Optimizing ESG Goals in European Pharmaceutical Industry: Astra
by Manisha J. Web Marketing ExecutiveEnvironmental, social and governance (ESG) reporting in the
healthcare sector has received a further push with the European
pharmaceutical industry players confronting climate change and
exploring challenges and opportunities, including strategies for product
marketing and developing technologies and policies. In April 2021, the European
Commission issued a legislative proposal for the Corporate Sustainability
Reporting Directive (CSRD), requiring companies to report in line with European
Sustainability Reporting Standards (ESRS). Furthermore, in July 2023, the EC
adopted the first set of ESRS — companies will need to report in compliance
with the new ESRS as early as 2024.
A rising chorus of voices is pitching for net-zero goals. In
retrospect, the EU’s audacious move to become the first global market to roll
out financial penalties for emissions in 2005 was a shot in the arm. So much so
that companies that are leaving no stone unturned to reduce carbon are overcoming
waste in packaging and production and encouraging suppliers to minimize
emissions.
Stakeholders, including investors, clients, partners and the
public, perceive transparency, diversity, equity & inclusion (DEI),
corporate governance, business ethics, tax transparency, social opportunity,
and pollution and waste as a game-changer for a better tomorrow. Predominantly,
the circular economy is a riposte to the stiff challenge the 21st century
presents—providing people’s needs without putting a burden on the environment
and exhausting natural resources.
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Green Deal a
Game-Changer
Healthcare facilities, such as hospitals, are responsible
for a large chunk of environmental pollution. Citing Dutch government data, a
U.K.-based Law company—Pinsent Masons—noted (in November 2022) that the
healthcare sector contributed around 7% of the CO2 emissions. The emergence of
the Green Deal has brought a seismic shift in the healthcare system by minimizing
the sector’s negative effects on the environment and climate and achieving a
shift towards green and climate-neutral healthcare. The 3rd Green
Deal, effective from 2023 through 2026, will gear up to help the Netherlands be
carbon neutral by 2050, minimize the environmental burden of pharmaceuticals,
promote more sustainable, healthier and plant-based diets for consumers and
minimize the use of new materials and reuse more materials.
Novartis Explores
Environmental Challenges and Opportunities
As medical technology continues to accelerate to keep up
with the soaring demand for high-quality healthcare, European pharmaceutical
companies are banking on proactive decisions to underpin sustainability goals.
A leap toward ESG business practices and reduction targets of scope 1, 2 and 3
emissions will propel long-term environmental goals. For instance, in 2022,
Novartis claimed it minimized scope 1 and 2 emissions by 23% from the preceding
year.
The Switzerland-headquartered company is committed to using
100% renewable electricity across its operations by 2025. In 2022, renewable
power purchase agreements helped the healthcare giant cover electricity
consumption across its operations in Europe and North America. Amidst its scope
3 emissions rising by 20% (from the preceding year), Novartis has set a bullish
target of becoming carbon neutral by 2030.
Bristol-Myers Squibb
Advances Inclusion and Diversity Efforts
Pharma companies are fostering ESG strategies—enhancing
health & well-being and underscoring diversity, equity and inclusion (DEI).
Commitment to a patient-centric culture and just society that respects and
values people from all backgrounds will boost sustainably responsible
investing. In 2023, Bristol-Myers Squibb bolstered workforce representation
goals to include executive directors and above to impel the next generation of
leadership. In March 2023, the company inferred that 85% strongly agreed or
agreed that they felt they worked in diverse and cross-cultural teams at BMS
UK.
The pharmaceutical industrial company asserted it enrolled
more than 6,800 employees (in 2022) into professional, manager, and leadership
development programs. The company claimed in its 2022 ESG report that 100% of
its leadership development programs are inclusive and address topics pertaining
to women and underrepresented ethnic groups.
Related Reports:
- Pharmaceutcial
Manufacturing Industry ESG: https://astra.grandviewresearch.com/pharmaceutical-manufacturing-industry-esg-outlook
- Antibiotics
Industry ESG: https://astra.grandviewresearch.com/antibiotics-industry-esg-outlook
- Clinical
Trials Industry ESG: https://astra.grandviewresearch.com/clinical-trials-industry-esg-outlook
AstraZeneca
Encourages Transparency
Robust corporate governance warrants greater transparency,
the integrity of risk management, internal controls and financial information.
Embedding sustainability from the lab to the patient will strengthen the
healthcare system and herald an ESG-powered future. AstraZeneca alluded to its
commitment to high ethical standards and full compliance with laws, regulations
and internal policies in its Sustainability Report 2022.
The U.K.-headquartered company has set an audacious 2025
target of maintaining 100% of active employees trained on the Code of Ethics.
Besides, the stakeholder group has a keen interest in exposure to
macro-economic risk, R&D productivity and successful pipeline, commercial
operations, financial performance and strategy, climate and sustainability
matters and culture, values and behaviors.
European pharmaceutical companies are striving to fuel high
standards of conduct and accountability, including anti-corruption,
anti-bribery, human rights and use of human tissue and animals for research.
Businesses are centered on trust—seeking feedback and providing inputs on
diversity, equity & inclusion and leadership structure—which will further
align sustainability strategy with business strategy. Grand View Research
estimates the Europe pharmaceutical market, which stood at USD 282.75 billion
in 2020, to grow at 5.4% CAGR between 2021 and 2028. With ESG becoming a common
denominator, stakeholders are poised to prioritize sustainability issues and
propel ESG reporting.
For more ESG Thematic reports, please visit Astra ESG Solutions, powered by Grand View Research
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Created on Jan 3rd 2024 01:00. Viewed 117 times.