Sustainable sourcing is rapidly becoming a cornerstone of pharmaceutical supply chains. By integrating environmentally and socially responsible practices, pharmaceutical companies are not only reducing their ecological footprints but also achieving significant economic and social benefits. This blog explores case studies of trailblazing global and regional pharma companies that have successfully implemented sustainable sourcing practices in their supply chains. We'll highlight the Environmental, Social, and Governance (ESG) impacts of these initiatives, demonstrating how sustainable sourcing is transforming the pharmaceutical industry.

 

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Global Case Studies

Johnson & Johnson

Overview: Johnson & Johnson has made significant strides in sustainable sourcing by switching to certified green feedstocks and raw materials. (1)

 

This initiative is prominently implemented at their facilities in New Jersey, USA, and Cork, Ireland, and has helped stabilise their supply chain and reduce exposure to volatile commodity prices.

 

ESG Impacts:



  • Environmental: Reduced carbon footprint by using renewable resources and cutting down on waste.



  • Social: Supported fair labour practices and community development in supplier regions in South America and Southeast Asia.



  • Governance: Enhanced supply chain transparency and compliance with environmental regulations, including ISO 14001 certification.

Pfizer

Overview: Pfizer has invested heavily in using recycled and sustainable materials in its production processes, particularly at its facilities in Kalamazoo, Michigan, USA, and Puurs, Belgium. This approach has reduced raw material costs and waste, contributing to significant cost savings.

 

ESG Impacts:



  • Environmental: Decreased landfill waste and resource consumption, contributing to the company's goal of zero waste to landfill by 2025. (2)



  • Social: Promoted responsible waste management practices among suppliers in North America and Europe.



  • Governance: Improved adherence to global sustainability standards and enhanced corporate reporting transparency.

 

Roche

Overview: Roche has adopted renewable energy sources and optimised its production processes at its facilities in Basel, Switzerland, and Penzberg, Germany, to reduce energy costs. Their long-term commitment to sustainability has resulted in substantial cost savings and environmental benefits.

 

ESG Impacts:



  • Environmental: Lowered greenhouse gas emissions and energy consumption, contributing to Roche's goal of becoming carbon neutral by 2050. (3)



  • Social: Created green jobs and supported renewable energy initiatives in the regions where their facilities operate.



  • Governance: Strengthened corporate sustainability policies and practices, aligning with international standards such as the GRI.

GlaxoSmithKline (GSK)