DR REDDYS LABORATORIES LTD — Environmental & Social Information 2025

Jun 30, 2025

Dr. Reddy's Laboratories Ltd.

8-2-337, Road No. 3, Banjara Hills Hyderabad – 500 034, Telangana, India

CIN: L85195TG1984PLC004507

Tel: + 91 40 4900 2900 Fax: + 91 40 4900 2999 Email: mail@drreddys.com Web: www.drreddys.com

June 30, 2025

National Stock Exchange of India Ltd. (Scrip Code: DRREDDY) BSE Limited (Scrip Code: 500124) New York Stock Exchange Inc. (Stock Code: RDY) NSE IFSC Ltd. (Stock Code: DRREDDY)

Dear Sir/ Madam,

Sub: Business Responsibility & Sustainability Report of the Company for the FY2025

Pursuant to Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed copy of the Business Responsibility and Sustainability Report ('BRSR') for the Financial Year 2024-25. The BRSR forms an integral part of the Integrated Annual Report of the Company for the Financial Year 2024-25.

The BRSR is also available on the Company's website and can be accessed at the following link:

Business Responsibility and Sustainability Report

This is for your information and records.

Thanking you.

Yours faithfully, For Dr. Reddy's Laboratories Limited K Randhir Singh Company Secretary, Compliance Officer and Head-CSR KUMAR RANDHIR SINGH Digitally signed by KUMAR RANDHIR SINGH Date: 2025.06.30 16:24:26 +05'30'

BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT FY2024-25

Executive Summary

Our Business Responsibility & Sustainability Report demonstrates our commitment to the nine principles of the National Guidelines on Responsible Business Conduct ("NGRBC") as well as our progress against the stated objectives across environmental, social and governance ("ESG") parameters.

Our Company's purpose of accelerating access to affordable and innovative medicines across the world provides the foundation for ushering in a healthier tomorrow for all.

A legacy spanning over forty years, our core tenets are deep science, progressive people practices and robust corporate governance. We continue to focus on creating value for all our stakeholders and towards our goal of serving over 1.5 bn patients by 2030.

The BRSR disclosures are in terms of Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 and consists of three sections:

• • Section A provides a broad overview of the business, its offerings, business and operations footprint, employees, related parties, Corporate Social Responsibility (CSR) and transparency
• • Section B covers management and process disclosures related to the businesses aimed at demonstrating the structures, policies and processes put in place towards adopting the NGRBC Principles and Core Elements
• • Section C provides essential and leadership indicator-wise disclosures mapped to the nine principles of NGRBC.

For FY2025, DNV Business Assurance India Private Limited ("DNV") has issued Independent Assurance Statement for reasonable assurance of the core indicators of BRSR. DNV has also issued the said statement for limited assurance of other than core indicators of BRSR.

KEY HIGHLIGHTS OF BRSR FY2024-25

General and Management Disclosures

• Reasonable Assurance of BRSR core indicators and Limited Assurance of remaining section of BRSR

• Presence in 82 countries outside India

• 30% of Board members are women directors

• 0.4% of workforce are differently abled

• Turnover rate for permanent employees and workers is 19.2% and 12.3% respectively

• Comprehensive disclosure of material risk and opportunities

• Sustainability and CSR Committee act as nodal Committee for ESG related matters

• Comprehensive disclosure of ESG goals and progress made during the year

Conduct and govern with integrity, and in a manner that is ethical, transparent and accountable

• 81% of our employees and 65% workers received periodic training on ethical conduct, aspects of human rights, skilling and wellbeing, and ESG goals and matters.
• No disciplinary action against Directors/KMPs/Employees/ Workers by any law enforcement agencies for charges of bribery/corruption
• No cases of fines, penalties, fees, or settlement amount paid in proceedings (by the entity or by directors/KMPs) with regulators, law enforcement agencies, or judicial institutions

Provide goods and services in a manner that is sustainable and safe

• We conducted Life Cycle Assessment for 2 of our API products and these have no significant social or environmental risks
• 100% of our inputs are sourced from suppliers who abide by our Supplier Code of Conduct
• 99% of our global hazardous waste is sent to industries and recyclers for co-processing and recycling
• 92% of cold boxes are reused at CFA or stockist level

Principle 1 Principle 2 Principle 3

Respect and promote the wellbeing of all employees, including those in value chains

• 100% of our permanent employees and workers are covered under health and accident insurance, and maternity and paternity benefits
• 95% return to work rate and 85.6% retention rate for our permanent employees post parental leave
• 96.1% employees and 65.3% workers were provided skill upgradation training
• 45.1% employees and 52.7% workers were provided health and safety measures training
• 92.4% of employees and 97.9% of workers have undergone performance and career development reviews
• Combined LTIFR per one mn-person hours worked reduced from 0.14 to 0.07

Principle 4

Respect the interests of and be responsive to all its stakeholders

• Comprehensive stakeholder engagement including a new double materiality assessment to understand their impact and financial materiality and stakeholder expectations to inform our ESG strategy
• Evolved process for considering feedback of the stakeholders on economic, environment and social topics by the Board
• Evolved process for engagement and support of the vulnerable and marginalised stakeholders group

Principle 5

Respect and promote human rights

• 71.4% of employees were given training on human rights
• 100% of our employees and permanent workers are paid more than the minimum wage
• Median remuneration of male and female employees was ₹ 0.7 million and ₹ 0.99 million respectively
• 100% of plant or offices were assessed for human rights issues

Principle 6

Respect and make efforts to protect and restore the environment

• 57% of total energy consumption is from renewable sources
• 22% absolute reduction in Scope 1 & 2 emissions from previous financial year
• 68% of electricity consumption through renewable power
• 75,761 KL of harvested rainwater consumed
• 2.5% decrease in reported Scope 3 emissions from previous financial year

Principle 7

Influencing public and regulatory policy, in a responsible and transparent manner

• Associated with seven trade and industry chambers/associations to foster dialogue on industry growth drivers, innovation and shaping public policy
• Public policy advocacy on important issues such as regulatory changes, R&D and intellectual property protection, access and affordability, and counterfeit drugs
• No adverse order/action from regulatory authorities in issues related to anti-competitive conduct

Principle 8

Promote inclusive growth and equitable development

• 51% of input materials were sourced from within India
• Job creation in terms of remuneration in Rural, Semi-urban and Urban was 8%, 2% and 10%, respectively, of total during the year
• Positively impacted 701,558 individuals through CSR initiatives

Principle 9

Engage with and provide value to the consumers in a responsible manner

• 100% of our formulation products representing 89% of revenue carry information about safe and responsible usage on product labelling and packaging
• No forced recalls, 18 voluntary recalls
• No consumer complaints on data privacy, advertising, cyber-security, delivery of essential services, or restrictive or unfair trade practices
• No major service disruptions

BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT (BRSR) FY2024-25

SECTION A

GENERAL DISCLOSURE

I Details of Listed Entities

1	Corporate Identity Number (CIN) of the Listed Entity	L85195TG1984PLC004507
2	Name of the Listed Entity	Dr. Reddy's Laboratories Limited
3	Year of incorporation	1984
4	Registered office address	8-2-337, Road No. 3, Banjara Hills,
		Hyderabad – 500 034, Telangana, India
5	Corporate address	8-2-337, Road No. 3, Banjara Hills,
		Hyderabad – 500 034, Telangana, India
6	E-mail	shares@drreddys.com
7	Telephone	+91-40-49002900
8	Website	www.drreddys.com
9	Financial year for which reporting is being done	April 1, 2024 to March 31, 2025
10	Name of the Stock Exchange(s) where shares are listed	BSE Limited
		National Stock Exchange of India Limited
		New York Stock Exchange, Inc
		NSE IFSC Ltd
11	Paid-up Capital	` 834,455,365
12	Name and contact details (telephone, email address) of	Mr. K Randhir Singh
	the person who may be contacted in case of any queries	Company Secretary, Compliance Officer & Head-CSR
	on the BRSR report	E-mail id: shares@drreddys.com
		Contact No: +91-040-4900 2222
13	Reporting boundary	The disclosure under BRSR is on consolidated basis unless
		otherwise specified at the respective section.
14	Name of Assurance provider	DNV Business Assurance India Private Limited (DNV)
15	Type of Assurance obtained	BRSR Core - Reasonable assurance
		Remaining part of BRSR - Limited assurance

II Products and Services

16.			Details of Business Activities (Accounting for 90% of the turnover)
	Sl.No.	Description of MainActivity	Description of Business Activity	% of turnover of the entity
	1	Pharmaceuticals	Development, manufacturing & sale ofpharmaceutical products, and services	100

17. Products/services sold by the entity (accounting for 90% of the entity's Turnover)

Sl.No.	Products	NIC Code	% of total turnovercontributed
1	Development, manufacturing & sale of generic formulations including biosimilarsand consumer healthcare	21009	89
2	Development, manufacturing & sale of active pharmaceutical ingredients & custompharmaceutical services	21009	11

III Operations

18. Number of locations where plants and/or operations/offices of the entity are situated

Location	No. of plants(Including R&D sites/operations)	No. ofoffices	Total
National	26	15	41
International	6	58	64

19. Markets served by the entity

a. No. of Locations

Locations	Numbers
National (No. of States & Union Territories)	36
International (No. of countries)	82

b. What is the contribution of exports as a percentage of the total turnover of the entity

Out of the total turnover of 21,845 Crore (excluding service income and licence fees) on standalone basis, the turnover of the products sold in India is 5,449 Crore (25%) and that of other countries is ` 16,396 Crore (75%).

c. A brief on types of customers

Our customers include wholesalers, distributors, pharmacy chains and hospitals, government institutions and other pharmaceutical companies.

IV Employees

20. Details as at the end of financial year:

a. Employees and workers (including differently abled):

Particulars	Total	Male				Others
		No.	%	No.	%	No.	%
Permanent	26,944	21,298	79%	5,642	21%	4	0%
Other than permanent	8,037	5,199	65%	2,838	35%	0	0%
	34,981	26,497	76%	8,480	24%	4	0%
Permanent	573	552	96%	21	4%	0	0%
Other than permanent	7,998	6,257	78%	1,741	22%	0	0%
2Total		6,809	79%	1,762	21%	0	0%
	Sl.No.EmployeesTotalWorkers	8,571				Female

b. Differently abled employees and workers:

Sl.Particulars		Total	Male		Female			Others
No.			No.	%	No.	%	No.	%
	Differently abled Employees
1	Permanent	107	70	65%	37	35%	0	0%
2	Other than permanent	19	14	74%	5	26%	0	0%
Total		126	84	66%	42	34%	0	0%
	Differently abled workers
1	Permanent	0	0	0%	0	0%	0	0%
2	Other than permanent	34	34	100%	0	0%	0	0%
Total		34	34	100%	0	0%	0	0%

21. Participation/inclusion/representation of women

Particulars	Total	No. of Females	% of Females
Board of Directors	10	3	30
Key Management Personnel (KMPs)1	3	0	0

1 The KMP of the Company are Co-chairman and Managing Director, Chief Executive Officer, Chief Financial Officer and Company Secretary. Since Co-chairman and Managing Director is already included under heading Board of Directors, the same has not been again included under heading KMP.

22. Turnover rate for permanent employees and workers

		FY2024-25			FY2023-24FY2022-23
	Male	Female	Others	Total	Male	Female	Others	Total	Male	Female	Others	Total
Permanent	19.3	19.1	22.2	19.2	18.2	19.0	12.5	18.4	21.1	19.2	42.9	20.8
Employees (%)
Permanent	9.2	68.8	0	12.3	8.0	34.1	0	9.7	23.6	44.7	0	24.9
Workers (%)

V Holding, Subsidiary and Associate Companies (including joint ventures)

23. Names of holding/subsidiary/associate companies/joint ventures

The details of holding/subsidiary/associate companies/joint ventures are given in Form AOC-1, as Annexure-I to the Board's Report and this forms part of the Integrated Annual Report

Do the entities indicated in above table, participate in the business responsibility initiatives of the listed entity? (Yes/No)

Yes, all the entities, wherever applicable, participate in the relevant Business Responsibility initiatives of the Company. However, environmental and social performance data for joint ventures that are not being consolidated into the financial statements, such as Kunshan Rotam Reddy Pharmaceutical Co. Limited, China, DRES Energy Private Limited, India, and O2 Renewable Energy IX Private Limited, is excluded.

VI CSR Details

24.	Whether CSR is applicable as per Section 135 of the Companies Act, 2013: Yes1
	(i) Turnover (` in Million)	231,154
	(ii) Net worth (` in Million)	288,566

1 As per Ind AS standalone financial statements

VII Transparency and Disclosures Compliances

25. Complaints/Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible Business Conduct:

Stakeholder	Grievance	(If Yes, then		FY2024-25			FY2023-24
group fromwhomcomplaint isreceived	redressalmechanismin place(Yes/No)	provide web linkfor grievanceredress policy)	No. ofcomplaintsfiled duringthe year	No. ofcomplaintspendingresolutionat close ofthe year	Remarks	No. ofcomplaintsfiled duringthe year	No. ofcomplaintspendingresolutionat close ofthe year	Remarks
Communities	Yes*		0	0		0	0
Investors(other thanshareholders)	Yes*		0	0		0	0
Shareholders As per	applicablelaw		7	0		10	0
Employeesand workers	Yes*	Refer to Notebelow	427	67		274	60
Customers	Yes*		956	4		870	2
Value chainpartners	Yes*		50	9		49	7
Others(pleasespecify)	Yes*		112	27		94	29

Note: *Shareholders can register their grievances on the SCORES Portal at https://scores.sebi.gov.in/and the ODR Portal at https://smartodr.in/. All other stakeholder groups including customers, value chain partners, communities, and employees and workers can raise a concern by accessing the https://drreddys.ethicspoint.com portal or calling on the hotline number available on the portal. They may also write to complianceofficer@drreddys.com or chiefombudsperson@drreddys.com, or send their grievance by post or courier to the Chief Compliance Officer/Chief Ombudsperson. Several policies guiding the Company's conduct with all its stakeholders, including grievance mechanisms are placed on the Company's website and can be found on https://www.drreddys.com/investor#governance. In addition, there are internal policies placed on the intranet of the Company that are accessible by employees.

26. Overview of the entity's material responsible business conduct issues

Sl.No.	Materialissueidentified	Risk oropportunity	Rationale for identifyingthe risk/opportunity		In case of risk, approach to adapt or mitigate	FinancialImplicationsof the risk oropportunity(indicatepositive OrnegativeImplications)
1	Access tomedicines	Opportunity	Increasing access tomedicines is a majoropportunity as it aligns withDr. Reddy's core purposeof "Good Health Can't Wait"and provides a significantbusiness advantage.By focusing on access,affordability and innovation,we can reach more patientsand contribute to globalhealth improvement.	••••	We are committed to serve 1.5 billion patientsby 2030 and bring at least 3 innovativesolutions to improve the standard of treatmentevery year from 2027. We are launchingmore innovative drugs and expanding ourproduct portfolio, increasing our go-to-marketthrough diverse collaborations and licensingarrangements, and through greater presencein public health.We are strengthening our product pipelinethrough a combination of new drugdevelopment, acquisitions, and expansion intonew therapeutic areas, while also focusingon biosimilars, differentiated products, andincreasing our global reach.To ensure access to novel molecules inIndia and low income countries, we activelyseek collaborations and have partneredwith companies such as Pharmazz for thefirst-in-class molecule Centhaquine, Chinabased Junshi Biosciences for Toripalimab(an immuno-oncology drug), and Sanofi forvaccine distribution in India.We are partnering with multilateral and donoragencies such as GARDP, DNDi, The GatesFoundation, and MPP to address the globaldisease burden, neglected tropical diseases,and emergency disease areas. We alsoparticipate in strengthening public healthdelivery systems through the training andcapacity building of health workers and localstakeholders.	Positive

Sl.No.	Materialissueidentified	Risk oropportunity	Rationale for identifyingthe risk/opportunity		In case of risk, approach to adapt or mitigate	FinancialImplicationsof the risk oropportunity(indicatepositive OrnegativeImplications)
2	Affordabilityof medicines	Opportunity	Bringing generic equivalentsof innovator drugs withspeed and ensuring higheraffordability for patients isa significant opportunityfor us to expand market	•	Our products significantly bring downtreatment costs in a therapeutic class whilemaintaining the same quality, safety, andefficacy as with the reference product,resulting in savings and increased access totreatment.	Positive
			access, potentially increasingsales and market share.By focusing on affordableoptions including generics,biosimilars, and innovativedrugs, we can reach patientswho might otherwise not beable to afford treatments. This	•	We have committed to ensuring 40% of ournew launches are first-to-market by 2040.By launching generic versions on day one,we can reach more patients sooner, and theability to quickly enter the market and offergeneric versions at a lower price point makesthe treatment more affordable for patients.
			also allows us to addresssystemic affordability issuesand build trust with patientsand healthcare providers.	•	We have a strong focus on biosimilars,which are similar to the original referencebiologic drugs but at a lower cost. Our work inbiosimilars has made treatments for conditionslike cancer and anaemia more accessible topatients worldwide.
			•	We leverage our strength of having a largemanufacturing base in India to offer ourcustomers a distinct cost advantage and adistributed production base in India, the UnitedKingdom, and Mexico, and optimise costsat each stage by managing the entire valuechain from active ingredient production todistribution.
				•	We also offer patient assistance programmessuch as Sparsh for underprivileged cancerpatients in India, M-Free and Mi-Free forpatients on Nerivio®, and co-pay savingsprograms in the US for multiple products.
				•	Year-on-year, there was an average reductionof 7% in the prices of our medicines inFY2025.

