Environment, Social & Governance and Climate Change Policy

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1. INTRODUCTION

ANTHEM BIOSCIENCES LIMITED (hereinafter referred to as the “Company”), incorporated in Bangalore on 13th June 2006 under the provisions of Companies Act, 1956, having CIN: L24233KA2006PTC039703, is a Contract Development & Manufacturing Organization (CDMO) offering early-stage drug discovery services with its services encompassing medicinal chemistry, process chemistry, custom synthesis, discovery research and analytical R&D. Over the years, the company has forward integrated into contract manufacturing with a view to benefit from the synergies arising out of its involvement in the development of the product

The Company is a Contract Research and Innovation Service Provider with the main object of carrying on the business of developing through collaborative research either independently or in tandem or in association with any other person or persons to meet the challenges of emerging technologies in the field of Biosciences including but not limited to Bio Technology, in India or abroad.

The Company’s commitment towards environment & climate change, social and governance (ESG) is a result of an increasingly volatile world where economic realities transform overnight. There is a growing conviction that a robust ESG fabric enhances stability, increases counter cyclicality and establishes the basis for long-term stakeholder value. The Company believes that this commitment is critical considering that the products manufactured consumes land, water, natural resources, fossil fuels and electricity, any moderation in which can have upsides for the local terrain, habitat and ecology.

(a) The environment component ensures that the Company consumes environmentally responsible resources, an optimal quantum of responsible materials, moderate fossil fuels, recycle waste, reduce carbon footprint and build resistance to climate change;

(b) The social component addresses a proactive investment in talent, and social responsibility benefiting local communities;

(c) The governance component indicates how the business will grow, covering strategic clarity, and commitment to conduct codes.

2. OBJECTIVE

As a testament to the commitment to environment, the Company had formulated Environment Policy as a part of Integrated Management System (IMS) in 2014, which served as a framework to understand and manage environmental risks, impacts and opportunities.

The current policy is formulated to (a) define and strengthen the focus on environment, social, governance & climate change (ESG) principles, and (b) embedding environmental management, governance and social responsibility into the business approach.

This policy applies to all Anthem entities and employees, and serves as a guiding document for all ESG initiatives and activities undertaken by the Company.

3. ESG & CC COMMITTEE

The Board of Directors had constituted the ESG (Environment, Social & Governance) & CC (Climate Change) Committee (the “Committee”) at its meeting held on 30th May, 2022 and subsequently reconstituted the Committee at its meeting held on 18th October, 2024 and 19th May, 2026 to strengthen the Company’s focus and vision on ESG & Climate Change. The Committee shall be a management level committee comprising of the following members:

  • Chairperson: Mr. Ajay Bhardwaj, Chief Executive Officer and Managing Director – Anthem Biosciences Private Limited, has been appointed by the Board as the Committee Chairperson. In the absence of the Committee Chairperson, the members present at any meeting of the Committee shall elect one amongst them to chair the meeting.
  • Membership: The members of the Committee shall be appointed by the Board
    • Mr. Ajay Bhardwaj Chief Executive Officer and Managing Director – Anthem Biosciences Limited, has been appointed by the Board as the Committee Chairman;
    • Such other Independent Directors as may be appointed by Board from time to time
    • 2 other senior members of the Company, viz.: The Chief Financial Officer and Head – ESG, has been appointed as the Committee Members;
    • Secretary: The Company Secretary shall act as the secretary to the committee

The Committee shall meet periodically as required and the quorum for its meetings shall be one-third of its total strength or two members, whichever is higher.

