In 2024, the global average temperature surpassed 1.5°C above pre-industrial levels for the first time in recorded history. This alarming milestone—representing the threshold set by the Paris Agreement—underscores the urgent need for climate action. The year 2024 was officially the warmest on record, capping a decade in which every year ranked among the ten hottest. From wildfires in California and heatwaves in India to flooding in Malaysia and Spain, the consequences of climate change are increasingly visible and devastating.
Human activities—especially the emission of greenhouse gases (GHGs) such as carbon dioxide (CO₂), methane (CH₄), and nitrous oxide (N₂O)—remain the primary driver. The pharmaceutical industry, though essential to global health, contributes significantly to these emissions through energy-intensive operations, complex supply chains, and resource-heavy product lifecycles.
Recognising its environmental footprint, the pharmaceutical sector is undergoing a transformation—embedding sustainability into its operations and long-term strategies. Companies are not only setting science-based targets but also expanding their focus beyond Scope 1 (direct emissions from owned or controlled sources) and Scope 2 (indirect emissions from purchased electricity, heat, or steam) to encompass Scope 3 emissions (all other indirect emissions in the value chain, such as those from suppliers, product use, and travel) throughout their entire value chains.
Noteworthy Carbon Reduction Commitments:
• AstraZeneca aims for net-zero GHG emissions by 2045, with a 90% reduction.
• GSK has set a target for net-zero emissions across its full value chain by 2045.
• Merck (MSD) plans to achieve carbon neutrality in operations (Scopes 1 & 2) by 2025.
• Takeda targets net-zero emissions in operations by 2035 and across the entire value chain by 2040.
8 Key Sustainability Initiatives Include:
1. Energy Efficiency: Retrofitting facilities with energy-efficient equipment, deploying smart energy systems, and transitioning to renewables.
2. Green Chemistry: Developing safer, more sustainable chemical processes to minimise hazardous substances and improve product safety.
3. Waste Reduction and Circular Economy: Embracing solvent recycling, reducing single-use plastics, and improving packaging recyclability while applying circular economy principles to extend the lifecycle of materials and products.
4. Eco-Friendly Logistics and Sustainable Sourcing: Optimising distribution networks, favouring sea freight over air freight to reduce emissions, and ensuring raw material suppliers meet environmental and ethical standards.
5. Digitalisation for Sustainability: Using advanced data analytics and digital twins (virtual models of real-world entities driven by data) to monitor energy usage, forecast emissions, and optimise production processes. Real-time visibility helps reduce waste and improve decision-making.
6. Climate Risk Assessment and Adaptation: Assessing physical and transitional climate risks, incorporating them into scenario planning, and investing in resilient infrastructure.
7. Product Stewardship: Focusing on the full lifecycle of medicines—from R&D through end-of-life disposal—to ensure environmentally responsible development, packaging, and use.
8. Collaboration and Sectoral Engagement: Forming industry coalitions and partnering with academia, suppliers, and regulators to accelerate innovation, share best practices, and establish common standards.
Leading by Example:
• Takeda Singapore constructed its first positive-energy building powered by solar panels. Features include hybrid cooling, natural ventilation, and solar films to minimise heat ingress.
• AstraZeneca partnered with Future Biogas to build the UK’s first unsubsidised industrial-scale biomethane plant, delivering 100 GWh of renewable energy annually.
• MSD (Merck Sharp & Dohme) developed green synthesis routes for drugs like Januvia® and Isentress®, significantly reducing environmental impact.
• GSK is committed to 100% sustainable sourcing, ensuring all materials are deforestation-free.
Sustainability need not come at a higher cost. Strategic decisions—such as shifting from air to sea freight—can lower both emissions and expenses. As the global climate crisis intensifies, the pharmaceutical industry has a pivotal role to play. By embedding sustainability into the core of business transformation, the sector can not only reduce its carbon footprint but also enhance resilience, improve health outcomes, and drive systemic change.
The race against climate change is on—and the pharmaceutical industry is stepping up.
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Written by George Lam
Previously with Takeda, George Lam now serves as an Executive Interim Manager at X-PM Southeast Asia.
At X-PM Asia, we accelerate the net-zero transition across industries by placing top-tier executives like George—leaders who combine strategic vision with hands-on operational expertise.
To learn how X-PM can support your net-zero initiatives, please contact amonod@x-pm.sg.
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