Supply chain leaders are under increased pressure to reduce pharmaceutical industry carbon footprint outcomes. Which strategies should they try for measurable, lasting results?

1. Develop Standardised Procedures for Compliance

Although some supply chain professionals in the pharmaceutical industry may want to reduce their companies’ carbon footprint for reasons that will strengthen their businesses, there is a broader push to make meaningful, sustainable changes. That is largely due to the EU Corporate Sustainability Due Diligence Directive (CSDDD), which requires enterprises to focus on human rights and sustainability improvements within their business models.

Additionally, companies with at least €450 million in turnover and 1,000 employees must share specifics about how their supply chains have become more sustainable and the policies adopted to achieve those outcomes.

A 2024 study polled business representatives about their feelings regarding the directive. Most feel the new requirements are within reach, with 74% believing compliance is achievable. Additionally, when asked what they had already done to prepare, 77% said they had developed compliance procedures within their organisations.

Moreover, 63% of respondents said they had collaborated with other companies in their sectors. That is an excellent way to learn what others are doing and which steps they have taken to get closer to their goals. The takeaways could shape internal compliance measures or encourage people to think about previously overlooked ways to make their supply chains more sustainable.

2. Explore Supply Chain Diversification Opportunities

The pharmaceutical industry carbon footprint can be larger than people expect if companies get their supplies from too many far-flung places. Similarly, when supply chain executives become too dependent on relatively few partners, their networks become less resilient and more at risk for upsets caused by climate change, pandemics or other global events.

However, diversifying the supply chain can solve numerous problems. First, it can reduce the associated emissions by shortening the journeys that take goods from their origins to pharmaceutical industry customers. Additionally, prioritising diversification rather than concentration can strengthen the network by reducing the likelihood of single events affecting all or most suppliers.

According to one estimate, up to 60% of the international pharmaceutical trade had sourcing diversification potential, emphasising how supply chain professionals should look for new opportunities. Before partnering with new suppliers, company representatives should establish and convey sustainability-related expectations. They must also realise that businesses will be in various readiness stages, and it will take some longer than others to meet the requirements.

3. Purchase Secondhand Equipment When Possible

Not long ago, manufacturing caused 23% of greenhouse gas emissions. Although many producers are collectively doing what they can to reduce their contribution, that substantial figure shows why it makes sense to minimise a pharmaceutical industry carbon footprint by purchasing secondhand equipment when feasible alternatives exist.

Changed processes or discontinued services can result in pharmaceutical plants no longer using formerly critical equipment. From a sustainability perspective, it is much better if another company can use it rather than discarding it.

Although the steps vary by company, many providers of secondhand lab equipment put the products through stringent tests to verify usability, and some refurbish the items. It is also possible to find vendors that offer warranties for the goods or service them.

Consider establishing strong working relationships with several resellers after carefully reviewing their selection, reputation and product assortments. The more a potential purchaser knows about secondhand products, the more they can rely on those details when making buying decisions. Buyers should also consider that these previously owned items may be less expensive than new ones, giving companies more room in their budgets to devote to other sustainable aims.

4. Use Sensors for Supply Chain Tracking

Many pharmaceutical companies use connected sensors to understand where and how to improve production processes. These sensors also assist businesses once goods leave factories. An incredible 25 million dry containers ship goods globally each year. Tracking the products can get tricky, especially when they move between multiple entities or locations.

However, sensors can show what happens and when, including if drops or temperature changes occur. Products spoiling during transit is undesirable from a sustainability perspective and for a company’s profitability. However, the notifications and trend-tracking capabilities provided by sensors help supply chain leaders differentiate between worrying patterns and one-off events.

Some businesses use sensors inside factories, creating sustainability improvement opportunities. Statistics suggest up to 95% of a pharmaceutical factory’s water usage relates to manufacturing. Real-time data collected by sensors can reveal which steps require the most liquid and why. How could managers change processes to prioritise conservation?

The information from sensors aligns with numerous sustainability aims, especially because it allows people to get baseline readings and see whether things improve over time. Relatedly, they can determine whether specific processes or teams contribute to excessive waste.

Start Tackling the Pharmaceutical Industry Carbon Footprint

All companies will have various areas of improvement as leaders begin examining how to shrink the pharmaceutical industry carbon footprint. Fortunately, these four best practices apply to businesses of all sizes, giving supply chain professionals some practical tips that should generate motivating results.

Emily Newton