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How can pharma manufacturing align with green initiatives while maintaining efficiency and compliance?

How can pharma manufacturing align with green initiatives while maintaining efficiency and compliance?

Pharma's Almanac

Pharma's Almanac

Jan 31, 2025PAO-01-25-RT-02

James Choi, Executive Vice President, Chief Marketing Officer, and Head of Sales Support, Project Management, and Global Public Affairs, Samsung Biologics

Achieving sustainability in the biopharmaceutical industry requires tenacious collaboration among various stakeholders — from raw materials suppliers and contract development and manufacturing organizations (CDMOs) to biotechnology and pharmaceutical companies.  

CDMOs must play a dual role in facilitating supply chain decarbonization initiatives in this long-term, concerted venture. Not only should CDMOs champion rigorous net-zero strategies across the industry, but they should also encourage raw-materials suppliers to foster sustainability practices and join the effort.  

The road to supply chain decarbonization takes one step at a time. Leading pharmaceutical companies have set incremental goals of attaining net zero and RE100 in the coming decades. The life cycle assessment of drugs is the starting point for decarbonization. This means that CDMOs should prepare a consistent strategy to help their suppliers identify emission sources from raw materials and ultimately guide them to carbon-free sourcing practices.   

As the champion of the Sustainable Markets Initiative health systems supply chains working group and a responsible CDMO, Samsung Biologics is implementing a net-zero strategy aligned with guidance from the Intergovernmental Panel on Climate Change and the Science Based Targets initiative (SBTi). We adopt sustainable strategies from our clients and cascade them to our suppliers. By doing so, we support the joint undertaking where all industry players, from pharmaceutical companies to suppliers, collaboratively transition to sustainable business practices.    

Saharsh Davuluri, Vice-Chairman and Managing Director, Neuland Labs

The pharmaceutical industry is adopting a multifaceted approach to achieve sustainability goals, focusing on greener manufacturing processes, resource efficiency, and regulatory alignment. Companies are integrating environmental, social, and governance (ESG) frameworks into their core operations, setting science-based targets to reduce carbon emissions and minimize environmental impact. The adoption of frameworks like SBTi and benchmarks such as the Dow Jones Sustainability Index helps organizations measure and improve sustainability performance.  

Manufacturing processes are evolving through innovations in green chemistry, such as reducing solvent use, recycling materials, and developing eco-friendly alternatives. These changes minimize hazardous by-products and energy-intensive steps, lowering the industry's carbon footprint. Advanced process innovations focus on substituting traditional chemicals with sustainable options, such as water-based solutions, and optimizing reaction conditions to improve energy efficiency.  

Collaboration with stakeholders is critical. Suppliers, logistics partners, and regulators are being engaged to establish transparent and sustainable practices. Companies also adapt to regional regulatory frameworks, from stringent EU guidelines like the Corporate Sustainability Reporting Directive (CSRD) to diverse U.S. state-based regulations. By embedding sustainability into operations and aligning with sponsor requirements, such as supply chain evaluations, manufacturers can achieve green goals without compromising efficiency or compliance.    

Ragavendran Vasudevan, Director & Head of Operations – India, C2 PHARMA

In my view, the necessary steps to achieve sustainability goals in pharmaceutical manufacturing are as follows:  

  • Emphasis on designing safer, more sustainable chemical processes and adopting greener chemistry.

  • Energy efficient improvement processes to minimize the high energy consumption/conservation.

  • Implementation of zero-waste practices and utilization of reusable effluents.

  • Reduction, calculation, and analysis of carbon footprints

  • Continuous manufacturing technology with the use of biocatalysts.

  • Utilizing digital solutions and implementations.      

Pierre Reuse, Ph.D., Global Lead Sustainability Implementation, Lonza

We are taking decisive steps to reduce our greenhouse gas (GHG) emissions and in 2024, our near-term targets were verified by the SBTi. Our emissions reduction strategy is based on four pillars: Replace, Renew, Reduce, and Redesign.   

