Pharma’s Environmental Challenge: Tackling Carbon Emissions in the Supply Chain

Pharma’s Environmental Challenge: How Data-Driven Carbon Management Can Drive Sustainable Supply Chains

The pharmaceutical industry is not only essential for global health but also a significant contributor to environmental challenges. Each year, the sector generates approximately 52 megatons of CO₂ emissions—comparable to 11 million cars on the road—and produces more than 300 million tonnes of plastic waste, much of it single-use. The rising demand for sustainable supply chains and decarbonization is forcing the industry to rethink how it manages environmental impacts.

To explore the ways in which the pharmaceutical industry can tackle these pressing issues, we spoke with Mauro Cozzi, CEO and Co-founder of Emitwise, a carbon management platform that helps businesses reduce emissions through data-driven decision-making.

The Importance of Sustainable Sourcing in Pharma

One of the key strategies for reducing the environmental footprint of the pharmaceutical sector is through sustainable sourcing. As Mauro Cozzi points out, "85% of the waste generated by healthcare operations is non-hazardous. This presents a significant opportunity to replace single-use materials with eco-friendly alternatives, reducing landfill pollution and emissions." The transition to sustainable packaging, combined with more efficient procurement processes, can help reduce the industry's carbon footprint while also cutting costs.

Sustainable sourcing also plays a crucial role in engaging suppliers in decarbonization efforts. Emitwise’s platform allows pharmaceutical companies to gather precise data from suppliers, making it easier to measure carbon emissions and align procurement strategies with net-zero targets. Mauro explains: “By enabling product-level precision in carbon footprint tracking, companies can drive more sustainable practices across the value chain."

Tackling Scope 3 Emissions: A Complex but Essential Task

For most pharmaceutical companies, managing direct emissions (Scope 1 and 2) is just the beginning. The more complex challenge lies in addressing Scope 3 emissions—those generated indirectly throughout the supply chain. Mauro Cozzi emphasizes that managing these emissions requires a robust data collection process that provides visibility into every stage of the supply chain. "Emitwise helps companies gather primary data directly from suppliers, which enables them to engage closely on decarbonization initiatives and integrate carbon considerations into procurement decisions."

This level of collaboration is essential for making significant progress in reducing emissions and Mauro Cozzi highlights the importance of supplier engagement, noting that companies using Emitwise’s platform have achieved higher levels of collaboration with their suppliers, leading to measurable reductions in emissions across the supply chain.

Overcoming Barriers to Sustainable Practices in Pharma

While the benefits of sustainable practices are clear, many pharmaceutical companies face significant hurdles in implementing them. According to Mauro Cozzi, the complexity of managing environmental impacts across the entire product lifecycle—from R&D to manufacturing and distribution—can be daunting. "Costs and resource demands are often significant, which discourages action."

In addition to financial concerns, there are also challenges in maintaining transparency across the supply chain. Suppliers may struggle with adopting sustainable practices due to increased costs, and drug manufacturers may face higher raw material expenses when switching to greener alternatives. “Collaboration is key,” says Cozzi. "Pharmaceutical companies need to work closely with suppliers, regulatory bodies, and tech providers to implement sustainable practices."

The Role of Technology in Reducing Emissions

Emerging technologies, particularly in data analytics and machine learning, are changing how the pharmaceutical industry approaches sustainability. Mauro Cozzi believes these technologies are “game-changers” when it comes to managing environmental impact. "Real-time monitoring of emissions, resource usage, and waste generation enables companies to make data-driven decisions that not only reduce their carbon footprint but also improve overall efficiency," he says.

Emitwise’s own platform, ProcureWise, is designed to empower suppliers to measure and report emissions, providing companies with a clear path to achieving their sustainability goals. This data-driven approach is critical for meeting regulatory requirements and staying ahead of evolving climate standards.

Looking to the Future: A Call for Collective Action

The pharmaceutical industry is at a crossroads. As demand for sustainability increases, companies must balance the need for innovation with their responsibility to reduce environmental impacts. Cozzi advises that companies, whether at the beginning of their sustainability journey or looking to enhance their efforts, must prioritize green manufacturing, sustainable sourcing, and waste management practices. "By committing to these principles, pharma companies can reduce future costs and risks while enhancing long-term value."

While the road to a sustainable future may be complex, the benefits—both environmental and business-related—are clear. As Cozzi concludes, "Collective action across the supply chain, backed by data-driven decision-making, is essential for reducing the pharmaceutical industry’s environmental footprint and ensuring long-term success."

Further Reading: 

For more information on decarbonisation and ESG strategies, download Pharma IQ's White Paper on Implementing ESG Strategies in Pharma Logistics