Is pharma on track to reduce its carbon emissions?
Author: Aurelio Arias
To begin analysing the current progress of the pharmaceutical industry, IQVIA extracted the commitments and progress from ESG reports of the top 100 pharma companies by value. Companies report their emissions in three scopes: Scope 1 are all direct emissions from activities under the company’s control, Scope 2 are indirect emissions from purchased energy, and Scope 3 are all other indirect emissions from sources outside a company’s control. Reporting from the top 100 companies was sparse, with 46 companies reporting more than two years of Scope 1 and 34 with more than 2 years of Scope 3 data; most of which is incomplete. There is a lack of data being repod across the industry as explored in IQVIA’s article on healthcare’s commitment to net zero, but the existing reports can give a sense of progress throughout the industry. Many countries and organizations have established reporting requirements as a way to address climate change. By reporting regularly, companies can provide transparency about their environmental impact and allow stakeholders to hold them accountable for their actions. In addition to regulatory compliance, accounting for emissions can also provide benefits. For example, it can help companies identify opportunities for reducing waste, lowering energy costs, and improve their reputation and relationship with stakeholders.