Sl.No.	Materialissueidentified	Risk oropportunity	Rationale for identifyingthe risk/opportunity		In case of risk, approach to adapt or mitigate	FinancialImplicationsof the risk oropportunity(indicatepositive OrnegativeImplications)
3	Customersatisfaction	Opportunity	Engaging with customersthrough a formalfeedback mechanismhelps us understand their	•	Dr. Reddy's serves a diverse range ofcustomers globally, including pharmaceuticalcompanies, healthcare providers, andconsumers.	Positive
			requirements, improve brandloyalty and drive businessgrowth, and ensure patientsafety and satisfaction.	•	We ensure customer satisfaction through amultifaceted approach that includes dedicatedcustomer service platforms such as XCEED,real-time feedback mechanisms, a robustsupply chain, and a focus on quality andinnovation.
		•customer preferences and behaviours,informing our product development andmarketing efforts.	We use data analysis to gain insights into
				•	Our Customer Service Centre acts as a singlepoint of contact for customers across variousgeographies, providing support for inquiriesand sample requests. Our customer serviceteam maintains a long-lasting relationshipwith key customers to add value in theirproduct development and commercialisationprocesses.

Sl.No.	Materialissueidentified	Risk oropportunity	Rationale for identifyingthe risk/opportunity		In case of risk, approach to adapt or mitigate	FinancialImplicationsof the risk oropportunity(indicatepositive OrnegativeImplications)
4	Inadequateproductquality,Counterfeitproducts	Risk	Inadequate product qualitycan compromise the efficacyand safety of medications andis a significant risk potentiallycausing harm to patients.Inadequate quality controlcan lead to non-compliance,resulting in fines, recalls,and even suspension ofoperations.Counterfeit products areunsafe or ineffective and canbe potentially life-threatening.The pharmaceutical industryhas been increasinglychallenged by the vulnerabilityof distribution channels toillegal counterfeiting andthe presence of counterfeitproducts in a growing numberof markets and over theinternet. Third parties mayillegally distribute and sellcounterfeit versions of ourproducts, which do not meetthe rigorous manufacturingand testing standards that ourproducts undergo. Adverseevents caused by unsafecounterfeit products maymistakenly be attributed to theauthentic product, and reportsof adverse reactions tocounterfeit drugs or increasedlevels of counterfeiting couldmaterially affect patientconfidence in the authenticproduct, and harm thebusiness of companies suchas ours.	•••••••	We implement a robust quality managementsystem (QMS) whose procedures are built onkey regulatory frameworks governingpharmaceutical development and regulationglobally. Our facilities and products are alsoregularly inspected by international regulatoryagencies such as the US FDA, EMA, MHRA,ANVISA, and CDSCO.We also follow ISO 9001:2015 principles and allour manufacturing facilities are in compliancewith GxP standards, including cGMP. Oursuppliers are subjected to periodic evaluationprocesses that prioritise quality parameters andensure compliance with cGMP requirements.We implement advanced quality controlmeasures, ensure proactive risk managementwith risk controls and thorough documentation,and conduct regular audits.Various governments have enacted lawsintended to combat counterfeiting, including theU.S. Drug Quality and Security Act and the EU'sFalsified Medicines Directive (FMD). We havesuccessfully implemented the FMD since 2019,and only those prescription drugs which have aunique serial number on the pack, and wherethe integrity of the pack can be seen, have beenplaced on the market ever since.In addition to complying with these laws, wehave put in place internal mechanisms tomonitor incidents that come to our notice, andwe proactively carry out regional surveys. Wealso have a robust system that enables us totrack and trace our medicines from the point ofmanufacture to the point of dispensing.We are implementing a comprehensive set ofmeasures that includes the Drug Supply ChainSecurity Act (DSCSA) in the US and equivalentregulations in the other geographies such asRussia, Uzbekistan, EU, and have workedclosely with the Government of India for theimplementation of the serialisation guidelines.Our investments in serialisation and aggregationcontinue to help us comply with global regulationsand standards, with enhanced operational	Negative

efficiencies for our downstream partners.

Sl.No.	Materialissueidentified	Risk oropportunity	Rationale for identifyingthe risk/opportunity	In case of risk, approach to adapt or mitigate	FinancialImplicationsof the risk oropportunity(indicatepositive OrnegativeImplications)
5	Businesscontinuity	Risk	We operate in a complexgeopolitical and regulatoryenvironment, and thisentails potential challengesand uncertainties arisingfrom geopolitical factorsand intricate regulatoryframeworks. This includesgeopolitical instability,changes in governmentpolicies, trade disputes,sanctions, and intricatecompliance requirements.These factors can pose risksto operations, supply chains,market access, and overallbusiness performance,requiring proactive monitoringand strategic adaptation tomitigate potential adverseimpacts.	•We are focused on the identification ofkey business, operational, strategic, andbusiness continuity risks through our ERM andassurance functions. We have implementedrisk management measures and a formalbusiness continuity plan to ensure ouroperations can continue despite potentialdisruptions.•We prioritise a sustainable supply chain- conducting supplier risk management,and ensuring diversification for the timelyavailability of our medicines. To improve ourresiliency posture, we focus on the ability toprovide and maintain an acceptable level ofservice in the face of any interruption andproactively plan for being prepared to respondto an uncertain situation.•Ensuring employee safety is a top priority forus, and we prioritise their wellbeing duringany crisis, with a clear communication planand appropriate channels for employees andregulatory authorities.	Negative

Sl.No.	Materialissueidentified	Risk oropportunity	Rationale for identifyingthe risk/opportunity	In case of risk, approach to adapt or mitigate	FinancialImplicationsof the risk oropportunity(indicatepositive OrnegativeImplications)
6	Informationsecurity,Data privacy	Risk	Information security and•cybersecurity pose a significantrisk to our industry. Ourbusiness is dependent uponincreasingly complex andinterdependent informationtechnology systems, includinginternet and cloud-basedsystems, to support ourbusiness processes as wellas internal and externalcommunications. In addition,our businesses and operatingmodels increasingly depend onoutsourcing and collaboration,•which requires exchangingdata and information. Thesize and complexity andinterconnectivity of ourcomputer systems make•them potentially vulnerable tobreakdown, malicious intrusion,computer viruses and other•cyber-attacks. Any compromiseor disruption may result in theloss, theft, or unauthoriseddisclosure of key informationand/or disruption of productionand business processes,materially and adversely•affecting our business.Data privacy is a significantrisk due to the nature of theindustry and of our businessand the sensitive natureof personal data which we•process directly or throughour third parties. We aresubject to data privacy andprotection laws and regulationsin many different jurisdictionsand countries where wedo business, and a failureto comply by us or by thethird parties acting on ourbehalf could result in fines,administrative and criminalpenalties, reputational damage,and adversely impact the waywe operate our business.	Our Information Security Management System(ISMS) is based on internationally recognisedframeworks such as ISO 27001 and NISTCSF. We use a comprehensive technologystack to implement the above controlframework and carry out periodic independentassessments to review the effectiveness ofthese controls. Any gap identified in the controlframework goes through an established riskmanagement process aligned with industryframeworks such as the COSO ERM. Weperform regular risk assessments and take allnecessary precautions to protect, prevent anddetect such risks.As part of our resiliency strategy, we have anIT disaster recovery plan in place for our keyapplications to minimise impacts from anyunanticipated events and breakdowns.We maintain cybersecurity insurance, and ourthird-party service providers have invested inmeasures to reduce these risks.We recognise the fundamental privacyrights of all individuals we interact with. Weadhere to stringent data privacy standardsand regulations, ensuring that personaldata is handled with the utmost care andtransparency.We ensure privacy by design and default byintegrating privacy controls and considerationsin the early stages of all our new projects,products and solutions and by ensuringongoing confidentiality and security of datathroughout its lifecycle.Our global 'Data Privacy Risk and ControlFramework' helps identify, assess and improveprivacy controls required to manage key dataprivacy risks across our major markets	Negative

Sl.MaterialRisk orNo.issueopportunityidentified	Rationale for identifyingthe risk/opportunity		In case of risk, approach to adapt or mitigate	FinancialImplicationsof the risk oropportunity(indicatepositive OrnegativeImplications)
7RegulatoryRisk/compliance,OpportunityGovernancebeyondcompliance	Compliance with regulatoryrequirements in thepharmaceutical industry is acomplex process and presentsmultiple types of risks. Ifwe fail to comply fully withgovernment regulations or tomaintain continuing regulatoryoversight applicable to ourresearch and developmentactivities, or if a regulatoryagency delays or deniesapprovals for new products,it may increase the cost ofdeveloping new products,increase the risk of not beingable to successfully sell them,and affect the realisation ofproduct revenues. If we failto comply with the regulatorystandards of agencies inmanufacturing of qualityproducts, there may be adelay in approvals of newdrug applications or products,invite additional regulatoryor legal action, and increasecosts associated withremedial action, impactingour business, financialsand operations. If we fail tocomply with environmentallaws and regulations, faceenvironmental litigation, or anyof our plants or operations areshut down, it may severelyhamper our ability to supplyproducts to our customers,and we may face substantialcosts that could adverselyaffect our consolidatedfinancial position, results ofoperations or liquidity.Governance beyondcompliance can help us geta competitive edge, improvebusiness performance, makeoperations more efficient,help mitigate risks, enable	•••••••	We actively monitor upcoming regulatorychanges and emerging guidelines andrequirements, connecting regularly withregulatory agencies. We use tools such asLegatrix to track compliance obligations,generate reports, and stay updated on legal andcompliance changes.We have robust and comprehensive complianceprogrammes with policies, procedures, andguidelines for employees including training. Wealso use the Compliance Watch digital solutionfor managing statutory compliances and riskmitigation.We regularly monitor and assess all ouroperations and business practices to ensureadherence to legal and ethical standards, identifyany potential risks early, and promote a cultureof ethics and integrity at Dr. Reddy's. All our keybusiness functions are audited comprehensivelyat least once in three years, and we develop andimplement corrective & preventive actions toaddress any identified issues. These results arealso shared with our management and board.We go beyond just meeting the compliancerequirements through our principles and practicessuch as ensuring the same quality standardsfor all countries, practicing the highest ethicalvalues while marketing our products, and offeringproduct pricing that enhances higher patientreach, etc.Two of our key ESG goals focus on governancebeyond compliance - we are committed toupholding the highest standards of complianceand ethics, and progressively enhancing ourdisclosures.We use a more proactive and strategic approachto governance, incorporating ESG into businesspractices. This includes integrating ESG intoboard oversight, engaging with stakeholderson ESG issues, linking ESG goals to executivedirectors' compensation, integrating ESG into riskmanagement, and using ESG criteria to assesspartners and vendors.We conducted a double materiality assessmentthis year, an essential first step towards CRSDcompliance preparedness, evaluating materialtopics from both an ESG impact perspective andtheir potential influence on the organisation'sfinancial performance	Negative/Positive

stakeholder relationships.

Sl.No.	Materialissueidentified	Risk oropportunity	Rationale for identifyingthe risk/opportunity		In case of risk, approach to adapt or mitigate	FinancialImplicationsof the risk oropportunity(indicatepositive OrnegativeImplications)
8	Unethicalpractices,Bribery &corruption	Risk	Unethical practices may be asignificant risk as they couldlead to financial penalties,reputational damage, andeven criminal charges.Our commitment to strongcorporate governance isintegral to our business andit helps us create long-termvalue for all our stakeholders.	•	We have established a strong complianceframework and program. Our Code of BusinessConduct and Ethics (COBE) applies to allDirectors and employees of our Company,its subsidiaries, and affiliates. It lays downthe principles that guide our conduct andstrengthens our decision-making and promotesstakeholder trust. COBE has been designed tocomply with the requirements of Companies Act,2013, and the Sarbanes Oxley Act of 2002 andits implementing regulations.	Negative
			Considering the sheer sizeand nature of the industryand a combination offactors including complexityin distribution networks,interactions and high valuetransactions with publicentities, bribery and corruptionpose significant financial,regulatory, and reputationalrisks to pharmaceuticalcompanies. Our policiesmandate compliance from usand third parties acting on ourbehalf, with anti-bribery laws,which if not complied, maylead to substantial penaltiesincluding fines, criminalprosecution and potentialdebarment from publicprocurement contracts.	••	While contracts with our suppliers, contractors,and business partners include adherence toour principles concerning ethics, there is aseparate code of conduct required to be followedby our suppliers and service providers. OurGlobal Marketing Code provides a minimumset of standards in interacting with healthcareprofessionals and healthcare institutions, whileengaging in sales, research, marketing andpromotion are covered under the SupplierCode of Conduct (SCOC), which is modelledon the Principles for Responsible SupplyChain Management (PSCI), mandating 100%compliance.We conduct our business as per our Anti-Briberyand Anti-corruption policies, and all applicablelaws. The ABAC policy emphasises our zerotolerance approach to bribery and corruptionand principles established based on our ABACstandards.
				•	The board of directors maintains oversighton ABAC governance, ensuring that bestpractices of the ABAC management systemare established, implemented, maintained andreviewed to adequately address the company'sbribery & corruption risks, including the policyand the guidelines.
				•	Our third-party risk management (TPRM) policysets forth the ABAC policy standards requiredfor all our vendors and third-party agents.In addition to requiring initial due diligencescreenings and ABAC training and certification,our TPRM policy mandates that contracts withthese third parties include ABAC complianceobligations.

