Marching Towards Carbon Efficiency
A global pharmaceutical company focused on branded generics and API business, Glenmark Pharmaceuticals, with a presence in emerging and developed markets, operates 14 manufacturing facilities and four R&D centres. The company’s success is attributed to dedicated employees from 60 nationalities working towards enriching lives worldwide. In FY2022, Glenmark reported a turnover of Rs 8,141.58 crore with a profit after tax of Rs 1,997.78 crore.
Low-carbon Economy
Glenmark recognises and addresses both transitional and climate risks by implementing strategic actions for climate-friendly operations. The company monitors energy consumption, encourages reduction of GHG emissions, and plans to incorporate eco-efficient technologies and also addresses physical climate risks such as extreme weather events, water stress, heat stress, and sea level rise.
Glenmark aims to enhance the GHG emission inventorying process and transition towards a low-carbon economy. The company’s R&D centres in Taloja & Mahape source 67 per cent of their energy consumption from renewable sources, aligning with Glenmark's commitment to sustainability and a greener future.
“We are focused on enhancing carbon efficiency in our operations. Over last three years, our carbon emission intensity has reduced by around 10 per cent through our efforts by improvements in lighting systems, adopting energy efficiency pumps and motors, automation, digitisation of HVAC system, installation of heat pumps, improvements in refrigeration, heating and compress air systems, and shifting to bio-fuels,” said Glenn Saldanha, Chairman and MD, Glenmark Pharmaceuticals.
Saldanha further said that out of Glenmark’s seven manufacturing facilities in India, three have successfully recycled 100 per cent of their hazardous waste. Additionally, the company's two facilities have adopted co-processing and pre-processing methods at cement manufacturing plants, resulting in the recycling of 38 per cent of hazardous waste.
“Across these manufacturing sites, the recycling rate for non-hazardous waste is close to 90 per cent. Furthermore, our warehouse facilities employ co-processing techniques to recycle hazardous waste effectively. In our pursuit of sustainability, we have set a target to completely eliminate waste disposal through landfills by 2027,” Saldanha projected.
Water Conservation & Circular Economy Initiatives
Glenmark is actively engaged in water conservation efforts and circular economy practices. The company has implemented a rainwater harvesting project in Achana village, Indore, which involved the repair and reconstruction of a dam and the development of an overflow management system. This initiative successfully recharged the groundwater table, benefiting surrounding tube wells and borewells.
Glenmark has also integrated solvent recovery systems at Ankleshwar and Dahej sites, leading to a remarkable solvent recovery rate of 77 per cent in FY 22. Furthermore, the company adopts biofuels and condensate recovery systems to reduce fuel consumption. With 40 per cent of their facilities achieving zero liquid discharge, including sites in water stress zones, Glenmark showcases its commitment to sustainable practices and responsible resource management.
Waste reduction is a key focus, with four formulation manufacturing plants achieving zero waste to landfill, accompanied by a 36 per cent reduction in waste in FY22 as compared to the previous year.
Sustainable supply chains
Glenmark is dedicated to upholding sustainability, ethical practices, and ESG commitments across its supply chain. The company has established a comprehensive supplier code of conduct, ensuring adherence to human rights, business ethics, and environmentally sustainable practices. With a robust governance structure and dedicated teams, Glenmark promotes efficient planning and operations within the supply chain.
Local sourcing is prioritised; approximately 80 per cent of materials were procured locally in FY22, contributing to local economic growth. Stringent screening and risk assessment processes are in place to ensure supplier quality and regulatory compliance. In FY22, the company conducted internal assessments for all critical suppliers, followed by an independent third-party assessment for a sub-group of critical suppliers. There were zero observed cases of significant actual and potential negative environmental and social impacts with the company’s suppliers during FY22.
“We have been closely working with our suppliers over the years to map the sustainable practices and assess them on the various ESG factors. We have developed a unique ‘Glenmark Supplier Protocol’, which is in line with the global sustainable framework and PSCI (Pharmaceutical Supply Chain Initiative). Through this, we have been assessing the sustainability performance of our suppliers by undertaking third-party assessments,” Saldanha explained.
Safety is paramount, supported by an EHS policy and an EHS management system. Periodic hazard identification and quantitative risk assessment activities are conducted across plant locations.
Glenmark's EHS committees, inclusive of management, non-management, and contract workers, enforce strict safety protocols and standards.
The company also conducts impact assessment studies to guide sustainability initiatives, community involvement, and exit strategies with the aim of achieving positive developmental outcomes.
“We plan to become carbon neutral by 2030 in Scope 1 and Scope 2 emissions. As a part of achieving our goals, we are actively transitioning towards renewable sources of energy. We are also undertaking various initiatives in the areas of our operations including manufacturing and supply chain as mentioned earlier,” Saldanha said.
