The pharmaceutical industry is at a pivotal point as we approach the 2030 deadline for achieving the UN’s Sustainable Development Goals, designed to reduce emissions and take urgent action on climate change.
Rising environmental pressures, coming from both governments and consumers alike, are driving pharma companies to accelerate technological adoption to transform operations and meet stringent emissions regulations. In fact, as of 2025, pharmaceutical companies are now investing $5.2bn annually in environmental programs to transform operations, reduce waste, and introduce innovative new technologies – a 300% increase from 2020.
With sustainability a non-negotiable, pharmaceutical companies must act now to meet the 2030 deadline. Supply chains and logistics must be a significant focus for this action. With one of the biggest contributors to the industry’s emission being transportation, and varying packaging, shipments and disruptions adding additional complexity to the journey, changes across the entire supply chain must be implemented effectively.
This then begs the question: how can the industry accomplish this, without impacting operational efficiency?
How the pharmaceutical industry is shaping up ahead of the 2030 green imperative
The pharmaceutical industry currently accounts for almost 5% of the world’s total greenhouse gas emissions. The most significant contributor to this is Scope 3 (indirect) emissions, which account for 80-90% of the sector’s total climate impact. Whilst several pharma companies have focused on initiatives to reduce Scope 1 and Scope 2 emissions, Scope 3 remains difficult to target. This is largely due to the multitude of sources of these emissions, which can come from drug manufacturers, raw material producers, transporters and even the patients using the medicines or vaccines.
With green agendas front of mind, stakeholders within the pharmaceutical cold chain are introducing new initiatives, technologies, and infrastructure to ensure they can meet the 2030 deadline. Planning for this has required precision to make sure any green initiatives do not impact the efficiency or reliability of the delivery of life-saving pharmaceuticals.
The sustainability and efficiency conundrum
A key way of addressing sustainability goals in logistics is through the choice of packaging. There are several considerations including the quantity of vaccines and medicines, the pharmaceutical’s temperature requirements, autonomy required, the varying climates along the journey, and the infrastructure available on the journey and at the destination.
One option that has been gaining momentum in recent years is forever-use packaging. Engineered for reliability, longevity, and sustainability, forever-use packaging is repairable and built with high-grade materials that withstand extreme conditions. These qualities extend their lifespan significantly, helping reduce waste. Despite higher upfront costs, their durability makes them a cost-effective and sustainable solution in the long run.
However, in some instances forever-use packaging isn’t the best option. With the need to balance reliable and efficient delivery with sustainability, single-use packaging remains the most practical solution in less developed regions which often have more dated infrastructure and face more regular supply chain disruptions. The continued innovation and diversification of packaging options remains essential, to provide a perfect solution for any given scenario.
Integrating sustainability in the supply chain
Technological innovation is playing a significant part in helping providers effectively balance sustainability and efficiency in ever-changing supply chains. One of the most promising innovations in recent years has been AI. AI-driven insights can help providers determine which packaging is the most cost-effective and sustainable option by considering all the variables, including temperature requirements, climates, and available infrastructure.
By providing the technology with real-time data on transportation conditions, such as weather patterns, temperature fluctuations and route conditions, it can also determine the most sustainable and efficient route and mode of transport. Finally, the technology can also support with predicting demand, minimising overall waste of pharmaceuticals and other supplies.
Spinning up the circular economy
Optimising routes and packing solutions is a vital first step. However, production waste reduction strategies and a circular economy approach must be implemented across the entire supply chain to ensure the minimisation of the industry’s environmental impact. Shipment monitoring technology can support with production waste reduction by helping logistics providers to track medicines and vaccines journeys, with live updates regarding temperature fluctuations and delays. If either route or temperature has deviated, the providers can intervene immediately to reduce the likelihood of waste.
Additionally, embracing circular economy principles can revolutionise how pharma companies develop, manufacture, and distribute medicines, making it a powerful tool in the fight against Scope 3 emissions. Embracing change, both big and small, across the supply chain can have a significant impact to Scope 3 reductions. In fact, Envirotainer has successfully reduced its Scope 3 emissions by almost 12% in just one year, driven primarily by reduced material usage. Other contributors to this reduction are decreased weights of solutions, increased use of sea freight and the adoption of sustainable aviation fuel.
Another way to take decisive climate action is by making sustainability a critical factor when selecting suppliers and partners. By forming partnerships that further drive green initiatives forward, supply chain emissions can be effectively reduced through collaboration. Selecting the right suppliers requires attention to several factors, such as environmental capabilities, efficiency, and total life cycle waste. Building long-term partnerships will add value, not only from an environmental compliance standpoint, but also for the stability and long-term savings it can provide.
Making the business case for proactive sustainability
The pharmaceutical industry has made massive strides in recent years to reduce its impact on the environment ahead of the 2030 deadline. However, with five years left to build a green supply chain, the industry will still need to make further efforts to lessen its contributions to global emissions.
Success will be achieved through collaboration across the entire supply chain, especially when it comes to Scope 3 emissions. With innovations to routes, packaging and infrastructure, the industry is now finding sustainability and operational excellence inseparable benefits of these changes. As stakeholders and consumers across the globe continue to become increasingly environmentally conscious, those in the pharmaceutical industry must continue to push for comprehensive transformation, rather than incremental changes to ensure the success of the 2030 green supply chain.
With five years to go, the industry must persevere to ensure the delivery of better outcomes for patients, businesses, and the planet.
- Sourcing & Procurement
- Sustainability