Sl.No.	Materialissueidentified	Risk oropportunity	Rationale for identifyingthe risk/opportunity		In case of risk, approach to adapt or mitigate	FinancialImplicationsof the risk oropportunity(indicatepositive OrnegativeImplications)
9	Processefficiencyandinnovation,Greenchemistry	Opportunity	Process efficiency andinnovation provide anopportunity to enhanceoperations, reduce costs, andaccelerate drug development.Using recycled and reusedmaterials also helpsreduce waste, and promotesustainability, minimisingreliance on virgin resourcesand optimising resourceutilisation. By focusingon improving processes,from drug development tomanufacturing and supplychain, we could achievehigher quality outcomes,reduced timelines, andgreater profitability.Green chemistry presents asignificant opportunity for usto become more sustainable,innovative, and cost-effective.Adopting green chemistryprinciples can help reduceoverall environmental impact,improve efficiency, lowerproduction costs, enhancesafety (due to reducedchemicals), and lead toinnovation while also aligningwith increasing public andregulatory expectations forenvironmental responsibility.	••••••	Through the OpsNext program, also known asthe Digital Lighthouse, we implemented over40 Industry 4.0 initiatives leveraging advancedanalytics, digital twins, robotic processautomation, augmented/virtual/mixed reality,digital performance management, and theindustrial internet of things (IIoT).We have integrated our strategy deploymentand daily performance dialogues, and arefocusing on maximising value creation andminimising waste in our processes throughLean Management System. Our lean initiativestarget a 20–30% boost in productivity, drivingboth steady incremental improvementsand substantive, large-scale changetransformations.In some of our operations, we recover thespent solvent through solvent recovery systemsand reuse it in our operations. We also reducepackaging layers and overall material usage,using recycled content where feasible, andensuring tertiary packaging materials arerecyclable or reusable.We use green chemistry to minimise oreliminate hazardous substances in chemicalprocesses and products.By improving Process Mass Intensity (PMI), weoptimise yield, enhance solvent and catalystrecovery, and minimise hazardous wastegeneration, seeing a 15-18% improvement inPMI values. We also reduced waste by 20-22%for 9 high-volume products.8 products were evaluated through chemistrygate clearance during FY2025. None ofthe evaluated products used acetonitrileor hazardous solvents in the developmentprocess.	Positive

Sl.No.	Materialissueidentified	Risk oropportunity	Rationale for identifyingthe risk/opportunity		In case of risk, approach to adapt or mitigate	FinancialImplicationsof the risk oropportunity(indicatepositive OrnegativeImplications)
10	Inadequateprocesssafetysystems,Occupationalhealthand safety(emergencyresponsesystem)	Risk	Inadequate safety systemsincrease the possibility ofequipment malfunction,often leading to severeconsequences for workerssuch as injuries and fatalities,and environmental damage.Proactively identifying,assessing and managingpotential hazards, ensuringadequate training, andimplementing stringent safetyand quality control measureshelps us ensure employeesafety, reduce environmentaldamage, and maintain ouroperational integrity andreputation.A lack of clear planning oreffective emergency responseprocedures, necessaryresources such as equipmentand communicationssystems, and trainedpersonnel, increases therisk of injuries, fatalities, andproperty damage.	••••	Process Safety is one of our key focusareas as we deal with various hazardouschemicals during manufacturing or R&Dactivities. We have framed our internalguidelines on process safety, and we carryout risk assessments including What-If,HIRA, and HAZOP to mitigate the processsafety risks from laboratory scale tocommercial operations by applying inherentsafety design principles with all effectivehierarchy of controls.We conduct monthly process safetygovernance at all sites and at the businessunit level with the required cross functionalteams, focusing mainly on reviewing thestatus and compliance on Process SafetyInformation (PSI), Process Hazard Analysis(What- If, HIRA, HAZOP), Management ofChange (MOC), Pre Start up safety review,revalidation of PHA with cyclical reviews andall proactive passive and active safeguardsalong with focusing on safe handling of highhazard processes and high hazard chemicals,continually enhancing competence ofemployees with adequate trainings.We ensure our employees and contractorsare adequately trained on safety hazards,governance systems, and precautionary andother safety measures.All our manufacturing facilities have an onsiteemergency plan that includes emergencypreparedness, with the goal of keeping ourbusiness up and running. The plan is revisedannually, and all credible scenarios are partof the plan, including frequent mock drills and	Negative
				•	full-site evacuation drills for concerns like fireand chemical spills.A well-equipped Emergency ResponseTeam (ERT), our incident management teamtrained in firefighting and rescue operations, ispresent at each location in each shift. All thelocations are equipped with the first aid kitsover and above the legal requirements.

Sl.No.	Materialissueidentified	Risk oropportunity	Rationale for identifyingthe risk/opportunity		In case of risk, approach to adapt or mitigate	FinancialImplicationsof the risk oropportunity(indicatepositive OrnegativeImplications)
11	Labourmanagement,Diversity &Inclusion,Talentretention(employeesatisfaction)	Risk/Opportunity	Labour management is asignificant risk due to highcompliance requirements onlabour practices, and talentshortages in the industry –particularly in STEM, andthe need for highly skilledexperienced professionals.Failure to address thesechallenges may lead todelays in research anddevelopment, productionissues, and failure to servepatients.Fostering diversity andinclusion in the workplacepresents a strategicopportunity as it offers abroader range of perspectivesfrom our people, leadingto more effective problemsolving and creative solutions.This could enable betterinnovation, improved patientcare, and a more engagedworkforce.	••••	We are committed to comply with labourmanagement regulations, maintain aworkplace free from discrimination, andensure proper remuneration for all employees.Our organisation is committed to adheringto the principles of International LabourOrganisation (ILO) conventions, ILO codeof practice, Universal Declaration of HumanRights, The International Covenant ofEconomic, Social, Cultural, Civil and PoliticalRights, UN Guiding Principles on Business andHuman Rights.We actively support STEM education initiatives,both internally and externally, and strengthenour talent pipeline through apprenticeshipswith local government initiatives focusingon skill development. We also offer trainingand job opportunities, particularly for youngwomen in science.We have set targets for gender parity as well asincreased women representation in leadership/top management positions to boost diversity.We are also committed to increasing therepresentation of persons with disabilities in ourworkforce.	Negative/Positive
			Competition amongpharmaceutical companiesfor qualified employees isintense, and the ability toretain and attract qualifiedindividuals is critical to oursuccess. Human capitaldevelopment initiativessuch as ensuring a positiveand equitable environment,investing in employee health,and offering training andskill development, enhanceemployee satisfaction andwellbeing. This enables talentretention, foster innovation,and drive productivity,providing a competitive edgeand translating to a positivebrand image.	•••	We are also working to increase therepresentation of women across roles andteams, exploring new entry level routes suchas apprentice hiring and actively recruitingwomen for STEM roles, while increasing ourrepresentation of women in manufacturing andsales roles.Through our women leadership developmentprogrammes, mentoring initiatives,representation in external forums andcoaching programs, we are invested in careerdevelopment for women leaders.We are working closely with Dr. Reddy'sFoundation to increase the representation ofPersons with Disabilities (PwDs), introducing afocused internship program to acclimatise andabsorb PwD employees into the workforce,while also sensitising hiring managers andrecruitment teams on infrastructure and supportrequired to enable them to deliver on their job

Sl.No.	Materialissueidentified	Risk oropportunity	Rationale for identifyingthe risk/opportunity		In case of risk, approach to adapt or mitigate	FinancialImplicationsof the risk oropportunity(indicatepositive OrnegativeImplications)
				•	We use people analytics to measure employeeperformance, identify current skill gaps, andflight risks to improve retention.
				•	We actively address and resolve structuraltalent gaps by providing long-term reskillingand upskilling opportunities to our workforce,including digital learning initiatives.
				•	We embed strategic workforce planning into ouroperations strategy, and this helps in fosteringinternal mobility for well-suited roles, enhancingpeople productivity and containing staff costs.
				•	We are maintaining an internal pipeline ofqualified and experienced critical talent,particularly in specialised fields, to deliver ourbusiness priorities.
12	Climatechange andGreenhousegasemissions	Risk	Climate change remainsa source of considerablethreat for pharmaceuticalcompanies, leadingto manufacturing andsupply chain disruptions,and increased need for	•	We are committed to carbon neutrality in ourdirect operations by 2030, and we aim toachieve net-zero emissions. We are assessingemissions pathways and reduction plans, withour near- and long-term targets undergoingapproval by the Science Based Targetsinitiative (SBTi).	Negative
			medications due to climateinduced health impacts (theconsequences of extremeweather events on foodsecurity, the harmful airpollution resulting fromwildfires, and the risingprevalence of infectious	••	Our decarbonisation strategy focuses onenergy mix, conservation, performance,transition, and eventually carbon sequestrationwith meaningful investments in afforestationand sustainable agriculture.We are committed to coal-free operations inall primary boilers by FY2026, with most of the
			diseases. Considering theindustry's energy-intensiveproduction processes andextensive supply chains,greenhouse gas (GHG)emissions pose severalrisks including operationalimpacts, regulatory penalties,reputational damage, andsupply chain disruptions,making pharmaceuticalcompanies vulnerable toclimate-related regulationsand public scrutiny.	••	boilers currently powered by biofuels and lowcarbon fuels like natural gas.To reduce our value chain emissions, we areengaging with high-value spend suppliers,building capacity of strategic suppliers, andshifting from air to sea shipments. We arealso diversifying our supply chain, sourcingraw materials sustainably and promoting localsourcing.In FY2025, we conducted a comprehensiveclimate risk assessment aligned with the IFRSS2 framework. Using scenario analysis, wemapped site-level climate exposures, assessedsupply chain vulnerabilities, and modelledfinancial impacts for key operational clusters.

Sl.No.	Materialissueidentified	Risk oropportunity	Rationale for identifyingthe risk/opportunity		In case of risk, approach to adapt or mitigate	FinancialImplicationsof the risk oropportunity(indicatepositive OrnegativeImplications)
13	Energyconsumption,Use ofrenewableenergy	Risk/Opportunity	As a pharmaceuticalcompany, the bulk of directemissions come from runningboilers and indirect emissionsfrom purchased electricity forboth industrial and domesticpurposes. Fluctuating energyprices, potential supply chaindisruptions due to energyshortages, and increasedenvironmental pressure toreduce carbon emissionsmay lead to higher productioncosts, quality issues, anddifficulties in meeting globalsupply demands.	••	We have established a transition plan for Scope1 and 2 emissions, with progress trackedthrough climate-related indicators. To meetnear-term goals, we are committed to using100% renewable electricity by 2030, switchingto biomass fuels for boilers, and reducingenergy demand through efficiency initiativesand green technologies.Our decarbonisation strategy includes reducingour energy consumption with energy efficienttechnologies and processes, adopting low or nocarbon fuels, substituting fossil fuels in boilerswith alternate biomass fuel sources such asrice husk and briquettes, purchasing energyfrom renewable sources, and realigning ourbusiness operations to lower emissions.	Negative/Positive
			The use of renewable energyoffers several opportunitiesincluding operational costsavings, reduced emissionsand a carbon footprint, andincreased energy resilienceand independence.	•Intrastate & Interstate (ISTS) renewableagreements effectively mitigate the risk ofpower purchase agreements help us pool	power supply through Dr Reddy's joint venturecompanies, and long term power purchasefluctuating energy prices. Joint ventures andresources and expertise, achieve economiesof scale and reduce costs, increase energysecurity through diversified supplies such assolar, wind & hydel, and stabilise energy prices.
				•	We have committed to transition to renewablepower by 2030 by maximising renewablecapacity utilisation with wind-solar hybridprojects, and transitioning from fossil fuels tobiomass in boilers and co-generation plants.We are exploring alternative biomass sourcessuch as rice husk and sawdust briquettes,securing long-term fuel contracts, and adoptingadvanced green technologies.
				•	We will continue investing in solar, hydel, andwind projects, driving energy management,conservation, and efficiency to accelerate ourgreen transition.

Sl.No.	Materialissueidentified	Risk oropportunity	Rationale for identifyingthe risk/opportunity		In case of risk, approach to adapt or mitigate	FinancialImplicationsof the risk oropportunity(indicatepositive OrnegativeImplications)
14	Water use,Wastewatermanagement	Risk	Water is a critical input to themanufacturing of medicines,used as a raw material inthe production, processingand formulation of APIs,intermediates and finishedpharmaceutical products(FPP), in the preparation ofsolvents and reagents, andfor cleaning (e.g. washingand rinsing). Inefficient watermanagement can lead tohigher production costs, andregulatory issues.Wastewater release andcontamination of local waterbodies can pose a significantrisk to communities, impactflora and fauna, contributingto loss of biodiversity,environmental degradationand pollution, along withpublic health issues andreputational damage.	•••	Water risks are assessed as part of anestablished enterprise risk managementframework periodically. We conduct thoroughwater risk and evaluation studies at all ourwatersheds to identify alternative rich waterresources.Our water management strategy involves keyfocus areas including water efficiency andoptimisation, identifying alternate water sourcesfor water security, and creating freshwaterpotential beyond the fence. Since FY2023, weare a water positive company.We introduced digitalisation and automation inFTO-7 Effluent Treatment Plant (ETP), resultingin improved ETP performance and reducedoperational costs. We also upgraded theexisting conventional biological reactor in ETPwith membrane bioreactor (MBR) systems attwo sites to enhance the treated water quality.	Negative
15	Hazardouswaste	Risk	Pharmaceutical waste,including chemicals usedin manufacturing, expireddrugs, and contaminatedmaterials, can contaminatewater sources, soil, and air,if not managed properly.This could lead to harmfuleffects on ecosystems andhuman health including drugresistance.	••	We have waste management systems in placeat all our facilities. Hazardous waste is directedto cement industries and recyclers for coprocessing and recycling, with approximately 1%being sent to landfill.We have ongoing improvement programmesaimed at reducing hazardous and nonhazardous waste. To ensure effectivetracking, we have established site-specifictargets for hazardous waste reduction, andwe are monitoring waste quantities across allmanufacturing sites.	Negative

Sl.No.	Materialissueidentified	Risk oropportunity	Rationale for identifyingthe risk/opportunity		In case of risk, approach to adapt or mitigate	FinancialImplicationsof the risk oropportunity(indicatepositive OrnegativeImplications)
16	Sustainablesupply chain,Responsiblesourcing	Risk/Opportunity	Sustainable supply chainmanagement presentssignificant opportunitiesto enhance operationalefficiency, reduce costs,improve product quality, andenhance brand reputation.By improving supply chainresilience, we can deliverbetter outcomes and serviceto our patients.Taking steps to sourceproducts and materialsmore sustainably andethically helps us gaincustomer trust, improvesupply chain resilienceand risk management, andbuild stronger relationshipswith suppliers. Localprocurement also helpspromote local developmentand employment, andreduce costs.	•••••••	We utilise a broad base of suppliers to minimiserisk arising from dependence on a single supplier.For each of our products, we continue to identify,upgrade, and develop alternate vendors as partof risk mitigation and continual improvement.We attempt to identify more than one supplierin each drug application or make plans foralternate vendor development from time to time,considering the supplier's history and futureproduct requirements.We are committed to building an ESG-compliantsupplier base, using Dr. Reddy's SupplierESG Framework to assess strategic supplierperformance. We conduct third party audits ofour suppliers based on specific ESG criteria,identify high-risk suppliers, and share a correctiveaction plan.We work only with third parties that meet ourethical standards, meeting the criteria in our thirdparty code of conduct across ESG dimensionsincluding ethics, compliance, labour and humanrights, safety etc.In FY2024, we were audited and awardedcompliance to the ISO 20400:2017 – SustainableProcurement Guidance, focusing on how tointegrate sustainability within procurement,as described in ISO 26000. Purchasecategory heads are guided by our sustainableprocurement manual and ensure thatsustainable criteria are integrated into supplierselection processes.We monitor and identify instances where thereis a deviation from the standard procurement orsupplier management processes. We evaluatethe impact of the deviation on procurementoperations, supplier relationships, regulatorycompliance, and overall organisational objectives,and then formulate strategies to address andmitigate the impact of the deviation. This includescorrective actions to bring the process back ontrack, avoiding its recurrence, finding alternativesuppliers, streamlining procurement strategies,emphasising procurement & corporate policies orimplementing contingency plans.51% of our input materials were sourced locally,from within India.100% of our sourcing and procurement teamacross all locations have received training onsustainable procurement.	Negative/Positive

Sl.No.	Materialissueidentified	Risk oropportunity	Rationale for identifyingthe risk/opportunity		In case of risk, approach to adapt or mitigate	FinancialImplicationsof the risk oropportunity(indicatepositive OrnegativeImplications)
17	Communityengagement	Opportunity	Contributing towardssustainable communitydevelopment and addressingcomplex social problemshelps us drive positivesocietal impact at scale	••••	Through our community-focusing projects,we focus on education, skilling & livelihood,healthcare, and environment, and align with theUN SDGs.We have a board-level Corporate SocialResponsibility (CSR) committee that isresponsible for overseeing and implementingour CSR activities. This committee isconstituted as per Section 135 of theCompanies Act.In FY2025, we invested ₹ 774.5 millionon community-focused projects, positivelyimpacting the lives of over 700,000 peoplethrough our community projects.We take up periodic third-party impactassessment studies of our initiatives, evaluatingthe progress made across each programme tomaximise the impact of our initiatives.	Positive

