CPHI
Climate Impact & Sustainability Data (2023)
Reporting Period: 2023
Environmental Metrics
ESG Focus Areas
- Climate Change
- Supply Chain Sustainability
- Water and Waste Management
- Collaboration
Environmental Achievements
- Reduced carbon emissions by almost 20% at Dr Reddy's by shifting from air freight to sea freight.
- Bormioli Pharma adopted a 50-in-5 program to use at least 50% recycled materials in products within 5 years.
- CordenPharma invested in green purification Supercritical Fluid Chromatography (SFC) virtually eliminating emissions.
Social Achievements
- Increased focus on diversity and inclusion.
- Improved responsible procurement practices.
- Increased engagement with suppliers to improve sustainability performance.
Governance Achievements
- Increased memberships to rating agencies.
- Hiring of ESG officers.
- Public disclosure statements and goal-setting.
Climate Goals & Targets
Long-term Goals:
- Net Zero emissions by 2050 (aligned with UN's Race to Zero campaign).
Medium-term Goals:
- Decarbonize the supply chain over the next 10-20 years.
Short-term Goals:
- Peak greenhouse gas emissions by 2025 and achieve a 43% decline by 2030 (aligned with Paris Agreement).
Environmental Challenges
- Scope 3 emissions are the most problematic and difficult to quantify.
- Disparate global environmental regulations.
- Lack of regulation and legislature around sustainability in the pharma industry.
- High cost of implementing sustainable practices for smaller companies.
- Disconnect between global intent and local regulatory realities.
- Lack of data on emissions from the pharmaceutical industry.
Mitigation Strategies
- Collaboration across the industry to share best practices and develop solutions.
- Lobbying for better, more consistent regulation.
- Support from larger companies to smaller companies.
- Industry-wide collaborations to harmonize strategic intent and reduce costs.
- Adoption of Industry 4.0 practices to improve efficiency and reduce emissions.
- Investment in new technologies and green chemistry.
- Nearshoring to reduce transport emissions.
- Improved data collection and reporting.
Supply Chain Management
Responsible Procurement
- Responsible sourcing of raw materials (e.g., FSC certification, RSPO).
- Sustainable packaging solutions.
- Supplier networks to align sustainability standards.
Climate-Related Risks & Opportunities
Physical Risks
- Adverse weather events
- Water shortages
Transition Risks
- Regulatory changes
- Market shifts
Opportunities
- Development of energy-efficient products and processes.
- Innovation in sustainable materials and packaging.
Reporting Standards
Frameworks Used: Science Based Targets initiative (SBTi)
Sustainable Products & Innovation
- Green purification SFC
- Bio-based renewable materials for packaging
- Carbon capture PET solution