How pharma companies are practicing authentic ESG towards meeting their sustainable goals

As an industry that is at the forefront of saving lives, pharma companies have always been driven by a strong sense of purpose. This also holds true when it comes to their sustainability commitments. They are not merely ticking boxes but are pursuing authentic ESG goals towards creating a meaningful difference for their businesses and the planet. An essential aspect in finding a balance between the two is reassessing how they allocate and use their resources to develop the end products/remedies/solutions. By identifying areas to improve the use of natural resources in different stages of production, the pharma industry is contributing toward circular economies of scale. 

Some of the measures that have shown promising results include:

Optimising energy efficiency at every stage of manufacturing

The goal for pharma companies is no longer just about reducing energy consumption but ultimately making optimum use of it. In particular, cleaning and ventilation processes are highly energy intensive and prohibitive. Traditional or manual methods are also time-consuming and hinder the production process further. To effectively tackle this, companies must deploy equipment like cost-efficient motors and optimised air compression systems, through which manufacturing facilities have been able to produce greater volumes, given the reduced time in cleaning and disinfection.

Besides reducing energy consumption, companies need to look for improving energy sources. This can be achieved by procuring CO2-neutral energy or installing solar panels and using heat pumps instead of natural gas-fired heating.

Make concerted efforts to reduce carbon footprint

We must acknowledge that pharma industries emit a considerable amount of greenhouse gases at every stage of the supply chain, even at the stage where APIs are sourced. Hence, we must invest in research and develop measures to reduce the carbon footprint.

We can learn from companies that have adopted continuous manufacturing in place of traditional batch manufacturing, which has also reduced carbon emissions from manufacturing plants by 70-80 per cent. Implementation of renewable energy sources can additionally help reduce emissions even further. For example, pharma companies rely on cold chain shipping for temperature-sensitive products. These refrigerated vehicles require considerable energy; however, an effective way to reduce carbon emissions is to work with logistic or supply chain partners who are investing in greener fuels and clean energy sources for transportation.

Green manufacturing through industry 4.0

The chemicals used in the drug manufacturing process produce substantial amounts of waste. If left unchecked, this waste can damage the external ecosystems it reaches. This is where green manufacturing comes in. This specific approach involves the reduction of waste and emissions through recycling and reusing material while also bringing down the number of natural resources used in the process. The scope for this practice also includes the application of green chemistry - an area in which pharma companies are investing immensely to minimize the generation of hazardous substances. Some renowned drugs, such as sitagliptin for diabetes, artemisinin for malaria, and the painkiller ibuprofen, are prime examples of the successful application of green chemistry. Apart from reducing chemical usage, there are avenues to minimize carbon footprint through digitizing facilities.

Sustainable water management practices

The pharma industry is highly water-dependent and water resource consumption in the industry has become excessive in two aspects. The first is the usage in cleaning processes. More than 2/3 of water consumption in manufacturing facilities is tied directly to cleaning the equipment and the facility. However, as companies move from traditional approaches like sterilization to more modern ones such as ozone cleaning, water usage in this respect becomes nominal to none. The second aspect that can be tackled effectively is wastewater treatment from pharma factories. Treating wastewater is a complex process, given that the water generated contains high levels of non-biodegradable organic matter. Therefore, the wastewater treatment must start at the base level by testing the molecules manufactured to ensure the water can be used again.

Additionally, the development of Discharge Plants has proven beneficial in treating and recycling over 80 per cent of wastewater molecules. Known conservation methods such as rainwater harvesting can also help companies adopt a Zero Liquid Discharge (ZLD) approach that recycles wastewater and reduces contaminants to solid waste. Therefore, recycling and waste management strategies are paramount to contributing to circular economies effectively.

The importance of zero-waste strategies and local sourcing

Globally, the pharmaceutical supply chain is a complex process that slows production. However, on a positive note, many companies are exploring local sourcing options. This helps expedite production and positively impacts local communities and small-time entrepreneurs. But it doesn’t end there. In order to create a sustainable value chain overall, companies are also evaluating and onboarding vendors adopting quality and Current Good Manufacturing Practices (cGMP) to expand circular economies.

In tandem with this, zero waste strategies are being implemented to ensure the optimum use of the resources through systematically recycling, reusing, and repurposing waste to convert it into energy. For the resources that cannot be recycled completely, companies are setting up treatment, storage, and disposal facilities to ensure minimal wastage of raw materials and avoid waste disposal in landfills. Depending on the waste being treated, it can be sent for co-processing or used for recycling or composting. The waste which cannot be processed further would make its way to thermal incineration to reduce air pollution in a given capacity.

In conclusion, through effective resource allocation, pharma companies are incorporating sustainable practices, fostering the development of circular economies, and setting a precedence for attaining ESG goals. All we need to do is innovate and maintain the momentum by working closely with peers, industry bodies and partners to bring about a positive environmental impact.

(The author is Global Chief Technology Officer at Cipla)

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