How on earth

The masterplan – decarbonising pharmaceutical manufacturing with future state planning

We are on the cusp of a new era. With net zero hurtling up the agenda, our industry must view decarbonisation as a wider company strategy.

With this in mind, I will draw from NIRAS’ new report, to explain how pharmaceutical businesses can plan effectively for the future.

As global efforts to reduce the climate emergency intensify, the pharmaceutical and life sciences industries, like all sectors, are under increasing pressure to reduce their greenhouse gas emissions.

Regulatory changes and rising pressure from stakeholders who increasingly value sustainability, mean that, for manufacturers, the transition towards decarbonisation is no longer just an environmental necessity, but a strategic business move.

While many companies recognise the importance of investing in sustainability, they also know how fraught with challenges this journey can be.

However, while these challenges are prominent, so are the opportunities. If guided correctly, changes and modifications in the manufacturing processes can result in innovation, accreditation and a sustainable reputation that is attractive to climate-conscious stakeholders and end consumers.

Businesses that are dedicated, or even just slightly interested in reaping the benefits of decarbonisation, can start with future state planning.

Future state planning is the strategic framework that can help pharmaceutical companies achieve their sustainability and emission-reduction goals.

This comprehensive approach starts with an in-depth evaluation of current operations and creates a roadmap for minimising environmental impact.

There is no one-size-fits-all approach to making progress in sustainable performance, and the changes required vary significantly between companies.

Reasons for this include the location of the facility, the availability of raw materials and access to green energy.

Therefore, the first step of future state planning is to assess the current state of play. Only when you have a clear understanding of emissions, energy usage and production processes, can you start to set realistic goals.

From there, pharmaceutical manufacturers need to envision what a decarbonised future looks like for them. To do this, focus on answering key questions – what will operations look like when sustainability is fully realised? How will it function?

Although more businesses continue to set ambitious ESG goals, on their own they will be insufficient. It’s how they are used to create a roadmap, which must clearly direct the organisation towards its desired state, whilst also remaining cautious about external influences.

Emerging technologies, changes in regulation and the market landscape are just a few examples of the wider considerations.

The roadmap must not only focus on emissions, but also the broader impacts, such as job creation, and the development of sustainable communities. In this way, decarbonisation becomes a holistic business model.

Businesses that decarbonise will experience a range of intangible and tangible benefits, but the value shouldn’t be tracked on just a balance sheet.

Decarbonisation is an investment into planet health, so the concept of value extends beyond just metrics.

Justifying the investment is, of course, a massive concern, especially for those whose role is to focus on profit.

However, improving energy consumption can reduce operating costs, generate new revenue streams and help avoid existing or upcoming carbon taxes.

Embracing sustainability, and investing in the right technologies for your supply chain is a competitive advantage that attracts customers and enhances the overall brand.

However, finding the value is a crucial challenge to overcome. Environmental valuation techniques, like calculating the social cost of carbon, help businesses quantify the broad impact of their efforts, making it easier to justify such investments.

Decarbonising a pharmaceutical supply chain presents significant opportunities, but also many hurdles.

The industry’s dependency on energy-intensive processes and fossil fuels makes the shift towards greener alternatives complex and often demands substantial investment in new technologies.

In addition, incorporating renewable energy into established production systems poses its own difficulties, especially for manufacturers that depend on a stable and reliable supply chain.

Despite these obstacles, the opportunities for innovation are extensive. Progress in energy efficiency, process optimisation and circular economy approaches can result in notable emission reductions.

Technologies like carbon capture, utilisation and storage (CCUS) are also showing promise in sectors where complete decarbonisation is particularly challenging.