Net Zero Pharma

If your company is a supplier of either goods or services to the pharmaceutical industry, you surely will have noticed the rapid changes around sustainability. This can be bewildering, especially if you are engaged in a business relationship with more than one major pharmaceutical supply chain. This is driven by a rapidly changing political, demographic, and physical climate that has introduced serious risks to the long-term health of the business environment and the physical health of humans around the planet. This, in turn, has caused industry leaders to stake out leadership positions that force rapid action from their suppliers and other vendors. If it feels like a lot to process, don’t worry. Here’s what you need to know:

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What is Driving the Need for Emissions Accounting?

First, the root cause of the whole issue is one we should all be familiar with, but just in case, this video is a quick explainer about what is driving climate change. This global threat to human health and welfare has been calculated, with the World Health Organization (WHO) identifying that climate change is expected to kill 250,000 people per year on average in the next couple of decades. The WHO used its ability to convene international leaders by assembling the Alliance for Transformative Action on Climate and Health (ATACH), which put together several working groups. Of note:

• Low Carbon Sustainable Health Systems- Supply Chains- Climate Action and Nutrition

A parallel effort called the Sustainable Markets Initiative (SMI) was convened by England’s King Charles III in 2020 to bring together many of the same players in government, finance, and industry. This entailed creating a Health Systems Task Force, which included the leaders of NovoNordisk, Merck, Sanofi, Samsung Biologics, Roche, AstraZeneca, GlaxoSmithKline, and others. These leaders concluded their work by creating a series of supplier targets published in an open letter. It commits their companies to sourcing from suppliers that do the following:

• Assess and disclose Scope 1, 2, and 3 emissions by 2025.- By 2025, commit to set near-term targets aligned with the 1.5-degree pathway- By 2025, set targets to reduce waste (including solvents) and energy and reuse materials in manufacturing.- Commit to switch to at least 80% renewable power by 2030 and make commitment public.- By 2030, explore options to source green heat.- Transport suppliers that make SBTi-aligned commitments by 2025 and include green transportation solutions in their core offering by 2030. - Commit to setting standards for own suppliers.- Set targets to increase water efficiency and commit to adopting water stewardship standards.

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