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Q&A: Aragen receives EcoVadis platinum certification

Olivia Friett, editor of European Pharmaceutical Manufacturer, spoke to Shivaji Jadhav, senior vice president, EHS, Aragen about what it takes to be a EcoVadis platinum certified company.

What made you decide to prioritise sustainability?

Sustainability has been a core part of our long-term strategy since FY 2019—not just as a compliance measure, but as a way to future-proof our business and create long-term meaningful environmental and social impact. Our commitment spans carbon neutrality, circular economy initiatives, and water conservation, all aligned with global frameworks like the UN Sustainable Development Goals (SDGs) and the Science-Based Targets initiative (SBTi). One of the key milestones in our sustainability journey is our EcoVadis Platinum Medal in 2024 which places us among the top 1% globally for exemplary sustainability practices. We are actively reducing our environmental footprint, with ambitious targets including achieving zero landfill status by 2025, water neutrality by 2035, and net-zero emissions by 2050. Our near-term and net-zero targets are approved by SBTi, reinforcing our commitment to climate-conscious operations. We now source 27% of our total energy from renewables, optimising cost and resource utilisation. We also actively implement green chemistry principles across our operations, tracking key performance indicators like Process Mass Intensity, Atom Efficiency, and waste reduction to enhance sustainability across our operations. We have taken concrete actions to reduce our Scope 1, 2, and 3 emissions and have focused on energy efficiency, reducing plastic use, and water conservation as part of our sustainability roadmap. Beyond environmental goals, we also prioritise ethical sourcing, diversity, and social responsibility, ensuring that sustainability is not just a business practice but a driver of innovation and long-term success.

What would you say are some of the most important things to consider in order to make a company sustainable?

Making a company sustainable requires a structured approach that integrates environmental, social, and governance (ESG) principles into daily operations and long-term strategy. One of the most important aspects is aligning sustainability initiatives with global frameworks such as the UN SDGs and SBTi to ensure measurable progress and accountability year on year. Investment in sustainable practices is also critical, as financial commitment drives real change. At Aragen, we have allocated $1.5 million over the next five years towards initiatives that focus on renewable energy expansion, waste reduction, and resource efficiency projects and we continue to remain committed to best practices in this area.

A key area of focus is the integration of renewable energy into operations, as reducing reliance on fossil fuels is essential for long-term sustainability. Another important factor is sustainable product development and supply chain sustainability. At Aragen, we have 50% of our suppliers trained on Green Supply chain management in FY 24. We have implemented a robust performance evaluation process that delists non-compliant suppliers from our empanelled vendor list.

Setting clear decarbonisation targets is crucial in ensuring companies remain accountable in their sustainability journey. However, sustainability is not just about operational changes, it also requires employee engagement and training to ensure a company-wide commitment. By fostering awareness and promoting sustainable workplace practices, businesses can drive long-term impact beyond compliance measures. Strong governance and compliance structures are also fundamental. Policies such as whistleblower protections, compliance audits, and adherence to global regulatory standards ensure that sustainability efforts are not just theoretical but are actively implemented and maintained.

Transparent reporting and accountability also play a key role in maintaining credibility and progress. Regularly publishing sustainability reports, tracking milestones, and engaging with stakeholders help businesses stay committed and continually improve their environmental and social impact. By focusing on these fundamental aspects, companies can create a sustainable, resilient, and future-ready business model that balances environmental responsibility, social impact, and long-term economic viability.

How do you ensure sustainability efforts are embedded across your company?

For us, sustainability isn’t just an ambition—it’s embedded in our daily operations and strategic decision-making. We align with global frameworks like the UN Sustainable Development Goals (SDGs), prioritising responsible consumption, climate action, and gender equality, ensuring our business drives meaningful change.

Renewable energy now powers 27% of our total consumption, with our California campus running entirely on renewables. We’ve also cut GHG (Scope 1 & 2) emission intensity by 10% in FY24 compared to FY23, reinforcing our commitment to a lower-carbon future. Sustainability is deeply embedded in our corporate governance framework, with biannual board reviews and monthly oversight from the senior management, ensuring robust ESG implementation across all levels. At our Hyderabad API facility, transitioning from coal-based boilers to bio briquette systems has significantly reduced environmental impact. In Bengaluru, our shift from diesel-fired boilers to piped natural gas (PNG) further enhances efficiency while cutting emissions. Our collaboration with logistics provider DHL to utilise Sustainable Aviation Fuel (SAF) for outbound shipments further exemplifies our commitment to reducing carbon footprints. At Aragen, sustainability isn’t a checkbox—it’s the foundation for a resilient, responsible, and forward-thinking future.

How do you manage your supply chain to ensure it aligns with your sustainability goals?

