Category: Insights

How the pharmaceutical industry can support vitality for both human and planetary health in 2024

sustainability in the pharmaceutical industry

Quantis experts have identified three pivotal pillars for 2024 that will play a critical role in shaping the future of sustainable pharmaceutical companies.

In response to the heightened demand for transparency and environmental stewardship, especially from health authorities in the pharmaceutical sector, industry players are undergoing a transformative shift toward integrating planet health with human health. Quantis experts have identified three pivotal pillars for 2024 that will play a critical role in shaping the future of sustainable pharmaceutical companies.  

1. Increase ecodesign & circularity. 

Ecodesignis essential to address the rising demand from health authorities and regulators for increased transparency around the environmental impacts of pharmaceutical products. This approach not only allows organizations to align with stakeholder expectations but also fosters a culture of accountability within the industry, accelerating the shift towards sustainable and responsible manufacturing practices. 

2. Adopt sustainable manufacturing & supply chain practices. 

The market is increasingly demanding moresustainable manufacturing processes, waste reduction, and the integration of sustainable practices within the supply chain. When implemented correctly, these changes increase process efficiency, enhance product quality and ensure long-term business continuity and resilience.  

3. Set an integrated nature strategy and science-based targets. 

Given the functional integrity of ecosystems is critical for human health, it’s imperative that pharma companies assess their nature-related risks, set science-based targets for nature and develop a detailed action plan to preserve their ability to develop new drugs and medicines. This shift in focus acknowledges the interconnectedness of pharmaceutical activities with nature, aligning the sector with broader environmental objectives and enacting sustainable transformation within the industry. 

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The sustainable beauty revolution: Meeting cosmetics and personal care industry challenges head-on in 2024

sustainability in the Cosmetics and personal care industy

Our experts highlighted five key themes to guide action in the coming year toward a sustainable future.

For the cosmetics and personal care industry, 2024 represents a year of opportunity to move beyond sustainability pledges and implement tangible actions. Our experts highlighted five key themes to guide action in the coming year toward a sustainable future where both business and the well-being of the planet thrive. 

1. Increase consumer education and engagement

The product use phase is responsible for 40% of the cosmetic industry’s environmental impact. While companies can set sustainability strategies and act themselves, changes in consumer behavior are imperative to making real progress on sustainability goals. Changes in consumer habits, through a mix of education and incentivization, can help companies deliver on their sustainability commitments. The industry is working to increase consumer awareness and engagement through the EcoBeautyScore, a harmonized environmental score for cosmetics products. 

2. Embrace ecodesign and circularity

Companies need to maximize their business impact within planetary boundaries by integrating ecodesign into every stage of product development, distribution and disposal. By approaching product production through a holistic, sustainable lens, companies open doors to new opportunities while also avoiding potential negative trade-offs, such as solutions that may advance climate goals but contribute to land degradation. 

3. Incorporate new ingredients

The cosmetics and personal care industry is witnessing a notable sustainability trend driven by the incorporation of new and innovative ingredients into products. Preserving nature and biodiversity can open the door to new plants and species that can be utilized for innovative cosmetics ingredients. 

4. Drive climate action toward a net-zero future

In order to reach net zero emissions by 2050, the cosmetics industry needs to make more significant progress on climate goals. Cosmetics companies have several practices they can operationalize to accelerate this journey from sustainable sourcing and circularity to product labelling, supply chain decarbonization and innovative packaging solutions. 

5. Adopt an integrated nature strategy and set science-based targets

While many cosmetics companies have a strategy in place to address their climate impacts, there’s also a growing awareness of the industry’s impacts and dependencies on nature, including biodiversity. Cosmetics and personal care companies need to assess their nature-related risks and dependencies, set science-based targets for nature and develop a detailed action plan to achieve their 2030 goals.  

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Navigating 2024: Operationalizing sustainability in the food and beverage industry

sustainability in the food and beverage industry

Our experts came up with five key themes for 2024 to guide companies, and the industry at large, toward a sustainable future.

For the food and beverage industry, 2024 presents a pivotal moment for companies to move beyond sustainability commitments to decisive action. Our experts came up with five key themes for 2024 to guide companies, and the industry at large, toward a sustainable future in which both business and the planet can thrive. 

1. Increase resilience in the food supply chain

In the face of potential financial crises and unforeseen environmental shocks, companies must invest in supply chain programs that foster business resilience. Increasing investments in regenerative agriculture programs can ensure long-term commodity supply, nurture farmer and grower relationships and secure business continuity within a planetary-aligned economy. By prioritizing sustainability in the supply chain, companies can adapt to disruptions and contribute to a more robust, sustainable food ecosystem. 

2. Transform product portfolios

What are the highest and lowest-performing products across environmental, nutritional, quality and profitability metrics? A forward-thinking approach to sustainability involves a comprehensive assessment of alternative ingredients, recipes, packaging design and portion sizing. Scaling sustainable practices requires pragmatic piloting and collaboration within the industry. Innovation in product portfolios should be driven by both the desire to reduce environmental impacts and risks while also meeting consumer demands for quality and diversity. 

3. Shift away from carbon tunnel vision

To effectively transition our food systems to align with a planetary economy, companies have to broaden their perspective beyond purely reducing carbon emissions. In the food and beverage industry, nature has a crucial role to play, given the sector’s heavy dependence on agriculture. While leaders may be overwhelmed by the idea of adopting a nature strategy in addition to climate initiatives, nature strategies can actually enable companies to reach their climate goals and ensure long-term resilience. 

4. Drive consumer behavior changes. 

While setting nature and climate strategies can help lead companies in the right direction toward holistic sustainable transformation, it’s just as important to embark stakeholdersespecially consumers, in the push for progress on sustainability goals. Companies remind consumers of their direct impact on planetary boundaries and how to positively contribute to corporate sustainability goals through responsible consumption, reducing food waste and encouraging more sustainable diets. 

