeholders group
Principle 5
Respect and promote human rights
- 72.7% of permanent employees were given training on human rights
- 100% of our employees and permanent workers are paid more than the minimum wage
- Median remuneration of male employees were ` 6 lakhs per annum and female employees were ` 9 lakhs per annum
- 100% of plant or offices were assessed for human rights issues
Principle 6
Respect and make efforts to protect and restore the environment
- 48% of total energy consumption is from renewable sources
- 7% reduction in fresh water intensity from previous financial year
- 14% absolute reduction in Scope 1 & 2 emissions from previous financial year
- 56% of electricity consumption through renewable power
- 102,582 KL of harvested rainwater consumed
- 6% absolute reduction in Scope 3 emissions from previous financial year
Principle 7
Influencing public and regulatory policy, in a responsible and transparent manner
- Associated with eight trade and industry chambers/associations to foster dialogue on industry growth drivers, innovation and shaping public policy
- Public policy advocacy on important issues such as regulatory changes, R&D and intellectual property protection, access and affordability, and marketing practices
- No adverse order/action from regulatory authorities in issues related to anti-competitive conduct
Principle 8
Promote inclusive growth and equitable development
- 45% of input materials were sourced from within India
-
Job creation in terms of remuneration in Rural, Semi-urban and Urban were 3.5%, 1.6%
and 10.2%, respectively, of total during the year - Positively impacted 496,618 individuals through CSR initiatives
Principle 9
Engage with and provide value to the consumers in a responsible manner
- 100% of our formulation products representing 87.9% of revenue carry information about safe and responsible usage on product labelling and packaging
- No forced recalls, 22 voluntary recalls
- No data breaches found during the reporting period
- No major service disruptions
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Integrated Annual Report 2023-24
Business Responsibility and Sustainability Report (BRSR) FY2024
SECTION A GENERAL DISCLOSURE
I | Details of Listed Entities | ||
1 | Corporate Identity Number (CIN) of the | : | L85195TG1984PLC004507 |
Listed Entity | |||
2 | Name of the Listed Entity | : Dr. Reddy's Laboratories Limited | |
3 | Year of incorporation | : | 1984 |
4 | Registered office address | : 8-2-337, Road No. 3, Banjara Hills, Hyderabad - 500 034, Telangana, India | |
5 | Corporate address | : 8-2-337, Road No. 3, Banjara Hills, Hyderabad - 500 034, Telangana, India | |
6 | : | shares@drreddys.com | |
7 | Telephone | : +91-40-49002900 | |
8 | Website | : | www.drreddys.com |
9 | Financial year for which reporting is | : | April 1, 2023 to March 31, 2024 |
being done | |||
10 | Name of the Stock Exchange(s) where | : | BSE Limited |
shares are listed | National Stock Exchange of India Limited | ||
New York Stock Exchange, Inc | |||
NSE IFSC Ltd | |||
11 | Paid-up Capital | : | ` 834,091,330 |
12 | Name and contact details (telephone, | : Mr. K Randhir Singh | |
email address) of the person who may | Company Secretary, Compliance Officer & Head-CSR | ||
be contacted in case of any queries on | E-mailid:shares@drreddys.com | ||
the BRSR report | Contact No: +91-040-4900 2222 | ||
13 | Reporting boundary | : The disclosure under BRSR is on a consolidated basis unless otherwise specified at the | |
respective section. | |||
14 | Name of Assurance provider | : DNV Business Assurance India Private Limited (DNV) | |
15 | Type of Assurance obtained | : BRSR Core - Reasonable assurance | |
Remaining part of BRSR - Limited assurance |
- Products and Services
16. Details of Business Activities (Accounting for 90% of the turnover)
Sl. No. Description of Main Activity | Description of Business Activity | % of turnover of the entity | |
1 | Pharmaceuticals | Development, manufacturing & sale of | 100 |
pharmaceutical products, and services |
17. Products/services sold by the entity (accounting for 90% of the entity's Turnover)
Sl. No. | Products/Service | NIC Code | % of Total Turnover Contributed |
1 | Development, manufacturing & sale of generic formulations including | 21009 | 88 |
biosimilars | |||
2 | Development, manufacturing & sale of active pharmaceutical | 21009 | 11 |
ingredients & custom pharmaceutical services |
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- Operations
18. Number of locations where plants and/or operations/offices of the entity are situated
Location | No. of plants (Including R&D sites/operations) | No. of offices | Total |
National | 24 | 16 | 40 |
International | 7 | 62 | 69 |
19. Markets served by the entity
a. | No. of Locations | |
Locations | Numbers | |
National (No. of States & Union Territories) | 36 | |
International (No. of Countries) | 75 |
- What is the contribution of exports as a percentage of the total turnover of the entity
Out of the total turnover of ` 19,276 cr (excluding service income, licence fees and other operating income) on standalone basis, the turnover of the products sold in India is ` 4,658 cr (24%) and that of other countries is ` 14,618 cr (76%). - A brief on types of customers
Our customers include wholesalers, distributors, pharmacy chains and hospitals, government institutions and other pharmaceutical companies.
