View all newsletters
Receive our newsletter – data, insights and analysis delivered to you

Leading ESG companies in the pharmaceutical sector

Environmental, social, and corporate governance has emerged as a major consideration for pharma companies, defining how and where they incorporate these issues into business structures.   

The pharmaceutical industry must address environmental, social, and governance (ESG) issues and challenges with collaborative, proactive steps designed to deliver sustainability goals.  

Working towards social goals, and being environmentally aware and proactive, are themes that are globally recognised as part of corporate strategies by ESG pharmaceutical companies.  

Mitigating actions include developing a quantifiable and timebound ESG strategy, setting remuneration targets based on this, and ensuring updates and progress reports are provided to stakeholders and staff.  

ESG adoption in pharma

Like GlobalData, pharmaceutical companies are adopting an ESG framework that addresses all three components of ESG.  

Pharma companies are no different, with industry leaders AstraZeneca, GlaxoSmithKline, and Pfizer taking action to mitigate environmental impacts and enhance social performance 

The World Bank estimates that 140 million people will be affected by extreme droughts, floods, and storms by 2050. In addition, research has found that climate change has boosted heat-related deaths in warm seasons by an average of 37%.  

These figures highlight how important it is for pharma companies to ensure their ESG strategies are in place and for the long term.  

ESG environmental

Environmental performance measures the energy a company consumes, the waste it generates, the natural resources it uses, and the consequences for ecosystems and habitats. Climate change, pollution, net-zero targets, biodiversity, and use of natural resources, are now all part of pharma companies’ ESG environmental strategy.  

Mitigating actions taken by pharma companies include investments in energy efficiency production projects and processes, renewable energy, and clean energy sources.  

An overarching factor is climate change, which is increasing the frequency and force of extreme weather events. Climate change and instability also cause uncertainty that, in turn, increases corporate risk and delays investment. 

Environmental performance measures how corporate activity contributes to climate change, pollution, biodiversity, and the depletion of the world’s natural resources. 

ESG social 

Social performance assesses a company’s engagement with its workers, customers, suppliers, and the local community.  

It covers human rights, diversity and inclusion, health and safety, and community impact.  

Inattention to these factors can damage corporate brands and reputations and bring legal and regulatory penalties.  

Implementing a strong social governance and corporate strategy can raise a company profile and make a more attractive investment opportunity.

ESG-corporate governance

Governance assesses how a company uses policies and controls to inform business decisions, comply with the law, and meet obligations to stakeholders.  

Governance failures (for example, aggressive tax avoidance, corruption, excessive executive pay, or relentless lobbying) cause reputational harm and loss of trust. 

When it comes to the three elements of EST, corporate governance is often the most overlooked. According to GlobalData’s ESG Strategy Survey 2021, 57% of ESG executives ranked governance as the least important ESG factor.  

Companies cannot afford to overlook the importance of governance in setting and executing an ESG plan. 

ESG adopters in pharma

With many companies looking to establish a robust ESG strategy, the range of industry adopters in pharma is broad.  

are seeing a growth in the development and innovation of artificial intelligence and machine learning solutions over the past decade, and the ESG growth trend is likely to continue exponentially into the foreseeable future.  

Using its experience in the sector, Pharmaceutical Technology has listed companies providing products and services related to artificial intelligence. 

The information provided in the download document is drafted for pharmaceutical executives and technology leaders that are involved in healthcare ESG innovations. 

The download contains detailed information on suppliers and their product offerings, as well as contact details to aid purchasing decisions. 

With many companies looking to establish a robust ESG strategy, the range of industry adopters in pharma is broad.  

are seeing a growth in the development and innovation of artificial intelligence and machine learning solutions over the past decade, and the ESG growth trend is likely to continue exponentially into the foreseeable future.  

Using its experience in the sector, Pharmaceutical Technology has listed companies providing products and services related to artificial intelligence. 

The information provided in the download document is drafted for pharmaceutical executives and technology leaders that are involved in healthcare ESG innovations. 

The download contains detailed information on suppliers and their product offerings, as well as contact details to aid purchasing decisions. 

ESG datasets in pharma

While leading pharma companies continue to promote a robust strategy for ESG to improve decision making, reduce manual groundwork and the improvement of healthcare systems across all medical sectors, data about environmental efforts has become more relevant.  

Promoting values is one thing, backing them up with disclosure about how your company is doing that is important.  

ESG pharmaceutical companies: corporate disclosure 

Corporate disclosure on ESG issues is more extensive than ever, but it is not uniform across the pharma industry.  

Investors who are looking for high-quality ESG datasets to help them make portfolio decisions require data and information that informs them on a granular level.  

For many years there has been and continues to be a sustained effort to force greater disclosure of climate-related information, part of ESG strategies, and to persuade companies that disclosure is in their best interest. Air pollutants, water pollutants, biodiversity, and natural resource usage, are all part of the overall disclosure.  

 Unfortunately, this has led to multiple disclosure frameworks and fragmented reporting standards across the pharma industry.  

ESG data reporting

The International Financial Reporting Standards (IFRS) Foundation governs how financial reporting is conducted in 166 countries.  

Applying the structure and uniformity of financial reporting has long been hailed as the solution to ESG reporting challenges. 

To help regulate how ESG pharmaceutical companies report their environmental, social and corporate governance policies and results, in November 2021 IFRS oversaw the creation of the International Sustainability Standards Board (ISSB), an independent body that was confirmed at COP26.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Friday. The pharmaceutical industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Pharmaceutical Technology