Under Replace, we strive to switch from fossil-based fuels to fuels with a much lower carbon footprint, such as biogas and biomass. We are also transitioning to electrification for processes such as hot water generation and space heating.    

Renew covers our transition to renewable electricity and biogenous materials like organic solvents. We have signed and executed multiple agreements for renewable electricity in APAC, Europe, and North America, offsetting our emissions in key manufacturing locations. By 2026, almost 90% of the energy we use will be renewable.   

Under Reduce, we are implementing emissions reductions projects at every site with targets corresponding to the footprint of each site.

Finally, under Redesign, we are implementing our Sustainable Design Standard to ensure all new facilities are built with the lowest operational carbon footprint possible.    

The success of these individual measures will drive us closer to meeting our near-term targets and our overall goal of achieving net zero by 2050 or earlier.       

Ryan Walker, Senior Director, Sustainability, Cytiva

Sustainability is a great unifier for the life sciences industry, and we’ve seen an acceleration in the adoption of sustainable business practices. The industry is coalescing around how we should deal with carbon, plastics, waste management, emissions, plastics, and eco-design. Our industry is focused on improving human health through the development of advanced therapeutics. We must fulfill our industry’s mission while also limiting our environmental impact.

At Cytiva, we are taking a value chain approach to our sustainability program. We know that it isn’t possible for any one company to achieve its goals on its own. Several years ago, we launched a Design for Sustainability program that ensures that our new product introductions focus on sustainability from the very start. We are always looking for ways to reduce, reuse, and recycle at every stage of the product life cycle. We are also changing the modes of transportation used to ship products when possible and are working closely with our suppliers and vendors to ensure that they share our commitment to the planet. These are just a few of the things we are doing to minimize our environmental impact while helping our customers deliver on their promise to patients.  

Nathan Givoni, Chief Executive Officer and Co-Founder, Gelteq  

Sustainability is increasingly important in the pharmaceutical industry, driven by regulatory demands, consumer expectations, and environmental concerns. Companies are looking toward adopting greener alternatives in formulation, packaging, and production, but affordability remains a key challenge. This is similar to what we see with specialized or personalized medicines, where sustainable options often come at a significantly higher price point. Balancing sustainability with cost-effectiveness is essential for broader market adoption. The higher costs of sustainable products are currently limiting accessibility and universal adoption. At Gelteq, we are committed to responsible sourcing, prioritizing working with suppliers who share our commitment to sustainability and environmental stewardship. By partnering with eco-conscious suppliers, we ensure that the materials we use minimize environmental impact while supporting our sustainability goals.  

Brian Peutherer, Vice President of Environment, Health and Safety, Sterling Pharma Solutions  

By its very nature, active pharmaceutical ingredient (API) synthesis is energy-intensive and requires the use of raw materials and solvents that are often high in volume and hazardous and generate large quantities of waste that needs to be disposed of correctly and safely.

When signing new material supply agreements, customers are placing an increased emphasis on corporate social responsibility (CSR) and ESG reporting of contract manufacturers. One key area of focus at the moment is reporting scope 1 and 2 emissions, as suppliers’ carbon footprints become customers’ scope 3 footprints.

Maximizing process efficiency is inherently linked to improving sustainability; scaling up manufacturing should involve the evaluation of the use of raw materials, solvents and energy; and how to minimize and manage the waste produced.

Any amendment of a route to specifically include sustainable technologies or reagents must be balanced against the feasibility of scaling the process up: for example, a “green” solvent may be feasible on a small scale but may not exist in sufficient quantity for larger volume requirements; and similarly, looking to introduce flow synthesis for a particular manufacturing step may be impractical for large-scale production. Any amendment of a route depends on the phase the project is in — while opportunities to make changes are more practical in development and early clinical phases, later-phase projects already have registered processes, which must be followed to comply with regulatory requirements.  

Jordi Robinson, Chief Commercial Officer, Navin Molecular

Contract manufacturers are under increased pressured to demonstrate sustainable manufacturing practices as part of their proposal submission process. Customers are not only looking for competitive costs and timelines but also for a commitment to sustainability alongside efficient manufacturing processes.  