SECTION B

MANAGEMENT AND PROCESS DISCLOSURES

		Disclosure question	P – 1	P – 2	P – 3	P – 4	P – 5	P – 6	P – 7	P – 8	P – 9
		Concerned department
		Policy and management process
1.	A.	Whether your entity'spolicy/policies covereach principle and itscore elements of theNGRBCs. (Yes/No)					Yes
	B.	Has the policy beenapproved by theBoard? (Yes/No)					Yes (Note 1)
	C.	Web link of thePolicies, if available					Note 2
2.		Whether the entity hastranslated the policy intoprocedures. (Yes/No)		Yes. The Company's Code of Business Conduct and Ethics (COBE) and/or other policesimbibes the above-mentioned principles and the Company expects its stakeholders to adhereto the same in all their dealings.
3.Do the enlisted policiesextend to your value chainpartners? (Yes/No)				to the same in all their dealings.			Yes. The Company's Code of Business Conduct and Ethics (COBE) and/or other policesimbibes the above-mentioned principles and the Company expects its stakeholders to adhere
							The Company's Third Party Code of Conduct (TPCOC) applies to all the partner in thevalue chain, which imbibes the above-mentioned principles and the company expects itsstakeholders to adhere to the same in all their dealings
4.		Name of the nationaland internationalcodes/certifications/labels/standards (e.g.Forest StewardshipCouncil, Fairtrade,Rainforest Alliance,Trustea) standards (e.g.SA 8000, OHSAS, ISO,BIS) adopted by yourentity and mapped toeach principle.	GRIStandards2021, UNSDGs,SA8000,NGRBC	GRIStandards2021, UNSDGs, ISO14001,cGMP, ISO14044:2006	GRIStandards2021, UNSDGs, ISO45001,SA8000,UN GuidingPrincipleson Businessand HumanRights, ILOConventionsand Codesof Practice,UniversalDeclarationof HumanRights	GRIStandards2021, UNSDGs	GRIStandards2021, UNSDGs,SA8000,UN GuidingPrincipleson Businessand HumanRights, ILOConventionsand Codesof Practice,UniversalDeclarationof HumanRights	GRIStandards2021,UN SDGs,ISO 14001,ISO 45001,ISO 50001	GRIStandards2021, UNSDGs	GRIStandards2021, UNSDGs,NationalStandardsCSR Rulesprescribedby the Companies Act,2013	GRIStandards2021, UNSDGs, ISO27001
5.		Specific commitments,goals and targets set bythe entity with definedtimelines, if any.					Note 3
6.		Performance of the entityagainst the specificcommitments, goalsand targets along withreasons in case thesame are not met.					Note 4

Governance, leadership and oversight

7.	Statement by directorresponsible for theBusiness ResponsibilityReport, highlighting ESGrelated challenges, targetsand achievements	As we navigate a period marked by growing global health concerns and the pressing challengesposed by climate change, we remain steadfast in our commitment to embed sustainability deeply intoour strategy and operations. Our focus is on delivering long-term value while upholding principlesthat benefit society and the environment. Our ESG priorities are centred around creating meaningfulsocial impact for our patients and employees, lessen our ecological footprint and uphold responsiblebusiness practices that foster trust across our diverse stakeholder base.
		Guided by our aspiration to reach 1.5 billion patients by 2030, we are driving access to innovative,affordable medicines and working to reduce the global disease burden and improve health outcomesworldwide. We are also cultivating a workplace culture that embraces diversity, equity and wellbeing.In parallel, we are acting decisively to mitigate greenhouse gas emissions, shift towards renewableenergy sources and enhance water stewardship throughout our value chain.Strong governancestructures and clear policy frameworks are instrumental in turning our commitments into measurableactions. This report shares an honest view of our ESG achievements, ongoing challenges and theprogress we are making towards a more sustainable and inclusive future.
		G V Prasad, Co-Chairman and Managing Director
8.	Details of the highestauthority responsiblefor implementation andoversight of the BusinessResponsibility policy (ies)	Mr. Erez Israeli,Chief Executive OfficerTel: +91-40-4900-2222E-mail ID: shares@drreddys.com
9.	Does the entity have aspecified Committee of theBoard/Director responsiblefor decision making onsustainability relatedissues? (Yes/No). If yes,provide details	The Company has "Sustainability and CSR Committee" to act as nodal committee on overallsustainability goals and progress, amongst others. The detailed Charter of the said Committeeincluding the terms of reference on sustainability matters are available on the website of theCompany: https://www.drreddys.com/cms/cms/sites/default/files/static/SCSR-CommitteeCharter-19052022.pdf.Further, from ESG perspective, the Science, Technology and Operations Committee also deals withthe matter related to "E", the Nomination, Governance and Compensation Committee with "S" and theRisk Management Committee with "G". The respective Committees also update the Board regardingdeliberation and reviews on such matters.

• Note 1: The statutory policies are approved by the Board or Board Committees, as applicable. Other applicable policies are either approved by the Board or by the appropriate authority.
• Note 2: Code of Business Conduct and Ethics: https://www.[drreddys.com/media/983676/cobe-booklet-v40.pdf](https://www.drreddys.com/media/983676/cobe-booklet-v40.pdf) Human Rights policy: https://www.[drreddys.com/cms/cms/sites/default/files/2023-09/Human%20rights%20policy.pdf](https://www.drreddys.com/cms/cms/sites/default/files/2023-09/Human%20rights%20policy.pdf) Safety, Health, and Environment policy: https://www.[drreddys.com/media/888147/she-policy-document-24-07-2020.pdf](https://www.drreddys.com/media/888147/she-policy-document-24-07-2020.pdf) Third Party Code of Conduct: https://www.[drreddys.com/cms/cms/sites/default/files/2025-03/Third%20Party%20Code%20of%20](https://www.drreddys.com/cms/cms/sites/default/files/2025-03/Third%20Party%20Code%20of%20Conduct%202025.pdf) Conduct%202025.pdf

Global Marketing Code: https://www.[drreddys.com/cms/cms/sites/default/files/2023-08/Global%2520Marketing%2520Code.pdf](https://www.drreddys.com/cms/cms/sites/default/files/2023-08/Global%2520Marketing%2520Code.pdf) Corporate Social Responsibility policy: https://www.drreddys.com/cms/cms/sites/default/files/2025-05/CSR%20Policy.pd[f](https://www.drreddys.com/cms/cms/sites/default/files/2025-05/CSR%20Policy.pdf ) Ombudsperson policy: https://www.[drreddys.com/cms/cms/sites/default/files/2021-12/Ombudsperson.pdf](https://www.drreddys.com/cms/cms/sites/default/files/2021-12/Ombudsperson.pdf) Our comprehensive policies are placed on the website at https://www.[drreddys.com/investor#governance#policies](https://www.drreddys.com/investor#governance#policies-and-documents)-and-documents.

Note 3: We strengthened our commitment to sustainability and announced new environmental, social, and governance (ESG) goals for 2030 to make more meaningful impact through our sustainable development strategy.

A. Being committed to environmental stewardship: Reducing carbon emissions

• • 100% renewable power by 2030;
• • Carbon neutral in direct operations (Scope 1 and 2 emissions) by 2030;
• • 12.5% reduction in our indirect carbon emissions across our supply chain (Scope 3 emissions) by 2030

Water positivity

• • Water positive by 2025
• B. Making our products accessible and affordable for patients Access:
  • • Serve 1.5 billion patients by 2030

Affordability:

• 40% of our new launches to be first to market in our priority markets* by 2030

Innovation:

• • 3 innovative solutions every year from 2027 to improve the standard of treatment
• C. Contributing to a fairer and more socially inclusive world

Equity, diversity and inclusion

• • At least 35% women in senior leadership by 2030;
• • Gender parity by 2035.
• D. Enhancing trust with our stakeholders

Compliance, Ethics, and Corporate governance:

• Meet the highest standards on compliance and ethics backed by robust corporate governance

Disclosures and reporting

• Enhance disclosure on our ESG progress to reach top quartile by 2025

Suppliers

• 100% of our strategic suppliers to be compliant with our internal ESG framework by 2030

*Priority markets include U.S., Canada, EU5 (Germany, UK, Spain, France and Italy), India, Russia, China, and Brazil.

Note 4: Details on our ESG goals and progress are in the strategy and sustainability section on page 24 of the report.

10. Details of Review of NGRBCs by the Company

Subject for Review	P – 1	P – 2	P – 3	P – 4	P – 5	P – 6	P – 7	P – 8	P – 9
Performance against abovepolicies and follow-up action	The Sustainability and CSR Committee reviews the Company's performance against ESGgoals and targets. The Committee also reviews ESG strategies and programmes, policies,disclosures and related matters. The Committee updates the Board regarding deliberation andreviews on such matters. The Company has also constituted an internal Sustainability Councilare reviewed periodically or on need basis by the respective department heads/businessheads/Executive Directors. During these assessments, the efficacy of the policies is reviewedand necessary changes to policies and procedures are implemented.								that also reviews the performance against ESG goals and targets. The policies of the Company
	The Sustainability and CSR Committee reviews the performance on quarterly basis.
Compliance with statutoryrequirements of relevance tothe principles and rectificationof any non-compliances	The Company has constituted an internal Sustainability Council which reviews Compliancewith the statutory requirements of relevance to the principles and rectification of anynon-compliances, if any. The Council reviews the compliances periodically.
	The same is also reviewed by the Sustainability and CSR Committee on a quarterly basis.

11. Has the entity carried out independent assessment/evaluation of the working of its policies by an external agency? (Yes/No). If yes, provide name of the agency

The processes and compliances are subject to scrutiny by internal auditors and the status of compliances are updated to the Board. From best practices as well as from a risk perspective, policies are periodically evaluated and updated by various department heads/business heads and approved by the management/the Board Committees/the Board. An internal assessment of the workings of the Business Responsibility policies has been done.

12. If answer to question (1) above is "No" i.e. not all Principles are covered by a policy, reasons to be stated:

Not Applicable

SECTION C

PRINCIPLE-WISE PERFORMANCE DISCLOSURE

PRINCIPLE 1: BUSINESSES SHOULD CONDUCT AND GOVERN THEMSELVES WITH INTEGRITY, AND IN A MANNER THAT IS ETHICAL, TRANSPARENT AND ACCOUNTABLE

Essential Indicators

Total numberof training andawarenessprogrammes held	Topics/principles covered under the training and itsimpact	%age of personsin respectivecategory coveredby the awarenessprogrammes
12	Familiarisation/awareness programme for the Board ofDirectors/KMPs of the Company is done periodically aspart of Board process covering various areas pertainingto the business, strategy, risks, operations, regulations,code of business conduct and ethics, economy andenvironmental, social and governance parameters. Inaddition, frequent updates are shared with all the Boardmembers/KMPs to apprise them of developments in theCompany, key regulatory changes, risks, compliancesand legal cases.	100%
43,666	The employees/workers of the Company undergo varioustraining programmes throughout the year. Many trainings	81%
1,930	which entailed virtual classroom initiatives, along withdissemination of e-learning modules.Various trainings were undertaken during the yearsuch as Prohibition of Insider Trading, Prevention ofSexual Harassment at the Workplace, Information andCyber Security Awareness, Code of Conduct, KnowYour Customer guidelines, and an ESG training as ofemployee induction. Other trainings included inductionprogrammes for new recruits, leadership training, IT and	65%
		Percentage coverage by training and awareness programmes on any of the principles during the financial yearprogrammes followed a blended learning approachcyber security and modules on soft skills, programmes onmental and physical well-being, among several others

Details of fines/penalties/punishment/award/compounding fees/settlement amount paid in proceedings (by the entity or by directors/KMPs) with regulators/law enforcement agencies/judicial institutions, in the financial year, in the following format (Note: the entity shall make disclosures on the basis of materiality as specified in Regulation 30 of SEBI (Listing Obligations and Disclosure Obligations) Regulations, 2015 and as disclosed on the entity's website)

Monetary

2.

	NGRBCPrinciple	Amount (`)Name of the Regulatory/enforcement agencies/judicial institutes	Brief of theCase	Has an appealbeen preferred(Yes/No)?
Penalty/Fine
Settlement		Nil
Compounding fees

Non-monetary

	NGRBCPrinciple	Amount (`)Name of the Regulatory/enforcement agencies/judicial institutes	Brief of theCase	Has an appealbeen preferred(Yes/No)
Imprisonment
Punishment		Nil

3. Of the instances disclosed in Question 2 above, details of the appeal/revision preferred in cases where monetary or non-monetary action has been appealed

Not applicable

4. Does the entity have an anti-corruption or anti-bribery policy? If yes, provide details in brief and if available, provide a web-link to the policy

Yes. Dr. Reddy's has an Anti-bribery and Anti-corruption policy. The policy has been developed in alignment with Dr. Reddy's Code of Business Conduct and Ethics (COBE), other internal policies such as Ombudsperson policy and other rules and regulations relevant to Anti-Bribery and Anti-Corruption that govern the Company because of its geographical presence in multiple countries. The policy reiterates that Dr. Reddy's does not tolerate any bribery and corruption directly or indirectly and uphold the highest standards of integrity and transparency in all its interactions and business activities. The Anti-bribery and Anti-corruption policy is available on the intranet platform of the Company.

The policy forms part of the COBE, applies to all members of the Board of Directors, full and part-time employees of the Company, its subsidiaries and affiliates. All business partners are also expected to follow the same standard of ethics when conducting business with the Company or on its behalf. (https://www.drreddys.com/investor#governance)

5. Number of Directors/KMPs/employees/workers against whom disciplinary action was taken by any law enforcement agency for the charges of bribery/corruption

	FY2024-25	FY2023-24
Directors	Nil	Nil
KMPs	Nil	Nil
Employees	Nil	Nil
Workers	Nil	Nil

29

6. Details of complaints with regard to conflict of interest

		FY2024-25	FY2023-24
	Number	Remarks	Number	Remarks
Number of complaints received in relation to issuesof conflict of interest of the directors	Nil	Not applicable	Nil	Not applicable
Number of complaints received in relation to issuesof conflict of interest of the KMPs	Nil	Not applicable	Nil	Not applicable

7. Provide details of any corrective action taken or underway on issues related to fines/penalties/action taken by regulators/law enforcement agencies/judicial institutions, on cases of corruption and conflicts of interest

Not applicable

8. Number of days of accounts payables ((Accounts payable *365)/Cost of goods/services procured) in the following format

	FY2024-25	FY2023-24
	Current	Previous
	Financial Year	Financial Year
Number of days of accounts payables1	76	80

1 Number of days of accounts payables is calculated on procurement of materials.

9.9. Open-ness of business

Details of concentration of purchases and sales with trading houses, dealers, and related parties along-with loans and advances & investments, with related parties:

Parameter		Metrics	FY2024-25	FY2023-24
			Current	Previous
			Financial Year	Financial Year
Concentration of	a)	Purchases from trading houses as % of total purchases	18.6	20
Purchases	b)	Number of trading houses from where purchases are made from	38	45
	c)	Purchases from top 10 trading houses as % of total purchasesfrom trading houses	15	14
Concentration of	a)	Sales to dealers/distributors as % of total sales	30.6	31.0
Sales1	b)	Number of dealers/distributors to whom sales are made	6,178	7,375
	c)	Sales to top 10 dealers/distributors as % of total sales todealers/distributors	15.8	17.6
Share of RPTs	a)	Purchases (purchases with related parties/total purchases)	0.71	0.52
	b)	Sales (sales to related parties/total sales)	0.002	Nil
	c)	Loans & advances (loans & advances given to related parties/total loans & advances)	Nil	Nil
	d)	Investments (investments in related parties/total investmentsmade)	Nil	Nil

1 As per Ind AS standalone financial statements

Leadership Indicators

1. Awareness programmes conducted for value chain partners on any of the principles during the financial year

		Awareness programmes conducted for value chain partners on any of the principles during the financial year
Sl.	Total numberof awarenessprogrammes held	Topics/principles covered under the training	Percentage of value chain partners covered(by value of business done with suchpartners) under the awareness programmes
1	494	Defensive Driving training & road safety awareness	99
2	4	ESG Capability Building for Strategic Suppliers	100
3	8	ESG Capability Building programme duringsupplier summits	41

2. Does the entity have processes in place to avoid/manage conflict of interests involving members of the Board? (Yes/No) If yes, provide details of the same

Yes. The Company has a Conflict-of-Interest Policy which lays down the principles and standards that govern the actions of the Company including its subsidiaries, joint ventures and its directors, officers and employees (full time or part time, contract employees and consultants). This Policy provides guidance for recognising, reporting and resolution of any actual, potential or perceived conflict of interest.

Further, as part of the governance ecosystem, the Company has adopted best practices on reviews of conflict of interest of Directors. In case any director is getting appointed or associated with any new organisation, such director makes a proactive disclosure of his association with the new organisation to the Chairman and the Company Secretary. The said disclosure is placed before the next meeting of the Nomination, Governance and Compensation Committee (NGCC) for reviewing the conflict or potential conflict of the situation of such director, if any, with the Company after being associated with the new organisation. The Director's disclosures are also placed before the Board and conflict of interest, if any, is discussed and reviewed by the Board. The Board collectively is responsible for decision-making on the conflict of interest disclosed to the Board for any business decisions, wherein any of the Directors are interested.

PRINCIPLE 2: BUSINESSES SHOULD PROVIDE GOODS AND SERVICES IN MANNER THAT IS SUSTAINABLE AND SAFE

Essential Indicators

Percentage of R&D and capital expenditure (capex) investments in specific technologies to improve the environmental and social impacts of product and processes to total R&D and capex investments made by the entity, respectively

	FY (2024-25)	PY (2023-24) Details of improvements in environmental and social impacts
R&D	100	100 R&D expenditure in various technologies is focused on improving theenvironmental and social impacts of our products/processes
Capex	2.0	2.0 Reduction in usage of non-renewable energy sources. Reduction of freshwaterfootprint in facilities by implementing water efficiency improvement/operationalexcellence projects, and technology interventions in wastewater treatment plant.Safety of employees and stakeholders.

