The pharmaceutical industry is committed to the development, manufacture and provision of medicines globally, a process that inevitably impacts the climate through greenhouse gases (GHG).

To mitigate this, the industry is actively working to reduce its GHG emissions, with research showing that 19 of the top 20 pharmaceutical companies have pledged to lessen their climate impact between 2025 and 2050.

But in a rapidly changing industry faced with evolving regulations, escalating global public health threats, geo-political tensions and increasing sustainability demands, the challenge remains: how can the industry prioritise the most critical issues while integrating environmental management into its core responsibilities?

The pharmaceutical industry’s impact on climate change is multifaceted and profound. The manufacturing processes for pharmaceuticals are energy-intensive, requiring substantial electricity and fossil fuels, which contribute significantly to GHG emissions. The healthcare sector alone accounts for 5% of all GHG emissions, double that of the aviation industry.

Additionally, the transportation and distribution of medicines, often requiring temperature-controlled environments, further exacerbates the carbon footprint. These factors collectively position the pharmaceutical industry as a notable contributor to global GHG emissions.

Climate change is not just an abstract environmental issue, it has tangible and immediate public health implications.

Changes in temperature and precipitation patterns have enhanced the spread of vector-borne diseases such as malaria and dengue fever. Without preventative action, the death toll from these diseases, currently around 700,000 annually, could rise dramatically. The pharmaceutical industry, therefore, has a dual responsibility to mitigate its own environmental impact and to address the health challenges exacerbated by climate change.

‘The pharmaceutical industry’s impact on climate change is multifaceted, with the healthcare sector alone accounting for 5% of all GHG emissions, double that of the aviation industry’

In the face of these pressing concerns, the industry’s current efforts to reduce its environmental footprint are commendable but insufficient. Comprehensive action is required to significantly decrease GHG emissions and promote sustainability.

At last year’s COP28 summit, it was agreed global healthcare leaders from the Sustainable Markets Initiative Health Systems Task Force will work with energy providers in China and India to scale renewable power across supply chains, unlocking at least 70 megawatts of capacity.

This is the first collaborative effort among major pharmaceutical companies, such as AstraZeneca, GSK, Novo Nordisk and Roche, in these crucial markets, which supply up to 50% of materials for medicines. The move will save 120,000 tonnes on GHGs, the equivalent of removing 25,000 cars from the road.

However, the industry needs to go even further to achieve the ultimate goal of net zero emissions. This involves rethinking traditional manufacturing processes, optimising supply chains and investing in green technologies. The industry must also engage in collaborative efforts with governments, NGOs and other stakeholders to develop and implement effective environmental management strategies.

Several unique challenges make reducing carbon emissions in the pharmaceutical industry particularly difficult. One major obstacle is the resource intensity of research and development (R&D). Developing new drugs is a complex and resource-heavy process, often involving extensive testing and validation. This not only consumes vast amounts of energy but also generates substantial waste.

Furthermore, the pharmaceutical industry relies heavily on refrigeration and freezing to preserve the efficacy of many drugs, particularly biologics. These temperature control requirements significantly increase energy consumption.

High investment costs also pose a barrier to the adoption of greener technologies. While sustainable practices and technologies can reduce environmental impact in the long run, the initial financial outlay can be prohibitively high.

This is especially challenging for smaller companies with limited resources. Moreover, the industry operates under stringent regulations to ensure the safety and efficacy of medicines. These regulations can sometimes limit the flexibility needed to implement greener processes and technologies swiftly.

Geopolitical instability further complicates the path to net zero. Supply chain disruptions, caused by conflicts or trade disputes, can hinder the availability of raw materials and essential components needed for manufacturing, as has been seen through Russia’s war on Ukraine. In particular, as the world’s third-largest producer of aluminium, a frequently used component of pharma packaging across many products, Russia’s war has seen the pharma packaging industry face heightened costs and a lower supply of this raw material thanks to sanctions.

Regulatory divergence across regions adds another layer of complexity, as companies must navigate varying environmental standards and compliance requirements.  Additionally, resource availability and investment and funding challenges can delay the implementation of sustainable practices.

These factors collectively create a challenging landscape for the pharmaceutical industry. To overcome these obstacles, a multifaceted approach is needed. This includes advocating for harmonised global regulations, investing in resilient and sustainable supply chains and fostering innovation to develop cost-effective green technologies. By addressing these challenges head-on, the industry can make significant strides towards achieving net zero emissions.

Despite these challenges, there are promising solutions on the horizon that could transform the industry’s ability to reduce its carbon emissions, pollution and overall environmental impact.

One such innovation is enzymatic recycling, a process that uses enzymes to break down plastics into their original building blocks, allowing them to be reused in the production of new plastics. This method is not only more energy-efficient than traditional recycling processes but also reduces the reliance on virgin plastic, lowering the overall carbon footprint.

Innovative packaging solutions also offer significant potential for reducing the industry’s environmental footprint. For example, smart packaging, which uses sensors and digital interfaces to monitor the condition of the product and provide real-time information to consumers, can also enhance sustainability. These technologies can ensure that medicines are stored and transported under optimal conditions, reducing spoilage and waste.

Furthermore, the adoption of renewable energy sources is crucial for reducing the industry’s carbon footprint. Many pharmaceutical companies are already investing in solar, wind and other renewable energy technologies to power their operations. By transitioning to clean energy, the industry can significantly reduce its GHG emissions and contribute to global efforts to combat climate change.

In addition to technological innovations, the industry must also embrace a culture of sustainability. This involves integrating environmental management into every aspect of operations, from R&D to manufacturing to distribution. Companies should set ambitious sustainability goals, track their progress and report transparently on their achievements and challenges. Engaging employees, suppliers and other stakeholders in sustainability initiatives can also drive meaningful change.

Education and awareness are key components of this cultural shift. Companies should invest in training programmes to equip employees with the knowledge and skills needed to implement sustainable practices. By fostering a deeper understanding of environmental issues and the importance of sustainability, the industry can build a workforce that is committed to reducing its environmental impact.

Policy advocacy is essential for creating an enabling environment for sustainability. The industry should actively engage with policymakers to advocate for regulations and incentives that support green technologies and sustainable practices. By influencing policy decisions, the industry can help create a regulatory framework that promotes environmental stewardship and rewards sustainability efforts.

Steve Brownett-Gale is Marketing Lead at Origin