ESG (Environmental, Social, and Governance) in Pharma – Thematic Research
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Sustainability used to be just about saving the planet. Today it has evolved into an umbrella term for environmental, social, and governance (ESG) issues. While some companies are making concerted efforts to improve their ESG performance, others are insincere about adhering to the concept of sustainable profits. The sustainability movement is gaining momentum, with citizens, governments, regulators, and the media turning the spotlight on corporations. Companies are now being called upon to publicly address social inequality, corruption, tax avoidance, and a lack of action on climate change.
The pharma industry is under increasing pressure to become more sustainable, with many companies responding by improving their impact on the environment and society. The industry has deeply rooted environmental, social, and end governance issues requiring collaborative, proactive steps to achieve sustainability goals.
GlobalData’s Sustainability in Pharma Framework
Adopting a holistic approach that encompasses all environmental, social, and governance issues can help company leaders ensure that all aspects of sustainability are covered in their ESG strategy. In 2020, the pressure will mount on companies to be more transparent about their ESG credentials. We designed the GlobalData Sustainability Framework to help our clients build trust with society and set them on a path toward a sustainable future.
Environmental
Environmental performance measures the energy that a company consumes, the waste it generates, the natural resources it uses, and the consequences for our habitat. Climate change is increasing the frequency of extreme climatic events. These climatic changes will have direct, negative consequences for all businesses. Climate change will introduce many uncertainties, thereby increasing the risk for companies and delaying investments.
Social
Social performance assesses a company’s engagement with its workers, customers, suppliers, and the local community. It covers human rights, diversity and inclusion, health and safety, and community impact. Social injustices created by big businesses—whether from poor workplace health and safety, discrimination against certain types of people, or the failure to engage with local communities—can generate negative publicity.
Governance
Governance assesses how a company’s internal controls are used to inform business decisions, comply with the law, and meet moral obligations to external stakeholders. Repeated failures in corporate governance, from aggressive tax avoidance to corruption, excessive executive remuneration, and relentless lobbying, have meant that society is losing trust in big business.
Sustainability in pharma report also covers:
- ESG Advisors
- ESG Rating Agencies
- Timeline
- ESG Case Studies
GlobalData’s Sustainability Framework
For more insights on the sustainability framework, download a free report sample
Leading Pharmaceutical Companies
Johnson & Johnson, Roche, Pfizer, Novartis, Merck & Co., and Abbvie are some of the leading biopharmaceutical companies that are making their mark in the ESG framework. There is no global standard when it comes to ESG performance metrics, so each of the ESG rating agencies follows a different methodology.
Key Agencies Rating the ESG Performance Measurement in Pharma
MSCI, MorningStar, Exchange, Bloomberg, and ReepRisk are some of the primary rating agencies measuring ESG performance.
ESG Ratings for Biopharmaceutical Companies
For more insights on the leading companies, download a free report sample
Smart Pharma Report Overview
Report Pages | 53 |
Regions Covered | Global |
Leading Companies | Johnson & Johnson, Roche, Pfizer, Novartis, Merck & Co., and Abbvie |
Key Agencies Rating the ESG Performance Measurement | MSCI, MorningStar, Exchange, Bloomberg, and ReepRisk |
Scope
This case study includes:
- GlobalData’s Sustainability Framework: this is designed to act as a checklist to help CEOs ensure they cover all aspects of sustainability.
- Sustainability Measurement and Response: an overview of ESG advisors and ESG rating companies.
- ESG Ratings of Pharmaceutical Companies: a look at how some of the leading pharmaceutical companies are rated on ESG performance by four leading ESG rating agencies.
- Case Studies: here we provide examples of pharmaceutical companies making concerted efforts to improve environmental and social sustainability practices, including GSK, AZ, Takeda, Pfizer, Bayer, and Catalent. It also has case studies of pharma behaving badly, with many examples of drug price gouging and fixing, the role of Purdue Pharma and J&J in the opioid crisis in the US, Novartis’ sham educational speakers, and Samsung BioLogics’ accounting fraud.
Reasons to Buy
- Identify and understand sustainability standards, metrics, and mitigation strategies.
- Understand the impact of sustainability on the pharmaceutical industry.
- Identify opportunities as well as actions to mitigate any risks.
- Track some of the leading pharmaceutical companies rated on ESG performance.
- See environmental, social, and governance cases studies from across the pharmaceutical industry.
AstraZeneca
Takeda
Bayer
Catalent
Teva
Novartis
Gilead
Pfizer
Purdue Pharma
Johnson & Johnson
Samsung Biologics
Table of Contents
Frequently asked questions
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Why is sustainability an important theme in pharma?
The pharma industry’s contribution to environmental issues is multifaceted and is linked to R&D, supply chain, transport logistics, disposal of pharmaceutical products, and chemistry, and sustainability has evolved into an umbrella term for ESG issues.
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Which contributing factors are impacting the sustainability framework in the pharma industry?
Greenhouse gas emissions, pollution, various pollutants of air, land, and water, and deforestation are some of the key contributing factors that are shaping the sustainability framework in the pharma industry.
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Which are the leading companies making their mark in the ESG performance in pharma?
Johnson & Johnson, Roche, Pfizer, Novartis, Merck & Co., and Abbvie are some of the leading biopharmaceutical companies that are making their mark in the ESG performance in pharma.
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Which are the key agencies rating the ESG performance measurement in pharma?
MSCI, MorningStar, Exchange, Bloomberg, and ReepRisk are some of the primary rating agencies measuring ESG performance.
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