We take a structured approach to make sure we address sustainability across our supply chain, ensuring that our operations and partners align with our environmental and ethical commitments. A key part of this effort is our ‘EnVision’ programme, which fosters a sustainable supply chain ecosystem by setting measurable sustainability goals, conducting annual vendor assessments against our Green Supply Chain Management checklist, and encouraging suppliers to participate in initiatives such as the Pharmaceutical Supply Chain Initiative. To actively reduce supply chain emissions, we invest in fleet electrification, adopt green procurement practices, and collaborate closely with suppliers to implement low-carbon solutions. Our Responsible & Sustainable Supply Chain Policy prioritises partnerships with vendors who integrate sustainable practices, while our Sustainable Procurement Guidelines ensure that products are assessed based on certifications, life cycle impact, and compliance with green chemistry principles. This approach ensures that sustainability is embedded throughout our supply chain, driving positive change across our entire value chain.

How do you address the challenge of reducing carbon emissions?

We are addressing the challenge of reducing carbon emissions through a multi-pronged approach. To provide a clearer picture, we have set ambitious net-zero targets, aiming for carbon neutrality by 2030, which are approved by SBTi. Our strategy includes decarbonising operations by transitioning to 100% renewable energy and enhancing energy efficiency across all our facilities. Our US facility is already running on 100% renewable energy and adoption of LED lights and E-vehicles have led to significant reduction in energy consumption in all our facilities.

Recognising that emissions in hard-to-abate areas like manufacturing and logistics require innovative solutions, we are actively exploring and investing in new technologies and strategic partnerships to support our net-zero goals.

We are actively reducing our carbon footprint by increasing the use of solar panels and electric vehicles at our manufacturing sites. Our sustainability efforts have expanded to include more effective management of emissions, energy, water, biodiversity, and waste. As a result, renewable energy now accounts for over 2827% of our energy consumption. Additionally, by replacing coal with bio-briquettes at our Hyderabad facility, we have achieved a 37% reduction in Scope 1 GHG emissions—a 66% decrease in emission intensity compared to FY21. As part of this effort, last year we partnered with DHL to incorporate sustainable aviation fuel for shipments, ensuring a lower carbon footprint throughout the product journey for customers that prioritise sustainability.

What advice would you give to companies just starting their sustainability journey?

The first step is to define a clear strategy—understand why sustainability matters for your business and align it with long-term goals. Develop an action plan with measurable targets and designate resources, such as creating an ESG office and allocating funds. Ensure the policy is proactively communicated across the organisation and provide training to employees. Publishing a sustainability or ESG report is critical to maintaining transparency and tracking progress. Frameworks like GRI, CDP, and EcoVadis help benchmark performance, as seen in Aragen’s EcoVadis improvement from 46 in 2021 to 82 in 2024. Investment in sustainable practices, including energy efficiency, responsible sourcing, and emissions reduction, is key.

Engaging employees, suppliers, and other stakeholders ensures sustainability becomes a shared responsibility. Most importantly, sustainability is a continuous journey; regularly assess, refine, and improve practices to meet evolving environmental and regulatory expectations. By committing to structured, measurable action, companies can build a strong foundation for long-term sustainable growth.

What are your goals/targets for the future?

Our future sustainability goals focus on environmental impact reduction, social responsibility, and long-term resilience. On the environmental front, we have implemented strategies to achieve carbon neutrality by 2030, become a zero-landfill organisation by 2025, and to achieve water neutrality by 2035 .

In line with our commitment to net-zero emissions by 2050, our broader climate strategy includes eliminating all GHG emissions by 2050, integrating 100% renewable energy, and continuously improving energy efficiency across operations. On the social front we have strengthened our policies to promote diversity, inclusion and equity and we are on track to achieve 25% gender diversity by 2026, up from our current representation of 21.7 percent female workforce, to foster a more equality.

How do you plan to maintain your Platinum EcoVadis status?

Achieving EcoVadis Platinum status marks a major milestone in our sustainability journey, validating Aragen’s commitment to the highest sustainability standards. This recognition underscores our leadership in environmental management, ethical practices, and social responsibility, reinforcing our dedication to responsible and transparent business operations. More than an accolade, this status is a catalyst for continuous improvement, helping us deepen stakeholder trust among investors, customers, and partners while providing actionable insights to accelerate our long-term sustainability goals.

To maintain and build upon our Platinum status, we are driving a range of strategic initiatives. We continue our active engagement with global organisations such as SBTi, CDP, UNGC, PSCI, and GRI, ensuring alignment with leading sustainability frameworks. We are implementing a company-wide decarbonisation plan, taking bold steps to minimise our carbon footprint. Our target is to increase the share of renewable energy from 12% to 43% through a phased transition, reinforcing our commitment to a clean energy future. We remain at the forefront of labor and human rights initiatives, ensuring impactful policies and strategic actions that foster a responsible workplace. By fixing an internal carbon price (ICP) and water pricing mechanism, we drive accountability and resource efficiency across our operations. We continue our climate change and water security disclosures to CDP, with an upcoming Refinitiv sustainability platform disclosure in FY25, strengthening transparency. Our efforts to reduce water and energy consumption while improving energy efficiency continue to remain central to our sustainability strategy. Through close engagement with supply chain partners, we actively pursue initiatives for Scope 3 emissions reduction, ensuring a more sustainable value chain.

Source – Pharmaceutical Manufacturer