Indian Pharmaceutical Sector Embraces Renewable Energy Amid Export Market Demands
Indian Pharma Shifts to Renewable Energy Amidst Export Market Pressure

Image: Asianet Newsable
India's pharmaceutical industry is increasingly adopting renewable energy, with usage rising from 17% in FY2023 to 25% in FY2025, driven by export market pressures from Europe and the UK. Active Pharmaceutical Ingredients manufacturers show the highest increase in renewable energy use, reflecting a broader shift towards sustainability.
- 01Renewable energy consumption in India's pharmaceutical sector is projected to increase from 17% in FY2023 to 25% by FY2025.
- 02Active Pharmaceutical Ingredients manufacturers saw renewable energy usage rise from 21% to 31% during the same period.
- 03European and UK regulations, such as the EU CSRD and UK NHS Net Zero requirements, are accelerating sustainability practices in the sector.
- 04API manufacturers remain the most environmentally intensive segment, with emissions three to four times higher than formulation manufacturers.
- 05Only 35% of pharmaceutical companies have dedicated board-level ESG committees, despite 59% having emission-reduction targets.
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The Indian pharmaceutical sector is undergoing a significant transition towards renewable energy, as highlighted by a study from ICRA ESG Ratings Limited. The report indicates that renewable energy consumption among 53 pharmaceutical companies is expected to rise from 17% in FY2023 to 25% by FY2025. This shift is particularly pronounced among Active Pharmaceutical Ingredients (API) manufacturers, whose renewable energy usage is projected to increase from 21% to 31%. The push towards sustainability is largely driven by stringent export market regulations from Europe and the UK, which tie procurement to sustainability performance. Despite this progress, challenges remain, particularly in emissions and hazardous waste generation, with API manufacturers being the most environmentally intensive segment. The report also notes that only 35% of companies have dedicated board-level Environmental, Social, and Governance (ESG) committees, indicating a lag in governance relative to sustainability targets.
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The shift towards renewable energy in the pharmaceutical sector could lead to reduced emissions and better compliance with international sustainability standards.
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