Paul Power, Biopharmaceutical Product Manager, NCC, discusses the challenges of sustainable sourcing and how NCC can assist.
The pharmaceutical industry faces increasing pressure to reduce its carbon footprint and contribute to a more sustainable future. Driven by stringent EU regulations like the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD), pharmaceutical companies must now report and reduce their entire value chain’s environmental impact, including Scope 3 emissions. Additionally, growing consumer demand for environmentally friendly products is pushing companies to adopt a holistic approach to sustainability.
Understanding the Scope of the Problem
To fully grasp a company’s environmental impact, it’s essential to consider the three categories of emissions:
- Scope 1: Direct emissions from owned or controlled sources, such as company vehicles or on-site energy generation.
- Scope 2: Indirect emissions from purchased electricity, heating, and cooling.
- Scope 3: Indirect emissions that occur in the value chain, including upstream and downstream activities like raw material sourcing, transportation, and product use.
A significant portion of a pharmaceutical company’s carbon footprint, estimated at around 701%, stems from Scope 3 emissions, particularly the sourcing and production of raw materials. This is due to the complex global supply chains involved in the pharmaceutical industry, often spanning multiple countries, continents, and industries. Additionally, the energy-intensive nature of many manufacturing processes contributes to substantial carbon emissions.
Navigating the Challenges of Sustainable Sourcing
While the importance of sustainable sourcing is clear, it presents several challenges for pharmaceutical companies. These challenges include complex supply chains, a lack of transparency, difficulty in sourcing pharma-grade products, and additional costs related to audits, certifications, and premium pricing. By addressing these challenges and prioritising sustainable sourcing, pharmaceutical companies can significantly reduce their environmental impact, enhance their brand reputation, and contribute to a more sustainable future.
NCC: Your Partner in Sustainable Sourcing & Material Supply
As a leading supplier of sustainable materials, NCC is committed to helping pharmaceutical companies navigate the complexities of sustainable sourcing. We have extensive experience in sourcing sustainable raw materials that match the specific requirements of our pharma customers. Our comprehensive services offer a range of solutions to reduce your Scope 3 emissions and improve your overall sustainability profile.
By partnering with NCC, you can reduce your carbon footprint, demonstrate your company’s commitment to environmental responsibility, and avoid costly on-site modifications by focusing on sustainable raw materials. Our expertise in sustainable sourcing, combined with our commitment to ethical and responsible practices, makes us the ideal partner for your sustainability journey.
For further information on how we can help you achieve your sustainability goals, fill out the form below and we’ll be in touch. Together, we can build a more sustainable future for the pharmaceutical industry.
1. Sumudu Dehipawala, Ellie Goldman, Emily Hwang, Prem Shah, Ayushi Shroff, and Matthew O’Hara, The pharmaceutical industry’s carbon footprint and current mitigation strategies: A literature review, Trinity Life Sciences, August 16, 2023.
