MAKING SUSTAINABILITY SUSTAINABLE

Driven by stringent regulations, rising investor expectations, consumer demand, and operational considerations, MSME pharma companies need to carefully balance their sustainability goals with financial viability

- Viveka Roychowdhury

Prime Minister Narendra Modi's mention of 'green jobs' in his Independence Day speech this year re-emphasised his commitment to achieving the Net Zero emissions target by 2070. The question is how will India, arguably the world's third-largest greenhouse gas emitter, achieve this target, with even the goal of limiting global warming to an increase of no more than 1.5 degrees Celsius (1.5°C) above pre-industrial levels, looking like a steep challenge?

As the market regulator, the Securities and Exchange Board of India (SEBI) has added heft to the net zero target, by expanding the disclosures that listed entities need to make related to Environmental, Social and Governance (ESG) factors.

A SEBI circular dated July 12, 2023 mandates that the top 150 listed entities (by market cap) had to undertake reasonable assurance of Business Responsibility and Sustainability Reporting (BRSR) Core from FY23-24, and this will extend to the top 1000 listed entities by FY26-27. The circular also requires the top 250 listed companies by market cap to disclose BRSR Core information for their value chain in their Annual Reports for FY24-25 on a comply-or-explain basis.

As Ramesh Swaminathan, Executive Director, Global CFO and Head of Corporate Affairs, Lupin points out, the pharmaindustry's contribution to the climate crisis comes from its 4.4 per cent share of global CO2 emissions. Although this percentage is lower than that of other industries, without action, emissions are expected to rise. Thus, he points out that the pharma industry has a unique responsibility to take action and promote sustainability. While it needs to reduce its greenhouse gas (GHG) emissions through net-zero strategies, it also needs to address the adverse health effects of the climate crisis by providing affordable medicines.