Alkem Laboratories cuts Scope 1 and 2 emissions by 15% in FY26
Alkem Laboratories Limited achieved a 15% reduction in Scope 1 and 2 greenhouse gas emissions and a 22% drop in energy consumption in FY26. The company recycled 4,376 MT of plastic waste and reduced total water withdrawal to 6,19,064 kilolitres. Renewable energy met approximately 27% of its power needs.

*this image is generated using AI for illustrative purposes only.
Alkem Laboratories reported a 15% year-on-year reduction in its Scope 1 and Scope 2 greenhouse gas emissions for the financial year ended March 31, 2026, marking significant progress toward its voluntary target of a 42% cut by FY 2033 from an FY 2023 baseline. The Mumbai-based pharmaceutical company also recorded a 22% decrease in overall energy consumption, with renewable sources accounting for approximately 27% of its total energy mix during the period.
The disclosure was made under Regulation 34(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, via its Business Responsibility and Sustainability Report (BRSR) for FY26. Deloitte Haskins & Sells LLP provided reasonable assurance on the core indicators of the report. The data reflects standalone operations, noting that the generic business undertaking was transferred to Alkem Wellness Limited effective October 1, 2025.
Environmental Performance
Total Scope 1 and Scope 2 emissions declined to 93,205 tCO2e in FY26, down from 1,09,097 tCO2e in FY25. Scope 1 emissions dropped sharply to 19,088.7 metric tonnes of CO2 equivalent, compared to 33,018 metric tonnes in the previous year. Scope 2 emissions (market-based) were recorded at 74,116.3 metric tonnes of CO2 equivalent, slightly lower than the 76,079 metric tonnes reported in FY25.
Energy efficiency initiatives included the installation of IoT-enabled meters for real-time monitoring and the use of bio-briquettes in boilers as an alternative to fossil fuels. The company achieved ISO 50001 certification across 100% of its operational units. Total energy consumption was 7,54,500 GJ, comprising 2,01,332 GJ from renewable sources and 5,53,168 GJ from non-renewable sources.
| Metric | FY26 | FY25 |
|---|---|---|
| Total Scope 1 & 2 Emissions (tCO2e) | 93,205 | 1,09,097 |
| Energy Consumption (GJ) | 7,54,500 | 9,71,362 |
| Renewable Energy Share (%) | ~27% | Not Disclosed |
Waste and Water Management
Alkem recycled 4,376 metric tonnes of plastic packaging waste under its Extended Producer Responsibility (EPR) framework in FY26, up from 3,961 metric tonnes in FY25. The company recycled or reused 99% of its non-hazardous waste. Total waste generated was 6,228 metric tonnes, of which 5,151 metric tonnes were recycled and 780 metric tonnes underwent other recovery operations.
Water stewardship remains a key priority, with the company targeting water neutrality by FY 2030. Total water withdrawal decreased to 6,19,064 kilolitres from 6,84,761 kilolitres in FY25. Approximately 84% of treated wastewater was reused within facilities for utilities and landscaping. Zero Liquid Discharge systems are operational at 58% of manufacturing units.
Social and Governance Metrics
The company maintained a Lost Time Injury Frequency Rate (LTIFR) of 0.07 per one million person-hours worked for workers, down from 0.09 in FY25. No fatalities were reported. Employee well-being spending constituted 0.2% of total revenue, down from 0.3% in the previous year. Gender diversity in the total workforce stood at 3.39%, with women comprising 17% of the Board of Directors.
What the Numbers Show
The sharp decline in Scope 1 emissions (from 33,018 to 19,088.7 tCO2e) outpaced the reduction in total energy consumption, suggesting that fuel switching—specifically the adoption of bio-briquettes and cleaner fuels—was a more potent driver of decarbonization than pure efficiency gains during FY26. This structural shift in the energy mix aligns with the company’s stated strategy to increase the share of cleaner energy sources.
Historical Stock Returns for Alkem Laboratories
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.37% | -0.16% | +4.73% | -0.87% | +12.38% | +68.29% |
How will the transfer of the generic business to Alkem Wellness Limited impact the comparability of future standalone sustainability metrics for Alkem Laboratories?
What specific capital expenditure plans does Alkem have to scale its renewable energy share from 27% to meet its 42% emissions reduction target by FY 2033?
Given the decline in employee well-being spending as a percentage of revenue, how does management plan to balance cost optimization with maintaining low injury rates and workforce retention?


































