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ESG (Environmental, Social, and Governance)

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ESG (Environmental, Social, and Governance) Report

ESG (Environmental, Social, and Governance) in Pharma

Sustainability is an important theme for 2021 and beyond

The pharma industry is under increasing pressure to become more sustainable, with many companies responding by improving their impact on the environment and society. The industry has deeply rooted environmental, social, end governance issues requiring collaborative, proactive steps to achieve sustainability goals. The pharma industry’s contribution to environmental issues is multifaceted, and is linked to R&D, supply chain, transport logistics, disposal of pharmaceutical products, and chemistry.

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  • This case study includes:
  • GlobalData’s Sustainability Framework: this is designed to act as a checklist to help CEOs ensure they cover all aspects of sustainability.
  • Sustainability Measurement and Response: an overview of ESG advisors and ESG rating companies.
  • ESG Ratings of Pharmaceutical Companies: a look at how some of the leading pharmaceutical companies are rated on ESG performance by four leading ESG rating agencies.
  • Case Studies: here we provide examples of pharmaceutical companies making concerted efforts to improve environmental and social sustainability practices, including GSK, AZ, Takeda, Pfizer, Bayer, and Catalent. It also has case studies of pharma behaving badly, with many examples of drug price gouging and fixing, the role of Purdue Pharma and J&J in the opioid crisis in the US, Novartis’ sham educational speakers, and Samsung BioLogics’ accounting fraud.

Tomorrow’s successful business leaders will focus on sustainable profits.

Elements  within the pharmaceutical industry that contribute to social sustainability include pricing, market access, quality of supply chains, R&D practices, and development of drugs to treat rare diseases.

Adopting a holistic approach that encompasses all environmental, social, and governance issues can help company leaders ensure that all aspects of sustainability are covered in their ESG strategy.

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