IV Employees
20. Details as at the end of the financial year
a. Employees and workers (including differently abled):
Sl. | Particulars | Total | Male | Female | Others | |||
No. | No. | % | No. | % | No. | % | ||
Employees | ||||||||
1 | Permanent | 26,343 | 21,119 | 80.2 | 5,219 | 19.8 | 5 | 0.0 |
2 | Other than permanent | 8,226 | 5,476 | 66.6 | 2,750 | 33.4 | 0 | 0 |
Total | 34,569 | 26,595 | 76.9 | 7,969 | 23.1 | 5 | 0.0 | |
Workers | ||||||||
1 | Permanent | 643 | 600 | 93.3 | 43 | 6.7 | 0 | 0 |
2 | Other than permanent | 8,657 | 6,936 | 80.1 | 1,721 | 19.9 | 0 | 0 |
Total | 9,300 | 7,536 | 81.0 | 1,764 | 19.0 | 0 | 0 |
- Differently abled employees and workers:
Sl. | Particulars | Total | Male | Female | Others | |||
No. | No. | % | No. | % | No. | % | ||
Differently abled Employees | ||||||||
1 | Permanent | 104 | 67 | 64.4 | 37 | 35.6 | 0 | 0 |
2 | Other than permanent | 22 | 13 | 59.1 | 9 | 40.9 | 0 | 0 |
Total | 126 | 80 | 63.5 | 46 | 36.5 | 0 | 0 | |
Differently abled Workers | ||||||||
1 | Permanent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
2 | Other than permanent | 21 | 21 | 100 | 0 | 0 | 0 | 0 |
Total | 21 | 21 | 100 | 0 | 0 | 0 | 0 |
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21. Participation/inclusion/representation of women
Particulars | Total | No. of Females | % of Females |
Board of Directors | 11 | 4 | 36.4 |
Key Management Personnel (KMPs)1 | 3 | 0 | 0 |
1 The KMP of the Company are Co-chairman and Managing Director, Chief Executive Officer, Chief Financial Officer and Company Secretary. Since Co-chairman and Managing Director is already included under heading Board of Directors, the same has not been again included under heading KMP.
22. Turnover rate for permanent employees and workers
Particulars | FY2024 | FY2023 | FY2022 | |||||||||
Male | Female | Others | Total | Male | Female | Others | Total | Male | Female | Others | Total | |
Permanent Employees (%) | 18.2 | 19.0 | 12.5 | 18.4 | 21.1 | 19.2 | 42.9 | 20.8 | 20.5 | 21.4 | 27.3 | 20.6 |
Permanent Workers (%) | 8.0 | 34.1 | 0 | 9.7 | 23.6 | 44.7 | 0.0 | 24.9 | 21.8 | 28.6 | 0.0 | 22.2 |
V Holding, Subsidiary and Associate Companies (including joint ventures)
23. Names of holding/subsidiary/associate companies/joint ventures
The details of holding/subsidiary/associate companies/joint ventures are given in Form AOC-1, as Annexure-I to the Board's Report and this forms part of the Integrated Annual Report
Do the entities indicated in above table, participate in the business responsibility initiatives of the listed entity? (Yes/No)
Yes, all the entities, wherever applicable, participate in the relevant Business Responsibility initiatives of the Company, except the joint venture companies. The specific exclusion wherever applicable has been given in the respective section in BRSR.
