CDMOS Clean Up Act: Environmental Responsibility

Sustainability is no longer a buzzword in the background, but has become critical as the pharmaceutical industry faces evolving regulations and growing environmental concerns.

- Ayesha Siddiqui

Manufacturing, which accounts for approximately 80 per cent of a pharmaceutical company's indirect emissions, is now a key focus in the push toward more sustainable practices. With mounting pressure to reduce carbon footprint, contract development and manufacturing organisations (CDMOs) companies are ramping up the integration of green technologies into their manufacturing processes.

The pharmaceutical sector, which is one of the highest emitters of carbon, is no exception. According to Deloitte, more than 70 per cent of emissions produced by life sciences and healthcare companies come from their supply chains. In addition to emissions, the biopharma industry generates around 300 million metric tonnes (MMT) of plastic waste and 200 MMT of CO2 annually.

In response, many leading pharmaceutical manufacturers have committed to reducing their carbon footprint, minimising waste generation, and lowering water and energy consumption. A 2023 survey by CPHI found that 60 per cent of executives believe innovators will require CDMOs to implement sustainability metrics as part of their contracts within the next two years. Furthermore, 93 per cent of executives emphasised that visibility into supply chain partners' sustainability records is either 'extremely important' or 'important.'

In 2023, CEOs from several major pharmaceutical companies signed an Open Letter on Supplier Targets as part of the Sustainable Markets Initiative Health Systems Task Force. The letter calls on suppliers and CDMOs to assess their CO2 emissions, adapt their manufacturing processes to be more eco-friendly, and set clear sustainability targets.