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Aspire to InspireAragen Success Stories

Aragen’s ESG journey-challenges faced, milestones achieved, and what comes next:

At Aragen, sustainability is not a parallel agenda-it is the way the company builds science, serves customers, and shows up for communities. That ethos is captured in a simple, durable idea: Innovation in Every Molecule, Sustainability in Every Action.

Aragen’s ESG story offers a blueprint for how a rapidly scaling research, development and manufacturing partner can embed environmental stewardship, social progress, and robust governance into daily decision making and long term value creation.

Challenges along the way:

Like many fast-growing organizations, we encountered several hurdles in shaping a unified ESG approach.

Data collection and standardization- One of the earliest challenges was gathering accurate data on energy, water, waste, and emissions across multiple sites. Each facility had its own reporting practices. Aligning them meant developing new standard operating procedures, training teams, and investing in systems for real-time monitoring.

Resource constraints- Sustainability projects require both capital and time. Balancing day-to-day operational demands with the long-term investments needed for water recycling, renewable energy, or new safety infrastructure was not always easy. We had to plan carefully and demonstrate the business value of each initiative to secure buy-in.

Cultural change- ESG is ultimately about people. Shifting mindsets from “compliance” to “commitment” took ongoing communication and leadership example. Employees needed to see how environmental performance, workplace diversity, and governance practices linked directly to Aragen’s success.

Evolving stakeholder expectations- Our customers, investors, and regulators have raised the bar on sustainability. Each year brings new disclosure frameworks and metrics. Keeping up with these expectations and aligning our efforts with recognized global standards required constant learning.

These challenges, however, became catalysts for innovation. They pushed us to create more robust systems and clearer priorities.

Building a framework for action: To address these challenges, we gradually built a stronger ESG framework anchored on four pillars: environment, social responsibility, governance, and transparency.

Environment- We set out to reduce our environmental footprint by focusing on water, energy, emissions, and waste. We mapped our usage and risks at each location—Hyderabad, Visakhapatnam, Pune, Bangalore, and California. Identified opportunities for conservation and resilience. Projects such as water recycling, rainwater harvesting, and energy efficiency upgrades began to take shape.

Social Responsibility- We expanded our efforts to create a safe, inclusive, and equitable workplace. This included
strengthening our diversity initiatives, improving occupational health and safety systems, and extending our community outreach in education, health, and environmental awareness.

Governance- We enhanced our policies on ethics, compliance, and supply chain sustainability. Aragen endorsed the Pharmaceutical Supply Chain Initiative’s principles on human rights, ethics, health and safety, environment, and management systems, and follows them in both letter and spirit.

Transparency- We committed to measuring and disclosing our progress through global platforms such as EcoVadis and CDP. This not only holds us accountable but also signals to stakeholders that we take ESG seriously.

Concrete targets and interventions: Aragen set clear and measurable ESG goals:

• Zero landfill organisation status by 2025
• 25% gender diversity by 2026
• Reduce Scope 1, 2, and 3 greenhouse gas emissions by 50.4% by FY2033, with FY2023 as the base year and 90% reduction by FY2050.
• Water neutrality by FY2035

From a bold reset to a purpose led ESG roadmap:

• Aragen’s ESG chapter began in 2021, when the company-formerly known as GVK BIO-unveiled a renewed
  brand promise and purpose: “Together Ahead” and “In every molecule is the possibility for better health.” The
  rebrand signalled a pivot from “service provider” to “global solutions partner,” aligning scientific ambition
  with societal impact.
• That alignment is now operationalized through annual sustainability reporting grounded in the Global Reporting Initiative (GRI), integration with the UN Global Compact and the UN Sustainable Development Goals, and thirdparty assurance, foundational steps that give stakeholders transparent, decision useful disclosures.
• Aragen’s disclosures span its global footprint R&D campuses at Nacharam & Mallapur (Hyderabad) and Bengaluru manufacturing at Nacharam (Hyderabad) and Visakhapatnam; and a Biologics R&D facility in Morgan Hill, California, ensuring accountability across diverse operations.
• The company uses FY2021 as a baseline for performance tracking, a choice that promotes comparability across years as programs matures.