VI CSR Details
24. Whether CSR is applicable as per Section 135 of the Companies Act, 2013: Yes1
(i) | Turnover (` in mn) | 194,838 |
(ii) | Net worth (` in mn) | 242,408 |
1 As per IND AS Standalone Financial Statements
VII Transparency and Disclosures Compliances
25. Complaints/Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible Business Conduct:
Stakeholder | Grievance | (If Yes, then provide | FY2024 | FY2023 | |||
group from whom | redressal | web-link for grievance | No. of | No. of | Remarks | No. of | No. of Remarks |
complaint is | mechanism | redressal policy) | complaints | complaints | complaints | complaints | |
received | in place | filed | pending | filed | pending | ||
(Yes/No) | during the | resolution | during the | resolution | |||
year | at close of | ||||||
year | at close of | ||||||
the year | |||||||
the year | |||||||
Communities | Yes1 | https://www.drreddys. | 0 | 0 | 0 | 0 | |
com/investor#governance | |||||||
Investors (other than | Yes1 | https://www.drreddys. | 0 | 0 | 0 | 0 | |
shareholders) | com/investor#governance | ||||||
Shareholders | As per | https://www.drreddys. | 10 | 0 | 8 | 0 | |
applicable | com/investor#governance | ||||||
law | |||||||
Employees and | Yes1 | https://www.drreddys. | 274 | 60 | 234 | 34 | |
workers | com/investor#governance | ||||||
Customers | Yes1 | https://www.drreddys. | 0 | 0 | 0 | 0 | |
com/investor#governance |
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Corporate Overview | Strategic Review | Statutory Reports | Financial Statements |
Stakeholder | Grievance | (If Yes, then provide | FY2024 | FY2023 | |||
group from whom | redressal | web-link for grievance | No. of | No. of | Remarks | No. of | No. of Remarks |
complaint is | mechanism | redressal policy) | complaints | complaints | complaints | complaints | |
received | in place | filed | pending | filed | pending | ||
(Yes/No) | during the | resolution | during the | resolution | |||
year | at close of | ||||||
year | at close of | ||||||
the year | |||||||
the year | |||||||
Value chain partners | Yes1 | https://www.drreddys. | 49 | 7 | 25 | 3 | |
com/investor#governance | |||||||
Others (please | Yes1 | https://www.drreddys. | 94 | 29 | 69 | 11 | |
specify) | com/investor#governance |
1 Some of the policies guiding the Company's conduct with all its stakeholders, including grievance mechanisms are placed on the Company's website. The hyperlink is: https://www.drreddys.com/investor#governance. In addition, there are internal policies placed on the intranet of the Company.
26. Overview of the entity's material responsible business conduct issues
Material responsible business conduct and sustainability issues pertaining to environmental and social matters that present a risk
or an opportunity to your business, rationale for identifying the same, approach to adapt or mitigate the risk along with its financial
implications
Sl. | Material | Indicate | Rationale for identifying the risk/ | In case of risk, approach to | Financial implications | |
No. | issue | whether | opportunity | adapt or mitigate | of the risk or | |
identified | risk or | opportunity (Indicate | ||||
opportunity | positive or negative | |||||
(R/O) | implications) | |||||
1 | Enhancing | Opportunity | A significant proportion of patients | y | We are committed to serving 1.5 bn | Positive |
availability of | in numerous low and middle-income | patients by 2030 and bring at least three | ||||
product | countries encounter financial | innovative solutions to improve the | ||||
limitations when attempting to obtain | standard of treatment every year from | |||||
affordable medicines. | 2027. We are working to achieve our | |||||
As a pharmaceutical company, | goals by launching more innovative drugs | |||||
we prioritise making life-saving | and expanding our product portfolio, | |||||
medicines accessible, available, | increasing our go-to-market through | |||||
and affordable for patients. Also, | diverse collaborations and licensing | |||||
due to our role in society, we are | arrangements, and through greater | |||||
uniquely positioned to reduce health | presence in public health | |||||
disparities, and enable improved | y | We are partnering with multilateral and | ||||
health outcomes. | ||||||
donor agencies to address the global | ||||||
disease burden, neglected tropical diseases, and emergency disease areas. We remain deeply committed to taking a holistic approach to healthcare, running several innovative programmes, offering one-of-its-kind patient care and disease management initiatives that service patients digitally or through hybrid means. We also participate in strengthening public health delivery systems through the training and capacity building of health workers and local stakeholders
y We also offer patient assistance programmes such as Sparsh for underprivileged cancer patients in India, M-Free and Mi-Free for patients on Nerivio®, and co-pay savings programmes in the US for multiple products
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Material responsible business conduct and sustainability issues pertaining to environmental and social matters that present a risk
or an opportunity to your business, rationale for identifying the same, approach to adapt or mitigate the risk along with its financial
implications
Sl. | Material | Indicate | Rationale for identifying the risk/ | In case of risk, approach to | Financial implications |
No. | issue | whether | opportunity | adapt or mitigate | of the risk or |
identified | risk or | opportunity (Indicate | |||
opportunity | positive or negative | ||||
(R/O) | implications) | ||||
2 | Regulatory | Risk | Regulatory guidelines and | y We are fully dedicated to quality and | Negative |
compliance | requirements heavily regulate the | have robust quality processes and | |||
manufacturing of our products, | systems in place at our developmental | ||||
