Overview of the Pharmaceutical Industry

The pharmaceutical industry is a dynamic and multifaceted sector dedicated to the discovery, development, production, and distribution of drugs and medications. It plays a pivotal role in global healthcare, contributing to the prevention, diagnosis, and treatment of various medical conditions. 

The pharmaceutical sector holds a pivotal position in driving progress in medical science, elevating healthcare results, and enriching the well-being of individuals across the globe. With a valuation exceeding USD 1.27 trillion, the global pharmaceutical market is a substantial contributor to the economy. Employing millions of individuals worldwide, the industry’s workforce size varies based on its definition and inclusion of related fields like biotechnology. The industry’s total revenue in 2021 reached several hundred billion dollars. It’s a complex and highly regulated field that involves a lot of research, testing, and innovation. 

The pharmaceutical industry, like many other sectors, plays a role in climate change through various aspects of its operations and products. A few examples of these could be: waste generation including hazardous chemicals and packaging materials, deforestation through heavy reliance on natural resources and greenhouse gas emissions from energy use. Pharmaceutical manufacturing processes often involve the use of energy-intensive procedures and the release of greenhouse gases (GHGs) such as carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O). These emissions contribute to global warming and climate change. 

Addressing the pharmaceutical industry’s impact on climate change requires collaboration among industry stakeholders, policymakers, and consumers to implement sustainable practices, reduce emissions, minimize waste, and develop climate-resilient healthcare systems.

Renewable energy in the Pharmaceutical Industry

The pharmaceutical industry has increasingly recognized the importance of sustainable and environmentally responsible practices. Hence many of the pharmaceutical companies are significantly increasing their sustainability goals such as reducing carbon footprint with energy efficient technologies, waste management, sustainable sourcing and utilization of renewable energy and etc. Renewable energy can have several climate-positive effects on the pharmaceutical industry, contributing to mitigating climate change and reducing the sector’s environmental footprint. Transitioning to renewable energy can offer numerous benefits for the pharmaceutical industry, enabling companies to meet their sustainability goals, and contribute to global efforts to combat climate change. 

As one of the ways to utilize renewable energy, many companies are involved in purchasing I-RECs (International Renewable Energy Certificates). I-RECs are a mechanism that allows companies to track and verify the renewable origin of the electricity they consume. This is particularly crucial for pharmaceutical companies aiming to transition to cleaner energy sources. By purchasing I-RECs, pharmaceutical firms can support renewable energy projects globally, even if their facilities are not directly powered by renewable sources. This enables them to contribute to the expansion of renewable energy infrastructure.

Benefits for Pharmaceutical Companies:

1. Environmental Responsibility:

By using I-REC, pharmaceutical companies showcase their dedication to reducing their environmental impact and promoting sustainability.

2. Corporate Social Responsibility (CSR):

Investing in renewable energy aligns with corporate social responsibility goals, enhancing the company’s reputation and demonstrating a commitment to a greener future.

3. Regulatory Compliance:

In some regions, there are regulatory incentives or requirements for companies to invest in renewable energy. Utilizing I-RECs helps pharmaceutical firms stay compliant with these regulations.

In summary, the pharmaceutical industry’s utilization of I-RECs is a proactive approach to sustainability. This not only aligns with global efforts to combat climate change but also reflects a commitment to responsible business practices, contributing to a healthier planet for future generations.

How Coral Future can support achieving you net zero goals:

Coral Future, with its diverse global portfolio and widespread presence, can play a pivotal role in assisting pharmaceutical companies in achieving their environmental goals, particularly in the realm of renewable energy. Here’s how:

1. Carbon footprint calculations:

  Begin by calculating your greenhouse gas emissions with our expert-led GHG inventory service, unraveling the first steps in your sustainability journey.

2. Concrete Reduction Targets:

   Establish clear and achievable GHG reduction goals and timelines. Our experts will help you communicate these goals effectively across teams, fostering a culture of sustainability.

3. Quality Offsetting Solutions: 

  For emissions that can’t be eliminated, our tailored carbon credit solutions allow you to offset with confidence, contributing to impactful environmental initiatives.

4. Renewable Energy Adoption:  

   Maximize your commitment to sustainability by transitioning to renewable energy sources. Our support extends to procuring I-RECs from cutting-edge projects for your business.

Case studies of pharmaceutical companies

Takeda Pharmaceutical Company Limited, headquartered in Japan, is a global leader in developing innovative medicines across various areas. Committed to addressing unmet medical needs worldwide, Takeda also prioritizes corporate social responsibility and sustainability. In 2020, Takeda announced its plan to achieve carbon neutrality by 2040, implementing a comprehensive strategy to systematically reduce its carbon footprint by reducing emissions from its facilities, optimizing energy efficiency, transitioning to renewable energy sources, and minimizing emissions associated with transportation and distribution. This initiative extends beyond its own operations to include emissions from its supply chain and product usage by patients. 

Another good example is Novartis which stands out in the pharmaceutical industry for its commitment to sustainability. Through initiatives focused on reducing carbon emissions and promoting a sustainable supply chain, Novartis has become a trailblazer in integrating sustainable practices into its operations. By investing in renewable energy sources and actively purchasing VPPAs, Novartis not only minimizes its environmental impact but also contributes to the global transition to clean energy, showcasing its proactive approach to addressing climate change.

Both of the companies are members of RE100 and recognize the urgency of addressing climate change.

In conclusion, the pharmaceutical industry stands as an indispensable pillar of global healthcare, driving medical innovation and improving the lives of millions worldwide. However, alongside its immense contributions, the industry also faces environmental challenges, particularly in terms of carbon emissions and waste generation. Addressing these challenges requires a concerted effort from industry stakeholders, policymakers, and consumers to implement sustainable practices and reduce the industry’s impact on climate change.