Sustainability trends: key issues shaping the future of Pharmaceuticals and Life Sciences
Leaders in net zero certification, Planet Mark, have recently identified the key sustainability trends for businesses in the UK and beyond. What do these trends mean for the Pharmaceuticals and Life Sciences sector?
Planet Mark is a membership organisation which empowers businesses to measure emissions, create carbon reduction plans and achieve net zero targets. They recently held a well-attended briefing on sustainability trends hosted by speakers Andrew Griffiths, Director of Planet Mark, and Shana Gallagher, Net Zero Engagement Manager at BSI. With Pharmaceuticals and Life Sciences businesses looking to boost their sustainability efforts in response to supply chain pressures and the NHS's net zero pledge, this is the perfect time to consider the key regulatory, business and technology trends raised in Planet Mark's briefing.
Regulatory trends
As emphasised in the briefing, the next few years will bring more, and increasingly international, regulatory efforts around climate action. Why should my business care? The Pharmaceuticals and Life Sciences sector is a high emissions and waste contributor, and so businesses should expect governments and regulatory bodies to point to and seek support from them. So that your business is prepared, it is important that you keep up to date with regulatory changes as they come in.
- New standards
Internationally recognised climate standards will soon play a more important role in helping to achieve net zero. ISO Net Zero Guidelines (harmonised guidelines to support businesses and countries reach net zero) will soon be made into standards, which will converge all of the best practice into one place and enable this to be scaled globally. These standards will enable businesses to chart a course towards net zero and facilitate global accountability, with bodies set up to help accredit and support transparency.
For now, businesses can get involved with the UK's discussion and negotiation of the new standards, with a draft due to be released for public comment later this year. Businesses should also review the ISO Net Zero Guidelines to support target setting, drawing up of mitigation plans and thinking about how leadership can demonstrate a commitment towards sustainability.
- More transparency
2025 is the first reporting year in respect of 2024 data for companies subject to the EU's Non-financial Reporting Directive (NFRD). The NFRD requires certain large businesses and listed companies to report non-financial information and aims to increase transparency around environmental, social and government points. The scope of the reporting requirements will change from 2026 under the Corporate Sustainability Reporting Directive (CSRD). Small businesses, SMEs, non-EU based companies, and businesses operating in high emission sectors will need to look out for the new reporting requirements - these will be drafted and released this year.
Business trends
Businesses are looking to do more around sustainability targets - but ensuring that these targets remain a priority when there are competing interests such as compliance with strict regulatory regimes and pharmacovigilance requirements may be challenging. In the briefing, it was discussed how target setting, ally networks and accountability are key to making progress. Below, we have discussed what this may look like for your business.
- Keeping on track for 2030 goals
Take some time to consider your sustainability targets and see whether you are likely to meet them, or whether you need to be looking to make changes now. It is important that targets are regularly reviewed and adapted as new areas of concern arise or progress is made.
- Monitoring carbon footprints
Requirements to measure and report carbon data are cascading through supply chains, with more businesses being asked to provide carbon footprint data when pitching for work and clients.
You can ensure that your business is prepared by having a good understanding of where energy sinks and inefficiencies are, and you put measures in place to mitigate these areas of concern and report and record energy usage. For the Pharmaceuticals and Life Sciences sector, operational waste and packaging are two areas where there is a large environmental impact. If you are unsure where to start, it may be worth looking at these aspects first.
Also consider whether you should be asking more questions about energy usage and sustainability to your suppliers and contractors. Being able to demonstrate a green supply chain is attractive for talent and customers, as well as helping you in achieving your business's sustainability aims and objectives.
- Forming green partnerships
Also crucial is the importance of coordinating sustainability initiatives with allies and ensuring that there is accountability. The sector is taking a joined up and supportive approach. For example, the Association of the British Pharmaceutical Industry (ABPI) reports on its website that it and its members are working in partnership with the UK Government, the NHS and others across different regions to drive progress and bring about change in how the sector is operating. This lead from Big Pharma flows through and impacts other players in the sector.
In terms of actions that can be taken at an individual level, Pharmaceuticals and Life Sciences businesses may want to join a certification programme or sustainability initiative. For example, Planet Mark offers a Net Zero Certification programme which guides businesses towards achieving, and then maintaining, net zero. If your business finds it difficult to set targets and hold itself accountable, it may be worth looking into similar initiatives or seeking industry support.
Technology trends
AI and the question of sustainability is an interesting point to consider as businesses in the Pharmaceuticals and Life Sciences sector look to find innovative uses for AI to support their work and improve patient outcomes. Organisations will be increasingly looking to AI for decarbonisation strategies and sustainability data management, but in doing so they will be driving huge energy consumption increases. We have suggested some responsible AI management strategies below.
- Considering AI use
Yes, AI can help to optimise energy systems, enhance efficiency and improve climate modelling and prediction, but this does come at a cost. Training AI models requires significant computing resource and therefore leads to greater energy consumption. The hardware needed to support AI systems also relies on extensive mining and/or refinement of raw materials, which can result in deforestation, habitat destruction, and water pollution.
Businesses in the Pharmaceuticals and Life Sciences sector are increasingly adopting AI to assist with a range of different needs, from drug discovery to supply chain management. However, it is important also to consider the environmental impact of this usage and the measures you may want to put in place to mitigate adverse impacts. This may include entering into data sharing agreements to reduce the overlap of AI model training or drawing up a policy for the responsible use of AI. Our specialist lawyers assist with implementing such measures. Please see our recent article for further discussion on AI in the context of sustainability and more suggestions on the measures that you can put in place.
What should Pharmaceuticals and Life Sciences businesses be thinking about?
One of the key messages from Planet Mark's briefing was "it's time to be brave!" Sustainability is not a passing trend or something that can be ignored - time is critical when it comes to climate action and businesses should be taking their sustainability obligations and responsibilities seriously. Taking meaningful steps now can place businesses ahead of their competitors in terms of making operations more efficient, saving money and attracting talent and customers.
In particular, businesses may want to consider the following:
- Consider your sustainability goals and what steps you need to take to meet them
- Prioritise drafting and reviewing of sustainability policies
- Look to ensure that supply chains are green - this should be backed up by contractual assurances
- Monitor your carbon footprint and identify areas where you can reduce energy consumption or mitigate environmental impacts
- Collaborate with other businesses for support with developing initiatives and keep each other accountable
- Join a target initiative or certification programme to demonstrate your commitment to sustainability and support your business in meeting its targets
- Adopt a responsible approach to the use of AI - this may be supported by a policy or internal monitoring
- Consider whether your packaging can be made more environmentally friendly
If you are not sure how to begin reviewing or drafting policies or sustainable agreements, please reach out to a member of our specialist Pharmaceuticals and Life Sciences team.
Andrew Griffiths told VWV that "At Planet Mark we are big believers that the pharmaceuticals sector has a significant role to play in supporting our global transition to a net zero economy. As strong innovators, the sector has the opportunity to show leadership that will help demonstrate the path that other sectors can follow to drive meaningful decarbonisation".
The theme of this year's PING (Pharmaceutical Industry Network Group) Conference is Sustainability - What Must Pharma Do Now? Speakers include the Head of Medicines Net Zero at NHS England, Peter Morgan; as well as Director of Planet Mark, Andrew Griffiths; and many others. There will be opportunities to hear from experts about what sustainability pressures there are for pharma businesses and where they are coming from, as well as practical steps that can be done. The Conference is on 12 May and places are limited.
With special thanks to Emily Dyer for her contributions to this article.