including manufacturing quality | and manufacturing facilities to ensure that | ||||
every product is safe and of high quality | |||||
standards. Periodic inspections are | |||||
conducted on our manufacturing | y We have integrated "Quality by Design" | ||||
sites, and if the regulatory and | to build quality into all processes and use | ||||
quality standards and systems are | quality tools to minimise process risks | ||||
not found adequate, it could result in | y We continue to spend significant | ||||
observations. This might impact our | time, money and effort in the areas | ||||
ability to meet patient demand and | of production and quality testing to | ||||
generate value for our stakeholders. | help ensure full compliance with | ||||
cGMP regulations | |||||
y We leverage information technology | |||||
to digitise and enhance our quality | |||||
assurance and quality control processes | |||||
y Our suppliers are subjected to periodic | |||||
evaluation processes that prioritise quality | |||||
parameters and ensure compliance with | |||||
current Good Manufacturing Practice | |||||
requirements. We along with our CFA | |||||
warehousing facilities comply with GDP | |||||
(Good Distribution Practices) | |||||
y We are continuously focussed on | |||||
improving our quality culture across | |||||
the organisation | |||||
3 | Pharma- | Risk | Our patients health may be impacted | y We have a mature system in place to | Negative |
covigilance | if we are not able to monitor and | continuously monitor the benefit-risk | |||
(PV) | prevent the adverse side effects | profile of our products to ensure benefits | |||
caused by our drugs. | overweigh the product-related safety | ||||
risks for patients | |||||
y Our pharmacovigilance standards are in line | |||||
with globally recognised safety benchmarks, | |||||
and we maintain compliance with region/ | |||||
country-specific legislative requirements | |||||
y All employees go through an annual | |||||
mandatory pharmacovigilance training | |||||
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Corporate Overview | Strategic Review | Statutory Reports | Financial Statements |
Material responsible business conduct and sustainability issues pertaining to environmental and social matters that present a risk
or an opportunity to your business, rationale for identifying the same, approach to adapt or mitigate the risk along with its financial
implications
Sl. | Material | Indicate | Rationale for identifying the risk/ | In case of risk, approach to | Financial implications |
No. | issue | whether | opportunity | adapt or mitigate | of the risk or |
identified | risk or | opportunity (Indicate | |||
opportunity | positive or negative | ||||
(R/O) | implications) | ||||
4 | Water | Risk/ | The potential risks to water and | y Water risks are assessed as part of an | Negative/Positive |
Management | Opportunity | sanitation services posed by | established enterprise risk management | ||
climate change include damage to | framework periodically. We conducted | ||||
Waste | infrastructure, leading to the loss of | thorough water risk and evaluation | |||
studies in all of our watersheds to identify | |||||
Management | services, and deterioration in water | ||||
alternative rich water resources | |||||
quality - impacts that all increase | |||||
y Our water management strategy involves | |||||
risks to health. Water is a critical | |||||
input into the manufacturing of | key focus areas including water efficiency | ||||
medicines, used as a raw material | and optimisation, identifying alternate water | ||||
in the production, processing and | sources for water security, and creating | ||||
freshwater potential beyond the fence. | |||||
formulation of APIs, intermediates | |||||
Since FY2023, we are a water positive | |||||
and finished pharmaceutical | |||||
company. We do not discharge any water to | |||||
products (FPP), in the preparation | |||||
the surface, ground, or sea, and therefore | |||||
of solvents and reagents, and for | |||||
do not emit any substance or pollutants to | |||||
cleaning (e.g. washing and rinsing). | any form of water | ||||
y We have waste management systems in | |||||
place at all our facilities. We do not dispose | |||||
any non-hazardous waste through landfill | |||||
or incineration. Our non-hazardous waste | |||||
is either recycled, reused, or recovered | |||||
through other means | |||||
5 | Energy and | Risk | The close relationship between | y We are committed to leading the energy | Negative |
emissions | health and climate is undeniable, | transition with a goal to be 100% | |||
management | as illustrated by the consequences | powered by renewable sources by 2030, | |||
of extreme weather events on food | and to be a carbon neutral company in | ||||
our direct operations by 2030 | |||||
security, the harmful air pollution | |||||
resulting from wildfires, and the | y Our decarbonisation strategy | ||||
rising prevalence of infectious | focusses on energy mix, conservation, | ||||
diseases. As a pharmaceutical | performance, transition, and eventually | ||||
company, the bulk of direct | carbon sequestration with meaningful | ||||
emissions come from running | investments in afforestation and | ||||
sustainable agriculture. This includes | |||||
boilers and indirect emissions from | |||||
reducing our energy consumption | |||||
purchased electricity. | |||||
with energy-efficient technologies and | |||||
processes, adopting low or no carbon | |||||
fuels, substituting fossil fuels in boilers | |||||
with alternate biomass fuel sources such | |||||
as rice husk and sawdust briquettes, | |||||
purchasing energy from renewable | |||||
sources, and realigning our business | |||||
operations to lower emissions | |||||
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Dr. Reddy's Laboratories Limited published this content on 02 July 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 July 2024 13:04:06 UTC.