2. a. Does the entity have procedures in place for sustainable sourcing

1.

Yes, the Company has procedures in place for sustainable and responsible sourcing.

b. If yes, what percentage of inputs were sourced sustainably

100% of our inputs are sourced from suppliers who abide by our Supplier Code of Conduct. Our Supplier Code of Conduct has a clear policy on sustainability requirements.

3. Describe the processes in place to safely reclaim your products for reusing, recycling and disposing at the end of life, for

(a) Plastics (including packaging) We have waste management systems in place at all our facilities. Plastic waste is either co-processed or recycled based upon the type of waste generated. E-waste is sold to authorised vendors. 99% of our global hazardous waste is sent to cement industries and recyclers for co-processing and recycling. The remaining 1% of global hazardous waste is sent to landfill. Other non-hazardous waste such as glass, MS scrap, wood waste, and boiler ash, etc. are sent to recyclers, cement industries for co-processing or to brick manufacturers. (b) E-waste (c) Hazardous waste

We also monitor the waste management in further value chain wherein all our expired products are incinerated at authorised destruction vendor. (d) Other waste

Other waste like plastic drums/pallets etc. used for transportation are sold out to scrap vendors who are known for either re-use/recycle.

4. Whether Extended Producer Responsibility (EPR) is applicable to the entity's activities (Yes/No). If yes, whether the waste collection plan is in line with the Extended Producer Responsibility (EPR) plan submitted to Pollution Control Boards? If not, provide steps taken to address the same

Yes, we work in compliance with India's Plastic Waste Management Rules, 2016 (subsequent abatements) and the Extended Producer Responsibility (EPR) guidelines. Our waste collection plan is in line with the EPR plan submitted to Pollution Control Board (PCB). During the year FY2025, we have collected 2,654 tonnes of waste and disposed off in environment-friendly manner as per the EPR requirements.

Leadership Indicators

1. Has the entity conducted Life Cycle Perspective/Assessments (LCA) for any of its products (for manufacturing industry) or for its services (for service industry)? If yes, provide details

Yes, we have completed LCA of two of our Active Pharmaceutical Ingredient (API) products during the year FY2025.

Sl.No.	NICCode	Name ofProduct/Service	%ageof totalturnovercontributed*	Boundaryfor which theLife CyclePerspective/Assessmentwas conducted	Whetherconducted byindependentexternalagency(Yes/No)	Resultscommunicated inpublicdomain(Yes/No)	If yes, provide the web-link
1		21009 QuetiapineFumerate	1.01	Cradle to gate	Yes	Yes	https://www.drreddys.com/cms/cms/sites/default/files/2025-06/LCA%20Report%20of%20Quetiapine%20Fumarate.pdf
2		21009 SitagliptinHCl	2.40	Cradle to gate	Yes	Yes	https://www.drreddys.com/cms/cms/sites/default/files/2025-06/LCA%20Report%20of%20Sitagliptin%20Hydrochloride%20Monohydrate.pdf

*w.r.t API Sales

2.

If there are any significant social or environmental concerns and/or risks arising from production or disposal of your products/services, as identified in the Life Cycle Perspective/Assessments (LCA) or through any other means, briefly describe the same along with action taken to mitigate the same

Action taken to mitigate significant social or environmental concerns and/or risks arising from production or disposal of products/services

Sl. Name of product/service Description of the risk/concern Action taken There were no significant social or environmental concerns raised from the LCA analysis of our two API products.

3. Percentage of recycled or reused input material to total material (by value) used in production (for manufacturing industry) or providing services (for service industry)

Not applicable. As in the pharmaceutical industry we can't use recycled or reused input materials in the manufacturing process due to its nature of products. However, in some of our operations, we recover the spent solvent through solvent recovery system and reuse the same in our operations.

4. Of the products and packaging reclaimed at end of life of products, amount (in metric tonnes) reused, recycled, and safely disposed

		Current Financial Year			Previous Financial Year
	Re-used	Recycled	Safelydisposed	Re-used	Recycled	Safelydisposed
Plastics (including packaging)	0	0	0	0	0	0
E waste	0	0	0	0	0	0
Hazardous waste – Expired Product	0	0	813 tonnes	0	0	895 tonnes
Other waste	Cold boxes10,105units	0	0	Cold boxes31,376units	0	0

5. Reclaimed products and their packaging materials (as percentage of products sold) for each product category

Sl.No.	Indicate product category	Reclaimed products and their packaging materials as %age of total productssold in respective category
1	Cold boxes	92% of these boxes are reused at CFA or stockist level

PRINCIPLE 3: BUSINESSES SHOULD RESPECT AND PROMOTE THE WELL-BEING OF ALL EMPLOYEES, INCLUDING THOSE IN THEIR VALUE CHAINS

Essential Indicators

1. a. Details of measures for the well-being of employees

						% of employees covered by
Category		Total		HealthInsurance		AccidentInsurance		MaternityBenefit		PaternityBenefits		Day CareFacilities
		No.	%	No.	%	No.	%	No.	%	No.	%
Permanent employees
Male	21,298	21,298	100%	21,298	100%	NA	NA	21,298	100%	21,298	100%
Female	5,642	5,642	100%	5,642	100%	5,642	100%	NA	NA	5,642	100%
Other	4	4	100%	4	100%	NA	NA	NA	NA	4	100%
Total	26,944	26,944		26,944		5,642		21,298		26,944
Other than permanent employees
Male	5,199	5,199	100%	5,199	100%	NA	NA	5,199	100%	5,199	100%
Female	2,838	2,838	100%	2838	100%	2,838	100%	NA	NA	2,838	100%
Other	0	0	100%	0	100%	NA	NA	NA	NA	0	100%
Total	8,037	8,037		8,037		2,838		5,199		8,037

1. b. Details of measures for the well-being of workers

Category	% of workers covered by
	Total	HealthInsurance		AccidentInsurance		MaternityBenefit		PaternityBenefits		Day CareFacilities
		No.	%	No.	%	No.	%	No.	%	No.	%
Permanent workers
Male	552	552	100%	552	100%	NA	NA	552	100%	552	100%
Female	21	21	100%	21	100%	21	100%	NA	NA	21	100%
Other	0	0	-	0	-	NA	NA	NA	NA	0	-
Total	573	573		573		21		552		573
Other than permanent workers
Male	6,257	6,257	100%	6,257	100%	NA	NA	6,257	100%	6,257	100%
Female	1714	1714	100%	1714	100%	1714	100%	NA	NA	1714	100%
Other	0	0	-	0	-	NA	NA	NA	NA	0	-
Total	7,971	7,971		7,971		1714		6257	-	7,971	100%

1. c. Spending on measures towards well-being of employees and workers (including permanent and other than permanent)

	FY2024-25	FY2023-24
	Current	Previous
	Financial Year	Financial Year
Cost incurred on well-being measures as a % of total revenue of the company*	0.20%	0.20%

*Based on standalone basis

2. Details of retirement benefits, for current financial year and previous financial year

Benefits		FY2024-25			FY2023-24
	No. of	No. of	Deducted	No. of	No. of	Deducted
	employees	workers	and	employees	workers	and
	covered as	covered as	deposited	covered as	covered as	deposited
	a % of total	a % of total	with the	a % of total	a % of total	with the
	employees	workers	authority	employees	workers	authority
			(Y/N/N.A.)			(Y/N/N.A.)
PF	100.0	100.0	Yes	100.0	100.0	Yes
Gratuity	100.0	100.0	NA	100.0	100.0	NA
ESI	2.0	0	Yes	2.9	0.0	Yes
Others – Superannuation	3.0	NA	Yes	3.0	NA	NA

3. Accessibility of workplaces: Are the premises/offices of the entity accessible to differently abled employees and workers, as per the requirements of the Rights of Persons with Disabilities Act, 2016? If not, whether any steps are being taken by the entity in this regard

Yes. The premises/offices of the Company, including the registered and corporate offices have ramps or elevators to enable easy movement. Most offices are located either on the ground floor or have elevators and infrastructure for differently abled individuals. Wheelchair accessible restrooms are also available at certain premises. We conduct audits for physical and digital accessibility and remedial steps are being followed to enable people with disabilities further. An Employee Resource Group (ERG) for people with disabilities has been established to support and enable inclusion further within our workplace. Regular sensitisation of employees are conducted in partnership with Dr. Reddy's Foundation when people with disabilities are hired in the organisation.

4. Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016? If so, provide a web-link to the policy

Yes. The Code of Business Conduct and Ethics (COBE) of the Company provides for an Equal Opportunity Policy to create an inclusive work environment by fostering diversity in the workplace, and to treat all employees equally irrespective of gender, age, physical disability, creed, religion, sexual orientation, racial background, pregnancy, place of origin, caste, political affiliation or other discriminatory factors. We value diversity in our workforce and thus encourage and nurture talent within the organisation. We work best when there is an atmosphere of mutual trust and co-operation. The policy is available at the Company's website at: https://www.[drreddys.com/cms/cms/sites/default/files/202](https://www.drreddys.com/cms/cms/sites/default/files/2021-11/cobe-booklet-v40.pdf)1-11/cobe-booklet-v40.pdf.

Further, the Equal Employment Opportunity (EEO) Statement states that Dr. Reddy's maintains a work environment, that is free from discrimination, and is an equal opportunity employer. We are committed to employ and nurture all qualified diverse workforce without regard to race, colour, religion, national origin, sex, age, disability status, genetics, sexual orientation, gender identity or expression, marital status, citizenship or any other characteristic or classification protected by the applicable law(s) of the countries we operate in. We apply these principles in all aspects of employment, including recruitment, hiring, placement, promotion, termination, lay off, transfer, leaves of absence, training and compensation. The Company assures all employees that no individual filing a complaint will be discriminated against, as a result of their complaint. The policy is available at the Company's career website at:https://careers.drreddys.com/#!/#eeo-statement.

5. Return to work and retention rates of permanent employees and workers that took parental leave

Gender	Permanent employees		Permanent workers
	Return to work rate		Retention rate Return to work rate	Retention rate
Male	94.9%	86.5%	-	-
Female	95.7%	81.1%	-	-
Others	-	-	-	-
Total	95.0%	85.6%	-	-

6. Mechanism available to receive and redress grievances for the following categories of employees and workers, if yes, details of the mechanism in brief

	Yes/No	(If Yes, then give details of the mechanism in brief)
Permanent workers	Yes	The Company has an Ombudsperson Policy (whistle-blower or vigil mechanism)
Other than permanent workers Yes		applicable to employees and third parties, to report concerns on actual or suspected
Permanent employees	Yes	violations of the code or any applicable laws and regulations. The Audit Committee
Other than permanentemployees	Yes	Chairperson is the Chief Ombudsperson.Concerns raised to the Company and their resolution are reported through the ChiefOmbudsperson to the Audit Committee and where applicable, to the Board.The policy provides avenues to report concerns directly to the Compliance Team.Refer link of the policy and reporting channels separately mentioned below.Ombudsperson Policy Link: https://www.drreddys.com/investor#governanceOmbudsperson reporting channel website link: https://drreddys.ethicspoint.com/

Category		FY2024-25		FY2023-24
	Totalemployees/workers inrespectivecategory	No. of employees/workers inrespectivecategory, whoare part ofassociation(s) orunion	%	Totalemployees/workers inrespectivecategory	No. of employees/workers inrespectivecategory, whoare part ofassociation(s) orunion	%
Total permanent employees	26,944	0	0	26,343	0	0.0
Male	21,298	0	0	21,119	0	0.0
Female	5,642	0	0	5,219	0	0.0
Other	4	0	0	5	0	0.0
Total permanent workers	573	434	75.7	643	435	67.7
Male	552	416	75.4	600	417	69.5
Female	21	18	85.7	43	18	41.9
Other	0	0	0	0	0	0

7. Membership of employees and workers in association(s) or unions recognised by the Company

8. Details of training given to employees and workers

			FY2024-25			FY2023-24
	Total		On healthand safetymeasures		On skillupgradation		TotalOn healthOn skilland safetyupgradationmeasures
		Nos.	%	Nos.	%		Nos.	%	Nos.	%
Employees
Male	21,298	9,850	46.3	20,522	96.4	21,119	9,095	43.1	19,006	90.0
Female	5,642	2,308	40.9	5,358	94.9	5,219	2,105	40.3	5,219	100.0
Other	4	4	100	4	100	5	1	20.0	5	100.0
Total	26,944	12,162	45.1	25,884	96.1	26,343	11,201	42.5	24,230	92.0
Workers
Male	552	284	51.5	356	64.5	600	347	57.8	595	99.2
Female	21	18	85.7	18	85.7	43	43	100	43	100
Other	0	0	0	0	0	0	0	0	0	0
Total	573	302	52.7	374	65.3	643	390	60.7	638	99.2

Note - The above table doesn't contain the trainings provided to contract workmen. For Contract workmen trainings are imparted at three levels:

1. general safety training

2. job-specific training

3. daily safety briefing before start of the particular task

100% contract workmen undergo safety training.

9. Details of performance and career development reviews of employees and workers

		FY2024-25		FY2023–24
	Total	Nos.	%	Total	Nos.	%
Employees
Male	21,298	19,853	93.22	21,119	20,822	98.6
Female	5,642	5,040	89.33	5,219	5,107	97.9
Other	4	4	100	5	5	100
Total	26,944	24,897	92.40	26,343	25,934	98.4
Workers
Male	552	540	97.83	600	57	9.5
Female	21	21	100	43	24	55.8
Other	0	0	0	0	0	0
Total	573	561	97.91	643	81	12.6

10. Health and safety management system

a. Whether an occupational health and safety management system has been implemented by the entity. If yes, the coverage of such system

Yes, we have implemented an occupational health and safety management system. All our Indian manufacturing facilities are certified under ISO 45000. The coverage is 100% of our entity, and it includes both regular employees and contractors.

b. What are the processes used to identify work-related hazards and assess risks on a routine and non-routine basis by the entity?

We have developed a guidance document which provides the course on how to identify, evaluate safety, health & environment risks and reduce them to an acceptable level by strengthening existing control and or incorporating additional controls for all the activities within premises of the organisation. The guidelines clearly outlines the processes, roles and responsibilities. We have implemented various tools like JSA, HIRA, Process Hazard Analysis, HAZOP to identify work-related hazards and assess risk of routine and non-routine activities.

c. Whether you have processes for workers to report the work-related hazards and to remove themselves from such risks. (Y/N)

Yes, every department head interacts with all members on Safety matters daily through toolbox talk. In this forum, workmen actively participate and give suggestions and feedback for improvements.

d. Do the employees/workers of the entity have access to non-occupational medical and healthcare services? (Yes/No)

Yes, Employees have access to non-occupational medical and healthcare services via the medical insurance. MHI (My Health Index) includes Diet Coach (Dietician), Fitness Coach (Physiotherapist) and Happiness Coach (Psychologist) which is being run at some sites of Dr. Reddy's in India have holistic healthcare services available on site.

37

11. Details of safety-related incidents

Safety Incident/Number	Category	FY2024-25	FY2023-24
Lost Time Injury Frequency Rate (LTIFR) (per one million-person	Employees	0.03	0.14
hours worked)Total recordable work-related injuries	Workers1	0.12	0.14
	Employees	21	22
	Workers1	20	19
	Employees	0	0
No. of fatalities	Workers1	0	0
High consequence work-related injury or ill-health (excluding	Employees	0	0
fatalities)	Workers1	0	1

1 Workers means other than permanent workers

12. Describe the measures taken by the entity to ensure a safe and healthy workplace

At Dr. Reddy's, we emphasise strongly on the health, safety, and well-being of our people. We continuously strive to create a work environment that is free from any occupational hazards, regardless of where our people are located or what type of work they carry out. We have developed and implemented strong Health and Safety systems at all our plants. These systems are guided and driven by our established policies and procedures. Periodic assessments are conducted to evaluate the effectiveness of the systems implemented and appropriate measures are taken to further improve our H&S performance continually.

