In the face of the growing urgency to curb climate change and mitigate the depletion of natural resources, a new wave of companies is emerging that integrate sustainability and respect for the environment as essential elements in their business model, permeating all aspects of their operation.
According to the Journal for Cleaner Production, the pharmaceutical industry generates 55% more carbon emissions than the automotive sector per million dollars in revenue, underscoring the pressing need to adopt more sustainable practices. Most of the environmental impact in this sector comes from its supply chain, specifically from so-called Scope 3 emissions, which account for more than 80% of a pharmaceutical company’s total carbon footprint and are mainly linked to purchased goods and services.
In order to examine the current state and future prospects of sustainability in the sector, Cognizant, a global professional services firm, together with Oxford Economics, conducted a study entitled “Deep Green: How Data, Technology and Collaboration will drive the next phase of sustainability in business”. This report, based on interviews with 3,000 executives from large companies in Spain, Europe, North America and Asia-Pacific, reveals that sustainability is an increasingly priority issue for companies. According to the report, 65% of executives consider environmental sustainability to be key to their business strategy. However, 71% anticipate that it will take until 2044 or even 2054 to achieve the goal of net zero carbon emissions.
Carlos Vela Arrojo, head of Cognizant’s Life Sciences and Healthcare division in Spain, Portugal and Italy, highlights that to move towards a more sustainable pharmaceutical industry, companies must establish clear plans and make a full commitment to sustainability. This requires a collaborative approach, investing in technology and considering the entire value chain.
The sustainable pharmaceutical industry
To improve sustainability in the pharmaceutical supply chain, several key measures are suggested:
- Assessing viability in supply chainsFor example, Siemens Healthcare, in collaboration with the University of California, San Francisco (UCSF), was able to significantly reduce carbon emissions and costs at medical centers in Northern California by implementing practices such as shutting down equipment at night and reducing power consumption on MRI systems during non-operating hours.
- Investment in new technologiesTools such as blockchain, artificial intelligence and the Internet of Things (IoT) can help identify opportunities to optimize resource use and reduce emissions.
- Rigorous selection of suppliers: Companies need to broaden the criteria by which they choose their business partners, adopting a more comprehensive approach that includes environmental considerations.
- Fostering collaboration: Pharmaceutical companies are encouraged to collaborate more, including with competitors, to share best practices and optimize resource use throughout the value chain. However, only 55% of pharmaceutical companies surveyed indicated that they currently collaborate with their suppliers to improve environmental sustainability.
