To remain profitable while transitioning to net-zero pharmaceutical companies need to invest into the following aspects:
- Development of continous manufacturing processes and facilities to reduce waste which is sustainable itself and at the same time usually more profitable than manufacturing batch wise [1, 2]
- Centralization of drug manufacturing by pulling together as many manufacturing steps as possible in one location/area ideally in the market where the products will ultimately be sold. (API (active pharmaceutical ingredient) production – formulation – drug substance/drug product production – packaging). This will lead to a huge reduction of transport related GHG emissions as well as a relevant reduction of transportation costs. [2]
- Use of renewable energies across complete supply chain as well as for the energy supply of the manufacturing sites [3]
- Knowledge and People as the development of new and innovative medicines will be crucial to stay profitable
I’m working for a rather new company which has just committed itself to net-zero goals. To my knowledge net-zero related activities just started. I believe that one of its main opportunities from assessing wealth instead of profitability would arise from the knowledgeability and innovation strength of the work-force.
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References:
[1] https://pharma.elsevier.com/pharma-rd/pharmas-path-to-net-zero/ [Accessed 2022 October 5]
[2] https://www.pharmaceutical-technology.com/analysis/cutting-carbon-footprint-pharma-supply-chain/ [Accessed 2022 October 5]
[3] https://www.novartis.com/esg/environmental-sustainability/climate [Accessed 2022 October 5]