WBCSD: Pharmaceutical Sector Faces Environmental Reckoning

The pharmaceutical industry’s role in global healthcare is monumental, but so is its environmental impact.

In recent years, addressing the sector’s carbon footprint has become an increasingly urgent issue.

A new report, ‘Roadmap to Nature Positive: Foundations for the Pharmaceutical Sector’, published by the World Business Council for Sustainable Development (WBCSD), sets out a structured approach for companies to assess and mitigate their environmental footprint.

Developed in collaboration with GSK, PwC and other industry stakeholders, the roadmap outlines priority actions to drive sustainable transformation.

“This is a must-read for anyone working to address the environmental impact of healthcare and pharmaceuticals,” says Claire Lund, Global Vice President for Sustainability at GSK.

The pharmaceutical industry’s environmental footprint

The pharmaceutical sector is responsible for approximately 5% of global greenhouse gas (GHG) emissions.

This contributes significantly to climate change and biodiversity loss.

While medical advances have extended global life expectancy from 46.5 years in 1950 to 71.2 years in 2023, the industry’s reliance on energy-intensive manufacturing processes, resource-heavy supply chains and pharmaceutical waste disposal has left a lasting environmental footprint.

“The twin crises of nature loss and climate change are a significant challenge for any sector, but the pharmaceutical sector plays such an important role in all of our lives,” explains Laura Kelly, Partner in ESG Reporting & Assurance at PwC.

“Any steps forward that can be made in addressing these challenges are crucial.”

The industry’s five key priorities

The roadmap identifies five key priority actions for companies aiming to reduce their environmental impact:

• Minimising water usage
• Addressing pollution risks associated with Active Pharmaceutical Ingredients (APIs)
• Reducing GHG emissions across the value chain
• Improving supply chain transparency
• Cutting solid waste

Each of these measures is intended to be adaptable to different business models, ensuring companies can integrate them into their existing operations without compromising innovation.

Water use and pollution

Water use remains a significant concern, particularly in regions where pharmaceutical production exacerbates local water scarcity.

The report urges companies to adopt water conservation strategies and implement stricter wastewater treatment protocols to prevent contamination of natural ecosystems.

Similarly, pollution from APIs, which can persist in water supplies and disrupt aquatic life, must be mitigated through improved disposal methods and cleaner production technologies.

Cutting emissions in the pharmaceutical sector

GHG emissions present another major challenge.

The roadmap calls for pharmaceutical firms to set ambitious emissions reduction targets, particularly in energy-intensive manufacturing and logistics.

A shift towards renewable energy sources, increased energy efficiency and low-carbon supply chain practices are highlighted as critical measures.

“A sector-wide approach is critical to tackling shared challenges and accelerating progress toward a nature-positive future,” says Holly Metcalfe, Manager at Nature Action.

“By working together, the industry can build a more resilient supply chain, mitigate environmental risks, and create new opportunities for sustainable growth.”

Supply chain transparency

Supply chain transparency is also emphasised as an essential factor in achieving sustainability goals.

The industry is heavily reliant on complex global supply chains, making traceability a persistent challenge.

The roadmap advocates for responsible sourcing of raw materials, increased supplier accountability and the adoption of alternative materials with lower environmental impacts.

Reducing solid waste

The report also stresses the importance of reducing solid waste across the value chain.

Pharmaceutical packaging, expired medications and production waste contribute to significant environmental harm.

Companies are encouraged to invest in circular economy initiatives, such as biodegradable packaging and take-back programmes for unused medicines.

What are the industry’s next steps?

One of the roadmap’s next steps is to establish clear nature-related metrics for tracking and reporting progress.

These standardised indicators will help businesses navigate evolving regulatory requirements while providing transparency to stakeholders.

“Nature loss and climate change present big challenges for the pharmaceutical sector,” says Will Evison, Director of Climate, Environment & Nature Strategy at PwC.

“Addressing these twin crises proactively can improve health outcomes and drive value creation.”

A pivotal moment for the pharmaceutical sector

While the roadmap does not mandate specific targets, it provides a flexible framework for pharmaceutical companies to align their sustainability efforts with global environmental objectives.

As regulatory pressure and investor expectations continue to grow, the industry faces a pivotal moment in its sustainability journey.

The success of these initiatives will depend on corporate commitment, cross-sector collaboration and the ability to translate strategy into tangible action.

“Collaboration is key to making progress,” says Claire.

“We now have an even clearer understanding of how to accelerate the priority actions that we can take together for nature, people and business resilience.”

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