A new global market research report recently published by Cytiva and FT Longitude, the research division of Financial Times, reveals that sustainability has become a top priority for biopharma companies.

The biopharmaceutical industry finds itself at a critical juncture in terms of sustainability. However, the recent Cytiva report reveals that significant challenges remain in measuring and reducing emissions, particularly across complex supply chains.¹ Following is a brief summary of the research findings.

Sustainability Takes Center Stage

The report makes it clear that sustainability is no longer a side project for biopharma – it has become a core strategic priority. A striking 62% of biopharma companies surveyed say sustainability will be their number one priority over the next five years.¹ This reflects growing recognition of both the environmental imperative and the business case for sustainability.

Indeed, companies leading the way on sustainability are already seeing tangible benefits. Over the past 12 months, sustainability leaders reported increases in revenue (55%), profit (57%), share price (56%), brand reputation (58%), and ability to attract talent (54%).¹ The message is clear: sustainability is not just good for the planet, it’s good for business.

Measuring Progress and ROI Remains Challenging

While the industry recognizes the importance of sustainability, accurately measuring progress and return on investment (ROI) remains difficult for many companies. A full 76% of biopharma professionals surveyed say their approach to measuring the financial impact of sustainability initiatives is either not at all or only somewhat accurate.¹

These measurement difficulties create a catch-22 situation. Without clear data on ROI and emissions reductions, it becomes harder for companies to justify further investments in sustainability initiatives. Overcoming these measurement hurdles will be crucial for accelerating progress.

Supply Chain Collaboration is Key

One of the report’s most important findings is the critical role of supply chain collaboration in driving sustainability. Over 70% of carbon emissions in life sciences and healthcare come from supply chains.² Yet 69% of professionals surveyed cite weak collaboration across the value chain as a major barrier to sustainability.

There is clearly room for improvement here. Nearly three-quarters (71%) of companies say their suppliers are not good enough at bringing sustainability initiatives forward.¹ At the same time, many suppliers may lack the expertise to provide the detailed guidance and support biopharma companies are seeking.

Technology as an Enabler

The report highlights the important role of leveraging technology to accelerate sustainability progress. Automation, artificial intelligence, data analytics platforms, and Internet of Things (IoT) solutions are seen as particularly promising.¹

There is a gap between recognizing the potential of technologies and implementing them effectively. For instance, while 64% see automation as important for sustainability, only 29% are using it extensively.

Cold chain environmental monitoring and control solutions are crucial for biopharma companies’ sustainability efforts, according to ELPRO’s Head of Product Management, Patrik Senn. “Next-generation monitoring systems for the pharma cold chain, including real-time predictive visibility solutions like elproPREDICT, enable dynamic risk assessments both before and during the entire product shipment. These systems support proactive measures to mitigate or prevent product losses, as potential failures are optimally predictable. Through additional risk assessment, these tools help minimize excessive packaging materials, provide precise data for KPIs and return on investment, and thus contribute to reducing the carbon footprint,” explains Senn. “To fully harness the potential of the circular economy, close collaboration among all involved parties in the return, reuse, and refurbishment of electronic components and packaging material is essential.”

Regulatory Landscape Poses Challenges

Another key challenge highlighted in the report was the apparent lack of consistent global sustainability standards and regulations. Almost 40% of the respondents indicated that this lack of clarity in regulations and standards is a significant barrier to achieving corporate targets.

However, the report also notes that companies can use existing regional legislation, like the European Commission’s Corporate Sustainability Reporting Directive (CSRD), to frame their targets and strategies.3 By adhering to the most stringent standards, companies can position themselves for success as regulations evolve globally.

The Path Forward

Based on the report’s findings, there are three critical action items for biopharma companies looking to accelerate their sustainability progress:

• Prioritize sustainability at the highest levels: Place sustainability at the top of the corporate agenda and communicate this commitment both internally and externally.
• Focus on measurement: Invest in technologies and processes to measure emissions accurately, particularly Scope 3 emissions. Move away from spend-based estimation methods towards more precise measurement.
• Collaborate across the value chain: Work closely with suppliers and other partners to establish shared sustainability strategies and achievable goals. Share data, skills, and innovations to drive progress collectively.

By taking these steps, biopharma companies can overcome current challenges and move towards a more sustainable future. It’s clear that sustainability is no longer optional for biopharma. Companies that fail to prioritize it risk falling behind competitors, losing talent, and facing reputational damage. On the flip side, those leading the way are already reaping significant benefits.