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)