Established in 1935, Cipla is a global pharmaceutical company with a product portfolio which spans complex generics as well as drugs in the respiratory, anti-retroviral, urology, cardiology, anti-infective and various other key therapeutic segments. It has a presence in the home markets of India, as well as South Africa, North America, and other markets. Cipla has 47 manufacturing sites around the world.
Sustainability strategy and accountability
Cipla discloses its process for identifying and prioritising its most relevant sustainability impacts as well as the outcome of this process, but it does not disclose group-wide targets on key sustainability topics for the most material parts of its value chain. It reports consistently against all its targets. No evidence was found that the company links performance criteria in senior executives’ remuneration policies to targets and objectives which cover nature, including biodiversity, and social issues. The company does not disclose whether its highest governance body has expertise regarding nature-related topics.
The company does not disclose an overview of the issues raised during its stakeholder engagement activities.
The company discloses a list of trade associations of which it is a member wherever it operates. The company does not disclose a clear and detailed framework for assessing alignment of its trade associations with nature-positive policies. The company does not report on any misalignments between the lobbying activities of its trade associations and nature-positive policies.
Impact and dependencies assessment
The company has not holistically assessed its impacts or how it depends on nature, including biodiversity. It has an opportunity to start such an assessment across its value chains, focused on quantification of its impacts or dependencies.
Key areas and species
The company does not disclose key species or areas important for biodiversity affected by its operations or suppliers. It has an opportunity to increase its transparency.
Ecosystem conversion and restoration
No evidence was found regarding the company’s efforts to avoid ecosystem conversion, including deforestation, or promote restoration. The company has an opportunity to develop a strategy and publicly report on specific, time-bound targets.
Resource exploitation and circularity
No evidence was found regarding the company’s efforts to work towards a circular economy or which organisms it exploits. The company has an opportunity to develop a strategy and publicly report on specific, time-bound targets. The company does not disclose efforts to improve soil health.
Cipla demonstrates it is reducing water withdrawal in its own operations, but it does not disclose a time-bound target to reduce water withdrawal across its own operations. The company does not report how much water is withdrawn for its own operations in water-stressed areas or engage with suppliers to reduce water withdrawal. While Cipla reports a decrease in water pollution itdoes not disclose its processes for managing and monitoring discharge water quality nor regularly report on water pollution. Furthermore, it does not disclose targets to reduce water pollution. The company does not disclose a commitment to respect the right to water, nor its processes for implementing preventive and corrective action plans for identified specific risks to the right to water and sanitation in its own operations.
Solid and air pollution
No evidence that the company reduces the production of hazardous substances was found. The company does not disclose a commitment to avoid developing or marketing new chemicals or products with SVHC (substance of very high concern) properties. The company is reducing the production of hazardous waste. The company is reducing plastic use and waste in its own operations. The company does not report on the amount of plastic waste generated and proportions directed from or to disposal. The company does not report on air quality parameters of emissions of harmful air pollutants. The company does not report time-bound targets to reduce air pollutants across the most material parts of its value chain.
The company is reducing its scope 1 and 2 greenhouse gas emissions and has a time-bound target to reduce its scope 1 and 2 emissions against which it reports on progress. However, no evidence that the target is aligned with a 1.5-degree trajectory was found. No evidence regarding the company’s scope 3 greenhouse gas emissions was found.
The company has not identified any activities that could lead to the introduction of invasive alien species in its own operations.
Safe, healthy, clean environment
The company does not disclose a commitment to respecting local communities’ right to a safe, clean, healthy and sustainable environment or to zero tolerance for acts of violence, threats, intimidation or judicial harassment committed against land and environmental rights defenders.
Indigenous Peoples’ and land rights
The company does not disclose a commitment to respecting Indigenous Peoples’ rights or land rights of local communities.
Core social indicators
The core social indicators are part of the social inclusion and community impact measurement area. These indicators assess societal expectations of business conduct that companies should meet if they aspire to be part of a system transformation that leaves no one behind.
While the company discloses that it conducts due diligence in general, it has an opportunity to specify that it conducts human rights due diligence that includes a process for identifying human rights risks and impacts through its business relationships. The company has an opportunity to describe a process for assessing the human rights risks it has identified and to disclose what it considers to be its salient human rights issues. A description of this process would include how relevant factors are considered, such as geographical, economic and social factors. No evidence was found that the company has a global system to act on its salient human rights issues. While the company discloses the categories of stakeholders it engages with generally on sustainability issues, it is not clear if these stakeholders are those whose human rights have been or may be affected by its activities. While the company provides general examples of engagement with stakeholders, it has an opportunity to clarify if these stakeholders are those whose human rights have been or may be affected by its activities.
The company has a publicly available policy statement which shows it is committed to respecting the health and safety of workers. The company has a publicly available policy statement which shows it expects its suppliers to commit to respecting the health and safety of their workers. The company has an opportunity to disclose a time-bound target for paying all workers a living wage or that it has achieved paying all workers a living wage. The company has an opportunity to describe how it determines a living wage for the regions where it operates. While the company discloses the proportion of its total direct operation’s workforce covered by collective bargaining agreements, it states that monitoring only covers a percentage of the group. No evidence that the company describes how it works to support the practices of its suppliers in relation to freedom of association and collective bargaining was found.