CSR, ESG, and Sustainable Strategies Enhancing Growth in Pharma: What Can We Learn From the World Class Amongst Us and Why Does it Matter?

The Case for ESG in Pharma

Growing Pressure to Focus on Sustainability

The pharmaceutical manufacturing industry has been evolving to meet global demands, while maintaining high quality, with the goal for each company to deliver their products to patients safely and to increase profits in the process. Competition and regulatory requirements to bring innovative products to patients are driving the industry to look beyond profits. A Triple Bottom Line approach, looking at People and Planet based initiatives are now the sustainable keys to ensuring long-term growth and profitability in our industry.

People-focused initiatives require both an internal and an external view on social responsibility. Providing research sponsorship to solving the world’s most crucial health challenges helps to bolster a company’s reputation and respect. Also, offering programs that increase accessibility globally for their products anchors the delivery of those solutions even to those less fortunate and unable to afford lifesaving and quality of life medicines. Internally, world-class employee benefits and programs that provide feelings of well-being and value to the organization ensure we can attract and retain top talent. Simply manufacturing the top-tier drugs and having them on pharmacy shelves or in hospitals are no longer enough to stay ahead of competition. Consumers and providers will make purchase and prescription choices based on more than just quality; price, availability, and company sustainability reputation will also influence those selections.

Investors are also viewing their investments similarly and without their funding, company R&D funds will be unavailable.

Best in Class in Sustainability

Time Magazine recently released its 2024 list of the Most Sustainable companies. There are several pharmaceutical manufacturers, life sciences, and biotechnology companies on the list and the industry can learn from these industry leading companies. They based it on carbon emission and energy consumption reductions and how the companies on their list integrate sustainable initiatives into their strategy.

• Illumina (U.S.-based, Chemicals, Drugs & Biotech) ranks 5th overall.

• Sanofi and Novartis both place in the top 20.

• In the Mid-Atlantic region:

  • Novo Nordisk (Princeton, NJ) ranks 27th

  • Merck (Rahway, NJ) ranks 28th

Another key index is provided by Morningstar’s Sustainalytics Report, which looks at investor risk in terms of ESG in Ethics, Controversy, Material and Management oversight. Merck, Novartis, Pfizer, TFS, and many others lead our industry with low-risk ratings.

ESG in Action: Key Industry Trends in Sustainable supply chains, carbon reduction, etc. 

Examples of sustainable initiatives driving success:

Novo Nordisk 

• Donates to research foundations such as the Novo Nordisk Foundation, Juvenile Diabetes Research Fund, and American Diabetes Association to advance healthcare solutions. 

• Member of the World Wide Fund for environmental conservation and have set a goal of zero carbon emissions by 2030. 

  

• Plans to attain LEED Gold Certification for Construction and Commissioning at their Clayton, NC Fill Finish Expansion site. 

Abbott Laboratories 

• Fortune Magazine’s 2020 #1 on their Change the World List due to their packaging material volume reductions and bottle recycling programs. 

• They have reduced shipments just in their BinaxNow COVID-19 test kits by 9500 20-foot shipping containers annually through these volume reductions. 

Thermo Fisher Scientific and Merck 

• Two of the strongest in Sustainalytics’ analysis of how well management develops and delivers on their ESG policies, as evidenced by their Annual Reports.

The Business Case for ESG

With a comprehensive strategy that focuses on all aspects of the Triple Bottom Line, top talent is attracted to our companies and is retained with world-class benefits, feeling that they add value and can contribute to the success of the company. Local community and global social programs drive respect and enhance company positive recognition. The media sensationalizes recalls and environmental incidents, so we should all strive to over communicate our CSR and ESG programs, metrics, goals, and accomplishments. This transparent approach and sustainability driven project portfolios will drive profits and growth well into the future.

Looking Ahead

We need to attract and retain top talent in our production facilities, research centers and in our patient-centric field service and information representatives. Strong benefits and total compensation packages will set companies apart. Focus on strong social and environmental programs as well. Some additional recommendations:

• Celebrate cultural and experiential diversity and inclusion through awareness programs.

• Remain on the journey with subsequent initiatives until zero emissions are achieved.

• Create a sustainability organization in your company with the head of it driving its inclusion in corporate strategy and site representatives doing so at their sites globally.

• Become a local and national leader in environmental target setting and encourage peers to do the same for the betterment of the planet for generations to come.

• Incorporate recycling and waste reductions into site and supply chain operational excellence programs.

Want to know more about how CSR, ESG & Sustainable Strategy initiatives are shaping the pharmaceutical industry?! Rog will be speaking at the 2025 ISPE Mid-Atlantic Science & Technology (MAST) Showcase. Register here: MAST 2025