Cipla to be listed in Dow Jones Sustainability Index for emerging markets

Mumbai: Cipla Limited has recently announced that the company has been selected in the S&P Dow Jones Sustainability Index (DJSI) for the Emerging Markets for 2021.

The DJSI family of indices is operated by S&P Dow Jones. The Emerging Markets Index for the year comprises of 108 companies from 12 emerging economies, including China, Brazil, South Africa and Taiwan. Created jointly by S&P Dow Jones Indices and SAM, the DJSI is the gold standard for corporate sustainability, and is highly regarded by global investors and financial analysts looking at ESGbased investments. 

The selection process included the world's largest ~4000 listed companies, which underwent a rigorous assessment on Economic & Governance, Social & Environmental parameters such as corporate governance, ethics, risk management, climate change mitigation, stakeholder engagement, access to medicine, quality, corporate social responsibility and human resource practices.

As of November 12, 2021, Cipla performed in the top decile in the pharmaceutical Industry in the S&P Global Corporate Sustainability Assessment, with a ranking of 93 percentile in the industry, meaning 93% of companies reached an equal or lower ESG Score. The Company significantly improved performance in parameters like strategy to improve access to drugs or products, human capital development, tax strategy and climate strategy compared to last year.

Commenting on the ranking, Mr. Umang Vohra (MD and Global CEO, Cipla Limited) said, "The selection into S&P Dow Jones Sustainability Index Emerging Markets is a testament to our commitment towards sustainability, which is at the core of our DNA. We are delighted to be recognized for our efforts in climate action and social impact, coupled with strong corporate governance. This recognition strengthens our belief in investing in greener technology and processes, creating social impact for communities and serving the markets to create for healthier people and a healthier planet. We remain committed to building ecosystems for accessible and patient centric quality healthcare, underpinned by industry leading practices."

With the aim of reaching non-fossil fuel share of 40% by 2030, in January 2021, Cipla became the first pharmaceutical company in Maharashtra to invest in group captive open access solar power project of 30 MW capacity, spread across 115 acres.

This has contributed to Cipla's decarbonizing goals, with the company now sourcing ~25% of its energy from renewable sources in the current year. Additionally, Cipla is also a constituent of the MSCI All Country World Index (ACWI) and has an ESG Rating of BB; as well as a constituent of FTSE4Good Index Series for the three consecutive years.

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