Impending ESG regulations present communications opportunity for pharma

These new guidelines will change how pharmaceutical companies report progress against their ESG commitments and programmes. While recent reports indicate varying levels of readiness, industry appears to be restructuring itself, with many relegating ESG functions to legal teams. In doing so, companies could find themselves looking at work through the lens of regulation and risk, rather than progress and impact. By leveraging communications, we can change the narrative and lift ESG conversations out of compliance, to tell richer, more comprehensive stories of ambition and sustainable change.

Today, people aren’t just looking for commitments and compliance – they are looking for action. Big commitments are important as they can drive excitement and collaboration, but without tangible action, commitments risk becoming abstract words with little meaning.

According to a Pharmaceutical Technology analysis of climate commitments, the pharmaceutical and biotechnology sector is ahead of the game; the 32 biggest companies have committed to reduce emissions by 45.8% over the next 12 years. And with good reason: the healthcare industry globally is responsible for some 25% of greenhouse gas emissions.

The opportunity now is to advance and show progress against these commitments in ways that resonate with stakeholders beyond ratings, rankings and reporting. Today’s more astute public have a desire to align themselves with companies making an impact for both people and the planet. Through targeted and strategic communications, we can show rather than tell stories of action and progress – including shortcomings and failures. Without talking openly about where challenges have been faced, others can’t learn and pivot.

Understanding one’s sustainability impact will take a huge level of monitoring, data collection and time. As the new CSRD inspires a new way of reporting, companies can – and should – leverage more regular data collection, not only to evaluate and course-correct against plans, but to tell more open stories of progress.

Today’s challenges require solutions that look beyond any one diagnostic or therapeutic tool to address any number of other determinants influencing health outcomes. From social to environmental or economic, these determinants require intersectional responses and collaboration across sectors and with affected communities. By harnessing the power of community, industry can work to develop solutions based on the multidimensional experiences of those impacted, while at the same time strengthening trust and reputation.

This approach brings a necessary human dimension to a new era of ESG reporting, lifting efforts beyond an exercise in compliance to show true commitment, solidarity and action with communities affected by today’s challenges.

We are at a time when citizenship and sustainability are key drivers of reputation. The new CSRD framework seeks to strengthen accountability and transparency, but in the absence of effective storytelling, it applies a one-dimensional lens to a company’s ESG efforts.

Business and purpose are no longer mutually exclusive. And in a rapidly changing world, they simply can’t be. As temperatures rise and community needs persist, public expectation will keep rising. With heightened attention and scrutiny on ESG, authentic and compelling communications can help to tell a comprehensive story of action and impact that goes beyond commitment and reporting – and it has never been more important to do so.

Trey Watkins is EVP, Global Health, Corporate Impact and ESG and Gemma Medcalf is a Director, both at GCI Health