Typically, customers want to see certifications from recognized assessment agencies, such as Ecovadis, a commitment to science-based targets for reducing carbon emissions, and reports on scope 1 and 2 carbon emissions.  

Commercial-scale chemical processing inherently requires large quantities of raw materials, solvents, and energy. To enhance sustainability, manufacturers can explore alternative practices that promote greater sustainability and leverage technology solutions where applicable. For instance, replacing metal catalysts with enzymatic transformations can lower energy consumption and replaces organic solvents with aqueous media. Utilizing flow chemistry can also significantly reduce energy and solvent use compared with traditional batch-chemistry methods, although these techniques may not be suitable for all processes.  

An important step in improving sustainability before scaling up processes is to ensure that the chemistry is as atom-efficient as possible and push the process mass intensity (PMI) to ensure that a minimum of material and energy is required to produce the final product and reduce waste production. Additionally, manufacturers can incorporate practices such as solvent and metal recycling, as well as wastewater treatment and reuse.    

Paul Zuechner, Director, Sustainability and Reliability Engineering, Pharma Services, Thermo Fisher Scientific

The pharmaceutical industry is making significant strides toward sustainability, focusing on reducing environmental impact, improving social outcomes, and ensuring long-term viability in the face of increasing regulatory pressures and public scrutiny. Below are some examples of how this is being put into action:

  • Energy efficiency and renewable energy adoption: Aiming for carbon neutrality, pharma companies have committed to reducing carbon emissions across their entire supply chain by reducing dependency on fossil fuel. Energy-efficient technologies, energy recovery systems, and dynamic HVAC control systems are being widely implemented, along with a shift to renewable electricity sources for operations.

  • Waste reduction and circular economy initiatives: Reducing waste production and reusing materials and recycling solvents and other chemicals reduces landfill usage, lowering environmental footprint. Industry players are reducing plastic packaging while transitioning to recyclable or biodegradable packaging, adopting sustainable bio-based SUDs (single-use devices), as well as advancing zero-waste-to-landfill strategies and improving product life cycle management.

  • Water conservation and pollution prevention: Improving water management practices, reducing consumption, and preventing pollution from trace pharmaceuticals in wastewater can significantly improve both environmental and human health outcomes, especially in regions where water scarcity is a critical issue. Companies are improving water management and investing in advanced water treatment technologies, including closed-loop systems that recycle water in production.

  • Sustainable supply chain management: By pushing for sustainable sourcing and better practices among suppliers, the pharmaceutical industry can help drive change in sectors with a direct impact on environmental degradation and social equity. Pharmaceutical companies can reference independent certifications to ensure that materials are ethically sourced, helping to ensure compliance with regulatory frameworks related to supply chain transparency and sustainability. Many companies are building sustainability criteria into their supplier contracts, promoting transparency and ethical standards across the entire value chain.

  • Sustainable product design and green chemistry: Implementing green chemistry principles can achieve a sustainable drug design that minimizes chemical waste, energy consumption, and toxic by-products while promoting the use of more sustainable, renewable, and biodegradable materials in pharmaceutical manufacturing. By following regulatory frameworks that support green chemistry innovations, companies can introduce more sustainable and compliant processes.

  • Logistics carbon footprint reduction: Targeting carbon reduction in logistics and transportation across global pharmaceutical networks provides an opportunity to significantly improve emissions reduction. Initiatives include optimizing logistics, minimizing air transport, investing in electric vehicle fleets, and using carbon offset programs.

Aligning pharmaceutical manufacturing with green initiatives while maintaining efficiency and compliance requires a comprehensive approach that integrates energy and resource efficiency, waste reduction, green chemistry, and sustainable sourcing. Leveraging technological advancements, regulatory frameworks, and collaboration within the industry, pharmaceutical companies can minimize their environmental footprint, reduce operational costs, and maintain high standards of compliance with both regulatory and sustainability requirements.  

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