Zydus Life details ESG efforts and sustainable sourcing in Business Responsibility Report

Zydus Life details ESG efforts and sustainable sourcing in Business Responsibility Report​

Zydus Lifesciences Limited, a major player in the pharmaceutical and consumer wellness sectors, has released its Business Responsibility and Sustainability Report for the financial year ended March 31, 2026. The report provides detailed insights into the company's operations, workforce metrics, and commitment to environmental and social governance (ESG) principles across its extensive global operations.

The company maintains a diverse business profile, deriving approximately 82.56% of its turnover from pharmaceuticals—which includes research and development, manufacturing, marketing, and distribution of Active Pharmaceutical Ingredients (APIs) and finished dosage formulations. Consumer wellness products account for 14.56% of the total turnover, while medical devices constitute 2.88%.

Operational Scope and Scale​

Zydus Lifesciences operates extensively across both domestic and international markets. The company maintains a significant operational footprint, with 38 plants and 26 offices situated nationally, alongside 6 international plants and 48 international offices.

A key indicator of the firm's global reach is its export contribution, which stood at 33.80% of total turnover. The company supplies both institutional clients (such as private and government hospitals) through a distributor network, while it also provides APIs to other pharmaceutical firms and undertakes contract manufacturing services for various companies.

Workforce and Employee Welfare​

As of the end of the financial year, Zydus Lifesciences reported a total workforce of 24,618 employees and 12,209 workers.

The company demonstrates strong commitments regarding employee well-being and development. For FY 2025-2026, the cost incurred on wellbeing measures stood at 0.42% of the company’s total revenue. The commitment to human capital is evident in the fact that all permanent employees (totaling 100%) reported having a career review for FY 2025-2026, and similar rates were maintained for previous years.

The firm maintains rigorous standards regarding workplace safety and health.

Zydus Lifesciences is committed to gender diversity and fair practices, with the gross wages paid to females accounting for 6.64% of total wages in FY 2025-2026 (India Operations). The company also reported a zero tolerance stance on anti-bribery and anti-corruption practices across all operations.

ESG and Environmental Stewardship​

The Business Responsibility report highlights several crucial operational commitments regarding climate change, waste management, water conservation, and ethical sourcing.

Environmental Commitment:
The company has adopted the Zero Liquid Discharge (ZLD) approach in its manufacturing facilities, utilizing reverse osmosis (RO) and ultra-filtration (UF) systems to achieve the standard. Wastewater is repurposed for non-process applications, such as gardening and toilet flushing.

Regarding climate action, Zydus Lifesciences is focusing on green initiatives, including generating solar power at manufacturing locations, improving energy efficiency, and increasing procurement of solar/wind hybrid power. The company’s total Scope 1 and Scope 2 emissions stood at 2,89,737 tCO2e for FY 2025-26, showing a reduction from the previous year (FY 2024-25).

Resource Management:
The company ensures sustainable sourcing by assessing vendors against ESG parameters. A significant milestone is that 56% of inputs were sourced sustainably from verified vendors and suppliers.

Governance and Stakeholder Engagement​

Zydus Lifesciences actively engages with diverse stakeholder groups, including patients, channel partners, healthcare professionals, and government regulators. The company's management practices are guided by a comprehensive governance framework, with the Board having designated committees responsible for CSR and ESG oversight.

The firm emphasizes a zero-tolerance policy toward harassment and discrimination at the workplace. Comprehensive mechanisms are in place to address grievances related to human rights issues, including an internal employee support system called Zydus Connect 2.0 and adherence to a Whistleblower Policy approved by the Board of Directors.

Summary of Compliance​

The report confirms that Zydus Lifesciences Limited remains compliant with all applicable legal regulations concerning environmental protection in India, water management, and air pollution. The company also reported zero adverse impact from its value chain during FY 2025-26, maintaining a commitment to ethical operations across the supply chain.

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