Piramal Pharma's ESG Score Rises to 64 Amid Independent Review

Piramal Pharma Limited has achieved an improved Environment, Social, and Governance (ESG) score of 64 for the fiscal year 2024-25, a rise from its previous rating of 61. The assessment was conducted by NSE Sustainability Ratings and Analytics Limited.

The company noted that NSE Sustainability prepared this rating voluntarily, suggesting an independent evaluation rather than a direct engagement. This follows a similar voluntary report from the agency for FY 2023-24, which also gave Piramal Pharma a score of 61.

Piramal Pharma has been integrating ESG principles into its business strategy, focusing on emissions reduction and waste management, and reported spending ₹5.34 Crore on CSR initiatives for FY2025. The company also secured a score of 63 on the 2025 S&P Global Corporate Sustainability Assessment (CSA), a significant 15% increase from its prior score of 55.

Despite this progress, Piramal Pharma has faced past environmental concerns. These include a closure order for its Digwal plant in 2019 due to pollution allegations and a more recent notice from the Gujarat Pollution Control Board (GPCB) in August 2024 to close its Dahej facility over alleged violations. Such issues could influence future ESG evaluations if not fully resolved.

The broader Indian pharmaceutical sector generally lags global peers in ESG performance, indicating room for industry-wide improvements. Nevertheless, Piramal Pharma's improved ESG score could positively affect investor sentiment, signaling a commitment to sustainable operations. Investors may view the voluntary, independent nature of the NSE rating with credibility, though the company had less direct control over the assessment process.

Piramal Pharma operates in a pharmaceutical landscape where ESG factors are increasingly crucial for investors. Competitors like Aurobindo Pharma, Divi's Laboratories, and Laurus Labs also face ESG scrutiny. Moving forward, investors will likely track Piramal Pharma's future ESG ratings from various agencies, its progress in addressing environmental compliance, and the implementation of its stated ESG initiatives.