For many years, when people thought about the topic of sustainability they thought of plastic usage, reducing food miles or opting to walk instead of using the car.
Now, times have changed. Businesses are under pressure from consumers, their employees and those responsible for awarding multi-million pound contracts to prioritise sustainability.
Using the globally recognised environmental, social, and governance (ESG) principles to inform procurement decisions, the UK Government introduced the Procurement Policy Note (“PPN”) 06/20 back in 2020.
With the pharmaceutical industry producing 55% more greenhouse gas emissions than the automotive sector, it’s no surprise that the industry has become focused on ESG goals in recent years.
Supply chain emissions
The industry’s direct operations are responsible for 52 megatons of carbon dioxide equivalent emissions annually, a figure which does not include the additional indirect energy-related emissions arising from its supply chain, including the transportation of medicines and the energy demands of distribution facilities.
More than 70% of the emissions produced within the pharmaceutical industry originate in these supply chains, which marks them as one of the industry’s biggest concerns.
As one of the few significant manufacturing industries that must deal with all three of the ESG principles, the pharmaceutical supply chains impact the environment through a combination of factors.
These include greenhouse gas emissions; air, water, and land pollutants; construction and deforestation; and overuse of natural resources such as fossil fuels, minerals, and water.
Maintaining the health of people and the planet
While the pharmaceutical industry is undeniably important and essential worldwide in ensuring people are able to obtain essential medications to maintain their health and wellbeing, a continuation of unsustainable practices and large global carbon footprint mean that climate change could contribute to the projected net increase of 529,000 adult deaths per year by 2050.
By working to reduce their impact on the environment, pharmaceutical businesses can demonstrate their commitment to their values.
Industry decision-makers must ensure that the pharmaceutical industry is not only improving the health of individual people around the world, but also contributing to the health of the environment and the planet on a wider scale.
Meeting regulatory changes
The regulations that govern the pharmaceutical industry are crucial for maintaining the safety of patients, as well as public confidence.
This creates a challenge for the industry; it must reduce carbon emissions while simultaneously maintaining the high standard of quality assurance which is essential to meet these regulations and reach intended treatment outcomes.
This isn’t as difficult for new treatments which are being developed, but it is more of an issue for those which are already available on the market.
Despite the challenges, sustainability goals and metrics are now successfully being implemented across the pharmaceutical industry, with the rate of adoption accelerating quickly. Recently, nearly half of the pharmaceutical sector by revenue made broad commitments through the UN’s Race to Zero initiative, a global campaign to take rigorous and immediate action to halve emissions by 2030.
The switch to renewable energy
Companies are investing in cleaner production methods and using green chemistry principles to reduce the environmental impact of creating medicines.
Transitioning to renewable energy sources for manufacturing facilities is also quickly becoming the norm, significantly contributing to reducing the industry’s overall carbon footprint.
More than half of the respondents to a survey which was conducted last year said that their pharmaceutical organisations are actively scaling or undertaking efforts to minimise their impact on water quality, source sustainable raw materials, and design sustainable value chains.
Furthermore, 47% said their organisations are actively scaling or undertaking efforts on building smart factories.
Not doing enough?
However, despite these positive steps in the right direction, a recent survey of pharmaceutical industry professionals by GlobalData shows that 70% of respondents believe that the industry is not doing enough to be more environmentally sustainable, with 52% picking climate change as the most pressing environmental issue that the industry should be addressing, and 32% picking pollution.
Many pharmaceutical companies are reporting significant progress in becoming more sustainable.
AstraZeneca reported that it managed to reduce targets for scopes one and two by 59% between 2015 and 2021.
Lupin Healthcare set its ambition to be Carbon Net Zero by 2045, and launched a new inhaler for people with asthma that is carbon neutral – the first of its kind in the UK.
Meanwhile, 63% of Roche’s total electricity usage now comes from sustainable sources.
Roche isn’t the only pharmaceutical business that is turning to purchasing or generating renewable energy.
Many other companies have reported that they are committed to switching their fleets to electric vehicles and installing charging facilities for staff and customers by 2030, in order to reduce their overall carbon emissions and meet their net zero goals.
Practical infrastructure solutions
There are a number of different solutions which can be implemented to generate renewable energy, while also encouraging the switch to EVs.
New products and innovations are emerging into the market, which work to reduce energy usage as automation increases demand for clean energy, and support continued EV adoption among the workforce, through their blend of sustainability and functionality.
Carports are growing in popularity as businesses and public sector organisations seek to maximise the output from spaces which were previously unused for most of the day.
As well as providing protection for vehicles, giving increased peace of mind to customers and staff, solar carports have the potential to significantly reduce a manufacturing plant’s energy bill, increasing energy security, as well as reducing costs and carbon emissions.
Generating solar energy on-site offers a renewable and clean energy alternative, significantly reducing greenhouse gas emissions while demonstrating the business’ commitment to environmental sustainability.
The solar panels work in the same way as a traditional rooftop solar installation, with a connection to the business’ existing electricity supply, backup battery storage, or connection to the grid.
Incentives for staff
By taking the extra step and installing EV charging points underneath the carports, the renewable energy that they generate can be transformed into a benefit for the staff.
This will further incentivise them to switch to EVs, due to the ease and convenience at which they can charge their vehicle while it is parked, with the knowledge that it is safely protected underneath the carport.
During a time when consumers, stakeholders, and employees alike are increasingly drawn to businesses that are prioritising environmental consciousness, it is essential that businesses make it clear that they are committed to sustainability, by investing in bold, visible and practical solutions which will help them to reach their net zero goals and deliver on their commitments to improve the health of our planet.
Clifford Huntley, head of research and development at Solspan, part of Kensington Systems.