Functionally, the Committee shall provide strategic guidance and oversight on the Company’s ESG and Climate Change agenda and may inter-alia be responsible for:

  • Approving, reviewing and monitoring the Company’s ESG vision, strategy, goals, targets, initiatives and performance there against;
  • Reviewing material ESG and climate-related risks and opportunities, including mitigation and adaptation measures and the potential financial implications arising therefrom;
  • Overseeing environmental initiatives relating to energy consumption, greenhouse gas emissions, de-carbonization, renewable energy adoption, water stewardship, waste management, resource efficiency, science-based targets and other climate-related matters;
  • Overseeing social initiatives relating to employee welfare, human rights, diversity and inclusion, stakeholder engagement, community impact and ESG risk assessment across the value chain and supply chain;
  • Monitoring governance-related matters including business ethics, corporate governance, regulatory compliance, anti-competitive practices, transparency, data privacy, information security, risk management and internal control frameworks;
  • Reviewing ESG disclosures, sustainability reports, Business Responsibility and Sustainability Reports (BRSR) and other ESG-related communications and ensuring alignment with applicable laws, regulations and recognized reporting standards;
  • Monitoring emerging ESG trends, stakeholder expectations and regulatory developments and recommending appropriate actions to the Board.

For the purpose of discharging its responsibilities, the Committee shall have the authority to:

  • Investigate any matter falling within its scope of responsibility;
  • Seek information, records and assistance from any employee, officer or function of the Company;
  • Engage external advisors, consultants or other professional experts as may be considered necessary;
  • Invite directors, officers, employees, subject matter experts or other persons to attend meetings of the Committee;
  • Constitute working groups or delegate specific responsibilities to sub-committees, officers, employees, consultants or advisors, as considered appropriate; and
  • Access such resources as may be required for the effective discharge of its duties.
  • Do all acts, deeds & things incidental and deemed necessary for achievement of ESG goals, targets and strategy of the Company.

5. Environmental Sustainability & Climate

The ESG Policy lays down the framework around the following areas:

  • Environmental Sustainability & Climate Change
  • Social Responsibility
  • Governance

Anthem defines sustainability as its efforts to reduce energy consumption, water usage, waste disposal and promotion of strategies that progress towards combating climate change and transitioning to a low carbon economy. The Company believes that, adopting financially responsible steps towards improving environmental sustainable operational practices represents good and responsible corporate citizenship and serves in the best interests of its clients.

The Company is committed to the following sustainability goals under environmental and climate change considerations

  • Continually minimizing environmental footprint and offset environmental impacts through pro-active measures
  • Reducing carbon footprint
  • Achievement of “Zero Liquid Discharge” status at manufacturing sites
  • Designing an effective waste (hazardous and non-hazardous) management system
  • Responsive and robust environmental management system (EMS) and governance
  • Transitioning towards greener / renewable sources of energy and incorporating energy efficiency at all systems
  • Inculcate the system of Reduce, Reuse and Recycle wherever feasible
  • Drive thought leadership and innovation on sustainable investment for supporting positive environmental outcomes

6. Social Responsibility

The Company defines “social responsibility” as the obligation of a company to make decisions and take actions that will enhance the welfare of its own employees and to act in the interests of society as a whole. Socially responsible initiatives that relate to human rights, workplace, community and societal issues are embodied within the system.

At Anthem, employees are considered as the biggest asset, and the Company has established policies and procedures that are focused on employees. A safe and a holistic working environment is established in place wherein each and every employee’s voice and concerns are paid utmost importance to. The commitment to workforce are as below:

(a) Equal Opportunity, Non-Discrimination & Fair Treatment
Employees are central to everything Anthem does and satisfaction of employees is critical to the long term success of the Company. Anthem provides fair and equal employment and advancement opportunities to all its employees and there will be no discrimination on the basis of race, caste, color, age, sex, disability and socio-economic status of the candidate. The Company ensures a fair recruitment process that helps identify and hire people with the right values, who are then groomed, encouraged and retained through a combination of financial and non-financial incentives

(b) Remuneration and career progression
The Company will continue to create an inclusive culture to ensure representation across gender, caste, creed, religion, region, physical ability and military/ veteran status. Anthem is making structured efforts on gender diversity initiatives.

(c) Employee Health & Well-being
Anthem is committed to continue to take steps to promote a safe and conducive work environment for its employees, appropriate healthcare benefits and medical cover and will provide guidance on occupational health and safety to all its employees. Trainings with regard to contractor safety and on-site emergency plans will be conducted on an on-going basis and good work practices and standard operating procedures have been defined to guide the
employees in their work path. The Company will continue to conduct regular health check-up for its employees.

