< PreviousENVIRONMENTAL 20 Pharma Business International www.pbiforum.net © stock.adobe.com/jordano Pharma’s environmental problem Pharma’s environmental problem Pharma Business International 21 www.pbiforum.net ENVIRONMENTAL E nvironmental concerns wrack the globe with more frequent natural disasters striking in multiple countries. As governments push for reduced emissions, and as many warn that it might already be too late, eyes may soon turn to the pharma sector. Over 28% of pharma companies have pledged to reduce their waste emissions by at least 25%, and there is plenty of leeway in how to accomplish this. Some are trying to avoid landfill use and tackle waste in the form of the packaging they use, and what customers should do with said packaging after it has been used. This also includes disposal of medicines that have been manufactured but not used before they go out of date. Solvents are also a big cause of waste currently in the pharma sector, especially when they are disposed of incorrectly. The problem for pharma is that the waste and environmental damage is not just from plastic packaging, which could more easily be reduced. It’s estimated that the pharma industry produces 55% higher emissions than the automotive industry, which is a sobering comparison to make. Pharmaceutical manufacturing already Consumers and governments are pushing toward more sustainability, and the pharma industry may be in trouble if it doesn’t take drastic steps. 22 ÁENVIRONMENTAL 22 Pharma Business International www.pbiforum.net releases several gases and aerosols that can be considered harmful to the environment, but these may be unavoidable. Instead, companies are looking to take a holistic approach and consider the bigger picture. Freight by air is quoted to create over 60x the amount of emissions as sea freight does, but shipping everything by sea may not be the right answer, as there are more considerations than just emissions. When it comes to the areas that the industry can improve in, pollutants and packaging have to be at the top of the pile. Recent studies have identified uncomfortable levels of API’s (active pharma ingredients) in rivers and waterways across 104 countries, making this a global phenomenon on a similar level to microplastics found in the ocean, fish, and even human blood. Companies need to do more to address this issue, as unsafe water is sure to cause further problems not only environmentally, but ecologically, and these are very likely to transform into political issues. Many companies have environmental plans and schemes in place, but few cover this area specifically, and many are seen as more marketing initiatives than action. There is a commercial value to these initiatives as well. In the UK it is estimated that pharma companies spend 4-5% of their turnover on getting rid of waste, rising to 10% in cases of pharmaceutical goods that produce harmful waste, and the figure will be similar across other countries as well. Finding ways to reduce waste is more than just helping the environment – it is a sound business strategy. Pharma Business International 23 www.pbiforum.net ENVIRONMENTAL © stock.adobe.com/RRFLOGISTICS 24 Pharma Business International www.pbiforum.net T he transport industry won’t be pleased to see a renewed plea from scientists as to the vast environmental damage humanity is doing to the world right now. Fossil fuels remain a thorny subject for many, especially in a time when economies are doing poorly and it’s tempting to reach for the quickly profitable fossil fuels over long-term investments. The transport and logistics industries have been struggling with the problem of green transport for a long time now. The technology has been there for a while, but while the consumer demand for greener methods has only grown stronger, wholesalers and retailers have been so unwilling to consider paying higher costs that fleet managers haven’t been able to invest. The simple factor is that costs would have to go up to cover changing a whole fleet to greener methods, but big supermarkets would rather guard their profits. This is reflected in reports that freighters have been offering a range of environmentally friendly options, but that shippers are balking at the procurement stage. Sustainability is positively talked about in all areas that might reach marketing or be seen by the public, but the interest falters as soon as shippers are faced with a choice between sustainable fuels or cheaper, The logistical With the environment being ever more in the spotlight, logistics becomes an ever more thorny subject. 26 ÁPharma Business International 25 www.pbiforum.net LOGISTICS © stock.adobe.com/AdriFerrer question LOGISTICS 26 Pharma Business International www.pbiforum.net more environmentally damaging, alternatives. Inevitably, profits are prioritised. One of the largest couriers, DHL, provided a target of spending 7 billion euros on sustainable measures and decarbonisation by 2030, but has only spent 440 million euros so far. While DHL themselves blamed the slow uptake on a lack of measures, those in the logistics industry have said the fault lays more on an unwillingness to spend, and customers’ willingness to pay a premium for sustainable transport. Many transport companies are calling on governmental support to further push the issue, but the true need the industry faces might be in greater scrutiny on supermarkets and retailers who are happy to claim they are doing all they can to decarbonise, but at the same time refuse to deal fairly with their logistical suppliers. These companies are unlikely to budge for anything but a threat to their reputations and profits. The industry faces greater challenges than just environmental, however. Rising fuel costs have also impacted earnings and left many in a precarious state of needing their existing contracts so badly that they cannot afford to take risks pushing sustainable alternatives or higher costs. At the same time, freight forwarders are struggling under recruitment issues of their own, with transport and logistics reporting high Pharma Business International 27 www.pbiforum.net LOGISTICS levels of job vacancies in specialist jobs from dock working, to warehouse operatives and HGV drivers. With competition for new drivers rising and existing ones growing closer to retirement, attention is turning toward the next generation – who, by all accounts, have poor understanding of what it means to be a lorry driver, and even poorer perceptions of it. Hollywood depictions of HGV drivers as slimy, overweight men certainly haven’t helped, and with how much of today’s world is influenced by social media and Instagram, it has to be said that the job of a lorry driver is not seen as particularly desirable. More must be done to bridge the gap between the industry and younger people, because it is in fact a well-paying job involving a lot of travel, and it’s certainly not low-skilled. Finding new drivers wouldn’t be such a problem if it was. While logistics firms are doing their best to lobby to younger audiences to try and get more people interested in the industry, it’s hard to know how effective this has been. Shocking new research published nationally suggested that 25% of young people feel they are not prepared to enter the workforce, up to and including having no idea what they want to be. While it’s naïve to say that is 25% of young people the logistics industry can be targeting, they can at least aim for a portion of that number. © stock.adobe.com/Real Fantasy ArtTRACEABILITY 28 Pharma Business International www.pbiforum.net © stock.adobe.com/BillionPhotos.com Traceability vs counterfeiters Traceability vs counterfeitersPharma Business International 29 www.pbiforum.net TRACEABILITY T he largest reported numbers of counterfeit pharmaceuticals was in North America, followed by Asia-Pacific and Latin America. In the year leading into 2021, the number of reported counterfeit cases spiked by over 35%, reaching its highest point since records began over 20 years ago. While counterfeit drugs are in theory a problem for police and law enforcement, many criminals are getting away with it because of less-stringent measures taken by pharma manufacturers. Simplistic packaging, easily copied designs and a lack of communication with consumers is allowing criminals to make billions. Now, traceability may be the best weapon the industry has to fight counterfeiters. Every separate process along the way is known as a traceability system – the combined entirety of data and operations which contains and maintains all information about a product. As a product moves between stages, the system records all data required to not only keep track of where it is in the production chain, but also to track its progress back to its point, or points, of origin. Depending on the business using such a system, they can either be small scale and trace movement within a single supply chain, or more sophisticated for industry overseeing a larger production system. Whether proceeding for a large or Counterfeit drugs are on the rise globally, and it’s not just in poorer, developing nations. 31 ÁNext >