13. Number of Complaints on the following made by employees and workers

	FY2024-25			FY2023–24
	Filedduring theyear	Pendingresolutionat the endof year	Remarks	Filedduring theyear	Pendingresolutionat the endof year	Remarks
Working Conditions	Nil	Nil	-	Nil	Nil	-
Health & Safety	Nil	Nil	-	2	1	-

14. Assessments for the year

	% of your plants and offices that were assessed (by entity or statutoryauthorities or third parties)
Health and safety practices	100%
Working Conditions	100%

15. Provide details of any corrective action taken or underway to address safety-related incidents (if any) and on significant risks/concerns arising from assessments of health & safety practices and working conditions

Leadership Indicators

1. Does the entity extend any life insurance or any compensatory package in the event of death of (A) Employees (Y/N) (B) Workers (Y/N)

Yes, it extends to both employees and workers.

2. Provide the measures undertaken by the entity to ensure that statutory dues have been deducted and deposited by the value chain partners

The Company ensures that statutory dues as applicable to the transactions within its remit are deducted and deposited in accordance with extant regulations. This activity is also reviewed as part of the internal and statutory audit. The Company expects its value chain partners to uphold business responsibility principles and values of transparency and accountability.

3. Provide the number of employees/workers having suffered high consequence work-related injury/ill-health/ fatalities (as reported in Q11 of Essential Indicators above), who have been rehabilitated and placed in suitable employment or whose family members have been placed in suitable employment

Total no. of affected employees/workers No. of employees/workers that are rehabilitated and placed in suitable employment or whose family members have been placed in suitable

			employment
	FY2024-25	FY2023-24	FY2024-25	FY2023-24
Employees	0	0	0	0
	0	1	0	Given suitable medical
Workers				care and salary being
				paid

4. Does the entity provide transition assistance programmes to facilitate continued employability and the management of career endings resulting from retirement or termination of employment? (Yes/No)

Yes, the Company provides transition assistance programmes to facilitate continued employability and the management of career endings resulting from retirement or termination of employment.

5. Details on assessment of value chain partners

	% of value chain partners (by value of business done with such partners) that wereassessed
Health and safety practices	We conduct periodic supplier risk assessments for our value chain partners through a thirdparty to better understand our value chain risk exposure. In the last two years, we haveassessed 21% of our global value chain partners on multiple ESG parameters. During the
Working conditions	year, we have assessed suppliers representing ~12% of direct spend globally.

6. Provide details of any corrective actions taken or underway to address significant risks/concerns arising from assessments of health and safety practices and working conditions of value chain partners

We have shared corrective action reports post assessment to our strategic suppliers and we are in the process of reviewing their performance.

PRINCIPLE 4: BUSINESSES SHOULD RESPECT THE INTERESTS OF AND BE RESPONSIVE TO ALL ITS STAKEHOLDERS

Essential Indicators

1. Describe the processes for identifying key stakeholder groups of the entity

We consider individuals, groups, institutions, or entities that contribute to shaping our business, that add value or constitute a core part of the business value chain as key stakeholders. Our stakeholders are both internal and external, and direct as well as indirect. Our process of identification and classification of the stakeholders is defined by their interest, impact and participation in operations of the Company including engagement on various environmental, social and governance matters. Delivering on stakeholder needs, interests and expectations are integral to the way we operate. We keenly listen to our stakeholders and have established various touchpoints and tools for communication, advocacy and engagement. Our key stakeholders include employees, investors, suppliers and partners, customers, government authorities, healthcare professionals, patients and the community.

2. List stakeholder groups identified as key for your entity and the frequency of engagement with each stakeholder group

	Sl. StakeholderGroup	Whetheridentified asVulnerable &MarginalisedGroup	Channels of communication	Frequencyofengagement	Purpose and scope of engagementincluding key topics and concernsraised during such engagement
1	Employees	No	We use digital as wellas physical channels ofcommunication including but notlimited to e-mails, newsletters,intranet, townhalls andleadership touchpoints, pulsesurveys for employee feedbackand redressal, and appraisal	Daily	Through multiple physical and digitalchannels of communication, we aim toprovide our employees a safe, inclusiveand empowering workplace thatencourages transparent engagementand the freedom to act, innovate andgrow as professionals and individuals.
			and training programmes forpersonal and professionalgrowth.		Our ongoing effort is to maintaintwo-way engagement with colleaguesglobally including those in corporateoffices, R&D laboratories, manufacturinglocations and in the field. Ourengagement ranges from discussingthe Company's strategy, growthopportunities, operational execution,industry developments, employeeperformance and career growthopportunities, capability building,recognition and celebrations.
2	Investors	No	We interact with ourshareholders, potentialinvestors and researchanalysts through investormeetings/calls, conferences,earnings call, investor events,e-mail, press releases, stockexchange intimations, investorpresentations and annualreports. We also provide variousupdates on our website andother places of engagement.	Frequent andneed-based	We engage with investors to update onthe business and financial performance,Company's strategy and growth levers,potential opportunities and risks, ourESG goals/actions, and material eventswhich may have a positive or negativeimpact on the performance of theCompany.

	Sl. StakeholderGroup	Whetheridentified asVulnerable &MarginalisedGroup	Channels of communication	Frequencyofengagement	Purpose and scope of engagementincluding key topics and concernsraised during such engagement
3	Patients	Yes,dependingon variousfactors suchas health,income,access andothers	We engage with patientsthrough multiple assistanceprograms (Financial assistance,Lifestyle support, Education,counselling), Diseasemanagement and awarenessinitiatives.We also use different marketingchannels (print, digital, socialmedia) to inform patientsabout our OTC products.Customer services support arealso provided to report anyfeedback/adverse effects fromour products.	Frequent andneed-based	Patient-centricity is the core tenet ofour strategy. Through our customerassistance and outreach programmes,we educate, provide support,awareness, and increase adherence toimprove the health of our patients. Beingcloser to the patient also allows us toidentify and address the unmet patientneeds and develop better products/services for the patients. We addresspatient-related queries/feedback andany drug-related concerns. We alsocreate awareness and breaking variousmyths on managing various diseases ormedical treatments.
4	Health CareProfessionals	No	We use physical and digitalchannels such as e-mail,webinar/conferences, electronicupdates, portals as well as inperson visits and collaterals.	Frequent andneed-based	Our engagement aims to updatehealthcare professionals on products,innovations, access, availability of ourmedicines and healthcare solutions.Engagement also includes discussionon therapy advances, science ofmedicines and patient needs.
5	Customers	No	Physical and virtual meetings,customer events, calls, e-mail,website	Daily	We engage with our customers toensure regular supply of the products,keep them informed about newproducts, participate in the bids/tenders,maximise the outreach of our productsand to assess customer satisfaction.
6	Suppliers &Partners	No	On-site meetings, virtualmeeting, business partner'smeet, supplier forums, partnerevents, calls, e-mail, satisfactionsurvey, website	Frequent/QuarterlyGovernancecalls/Annualmeet	Making a holistic impact on the health ofpatients worldwide requires us to workwith partners across the healthcarevalue chain.We emphasise fair, transparent, andethical practices and seek partnerswho share the same commitmenttowards compliance with laws,regulations, published standards andenvironmental practices. Our supplierengagement includes capability buildingprogrammes, audit CAPA governanceand tracking, business partner meetsand includes discussions on our ESGgoals, efficiency in manufacturing,stronger quality management practices,

human rights policies and standards, and working together to advance our

sustainability agenda.

	Sl. StakeholderGroup	Whetheridentified asVulnerable &MarginalisedGroup	Channels of communication	Frequencyofengagement	Purpose and scope of engagementincluding key topics and concernsraised during such engagement
7	Governmentauthorities	No	Our interactions withauthorities take place throughe-mails, meetings, audits,representations, filings andsubmissions.	Need-based	Our engagement with official authoritiesis multi-fold. With regulatory authorities,our engagement is aimed at dischargingresponsibilities and furthering our corebusiness of product development,launch, manufacturing, etc. in keepingwith the latest and highest standardsof compliance. With policy-makers,our engagement aims to understandand discuss matters pertaining to theindustry.
					We do advocacy and makerepresentations on various regulatoryand policy issues to strengthen thehealthcare eco-system through policyinterventions and ensure timely accessto quality medicines at affordable prices.
8	Community	Yes,dependingon variousfactors suchas health,income andothers	Our engagement with thecommunity includes interactions,collaborations, onsite visits,email and other digital channels.	Frequent andneed-based	With giving back to society as a coretenet of the Company, our corporatesocial responsibility and employeevolunteering programmes targetthe areas of education, skilling andlivelihood, health and environmentalsustainability through partners and localNGOs.
					Additionally, we also run training,awareness and empowermentprogrammes. We engage withlocal community to understandtheir challenges and work for theirsustainable development.
9	Third Partylogisticsserviceproviders andCFAs	No	Onsite/virtual meetings, email,annual meet, training andawareness programmes	Frequent	Our engagement with third-partylogistics service provider's and CFA'sis to ensure safe transportation,warehousing and ensuring availabilityof our medicines. We also reward andrecognise third-party logistics serviceproviders for road safety practices.Through the driver management centre,we train and counsel the transporters onbehavioural safety to ensure zero roadaccidents.
10	ContractWorkforce	No	Meetings, discussions, trainingsand toolbox talks	Frequent	To ensure the job assigned areperformed timely and in a safe manner.We also create awareness on health,safety and environmental practices.

Leadership Indicators

1. Provide the processes for consultation between stakeholders and the Board on economic, environmental, and social topics or if consultation is delegated, how is feedback from such consultations provided to the Board

Based on the consultation and feedback received from the respective stakeholder groups, we have assessed and analysed the material topics and the same were discussed with the relevant business and functional heads. The material topics including economic, environmental and social topics requiring the attention of the Board or its Committees are thereafter placed before the relevant Board Committees and the Board during the quarterly meetings.

The Board has a designated Sustainability and CSR Committee to act as the nodal committee to review ESG strategies and programmes, policies, disclosures and overall sustainability goals and progress, amongst others. Further, from an ESG perspective, various other Board Committees also review the matters within the purview of their respective charters. The respective Committees also update the Board regarding deliberations and decisions on such ESG matters. The Board also discusses and reviews such matters.

2. Whether stakeholder consultation is used to support the identification and management of environmental, and social topics (Yes/No). If so, provide details of instances as to how the inputs received from stakeholders on these topics were incorporated into policies and activities of the entity

Effective engagement helps us connect stakeholder needs with organisational goals, creates the basis of an effective strategy development, and unlocks greater shared value for all stakeholders. We use multiple platforms to engage with a wide variety of stakeholders to understand their unique needs and concerns and chart out suitable strategies to address them. We annually review our material topics and assess them based on any material changes in operations, geographical presence, progress on goals and targets, changes in regulations etc. In FY2025, we carried out a double materiality assessment to evaluate both the impact of our operations on society and the environment, and the influence of external events on our business and financial performance. Our internal and external stakeholders identified key material topics that are likely to impact Dr. Reddy's business, like product availability, responsible pricing and affordability, high-quality medicines, patient safety, anti-bribery and anti-corruption. These topics have been considered in the list of Dr. Reddy's action areas and our sustainability framework.

3. Provide details of instances of engagement with, and actions taken to, address the concerns of vulnerable/ marginalised stakeholder groups

Patients: We have various patient assistance programmes for patients who are not in a position to afford high-cost treatments. We also support them through education, increase in awareness, and adherence to improve their health conditions. In India,we support patients through the Sparsh patient assistance program. In the U.S., we offer co-pay savings programa for eligible patients for multiple products.

Community: We implement several CSR programmes in the areas of education, skilling and livelihood, health and environmental sustainability through partners and local NGOs for marginalised sections of communities. The Company's various CSR projects are carried out by Dr. Reddy's Foundation, Naandi Foundation, Nice Foundation and Roshni Trust. The Dr. Reddy Foundation has been conferred with the prestigious National Award for the Empowerment of Persons with Disabilities in New Delhi by Hon'ble President of India on the occasion of International Day of Persons with Disabilities (IDPD). For more details, refer to our social section of this Integrated Annual Report.

PRINCIPLE 5: BUSINESSES SHOULD RESPECT AND PROMOTE HUMAN RIGHTS

Essential Indicators

1. Employees and workers who have been provided training on human rights issues and policy(ies) of the entity

Category	FY2024-25			FY2023-24
	Total	No. of employees/workers covered	%	Total	No. of employees/workers covered	%
Employees
Permanent	26,944	24,221	89.9	26,343	19,143	72.7
Other than permanent	8,037	756	9.4	8,226	1,032	12.6
Total	34,981	24,977	71.4	34,569	20,175	58.4
Workers
Permanent	573	299	52.2	643	583	90.7
Other than permanent	-	-	-	8,657	-	-
Total	573	299	52.2	9,300	583	6.3

2. Details of minimum wages paid to employees and workers

	FY2024-25					FY2023–24
	Total	Equal to			More than	Total	Equal to		More than
			Minimum Wage	Minimum Wage			Minimum Wage		Minimum Wage
		Nos.	%	Nos.	%		Nos.	%	Nos.	%
Employees
Permanent	26,944	0	0	26,944	100	26,343	0	0	26,343	100
Male	21,298	0	0	21,298	100	21,119	0	0	21,119	100
Female	5,642	0	0	5,642	100	5,219	0	0	5,219	100
Others	4	0	0	4	100	5	0	0	5	100
Other than Permanent	8,037	0	0	8,037	100	8,226	0	0	8,226	100
Male	5,199	0	0	5,199	100	5,476	0	0	5,476	100
Female	2,838	0	0	2,838	100	2,750	0	0	2,750	100
Others	0	0	0	0	100	0	0	0	0	100
Workers
Permanent	573	0	0	573	100	643	0	0	643	100
Male	552	0	0	552	100	600	0	0	600	100
Female	21	0	0	21	100	43	0	0	43	100
Others	0	0	0	0	0	0	0	0	0	0
Other than Permanent*	8,752	0	0	8,752	100	8,657	6,076	70.2	2,581	29.8
Male	7,549	0	0	7,549	100	6,936	4,620	66.6	2,316	33.4
Female	1,203	0	0	1,203	100	1,721	1,456	84.6	265	15.4
Others	0	0	0	0	100	0	0	0	0	0

*Pertains to Global Manufacturing Operations (GMO) India, and contains perennial, intermittent, and projects manpower.

3. Details of remuneration/salary/wages

a. Median remuneration

		Male	Female		Others
	Number	Medianremuneration/salary/wagesof respectivecategory(` in Million)	Number	Medianremuneration/salary/wagesof respectivecategory(` in Million)	Number	Medianremuneration/salary/wagesof respectivecategory(` in Million)
Board of Directors (BoD)	7	19.14	4^	16.36	0	0
Key Managerial Personnel (KMPs)1	3	45.75	0	0	0	0
Employees other than BoDs andKMPs	21,295	0.70	5,642	0.99	4	0.54
Workers*	416	0.45	18	0.41	0	0

1 Mr. G V Prasad, Co-Chairman and Managing Director of the Company, is a Key Managerial Personnel and has been included under heading BoD, therefore, not included under heading KMP

* For India workers only

^ Ms. Kalpana Morparia, Independent Director's remuneration considered for part of the year, term ended on July 30, 2024

b. Gross wages paid to female as % of total wages paid by the entity

	FY2024-25	FY2023-24
	Current	Previous
	Financial Year	Financial Year
Gross wages paid to females as % of total wages	27%	24%

4. Do you have a focal point (Individual/Committee) responsible for addressing human rights impacts or issues caused or contributed to by the business

Yes, we have a focal point responsible for addressing human rights impacts or issues caused or contributed to by the business.

5. Describe the internal mechanisms in place to redress grievances related to human rights issues

Chief Compliance Officer (CCO) is the designated authority reporting to the Chief Ombudsperson of Dr. Reddy's for the purpose of compliance with the Ombudsperson Policy. All human rights issues are investigated by designated investigator under guidance from CCO. Based on findings, suitable opportunity of being heard is provided to alleged person before concluding on the case. Any Corrective and Preventive action (CAPA) identified through discussion with business stakeholders and all CAPAs are tracked till closure.

