As powerful as it is, the pharmaceutical industry will continue to face growing scrutiny in relation to its handling of all matters ESG and sustainability. This presents a series of challenges, but also unique opportunities.
A global society, faced with growing inequality, needs access to cheap and readily available medicine – and it is the responsibility of the pharmaceutical industry to provide this. To answer this call, the industry will need to negotiate a series of environmental concerns, as well as animal rights issues, and a plethora of business practice obstacles. Negotiating these circumstances delicately and effectively will bring due rewards.
ESG performance analysis in the pharmaceutical industry is already underway. This has been met with a tide of improved practices on behalf of major pharmaceutical companies. These companies are not only keen to boost their scores but increasingly recognise that their actions may well dictate their future, as well as that of their consumers.
This has involved actions such as carbon neutral fleets, supply chains commitments, reduced use of blister packs, and other major initiatives. Expectations among patients, consumers, regulators, and investors are changing. Promisingly, calls for business sustainability and accountability are being answered.
The progress is a far cry from the crisis laden state of the traditional pharmaceutical industry and may represent the origins of a new era; one that will be guided by regulators and fuelled by ESG research.
ESG does not start and finish with an organisation’s internal operations however and extends to its entire supply chain. Indeed, this is arguably where it becomes most salient. Pharmaceutical companies operate expansive and multi-tiered global supply chains with immense levels of intricate management and complexity.
This is where the bulk of their ESG and sustainability footprint presents itself. Pharmaceutical companies who can effectively manage the risks in their supply chains will be those who are truly able to demonstrate their ESG credentials and secure their future. But to achieve this, there is much work to be done.
At ethiXbase, we specialise in supply chain risk management and are experienced in working with large pharmaceutical companies to help them make meaningful improvements across their business. We have helped our pharmaceutical clients raise their reputational standing and drive their resilience from a business performance perspective.
We recently launched further products in the ESG and sustainability space, which work in cohesion with our existing offerings to provide further benefits for our pharmaceutical clients. Among these is ethiXbase ESG GreenLITE, a pioneering supply chain ESG management tool that identifies ESG and sustainability risk and gaps in future resilience.
It is our firm belief that this ESG risk management solution can provide invaluable results to your pharmaceutical organisation. It presents an actionable summary of your ESG risk profile, highlighting both the strengths and weaknesses of individual suppliers, as well as the entire value chain. Uniquely, the tool does not require the use of questionnaires and does not involve the same administratively burdensome costs as featured in similar solutions.