COP29: What are the key points for the Pharmaceuticals and Life Sciences sector?

What is COP?

The Conference of the Parties to the United National Framework Convention on Climate Changes (COP) takes place every year (unless otherwise agreed) and is a forum for parties to the UNFCCC (the Parties) to come together and agree actions to tackle climate change issues. The UNFCCC is a global climate policy initiative, which came into force on 21 March 1994 and has been ratified by 198 Parties. It was made operational by the Kyoto Protocol (the Protocol), which was adopted on 11 December 1997 and binds industrialised countries and countries with economies in transition to individual targets for reducing and limiting emissions.

Given that industrialised countries have contributed the most to historic emissions, and are a significant continuing source of emissions, these countries are expected to put in the most work towards reducing emissions. These countries are known as Annex I countries and include the United Kingdom, Germany, the EU and the US. Businesses operating in these countries should therefore expect stricter climate targets and a greater pace of supporting regulatory changes.

What must Parties do?

• Provide financial support - Annex I countries have agreed to support developing countries in adopting and implementing climate change mitigation activities. This financial assistance is separate to any other financial support they may otherwise provide
• Comply with reporting requirements - Annex I countries must submit regular reports on their climate policies and measures, as well as reporting annually on their greenhouse gas emissions. Non-Annex I countries are required to report more generally on their efforts to address climate change and the steps they take to counter its impacts
• Comply with COP decisions - this may include formalising targets, working with industry stakeholders and forming coalitions to consider and deliver on specific issues.

How is COP relevant for the Pharmaceuticals and Life Sciences sector?

Health was a key issue at COP29. The Health Pavilion at COP29 hosted by the World Health Organisation (WHO), together with the Wellcome Trust, gathered key stakeholders from the global community to discuss health and equity in the context of climate issues. Another COP29 outcome was the signing of the Letter of Intent to establish the Baku COP Presidencies Continuity Coalition for Climate and Health (the Coalition), which aims to create a framework for driving agreed health outcomes.

Lessons from WHO's COP20 Special Report

In advance of COP29, WHO published its COP29 Special Report on Climate and Health (Report). The Report was a call for action to governments and those in the health community to put health at the centre of climate solutions and consider how the sector can play a role in building a more sustainable future.

The Report is interesting reading for pharmaceuticals and life sciences businesses. Within the sector, businesses and other stakeholders have an international outlook and the Report demonstrates the direction of climate policy that will flow from international accords to national policy and implementing legislation. Here are a few key reasons why pharmaceuticals and life sciences businesses should be thinking about sustainability and climate issues:

High emissions and energy usage

Supply chains in the sector are emission- and energy- intensive, from research and manufacturing to transportation and storage. The Report identifies that decarbonising supply chains for medical equipment and pharmaceuticals, and moving away from single-use devices, offers a key opportunity for reducing emissions.

We can expect that the sector will be targeted by governments and stakeholders as Parties strive to meet their emissions targets, and so it is best for businesses to consider what changes they can make now to reduce energy consumption, wastage and emissions within their supply chains. For example, adapting existing laboratory space to be more sustainable and energy efficient, or building new space with these points in mind, can be an important first step.

Rising temperatures

Many pharmaceutical products need to be stored at prescribed temperatures, and not doing so can affect potency and shelf-life. Although rising temperatures are not such an issue where effective cold chain facilities and providers operate, higher temperatures are anticipated to make distribution and access in developing countries more challenging.

Point of care manufacturing (POC) and modular manufacturing may be the answer to this specific problem and also presents a potentially more sustainable business model. POC manufacturing means that a medicine or product is manufactured and supplied at or near the point where the patient receives treatment. Modular manufacturing involves the use of prefabricated manufacturing modules, which can be easily reproduced, offering flexibility and easy scale-up.

The UK will soon be well-positioned to better support these innovative, and potentially sustainable, alternative manufacturing methods. The draft statutory instrument to bring in a new UK framework for POC and modular manufacturing by amending the Human Medicines Regulations 2012 and the Medicines for Human Use (Clinical Trials) Regulations 2004 was laid before Parliament on 21 October 2024. The new Regulations will be subject to a six-month implementation period and so we can expect to see streamlined regulatory requirements as early as this Summer, which will support existing localised, needs-based supply chains, and support the growth of this way of manufacturing.

Natural materials

The sector has a vested interest in protecting habitats and biodiversity as plant-derived materials and properties are commonly used in products and treatments, and studied as part of research and development. Pharmaceuticals and life sciences businesses should think carefully about where their materials are coming from and ensure that there are appropriate long-term protections in place (contractual and practical) to safeguard supply. It is also, unfortunately, worth thinking about alternatives if those protections fail.

As well as the above, businesses in the sector should also bear in mind the NHS's pledge to become a net zero health system by 2045, and that they can play an important role in supporting this by exploring and developing greener drug manufacturing processes. Realistically, this is a must' not a 'should'. We will be hearing from Peter Morgan, Head of Medicines Net Zero at NHS England, on meeting NHS England's requirements and key considerations at VWV's PING Conference on Sustainability: What Must Pharma Do Now?

What should Pharmaceuticals and Life Sciences businesses take from COP?

COP29 demonstrated that climate and health remains a top discussion point, and pharma and life businesses can expect to be called upon to support the development and implementation of policies and targets focused on this area. Stricter requirements are likely to be introduced as part of this - in preparation, reducing emissions and energy usage should be a priority and businesses can use contractual arrangements to ensure that their suppliers and contractors are also taking steps to be more sustainable.

November's COP was very much a 'finance COP' and headlines have focused on the agreements reached on funding targets for climate finance. Decision CMA.6 records the new collective quantified goal on climate finance, but also notes the need to make finance available for climate action through public funding and investor involvement. With this in mind, we may see more financial help for businesses within high-emission sectors like Pharmaceuticals and Life Sciences. Businesses should bear in mind that robust sustainability targets and policies are likely to be within the list of criteria of investors and funders.

Ultimately, each COP aims to affirm the international community's commitment to addressing climate issues and it is important that the sector recognises the role it is expected to play. There are practical steps you can take but legal support may also be needed. Our specialist commercial team can help you revisit research, manufacturing and supply agreements if you are keen to introduce sustainability requirements into your business relationships. We also have an employment team with expertise in the sector who can help you to review your internal policies and draft employment contracts for new sustainability roles, as well as provide advice on employee training.

If you would like to discuss sustainability in the Pharmaceuticals and Life Sciences sector and the legal issues it raises, or you would like to be invited to attend the invitation-only PING Conference 2025, please contact Harry Jennings in our Pharmaceuticals and Life Sciences team on 07789 533 122, or complete the form below. With thanks to Emily Dyer, a trainee solicitor at VWV.