Dr. Reddy's Makes History: First Indian Pharma to Join Dow Jones Sustainability World Index

Dr. Reddy’s Laboratories has achieved a milestone in the pharma industry by becoming the first Indian pharmaceutical company to gain inclusion in the Dow Jones Sustainability World Index (DJSI World) for 2023. This recognition marks a significant moment in how emerging market pharma companies are being recognized for their environmental, social and governance (ESG) performance on the global stage.

Breaking Through in the Dow Pharma Index Rankings

The company’s achievement isn’t limited to this single accolade. Dr. Reddy’s has maintained its position in the DJSI Emerging Markets Index for eight consecutive years, demonstrating sustained commitment to sustainability standards. In the S&P Global Corporate Sustainability Assessment, the organization scored 77 out of 100, achieving perfect marks across four critical categories: Innovation Management, Healthcare Access Impact, Climate Risk Management, and Resource Efficiency.

Among 347 pharmaceutical companies evaluated in the same assessment, Dr. Reddy’s ranked in the top decile—securing the sixth highest score across the entire pharma sector. The company’s overall S&P Global ESG rating stands at 78 out of 100, reflecting comprehensive management of material risks and opportunities.

Gold Standard Recognition from EcoVadis

Beyond dow pharma index platforms, Dr. Reddy’s earned Gold Medal status from EcoVadis, a leading international sustainability ratings organization. Scoring 70 out of 100 on the EcoVadis scorecard, the company now sits in the top 5 percent of all businesses assessed by the agency. This evaluation spans 21 sustainability indicators across four dimensions: environmental impact, labor practices and human rights, ethical operations, and procurement standards—all aligned with GRI, UN Global Compact, and ISO 26000 frameworks.

Embedding Sustainability Into Business Strategy

According to G V Prasad, Co-Chairman and Managing Director at Dr. Reddy’s: “With over 20 years of sustainability experience, we’ve embedded ESG into our core business operations, not as an afterthought. These recognitions reflect our commitment to ambitious, measurable targets for patients, employees, and governance structures. The year-on-year improvement in our ratings demonstrates real progress, not just rhetoric.”

Environmental Impact Goals Through 2028

Dr. Reddy’s recently joined the World Economic Forum’s 1t.org initiative, becoming the first Indian pharma company to make formal pledges. The company committed to an integrated plantation program spanning 2,900 hectares by 2028. This initiative includes 500 hectares of mangrove restoration, 2,000 hectares of agroforestry development, and 400 hectares of coastal bund plantations—combining climate resilience with biodiversity benefits.

The broader initiative, titled “Rooting Resilience: Cultivating Mangroves and Agroforestry Across 2900 Hectares for a Sustainable Future,” demonstrates how pharmaceutical companies can integrate environmental stewardship with business operations. This positioning in the dow pharma index space shows that ESG isn’t just regulatory compliance—it’s becoming central to how pharma companies compete globally.