(d) Employee Ethics & Code of Conduct
The Company has mechanisms to deal with issues related to inhumane treatment including mental or physical coercion or verbal abuse, sexual harassment, sexual abuse, slavery, of employees. This is guided by the Code of Business Conduct and Ethics (COBE) Manual, an internal document available to all employees. The manual also defines good corporate practices, professional code of conduct and management action that will continue to promote a culture of good integrity and ethics amongst its employees.

(e) Women Safety
The Company has a Zero tolerance policy on prevention of sexual harassment and the Prevention of Sexual Harassment (POSH) Committee investigates cases of sexual misconduct and investigates them through a fair and transparent process and takes action against erring employees. Anthem will continue to promote and protect the well-being of all women employees, especially women who are required to work late due to business requirements.

(f) Training & Development
The Company recognizes the importance of having a skilled workforce with necessary competencies to deliver on the Company’s strategic and operational plans through well structured training modules to assist in job specific development as well as personal development of the employees. Anthem is committed towards providing an environment that is conducive to and promotes training and development opportunities to all employees. Periodic training and updates on ESG are provided to all employees.

As a responsible organization, Anthem is committed to being a responsive member of the community and supports a wide range of programs and activities that enhance local and regional communities. Anthem continues to pursue actions that support this commitment across the business. The Corporate Social Responsibility (CSR) policy lays down the framework and the areas where the Company is
committed towards community contribution. Oversight of CSR activities has been delegated by the Board to the Corporate Social Responsibility Committee. Further details can be obtained on the Company’s website with respect to the CSR Policy

7. Governance

Anthem defines “governance” as the set of processes, customs, policies, laws and institutions affecting the way an organization is directed or administered. A transparent, honest and trustworthy leadership is practiced at Anthem. From an Environment perspective Anthem practices, a positive
attitude towards the environment and climate change by adhering to the respective norms. From a Societal perspective, Anthem focuses on the economic wellbeing and up-lifting of their employees and society as a whole.

From a Governance perspective, Anthem is committed to maintaining the highest levels of ethical standards of integrity, corporate governance and regulatory compliance. These parameters form the bedrock of Anthem’s corporate governance policy. The Company has proactively upheld good governance practices and is constantly striving to enhance its standards. The Company’s Board of Directors are responsible for setting the course for, and evaluating the Company’s performance with regards to corporate governance. The parameters of evaluation include compliance, internal control,
risk management, information and cyber security, commitment to customers and vendors, social & environmental responsibility. The Company will continue to adopt and adhere to the best recognized corporate governance practices and is continuously benchmarking itself with best in class practices across the globe

8. ESG Reporting & Disclosure

Clients and inspection authorities can monitor the progress of Anthem’s implementation of ESG initiatives through documents such as the Environmental Audit statements and Annual ESG Report and such other reports describing the organization’s sustainability, governance and social
responsibility achievements over the prior year.

The Committee shall periodically review the Company’s ESG disclosures, sustainability reports, Business Responsibility and Sustainability Report (BRSR), and other ESG-related communications to ensure that such disclosures are accurate, transparent, comprehensive and aligned with applicable regulatory requirements and recognized reporting standards

9. Policy Review & Future Amendment

The Committee shall periodically review this Policy, the Company’s ESG strategy, targets, governance framework and disclosure practices to ensure continued relevance and alignment with evolving regulatory requirements, stakeholder expectations and industry best practices. The Committee may
recommend amendments to this Policy to the Board of Directors for approval and shall oversee the implementation of approved changes.

10. Effective Date

This amended policy shall come into force from the date of its approval by the Board of the Company. This policy shall revoke and replace any and all previous policies and understandings that are inconsistent with those contained herein.

The Committee shall amend the policy as necessary or appropriate on the approval of Board. Once approved by the Board, the Management shall thereafter disseminate and host the revised version of the Policy on the website of the Company.