6. Number of Complaints on the following made by employees and workers

		FY2024-25
	Filedduring theyear	Pendingresolutionat the endof year	Remarks	Filedduring theyear	Pendingresolutionat the endof year	Remarks
Sexual Harassment	15	4	-	23	5	-
Discrimination at Workplace	134	24	-	42	18	-
Child Labour	-	-	-	-	-	-
Forced Labour/Involuntary Labour	-	-	-	-	-	-
Wages	-	-	-	-	-	-
Other human rights related issues	-	-	-	-	-	-

7. Complaints filed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013,

	FY2024-25CurrentFinancial Year	FY2023-24PreviousFinancial Year
Total Complaints reported under Sexual Harassment of Women at Workplace(Prevention, Prohibition and Redressal) Act, 2013 (POSH)	15	23
Complaints on POSH as a % of female employees/workers	0.2	0.4
Complaints on POSH upheld	9	19

8. Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment cases

Dr. Reddy's policy on Ombudsperson as well Non-retaliation also supports the Company values and "Speak Up" culture by taking proactive steps to ensure that employees who raise concerns in good faith are protected and supported in the workplace, as appropriate. To protect the interest of complainant, Dr. Reddy's follows a strict non-retaliation policy, where any retaliation against an employee who in good faith raises concerns or who assists in an investigation of suspected wrongdoing, is not tolerated. Non-retaliation policy is applicable to all employees (including, but not limited to, all current and past employees, contract workers, part-time or temporary workforce) and third parties of the Company. A concern of potential retaliation can be raised through multiple reporting channels that are available and promoted across the organisation.

9. Do human rights requirements form part of your business agreements and contracts

Yes, human rights requirements form a part of our business agreements and contracts.

10. Assessments for the year

	% of your plants and offices that were assessed (by entity or statutory authorities orthird parties)
Child labour
Forced/involuntary labour
Sexual harassment	100%
Discrimination at workplace
Wages
Others – please specify

11. Provide details of any corrective actions taken or underway to address significant risks/concerns arising from the assessments at Question 9 above

Not applicable, as no risks/concerns observed across the above parameters as stated in question 9 above.

Leadership Indicators

1. Details of a business process being modified/introduced as a result of addressing human rights grievances/ complaints

Business process were not modified/introduced as result of addressing human rights grievances/complaints, as no concerns/risks were observed.

2. Details of the scope and coverage of any Human rights due diligence conducted

We have a due diligence process under which human rights due diligence are conducted to identify the potential issues that may have been present in our business operations and the value chain. Some of the identified issues include child labour, forced labour, discrimination, harassment, collective bargaining and freedom of association. We evaluate the human rights risks associated with our facilities using the SA8000 standard and other internal protocols.

3. Is the premise/office of the entity accessible to differently abled visitors, as per the requirements of the Rights of Persons with Disabilities Act, 2016

Yes. The premises/offices of the Company, including the registered and corporate offices have ramps or have elevators and relevant infrastructure for differently abled individuals. Wheelchair accessible restrooms are available at certain premises.

4. Details on assessment of value chain partners

	% of value chain partners (by value of business done with such partners) that wereassessed
Child labour
Forced/involuntary labour
Sexual harassmentDiscrimination at workplace	We conduct periodic supplier risk assessments for our value chain partners through a thirdparty to better understand our value chain risk exposure. In the last two years, we have
Wages	assessed 21% of our global value chain partners on multiple ESG parameters.
Others – please specify

5. Provide details of any corrective actions taken or underway to address significant risks/concerns arising from the assessments at Question 4 above

Not applicable, as no risks/concerns observed across the above parameters as stated in question 4 above

PRINCIPLE 6: BUSINESSES SHOULD RESPECT AND MAKE EFFORTS TO PROTECT AND RESTORE THE ENVIRONMENT

Essential Indicators

1. Details of total energy consumption (in Joules or multiples) and energy intensity

Parameters	FY2024-25	FY2023-24
From renewable sources (in GJ)
	7,74,675#	963,642
Total electricity consumption (A)	12,78,018@
Total fuel consumption (B)	14,39,682	1,358,825
Energy consumption through other sources (C)	0	0
	22,14,357#	2,322,468
Total energy consumed from renewable sources (A+B+C)	27,17,699@
From non-renewable sources (in GJ)
	9,93,566#	604,565
Total electricity consumption (D)	4,90,223@
Total fuel consumption (E)	15,45,900	1,946,295
Energy consumption through other sources (F)	0	0
	25,39,466#	2,550,861
Total energy consumed from non-renewable sources (D+E+F)	20,36,124@
Total energy consumed (A+B+C+D+E+F)	47,53,823	4,873,328
Energy intensity per rupee of turnover	14.6	17.5
(Total energy consumed/Revenue from operations) GJ/` Million1
Energy intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP)	301.7	391.0
(Total energy consumed/Revenue from operations adjusted for PPP) GJ/Revenue
adjusted to PPP2
Energy intensity in terms of physical output (GJ/Tonne of Product)	298.8	329.1*
Energy intensity (optional) – the relevant metric may be selected by the entity	-	-

1 Revenue as per IFRS consolidated financials for FY2025 & FY2024

2 PPP – IMF conversion factors for FY2025: 20.66 and FY2024: 22.4

(Source - https://www.imf.org/external/datamapper/PPPEX@WEO/OEMDC/IND)

# Includes renewable energy from PPAs, rooftop solar, IEX-GDAM, JV Solar, hydel & biomass

@ Includes renewable energy from PPAs, rooftop solar, IEX-GDAM, JV Solar, hydel, biomass & IRECs

* Recalculated in line with the basis of FY2025 production for FY2024

Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency – Yes.

Yes, independent assurance was carried out by DNV

2. Does the entity have any sites/facilities identified as designated consumers (DCs) under the Performance, Achieve and Trade (PAT) Scheme of the Government of India. If yes, disclose whether targets set under the PAT scheme have been achieved. In case targets have not been achieved, provide the remedial action taken, if any

We have no sites/facilities identified as designated consumers (DCs) under the Performance, Achieve and Trade (PAT) Scheme of the Government of India.

3. Provide details of the following disclosures related to water

Parameters	FY2024-25	FY2023-24
Water withdrawal by source (in kilolitres)
(i) Surface water1	75,761	102,582
(ii) Groundwater	919,495	1,109,141
(iii) Third-party water	345,756	111,730
(iv) Seawater/desalinated water	0	0
(v) Others (Municipal)	782,104	724,411
Total volume of water withdrawal (in kilolitres) (i + ii + iii + iv + v)	2,123,116	2,047,864
Total volume of water consumption (in kilolitres)	1,973,220	1,893,619
Water intensity per rupee of turnover (Total water consumption/Revenue from operations)(KL/` Million*)	6.06	6.783
Water intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP)(Total water consumption/Revenue from operations adjusted for PPP) (KL/Revenueadjusted to PPP#)	125.23	151.943
Water intensity in terms of physical output on freshwater withdrawal(KL/Tonne of Product)	128.71	131.372
Water intensity (optional) – the relevant metric may be selected by the entity	-	-

* Revenue as per IFRS Consolidated for FY2025 and FY2024

# PPP – IMF conversion factors for FY2025 - 20.66, and FY2024 - 22.4

(Source - https://www.[imf.org/external/datamapper/PPPEX@WEO/OEMDC/IND\)](https://www.imf.org/external/datamapper/PPPEX@WEO/OEMDC/IND)

1 Rainwater Harvested

2 Recalculated in line with the basis of FY2025 production for FY2024

3 Calculated on water consumption basis

Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.

Yes, independent assurance was carried out by DNV

4. Provide the following details related to water discharged

Parameters	FY2024-25	FY2023-24
Water discharge by destination and level of treatment (in kilolitres)
i)To Surface water
-No treatment	0	0
-With treatment – please specify level of treatment1	471	0
ii)To Groundwater
-No treatment	0	0
-With treatment – please specify level of treatment	0	0
iii)To Seawater
-No treatment	0	0
-With treatment – please specify level of treatment	0	0
iv)Sent to third-parties
-No treatment	0	0
-With treatment – please specify level of treatment1	149,425	154,246
v)Others
-No treatment	0	0
-With treatment – please specify level of treatment	0	0
Total water discharged (in kilolitres)	149,896	154,246

1 Primary treatment

Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.

Yes, independent assurance was carried out by DNV.

5. Has the entity implemented a mechanism for Zero Liquid Discharge? If yes, provide details of its coverage and implementation

Yes, we have implemented Zero Liquid Discharge (ZLD) facility at all our chemical technical operations and formulations plants (except one) in India. To avoid the discharge of untreated wastewater effluents, we use the ZLD water treatment engineering approach at 16 of our global manufacturing facilities. All waste water is treated, contaminants are reduced to solids through ZLD, all the treated water is channelled back for usage in our utilities.

6. Please provide details of air emissions (other than GHG emissions) by the entity

Parameters	Units	FY2024-25	FY2023-24
NOx	Metric Tonnes	155.66	171.9
SOx	Metric Tonnes	209.67	289.3
Particulate matter (PM)	Metric Tonnes	100.12	109.5
Persistent organic pollutants (POP)		NA	NA
Volatile organic compounds (VOC)		NA	NA
Hazardous air pollutants (HAP)		NA	NA
Others – please specify		NA	NA

Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.

Yes, independent assurance was carried out by DNV

7. Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity

Parameters	Units	FY2024-25	FY2023-24
Total Scope 1 emissions (Break-up of the GHG into CO2, CH4, N2O,HFCs, PFCs, SF6, NF3, if available)	Metric tonnes ofCO2equivalent	1,42,772	189,530
Total Scope 2 emissions (Break-up of the GHG into CO2, CH4, N2O,HFCs, PFCs, SF6, NF3, if available)	Metric tonnes ofCO2equivalent	1,96,309#94,690@	114,655
Total Scope 1 and Scope 2 emission intensity per rupee of turnover(Total Scope 1 and Scope 2 GHG emissions/Revenuefrom operations) (Market Based)	MT/` Million1	0.73	1.1
Total Scope 1 and Scope 2 emission intensity per rupee of turnoveradjusted for Purchasing Power Parity (PPP)(Total Scope 1 and Scope 2 GHG emissions/Revenue fromoperations adjusted for PPP) (Market Based)	MT/Revenueadjusted to PPP2	15.1	24.4
Total Scope 1 and Scope 2 emission intensity in terms ofphysical output (Market Based)	MT/Tonne ofProduct	14.9	20.5*
Total Scope 1 and Scope 2 emission intensity (optional) – therelevant metric may be selected by the entity		-	-

1 Revenue as per IFRS consolidated financials for FY2025 & FY2024

2 PPP – IMF conversion factors for FY2025: 20.66 and FY2024: 22.4

(Source - https://www.imf.org/external/datamapper/PPPEX@WEO/OEMDC/IND)

# Location Based is excluding IRECs

@ Market based is including IRECs

* recalculated in line with the basis of FY2025 production for FY2024

Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.

Yes, independent assurance was carried out by DNV

8. Does the entity have any project related to reducing Green House Gas emission? If Yes, then provide details

We are investing in solar, wind and hydel projects, investing in solar plants through joint ventures, moving from coal to cogeneration systems using biomass (rice husk, briquette)based boilers rather than fuel oil-based boilers to reduce our greenhouse gas emissions and accelerate our green transition.

9. Provide details related to waste management by the entity

Parameters	FY2024-25	FY2023-24
Total Waste generated (in metric tonnes)
Plastic waste (A)	450.37	232.5
E-waste (B)	16.24	17.4
Bio-medical waste (C)	239.3	204.8
Construction and demolition waste (D)	17,852.4	9,497.3
Battery waste (E)	86.68	121.6
Radioactive waste (F)	0	0
Other hazardous waste. Please specify, if any. (G)	49,847.8	36,701.2
Other Non-hazardous waste generated (H). Please specify, if any. (Break-up bycomposition i.e. by materials relevant to the sector)1	44,184.3	31,741.8
Total (A+B + C + D + E + F + G + H)	112,677.1	78,516.7
Waste intensity per rupee of turnover	0.35	0.28
(Total waste generated/Revenue from operations) MT/` Million2
Waste intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP) (Totalwaste generated/Revenue from operations adjusted for PPP)MT/Revenue adjusted to PPP3	7.2	6.3
Waste intensity in terms of physical output	7.1	5.3#
Waste intensity (optional) – the relevant metric may be selected by the entity		-
For each category of waste generated, total waste recovered through recycling,re-using or other recovery operations (in metric tonnes)
Category of waste*
(i)Recycled	65,308.02	19,467.3
(ii)Re-used	10,720.9	34,630.4
(iii)Other recovery operations (Co-processing/Pre-processing)	35,870.3	23,486.7
Total	111,899.2	77,584.5
For each category of waste generated, total waste disposed by nature of disposalmethod (in metric tonnes)
Category of waste*
(i)Incineration	774.64	932.5
(ii)Landfilling	3.3	0
(iii)Other disposal operations	0	0
Total	777.94	932.5

1 Non Hazardous waste includes steel scrap, metal scrap, wood waste, ash, waste shippers, copper cables, aluminium trays, general office waste, paper, cardboard, glass, etc.

2 Revenue as per IFRS Consolidated for FY2025 and FY2024

3 PPP – IMF conversion factors for FY2025: 20.66 and FY2024: 22.4

(Source - https://www.[imf.org/external/datamapper/PPPEX@WEO/OEMDC/IND\)](mailto:https://www.imf.org/external/datamapper/PPPEX@WEO/OEMDC/IND)

* Waste categorisation has been changed for both FY2025 & FY2024

# recalculated in line with the basis of FY2025 production for FY2024

Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency.

Yes, independent assurance was carried out by DNV

10. Briefly describe the waste management practices adopted in your establishments. Describe the strategy adopted by the company to reduce usage of hazardous and toxic chemicals in your products and processes and the practices adopted to manage such wastes

We have waste management systems in place at all our facilities. Plastic waste is either co-processed or recycled based upon the type of waste generated. E-waste is sold to authorised vendors. 99% of our global hazardous waste is sent to cement industries and recyclers for co-processing and recycling. The remaining 1% of global hazardous waste is sent to landfill.

Other non-hazardous waste such as glass, MS scrap, wood waste, boiler ash etc. is sent to recyclers, cement industries for co-processing or to brick manufacturers.

We reduce waste through technological interventions and ongoing initiatives including sustainable packaging, waste source segregation, process optimisation etc.

11. If the entity has operations/offices in/around ecologically sensitive areas (such as national parks, wildlife sanctuaries, biosphere reserves, wetlands, biodiversity hotspots, forests, coastal regulation zones etc.) where environmental approvals/clearances are required

Sl.No.	Location ofoperations/offices	Type of operations	Whether the conditions of environmental approval/clearance arebeing complied with? (Y/N) If no, the reasons thereof and correctiveaction taken, if any
	Nil

12. Details of environmental impact assessments of projects undertaken by the entity based on applicable laws, in the current financial year

Name and BriefDetail of Project	EIANotificationNumber	Date	Whether conducted byindependent externalagency (Yes/No)	Resultscommunicatedin public domain(Yes/No)	Relevant Weblink
	Nil

13.

Is the entity compliant with the applicable environmental law/regulations/guidelines in India; such as the Water (Prevention and Control of Pollution) Act, Air (Prevention and Control of Pollution) Act, Environment Protection Act and rules thereunder (Y/N). If not, provide details of all such non-compliances

Yes, the Company is compliant with the applicable environmental law/regulations/guidelines in India; such as the Water (Prevention and Control of Pollution) Act, Air (Prevention and Control of Pollution) Act and Environment Protection Act and rules thereunder.