Milestones that moved the needle:

1. Climate action with science based targets:
   In August 2024, Aragen became the first Indian CRDMO to receive Science Based Targets initiative (SBTi) approval for both near term and net zero targets, committing to reduce absolute Scope 1, 2, and 3 emissions by 50.4% by FY2033 (baseline year FY2023) and by 90% by FY2050, reaching net zero by 2050This anchors Aragen’s decarbonization pathway in the Paris aligned 1.5 °C trajectory, strengthening the credibility of its climate claims. By FY2025, 24.7% of total energy consumption was from renewable sources, with the California facility running on 100% renewable power, and plans in place for advancing for additional solar capacity at Hyderabad, Bengaluru, and Visakhapatnam. Aragen is also greening its logistics by partnering with DHL Go-Green to incorporate Sustainable Aviation Fuel (SAF) in shipments, tackling a hard to abate category in Scope 3. To accelerate the transition, Aragen’s public targets include lifting the share of renewable energy (GJ) from 27% to 52%, a blended strategy of onsite generation and green power procurement.
2. Water stewardship in a water stressed geography
   Aragen has invested in Zero Liquid Discharge (ZLD) and high recycle systems at key sites, maintaining ZLD at the Hyderabad manufacturing and Bengaluru R&D facilities, materially reducing freshwater withdrawals and effluent managing risks. In FY2025, the company achieved a 29% increase in water recycling capacity and expanded rainwater harvesting, while pursuing water neutrality by FY2035.
3. Waste and circularity
   A defining milestone came in July 2024 when Aragen reached zero landfill organisation status for hazardous
   waste across operations; non hazardous waste streams are now fully recycled or reused. This goes beyond compliance and reflects a multiyear push to reengineer waste handling, increase material recovery, and minimize environmental burden, in line with the company’s 2025 zero landfill ambition.
4. Safer, smarter labs and plants
   Aragen’s integrated EHSS system accredited to ISO 14001 (environment), ISO 45001 (OH&S), and ISO 50001
   (energy) is the backbone of its operational ESG.In FY2025, Aragen lowered its Total Recordable Incident Rate (TRIR) 0.16 from 0.26 compared to the previous year through audits, enhanced training, and behaviour based safety programs. External recognition has followed: the Visakhapatnam manufacturing unit has received multiple International Safety Awards from the British Safety Council, while CII platforms have consistently recognized site level EHS excellence.
5. People, culture, and inclusion
   For the sixth consecutive year, Aragen earned the Great Place to Work® certification, reflecting the company’s investment in employee wellbeing, learning, and trust. Targeted inclusion programs are building a stronger pipeline: the Women in STEM Leadership Program mentored 100+ early career scientists, while the enterprise works toward 25% gender diversity by 2026. Achieved 22.3% gender diversity at workforce in FY25.
6. Community impact
   Aragen’s CSR portfolio prioritizes education, environment, and healthcare. The company has adopted multiple Zilla Parishad schools across Telangana and Andhra Pradesh, improving learning environments for 1,000+ children annually; contributed to Haritha Haram tree planting; developed public parks/green belts in Mallapur (Hyderabad) and Bommasandra (Bengaluru); and constructed 125 household and biodegradable toilets in underserved habitations. During COVID19, Aragen provided ₹50 million worth of PPE to government hospitals in Telangana and supported migrant communities, evidence that the company shows up for society in a crisis.
7. External ratings and recognition
   In December 2024, Aragen received EcoVadis Platinum, placing it in the top 1% globally the only Indian headquartered company in CRDMO sector to earn Platinum medal in the 2024 assessment. The company is improving EcoVadis score starting with 46 in 2021 to 82 in 2024-attests to disciplined, year on year progress. In 2025, Aragen was named among Asia Pacific’s Climate Leaders by the Financial Times, reflecting measured decarbonization gains at pace and scale. Received “A”, “A- “& “B” rating in supplier engagement, water security & climate change respectively in CDP 2024 disclosure.

