ENVIRONMENTAL DISCLOSURE PRACTICES IN THE INDIAN PHARMACEUTICAL INDUSTRY: A COMPARATIVE STUDY OF SUN PHARMACEUTICAL LTD. AND CIPLA LTD

The pharmaceutical industry, integral to global healthcare, faces increasing pressure to address its environmentalfootprint through robust accounting and reporting practices. This study conducts a comparative analysis of theenvironmental disclosure and reporting practices of two leading Indian pharmaceutical companies, Sun Pharma andCipla Ltd., utilizing secondary data sourced from their sustainability reports, annual disclosures, and industryframeworks. The research evaluates the adoption of global standards such as the Global Reporting Initiative (GRI)and the Carbon Disclosure Project (CDP), focusing on key environmental metrics including greenhouse gasemissions, energy consumption, water management, and waste reduction. It examines the structure, transparency,and frequency of their environmental disclosures, highlighting how each company integrates environmentaldisclosure into its strategic framework. The findings reveal distinct approaches: Sun Pharma emphasizes detailedquantitative metrics with a focus on renewable energy adoption, while Cipla prioritizes narrative-driven reportshighlighting community-focused environmental initiatives. The study identifies strengths, such as Sun Pharma’s datagranularity, and weaknesses, including Cipla’s limited disclosure of scope-specific emissions. By comparing theirpractices, the paper uncovers gaps in standardization and transparency, offering insights into how these firms alignwith global sustainability goals amidst India’s regulatory landscape. This analysis contributes to understanding therole of environmental accounting in enhancing corporate accountability in the pharmaceutical sector, emphasizingthe need for consistent, accessible, and comprehensive reporting to address stakeholder expectations andenvironmental challenges effectively.