Sl.	Specify the law/regulation/	Provide details	Any fines/penalties/action taken by	Corrective action
No.	guidelines which was notcomplied with	of the noncompliance	regulatory agencies such as pollutioncontrol boards or by courts	taken, if any

Leadership Indicators

1. Water withdrawal, consumption and discharge in areas of water stress (in kilolitres): For each facility/plant located in areas of water stress, provide the following information

• (i) Name of the area: Hyderabad, Pydibhimavaram
• (ii) Nature of operations: Manufacturing and R&D
• (iii) Water withdrawal, consumption and discharge

Parameters	FY2024-25	FY2023-24
Water withdrawal by source (in kilolitres)
(i)Surface water1	63,720	90,691
(ii)Groundwater	448,675	585,090
(iii)Third-party water	316,180	111,730
(iv)Seawater/desalinated water	0	0
(v)Others	462,904	394,904
Total volume of water withdrawal (in kilolitres)	1,291,479	1,182,415
Total volume of water consumption (in kilolitres)	1,283,336	1,178,765
Water intensity per rupee of turnover (Water consumed/turnover) KL/` Million*	3.94	4.22#
Water intensity (optional) – the relevant metric may be selected by the entity	-	-
Water discharged by destination and level of treatment (in kilolitres)
(i)Into Surface water
-No treatment	0	0
-With treatment – please specify level of treatment	0	0
(ii)Into Groundwater
-No treatment	0	0
-With treatment – please specify level of treatment	0	0
(iii)Into Seawater
-No treatment	0	0
-With treatment – please specify level of treatment	0	0
(iv)Sent to third-parties
-No treatment	0	0
-With treatment – please specify level of treatment2	8,144	3,650
(v)Others
-No treatment	0	0
-With treatment – please specify level of treatment	0	0
Total water discharged (in kilolitres)	8,144	3,650

• 1 Rainwater harvested
• 2 Primary treatment
• * Revenue as per IFRS Consolidated for FY2025 and FY2024

# Calculated on water consumption basis

Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency

Yes, independent assurance was carried out by DNV

2. Please provide details of total Scope 3 emissions & its intensity

Parameters	Units	FY2024-25	FY2023-24
Total Scope 3 emissions (Break-up of the GHG into CO2, CH4, N2O,	Metric tonnes of	845,849	866,992
HFCs, PFCs, SF6, NF3, if available)	CO2equivalent
Total Scope 3 emissions per rupee of turnover	MT/` Million1	2.6	3.1
Total Scope 3 emission intensity (optional) – the relevant metric may		-	-
be selected by the entity

Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency

Yes, independent assurance was carried out by DNV

3. With respect to the ecologically sensitive areas reported at Question 11 of Essential Indicators above, provide details of significant direct & indirect impact of the entity on biodiversity in such areas along with prevention and remediation activities

Not applicable

4. If the entity has undertaken any specific initiatives or used innovative technology or solutions to improve resource efficiency, or reduce impact due to emissions/effluent discharge/waste generated, please provide details of the same as well as outcome of such initiatives

Sl.	Initiativeundertaken	Details of the initiative (Web-link, if any, maybe provided along with summary)	Outcome of the initiative
1	Low Temperature	Used in wastewater treatment facility for	Reduced energy consumption in terms of steam
	Evaporator	treating process effluent	and electricity
2	Digitalisation of	Operating wastewater treatment facility by	Reduced chemical consumptions, steam
	ETP operations	digital systems	consumption, increased efficiency
No.	HHO gas	Along with the fuel, HHO gas is being used for	Improved combustion and reduced fuel
3		enhanced combustion in the boilers	consumption

5. Does the entity have a business continuity and disaster management plan? Give details in 100 words/web link

Yes. Dr. Reddy's has adopted a resilience strategy focusing on the ability to provide and maintain an acceptable level of service in the face of any planned or unplanned interruption related emergencies at its manufacturing facilities, IT, supply chain etc.

In our pursuit of operational excellence, we have embarked upon several change management initiatives across our organisation, including information technology and automation in the areas of manufacturing, research and development, supply chain and shared services. Accordingly, there are continuous efforts to also strengthen our data resiliency.

6. Disclose any significant adverse impact to the environment, arising from the value chain of the entity. What mitigation or adaptation measures have been taken by the entity in this regard

There is no significant adverse impact to the environment, arising from the value chain partners. 100% of our critical and strategic suppliers have valid air, water & waste consent.

However, we also measure our Scope 3 emissions to address the emission hotspots in the value chain. To address the reduction in carbon footprint we have driven major projects around:

• Air to sea Shipment
• Truck Loadability: With appropriate planning and management, we have optimised the utilisation of trucks resulting in a reduction of trips and overall carbon footprint
• We encourage dedicated transporters to shift to CNG vehicles from diesel
• We drive supplier engagement programmes to help them opt for projects resulting in reduction of Carbon footprint

7. Percentage of value chain partners (by value of business done with such partners) that were assessed for environmental impacts

We conduct periodic supplier risk assessments for our value chain partners through a third-party to better understand our value chain risk exposure. In the last two years, we have assessed 21% of our global value chain partners on multiple ESG parameters. During the year, we have assessed 12% of direct spend globally.

PRINCIPLE 7: BUSINESSES, WHEN ENGAGING IN INFLUENCING PUBLIC AND REGULATORY POLICY, SHOULD DO SO IN A MANNER THAT IS RESPONSIBLE AND TRANSPARENT

Essential Indicators

1. a. Number of affiliations with trade and industry chambers/associations The Company is affiliated with 7 trade and industry chambers/associations

1. b. List the top 10 trade and industry chambers/associations (determined based on the total members of such body) the entity is a member of/affiliated to

Sl.No.	Name of the trade and industry chambers/associations	Reach of trade and industry chambers/associations (State/National)
1	National Council of the Confederation of Indian Industry (CII)	National
2	Indian Pharmaceutical Alliance	National
3	National Accreditation Board for Certification Bodies	National
4	The Life Sciences Advisory Committee	State
5	International Generic and Biosimilar Medicines Association	International
6	Pharmaceutical Supply Chain Initiative (PSCI)	International
7	Asia Business Council	International

2. Provide details of corrective action taken or underway on any issues related to anticompetitive conduct by the entity, based on adverse orders from regulatory authorities

Name of Authority	Brief of the Case	Corrective Action Taken
	Nil

Leadership Indicators

1. Details of public policy positions advocated by the entity

SlNo.	Public policy advocated	Methodresorted forsuch advocacy	Whetherinformationavailable inpublic domain?(Yes/No)	Frequencyof Review byBoard	Web Link, ifavailable
1	Making representation to the Securitiesand Exchange Board of India/Ministry ofCorporate Affairs on various proposedchanges in law in the larger economicinterest of the common good	Representationmade directly orthrough industrychambers/associations	No	The Boardreviews onquarterly basis	No
2	Advocacy and support for policies andregulatory framework that support R&D andintellectual property protections.	IPA (IndianPharmaceuticalAlliance)	No	The Boardreviews on needbasis	https://www.ipaindia.org/
3	Policy advocacy to help make medicinesmore affordable and accessible	Representationmade directly orthrough industrychambers/associations	No	The Boardreviews on needbasis	No

SlNo.	Public policy advocated	Methodresorted forsuch advocacy	Whetherinformationavailable inpublic domain?(Yes/No)	Frequencyof Review byBoard	Web Link, ifavailable
4	Policy advocacy on reduction incounterfeiting & non-standard qualitydrugs, Uniform Code of PharmaceuticalsMarketing Practices	IPA (IndianPharmaceuticalAlliance)	No	The Boardreviews on needbasis	https://www.ipaindia.org/
5	Proactively engage with lawmakers andpolicymakers on laws and regulations thataddresses the issues faced by PharmaIndustries for common good	Representationmade directly orthrough industrychambers/associations	Yes	The Boardreviews on needbasis	No

The Company works closely with various trade and industry associations. This includes industry representations to the government and/or regulators. The Company performs the function of policy advocacy in a transparent and responsible manner while engaging with all the authorities and takes into account the Company's as well as the larger national interest. The Company believes that policy advocacy must preserve and expand the public good and thus, it does not advocate any policy change to benefit itself or a select few. We have also actively participated in several notable industry events and forums lending our voice and perspectives to shape a holistic healthcare ecosystem.

PRINCIPLE 8: BUSINESSES SHOULD PROMOTE INCLUSIVE GROWTH AND EQUITABLE DEVELOPMENT

	Essential Indicators
1.	Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable laws, in thecurrent financial year
Name and briefSIADate ofWhether conducted byResults communicated inRelevantdetails of projectNotificationnotificationindependent externalpublic domain (Yes/No)Web linkNo.agency (Yes/No)
						During the year ended FY2025, there were no new projects/capacity expansion of existing projects which requireEnvironmental Clearance or Social Impact Assessment
2.		by your entity				Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being undertaken
Sl.Name of Project forStateDistrictNo. of Project Affected% of PAFsAmounts paid to PAFsin FY (In `)No.which R&R is ongoingFamilies (PAFs)covered by R&RNIL

3. Describe the mechanisms to receive and redress grievances of the community

Most of the activities are carried out in discussion and agreement with the community members. In case of any grievances, the community leaders can reach out to the Company's point of contact (POC) at each of the units. The POC is directly and easily accessible to the community to address any concerns that may arise. Depending on the nature of complaint, relevant stakeholders are engaged to resolve any issue.

4. Percentage of input material (inputs to total inputs by value) sourced from suppliers

Parameters1	FY2024-25	FY2023-24
Directly sourced from MSMEs/small producers	2.9	2.9
Directly from within India	51	45

1 Disclosure of materials sourced for India

5. Job creation in smaller towns – Disclose wages paid to persons employed (including employees or workers employed on a permanent or non-permanent/on contract basis) in the following locations, as % of total wage cost

Location1	FY2024-25	FY2023-24
	Current	Previous
	Financial Year	Financial Year
Rural	8.0	3.5
Semi-Urban	2.0	1.6
Urban	10.0	10.2
Metropolitan	80.0	84.7

(Place to be categorised as per RBI Classification System - rural/semi-urban/urban/metropolitan)

1 Permanent employees at our India locations have been considered.

Leadership Indicators

1. Provide details of actions taken to mitigate any negative social impacts identified in the Social Impact Assessments (Reference: Question 1 of Essential Indicators above)

Sl. Details of negative social impact identified Corrective action taken

During the year ended FY2025, there were no new projects/capacity expansion of existing projects which require Environmental Clearance or Social Impact Assessment

2. Provide the following information on CSR projects undertaken by your entity in designated aspirational districts as identified by government bodies

Sl.No.	State	Aspirational District	Amount spent(₹ in million)
1	Jharkhand	Deoghar	0.46
2	Karnataka	Raichur	1.4
3	Telangana	Khamman, Bhadradri Kothagudem, Jayashankar-Bhupalapally, KumuramBheem Asifabad	0.96
4		Andhra Pradesh Alluri Sitharama Raju	3.6

3. (a) Do you have a preferential procurement policy where you give preference to purchase from suppliers comprising marginalised/vulnerable groups?

No, as stated in our Code of Business Conduct and Ethics (COBE), we do not discriminate on any basis while selecting our suppliers and provide equal opportunities for engagement to all potential suppliers. We encourage working with local suppliers or suppliers that are close to our facilities (including small-scale industries). However, we have not specifically considered marginalised/vulnerable groups in our supplier qualifying criteria.

• (b) From which marginalised/vulnerable groups do you procure Not applicable
• (c) What percentage of total procurement (by value) does it constitute Not applicable
• 4. Details of the benefits derived and shared from the intellectual properties owned or acquired by your entity (in the current financial year), based on traditional knowledge

Sl.No.	Intellectual Propertybased on traditionalknowledge	Owned/Acquired(Yes/No)	Benefit shared(Yes/No)	Basis of calculating benefit share
			NIL

5. Details of corrective actions taken or underway, based on any adverse order in intellectual property related disputes wherein usage of traditional knowledge is involved

Not applicable

Sl. Name of authority Brief of the Case Corrective action taken

No.

Not Applicable

6. Details of beneficiaries of CSR Projects

Sl.No.	CSR Projects	No. of personsbenefited from CSRProjects	% of beneficiariesfrom vulnerable andmarginalised group
1	Kallam Anji Reddy Vidyalaya (KARV)	2,264	99% of the CSR
2	Kallam Anji Reddy Vocational Junior College (KAR-VJC)	827	projects are
3	School Improvement Programme (SIP)	44,708	implemented with an
4	Scholarship for Women in Science	110	objective to reach
5	Aspiring Teachers Programme	22	out to the vulnerable
6	Support to Tribal welfare school and college	640	and marginalised
7	Dr. Anji Reddy CAN-DO ETR grants	57	communities,
8	Education and Vocational support for children with illness	40	including persons
9	Person with Disabiliy (PwD) skilling	1,452	with disabilities,
10	Youth skilling	2,261	elderly, women and
11	High Quality Health Care Skilling	730	children from theless privileged socio
12	Improving the adoption ecosystem in Telangana	5,067	economic sections of
13	Farmer Livelihood Project	6,000	the society
14	Making Integrated Transformation for Resourceful Agriculture	60,564
15	Pradhan Mantri Internship Scheme	22
16	Transforming Lives through Plant-Based Nutrition	8,460
17	Propagating non-animal, human-relevant research in India	339
18	Reconstructive surgery for individuals with hand deformity	125
19	Life at Door Step - Palliative Care Programme	1,123
20	Roshini Tele Counselling Helpline	10,751
21	Tharuni Swalambana Rehabilitation and Skill Centre	42
22	Community Health Intervention Program	199,752
23	Strengthening Primary Health Care Services (PHC)	293,615
24	Garo green spine project	1,966
25	Action for Climate and Environment	60,621
Total		701,558

PRINCIPLE 9: BUSINESSES SHOULD ENGAGE WITH AND PROVIDE VALUE TO THEIR CONSUMERS IN A RESPONSIBLE MANNER

Essential Indicators

1. Describe the mechanisms in place to receive and respond to consumer complaints and feedback

We have a CSC helpline that receives calls, including complaints from consumers and directs them to relevant departments basis the nature of complaint. There are turnaround timelines for the resolution of each type of complaint at various department levels.

2. Turnover of products and/services as a percentage of turnover from all products/service that carry information about

	As a percentage of total turnover
Environmental and socialparameters relevant to theproduct	We comply with the relevant laws and regulations of the countries we operate in withrespect to disclosure of information on environmental and social parameters relevant tothe products. 100% of our formulation products, representing around 89% of our overall
Safe and responsible usage	revenue, carry information about safe and responsible usage on product labelling and
Recycling and/or safe disposal	package inserts. Further, based on the legal requirements and guidelines in the countriesof our operations, we include instructions on safe disposal of products.

3. Number of consumer complaints in respect of the following

	FY2024-25			FY2023-24
	Receivedduring theyear	Pendingresolutionat end ofyear	Remarks	Receivedduring theyear	Pendingresolutionat end ofyear	Remarks
Data Privacy	Nil	Nil	Nil	Nil	Nil	-
Advertising	Nil	Nil	Nil	Nil	Nil	-
Cyber-security	Nil	Nil	Nil	Nil	Nil	-
Delivery of essential services	Nil	Nil	Nil	Nil	Nil	-
Restrictive Trade Practices	Nil	Nil	Nil	Nil	Nil	-
Unfair Trade Practices	Nil	Nil	Nil	Nil	Nil	-
Other	Nil	Nil	Nil	Nil	Nil	-

4. Details of instances of product recalls on account of safety issues

Details of instances of product recalls onaccount of safety issues	Number	Reasons for recall
Voluntary recalls	18	Stability OOS, Market Complaint, Deviation
Forced recalls	0	NA

5. Does the entity have a framework/policy on cyber security and risks related to data privacy? (Yes/No) If available, provide a web-link of the policy

Yes, we have internal policy/procedures related to Information Security Management Systems and Global Data Privacy framework which is shared with the relevant stakeholders. The policies are also available on the intranet platform of the Company

6. Provide details of any corrective actions taken or underway on issues relating to advertising, and delivery of essential services; cyber security and data privacy of customers; re-occurrence of instances of product recalls; penalty/action taken by regulatory authorities on safety of products/services

No such incident

• 7. Provide the following information relating to data breaches:
  • a. Number of instances of data breaches 3*
  • b. Percentage of data breaches involving personally identifiable information of customers Nil
  • C. Impact, if any, of the data breaches Nil

*The reported number had no material impact on the entity

Leadership Indicators

1. Channels/platforms where information on products and services of the entity can be accessed (provide web link, if available)

Information relating to the products of the company is available on our website athttps://www.drreddys.com. Additionally, it is also available on country-specific microsites, accessible through the globe icon on the top right corner of our website. Information related to our Active Pharmaceutical Ingredient (API) products is available in greater detail on https:// api.drreddys.com/.

2. Steps taken to inform and educate consumers about safe and responsible usage of products and/or services

All our formulation products carry information about safe and responsible usage of medicines through product labels and package inserts. This includes comprehensive information on conditions for storage and use, dosage instructions, and potential side effects. Additionally, based on the legal requirements and guidelines in the countries of our operations, we also include instructions on safe disposal of products to protect public health and minimise environmental risks.

3. Mechanisms in place to inform consumers of any risk of disruption/discontinuation of essential services

During the year, there were no major disruptions of critical services of the Company. There is continual communication maintained with customers which help to identify problems before they become serious and allows both parties to work for resolution of the same. The Company's teams focus on quality and customer service, continue to strengthen our relationship and position Dr. Reddy's as a trusted partner.

4. Does the entity display product information on the product over and above what is mandated as per local laws (Yes/No/Not applicable) If yes, provide details in brief

The Company understands the importance of fair disclosure of the description of its products and thereby, ensures to disclose, truthfully and factually, such relevant information including risks about the product, as may be required statutorily, through labelling so that the consumers can exercise their freedom to consume in a responsible manner. The Company has always believed in being transparent with its customers by providing all the relevant details.

Did your entity carry out any survey with regard to consumer satisfaction relating to the major products/services of the entity, significant locations of operation of the entity or the entity as a whole

The Company engages with its consumers on an ongoing basis and conducts methodical research on their satisfaction with respect to its products.