Cutting Operational Emissions by 40% while Advancing Climate-Conscious Healthcare

Lupin’s earlier ESG approach was largely program-driven, with carbon initiatives managed primarily by EHS and manufacturing sites. Over time, the company evolved this approach into a more integrated enterprise-wide framework, embedding climate action into enterprise risk management, corporate strategy and business KPIs through short- and long-term goals. In the current model, oversight is led by the Board and senior management, while execution involves sustainability, EHS, engineering, manufacturing, procurement, finance and supply chain teams. ESG priorities are also linked to corporate objectives and variable compensation, helping move climate action from standalone site-level initiatives to business accountability.

Lupin began by building a clearer picture of where emissions and climate risks were concentrated across its operations and value chain. The company carried out a reassessment of its global operations and value chain emissions to refine its decarbonization strategy and align it with the Science Based Targets initiative standard. This study gave Lupin a roadmap for reducing emissions across operations, suppliers, logistics and product-related areas.

The company translated this baseline into formal climate targets: reduce Scope 1 and 2 emissions by 42% by FY30, using FY23 as the base year, reduce Scope 3 emissions by 61.07% per unit value by FY34, using FY24 as the base year. Lupin reduction targets had been validated by the Science Based Targets initiative.

To make the roadmap actionable, Lupin also introduced an internal carbon pricing mechanism. This allowed teams to evaluate capital investments not only by financial cost, but also by their carbon impact, helping prioritize renewable energy, energy efficiency and other low-carbon projects.

Lupin reduced operational emissions by acting on both the energy it purchased and the fuels it used on site. The company expanded renewable electricity through rooftop solar installations and solar and wind power procurement, while also increasing the use of renewable fuels in manufacturing operations.

To reduce direct emissions from steam generation, Lupin focused on its boiler systems, one of the key sources of Scope 1 emissions in pharmaceutical manufacturing. The company progressively converted fossil-fuel boilers to biomass-based boilers across several manufacturing units. 

Plant-level teams also implemented energy-efficiency measures across utilities and production support systems. These included LED lighting, conversion of AC motors to DC motors, refrigeration and pumping system optimization, heat pumps, boiler improvements and utility equipment upgrades. 

To make energy efficiency part of daily operations, Lupin launched the Energy Savings League, a site-level gamified programme across manufacturing units where teams set measurable energy-saving targets, proposed improvement ideas and received recognition for top performance. The company also conducted energy conservation training sessions to build technical capability and strengthen employee ownership of operational decarbonization.

Lupin reinforced its climate implementation through formal management systems and regular audits. All 12 of its manufacturing sites in India, its R&D centre and its Mumbai corporate office are certified to ISO 14001 for environmental management and ISO 45001 for occupational health and safety, following audits conducted by DNV. Its international sites are covered through internal assessments aligned with environmental and occupational health and safety protocols. 

To keep implementation on track, Lupin conducts internal audits of its Environment Management System and periodic audits by external certifying agencies. In FY26, these controls included 17 internal audits and 30 external audits covering energy, climate, water, wastewater and waste management. The company also reports Sustainability performance monthly to the ESG core committee and half yearly to the Board, creating a regular governance loop between site-level implementation and senior oversight.

This control system was particularly important in a highly regulated pharmaceutical environment, where emissions reduction had to be delivered without compromising product quality, patient safety or regulatory compliance.

Recognizing that most of its carbon footprint sits outside direct operations, Lupin expanded its climate action strategy to Scope 3. The company first identified where value chain emissions were concentrated: Scope 3 represented nearly 75% of its total footprint, with purchased goods and services accounting for around 40% of Scope 3 emissions. Lupin then mapped a priority group of 300+ suppliers representing >50% of purchased goods and services emissions, creating the basis for a targeted supplier decarbonization roadmap.

To move from mapping to action, Lupin integrated ESG criteria into supplier onboarding and ongoing performance assessments. The target is to assess 400+ suppliers using ESG and performance-based metrics, supported by independent third-party assessments. The company also trained suppliers through ESG capacity-building programmes and provided Corrective Action Preventive Action support to suppliers with identified ESG risks or gaps.

In parallel, Lupin worked with logistics partners to reduce transport-related emissions. The company shifted selected shipments from air freight to sea freight where feasible and tracked progress through the “Percentage of Air Pallets” sent to the United States from Lupin manufacturing sites. This metric dropped from 34% in FY24 to 17% in FY26, reducing both logistics costs and carbon emissions. 

In addition, Lupin reduced packaging material usage through two key initiatives. It eliminated outer cartons in products, saving 1.3 million cartons and 13 MT of paper. It also replaced paper inserts with QR codes, removing 10.2 million inserts, saving 43 MT paper, while improving efficiency and information access.

Lupin moved beyond operational decarbonization by addressing the footprint of respiratory products. The company began developing next-generation inhalers using low- or near-zero-GWP propellants, working with technology partners to reduce product-related emissions while maintaining safety, efficacy and quality standards. Inhalers account for ~35% of Lupin’s Scope 3 emissions reduction potential. To address this, Lupin is working with propellant suppliers to develop next-generation pMDIs using low-global-warming-potential propellants, enabling a >90% reduction in emissions. Key technical challenges in reformulation and redesign have been successfully overcome, with patient-safe, efficacious and high-quality asthma and COPD products planned for launch before the end of the decade.

Progress was tracked through defined climate metrics and disclosed through Lupin’s Integrated Report, BRSR, ESG platforms and CDP submissions. The company used these insights to refine priorities, strengthen governance and scale practices across operations and the value chain. Today, Lupin is rated with CDP A leadership rating in Climate Change and Water and has been recognized Top 1% in S&P Global ESG rating with leading scores in the pharma industry globally.

Lupin found that climate action delivers greater impact when it is integrated into business priorities, governance and decision-making, rather than managed as a standalone sustainability initiative. Clear leadership accountability, credible data and ownership across functions helped turn ambition into execution.

Companies should not treat baselining as a one- off exercise, but as the foundation for renewable energy, efficiency, supplier engagement and product-level decarbonization.

While Lupin’s initial focus on renewable energy and efficiency helped build momentum, the company recognized that deeper impact requires addressing product design, suppliers and value chain emissions sooner.