INDIA’S pharmaceutical sector is witnessing a steady shift towards renewable energy adoption and stronger sustainability practices, driven largely by rising pressure from regulated export markets such as Europe and the UK, according to a study by ICRA ESG Ratings Limited.
The report said renewable energy (RE) consumption across a sample of 53 pharmaceutical companies rose from 17 per cent in FY2023 to 25 per cent in FY2025, reflecting a gradual move towards cleaner energy sources. Active Pharmaceutical Ingredients (API) manufacturers recorded the sharpest rise, with RE usage increasing from 21 per cent to 31 per cent during the period, while formulation manufacturers improved from nine per cent to 17 percent.
Integrated players saw RE adoption rise from 20 per cent to 30 per cent.”Renewable energy (RE) is the central decarbonisation lever; procurement mode matters,” the report noted, adding that large export-oriented firms are increasingly adopting open-access and group-captive renewable power procurement models. The study highlighted that sustainability adoption in the pharma sector is being accelerated by overseas regulations and procurement requirements. — ANI