How we executed: strategy, systems, and science:

Clear governance & transparent reporting- Aragen’s FY24 and FY25 sustainability report discloses performance against material topics, with FY25 reporting prepared in reference to GRI 2021 Standards and assured by an independent external firm.

Alignment with UNGC, GRI South Asia Charter, and CDP disclosures on climate and water strengthens consistency with global frameworks.

Decarbonization plan embedded in operations- The SBTi validated glidepath is backed by concrete levers onsite solar, green power procurement, energy efficiency, green logistics (SAF), and process innovations such as continuous manufacturing that reduce solvent use and waste.

Water programs designed for local realities- In a city where groundwater levels have shown worrying trends, Aragen’s approach ZLD, high recycle, rainwater harvesting, is both risk appropriate and community minded, culminating in a 2035 water neutrality commitment.

Circularity in waste- Achieving zero landfill organisation for hazardous waste required tightening vendor due diligence, improving segregation at source, and maximizing beneficial reuse, an operational transformation that few companies of Aragen’s scale attempt while simultaneously expanding capacity.

A resilient, responsible supply chain- With PSCI membership and supplier codes embedded in contracting and 100% compliance with the Supplier Code of Conduct now disclosed, Aragen is aligning procurement with ESG outcomes and engaging suppliers to reduce Scope 3 emissions.

Safety, always- EHS management at Aragen is not a checklist-it is a culture reinforced by ISO certifications, periodic audits, behaviour based programs, and leadership accountability, resulting in improved TRIR and multiple thirdparty safety awards.

What we learned along the way:

1. Targets must be science based and timebound-SBTi validation transformed climate intent into a verifiable plan and galvanized internal teams to deliver, measure, and improve, year after year.
2. Local context matters-In Hyderabad and Bengaluru, ZLD and recycling are nonnegotiable because water scarcity is a lived reality, not an abstract risk score.
3. Culture compounds- Recognitions such as Great Place to Work® follow consistent investments in learning, inclusion, wellness, and safety. A culture of trust is a force multiplier for ESG action.
4. Growth and sustainability can reinforce each other– A ₹2,000 crore expansion can and should be designed with energy, water, and waste performance locked in from day one.

The road ahead:

Aragen’s ESG priorities for the next horizon are clear:

• Deliver the SBTi glidepath-50.4% absolute reduction in Scopes 1,2&3 by FY2033; net zero by 2050 by scaling renewables, deepening efficiency, electrifying where feasible, and expanding low carbon logistics.
• Advance toward water neutrality by FY2035, coupling continued ZLD, recycling, and rainwater harvesting with watershed collaborations that strengthen regional resilience.
• Maintain zero landfill for hazardous waste and innovate further on circularity and material recovery in non hazardous streams.
• Increase renewables in the total energy mix to 52%, backed by onsite generation and credible procurement.
• Deepen inclusion and safety, sustaining GPTW momentum, expanding Women in STEM pipelines, and pushing TRIR down with technology, training, and leadership.
• Broaden disclosures and assurance, continuing annual GRI aligned reporting with independent verification
  and benchmarking via EcoVadis, CDP, and peer indices.

Why this journey matters—beyond Aragen:

A CRDMO sits at the nexus of discovery, development, and manufacturing, that vantage point allows Aragen to amplify climate and social outcomes far beyond its fence line, by bringing green chemistry, energy efficient processes, and ethical procurement to hundreds of customer programs and thousands of supplier relationships.

This multiplier effect is part of why the company’s sustainability work has attracted recognition from EcoVadis Platinum to Asia Pacific’s Climate Leaders and why its example is relevant to the broader life sciences ecosystem.

Aragen’s journey shows that ESG is not a side project; it is a capability, one that compounds when science, systems, and soul pull in the same direction. The company’s next decade will be defined as much by molecules as by megawatts, millilitres, and mindsets and if the past few years are any guide, Together Ahead is more than a promise; it is a plan.

Source – ESG Research Foundation (ERF)