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Climate change and GHG Emissions

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© 2001 - 2009 Dr. Reddy's Laboratories Ltd.
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The specter of Climate Change looms large over the entire world and urgent actions need to be taken to combat this crisis, by reducing the concentration of Green House Gases (GHG) in the atmosphere. Our total GHG emissions for FY 2008-09 was 0.25 Million Metric Tons CO2 e, representing a 17% increase over 2007-08. Our specific GHG emissions (Metric Ton CO2 e / INR million sales) for FY 2008-09 was 6.60, representing a 5% decrease over 2007-08. Total GHG emissions for FY 2008-09 as compared to FY 2007-08 by unit are given below:

Unit FY 07-08 total MT CO 2 e FY 08-09 total MT CO2 e % change
CTO 4 7391 6789 -8
DRCP 5560 5112 -8
CTO 3 5636 5399 -4
FTO 2 11066 10678 -4
FTO 6 5814 5985 3
FTO 3 26240 27086 3
CTO 5 65525 70486 8
BDC 6715 7239 8
FTO 1 5939 6597 11
CTO 6 36575 42771 17
FTO 7 4423 5422 23
FTO 4 1065 1565 47
CTO 2 17600 26207 49
CTO 1 13192 23186 76
IPDO** 0 5406  
Total 212741 249929 17


** IPDO data reporting has been streamlined wef 1st April, 2009
The overall absolute and specific GHG emission trend for the last five years is shown in the graphs below.




our current and proposed actions to reduce our GHG emissions given in Energy conservation GHG accounting gives data on emissions

A first step towards reducing our GHG emissions is to characterize and quantify the same. We commissioned a GHG Accounting exercise through The Energy Research Institute (TERI) for the period FY 2004-05 to FY 2007-08 using “A Corporate GHG Accounting and Reporting Standard” developed by World Resources Institute (WRI) and World Business Council for Sustainable Development (WBCSD) standards. The scope of the study was restricted only to Scope-1 and Scope-2 emissions (explained below).


The study provided us with several interesting insights into our carbon footprint and will help us to prioritize and focus our actions in this regard. Some of the key insights from the GHG Accounting exercise are as follows.
  1. Fossil Fuel and Purchased Electricity contribute almost equally to our total GHG emissions



  2. Coal accounts for 80% of Scope-1 emissions



  3. CTO-5, CTO-6, FTO-3, CTO-2 & CTO-1 account for 76% of our total GHG emissions



  4. CTO-5 , CTO-6, CTO-2 and CTO-1 account for 85% of our  Scope-1 GHG emissions



  5. CTO-5, CTO-6 & FTO-3 account for 48% of our Scope-2 GHG emissions



In 2007-08, we initiated Energy Conservation Audits across 12 of our locations by TERI and the same was completed during FY 2008-09, with the final reports being submitted by TERI. All our sites are in the process of implementing the recommendations from these audits and we are expecting improvements in our energy efficiency in the coming years. The audit showed a potential of reducing our overall GHG emissions by about 7%, with the individual location’s savings potential varying from 5 to 26%. A chart depicting the same is given below. A total of 182 recommendations were made, requiring an investment of about Rs. 60 million with a payback period of 1-3 years.


The top 3 categories of recommendations were in the areas of Refrigeration & Air-conditioning Systems, Steam Generation & Distribution and Pump Optimization. A chart depicting how the total savings were split up between various categories of recommendations is given below:


Some of the energy conservation measures implemented during the year are listed below:

S.No Unit Brief Description of Initiative Savings Achieved (INR) / Year
1 CTO-4 200 w incandescent lamps replaced with 70 w metal halide 38,000
2 CTO-4 Replaced water jets with dry vacuum systems (12.5 hp to 7.5 hp) 43,290
3 CTO-5 Installed 2000 TR centralized cooling tower instead of 4 cooling towers of various capacity for Naproxene production, operating pressure booster pumps with VFD. Energy consumption reduced from 185 Kwh/day to 75 Kwh/day  171,000
4 CTO-5 Utilizing Steam Operated Regenerative Evaporation system instead of FO Based Hot Air Generator for hot air generation 525,000
5 CTO-6 Providing a high efficiency cooling water pump in place of two pumps & modifying cooling tower circuit 1,315,440
6 CTO-6 Optimize the lighting of open area, corridors and optimizing illumination in Production floors 189,594