Sai Life Sciences Sustainability Report 2020

19 We are raising the bar as we pivot transformation across people, processes, and assets with Sai Nxt, an organization-wide initiative we began in 2019. The transformation agenda focuses on three key areas: 1. People & culture 2. Processes & automation 3. Infrastructure & scientific capabilities Our efforts are designed to propel the organization to the next phase of growth and further strengthen sustainability--- as it is the right thing to do for our business, society, and our planet’s future. It gives me great pleasure to present our inaugural sustainability report, which provides a closer look at our efforts to address the three pillars of growth-economic, environmental, and social. This report reflects our unwavering commitment to embrace sustainable choice as one thread running through everything we do. As we continue integrating sustainability in the organization, we consistently meet our goal to be a reliable partner, provide an engaging and safe workplace, identify and proactively address environmental risks. We support the UN Sustainable Development Goals (UN SDG) by championing actions to mitigate climate change and conserve energy, efficiently manage water resources, minimize pollution, advance diversity and inclusion, and promote good health, education, and livelihoods for communities. Here are some specific examples reflecting our commitment and progress towards sustainability: • Became the first India-headquartered company to join the Pharmaceutical Supply Chain Initiative (PSCI) membership embedding PSCI principles in responsible supply chain management encompassing five areas- ethics, labor, environment, health & safety into our supply agreements. • Awarded 5-Star Rating for Excellence in EHS practices at the Confederation of Indian Industry (CII) South and won National Award for Excellence in Energy Management hosted by Confederation of Indian Industry (CII) – Sohrabji Godrej Green Business Centre, for driving energy-efficient and sustainable practices reducing greenhouse gas emissions. • Increasing the adoption of green chemistry principles and instituted our inaugural ‘Green Chemistry Awards’ to recognize and celebrate teams that develop greener processes. • Inducted as Associate member into the ACS- Green Chemistry Pharmaceutical Round table. • Meeting 13% of our electricity requirement from renewable sources, reducing approximately 3000 tons CO2e of GHGs. • Zero waste to landfill from one of the manufacturing units and achieving use of 74% of hazardous waste for co-processing, exceeding our goal. • Impacted over 11,000 people through community initiatives with sustainable projects across education, health, and livelihood. As we view our core business strategy through the lens of sustainability, our focus is on optimizing operations, embedding a culture of quality, safety, and customer-centricity. The practice of stakeholder engagement is intrinsic to us and we continue to invest time and effort to listen to our stakeholders. Here are a few initiatives that illustrate integration of sustainability across our operations: • Completing regulatory audits without critical observations across all our facilities in the last two years. • Driving 100% digital transformation in Quality Assurance and Warehouse transactions for assured data integrity. • Enabling our employees to support customers with the Shop-floor Transformation initiative, which empowers and strengthens communication processes between teams along with opportunities for new ideas to gain ground. • Establishing state-of-the-art process safety infrastructure. • Instituting cloud-based platform for anytime access to customized learning with over 3000 courses for the entire organization. Looking ahead, we believe our sustainability pursuits will help us navigate challenges and create growth opportunities. This year, as our people, communities, and economies face unprecedented uncertainties due to the coronavirus (COVID-19) pandemic, we have increased our support and responded with timely actions. We are taking proactive steps to protect our people, ensure that our operations are resilient and support our customers, and extend help to the communities where we operate. We will continue to deepen our expertise, sustain a quality and safety culture and track record of regulatory compliance, pursue our commitment to collaboration, and enable all our stakeholders to thrive. We look forward to you joining us in shaping and securing a more sustainable future. Sincerely, Krishna Kanumuri CEO & Managing Director

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