Accelerating pharma's sustainability efforts

Avinaw Prasad, Director, Climate Change & Sustainability, Deloitte India explains why integrating sustainability into the core pharma business strategy is essential for long-term success, analyses key focus areas and policy pushes which can incentivise companies to further evolve on the sustainability path

- Avinaw Prasad

Integrating ESG considerations into core pharma operations

India, known as the "Pharmacy of the World," produces over 20 per cent of the global supply of generic medicines and plays a vital role in vaccine production, as per the Investindia.gov.in website. It meets the healthcare needs of over 1.4 billion people domestically while providing affordable medicines to over 200 countries, significantly contributing to global public health.

As sustainability gains global focus, India's pharma sector should integrate ESG considerations into its core operations. Only about 20 per cent of companies in the life science and healthcare sector are well-prepared to handle ESG requirements, with around 30 per cent moderately prepared and another 30 per cent somewhat prepared. This indicates that, despite some progress, a significant portion of the sector still needs to elevate its ESG practices, as per an October 2023 report from Deloitte, titled, 'Embedding environmental sustainability into pharma's DNA'.

Embedding sustainability into the core business strategy is essential for long-term success. This includes reducing environmental footprints, ensuring ethical supply chains, fostering inclusive workplaces, and maintaining transparent governance. One key aspect is value-chain sustainability, where initiatives such as the Pharmaceutical Supply Chain Initiative (PSCI) and the Sustainable Medicines Partnership (SMP) play a pivotal role. These initiatives help standardise best practices across the industry, ensuring that sustainability efforts extend beyond the company's operations to include suppliers, manufacturers, and other key stakeholders in the value chain.