5. Prepare for the upcoming regulatory landscape. 

Preparation is key when adapting to ever-evolving regulations. Companies should hold C-suite, board members and functional leaders accountable to ensure compliance with upcoming regulations related to deforestation, packaging, ecolabeling and broader ESG reporting. Some such regulations to be aware of include the EU Deforestation Regulation (EUDR), the 2030 EU Biodiversity Strategy and the Packaging and Packaging Waste Regulation (PPWR). Staying ahead of regulatory changes in end markets and supplier regions will not only avoid incurring the cost of inaction, but also position companies as leaders in sustainability. 

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5 ways you may be sabotaging your corporate sustainability efforts

5 ways you may be sabotaging your corporate sustainability efforts
5 ways you may be sabotaging your corporate sustainability efforts

Mastering the basics of corporate sustainability means steering clear of common pitfalls. Dive into the five missteps that often plague sustainability efforts and discover how to transform your intentions into tangible results.

The research is clear: Sustainability and business success go hand in hand. Whether the aim is to increase brand value or meet stakeholder demands, pursuing a sustainability strategy has become a vital tool for businesses to remain competitive and tackle climate and nature-related risks.  

So if corporate sustainability has finally entered the mainstream, why is meaningful progress largely lacking? As companies adopt sustainability strategies and work towards environmental targets, there are a few common missteps that risk derailing progress. We’ve flagged five common mistakes you may be making that — despite good intentions — undermine your sustainability success in the long run and what to do about them.   

1) Pursuing perfect data at the expense of action 

Often, decision-makers want to know exactly where they stand before acting taking action, so they spend large sums for increasingly granular data. But the quest for perfection can cause companies to lose sight of why they’re investing in data collection in the first place and, ultimately, stall action. This is called “analysis paralysis,” and can prevent companies from putting all the data and insights they’ve gathered to good use (i.e., making decisions that help them make progress on their goals and commitments), causing delays, missed opportunities and an overall loss of momentum. 

What to do instead: Don’t let perfection be the enemy of progress. Even the most comprehensive data is useless if it isn’t used to drive meaningful action. It’s critical to consider the “why” behind the data you’re collecting. What information will it reveal that will help you move forward on your sustainability journey? 

The value of sustainability data comes from the answers and insights it provides into the root causes of environmental challenges and it should be utilized to find solutions. There’s a lot of progress that can be made with readily available data of sufficient quality. You can continue to work on collecting more refined data in parallel and use it to fine-tune as you go. 

2) Succumbing to burnout after setting targets 

With the so many new and evolving frameworks, setting science-based targets can be a huge undertaking (though an important one) and companies often lose steam once they’ve set their targets. Underestimating the task at hand is one of the biggest culprits and can leave teams feeling burnt out and progress at a standstill.  

Another issue is that many companies spend so much time worrying about what needs to be achieved that they don’t sufficiently consider how they’ll achieve them. It’s only after the fact that they realize that they don’t have the knowledge, capacity or resources to implement their strategies. This not only prohibits progress, but it could also lead to greenwashing accusations when commitments aren’t met.  

What to do instead: Public commitments are just the start of your journey. Delivering on goals and achieving transformative outcomes requires companies to examine the gap between where they are today and where they need to be. By identifying potential roadblocks early in the process — such as a lack of in-house knowledge or skills or incompatible processes, governance structures or company cultures — and taking steps to address them, you can avoid some headaches down the road and keep teams engaged and motivated. Define responsibilities across the organization, allocate the appropriate resources, and establish digestible timelines. A well-structured action plan transforms lofty sustainability targets into practical, achievable milestones. 

3) Neglecting what’s material to business survival 

Aware of the numerous physical, financial and transitional risks climate change poses to business, many organizations have directed the focus of their sustainability efforts on climate action and reducing greenhouse gas emissions. But climate is just one piece of a much larger planetary puzzle and failing to address other environmental issues, including biodiversity, water quality and more could put your business at risk, as well as undermine your climate efforts.  

 

Every company depends on nature in some way, but the vast majority of organizations operate without taking it into account. However, the critical role nature plays in maintaining economic stability is becoming ever clearer. Natural shocks linked to the increasing frequency and intensity of extreme weather events and the disturbance, decline and loss of ecosystem services on which companies’ operations depend are disrupting the status quo and generating significant costs and losses for businesses.    

What to do instead: Climate and issues are interlinked, so solutions must take a holistic approach and consider how these different pieces fit together. For example, regenerative agriculture can lead to better outcomes for soil fertility, biodiversity, pollination and water regulation while also helping to reduce emissions.    

Companies that take steps to gain a complete picture of both their impacts and dependencies on nature will gain clarity on how they’ll to adapt in a changing world so they can better navigate uncertainty and reduce exposure to physical, transitional and reputational risks.   

4) Not linking environmental decisions with business decisions 

While many agree that sustainability needs to be integrated into the business model to maximize impact, few companies have done so. A 2023 BCG survey of corporate directors found that while 66% of respondents believed sustainability should be an integral part of business strategy, only 25% believe that it’s appropriately in place today. A primary reason for this disconnect is that the directors felt that their time was better devoted to high-priority, non-sustainability related topics.  

If businesses want to mitigate their environmental risks, which amounts to $44 trillion of economic value generation, this needs to change. To build a more resilient business, business leaders can’t treat sustainability as a “nice to have.” It needs to be a consideration in every business decision, in every department.  

What to do instead: Your sustainability goals can’t be achieved by the sustainability department alone; business functions across the entire enterprise — operations, sourcing, R&D and even marketing — should be using the data, research and insights developed by the sustainability team to inform their decisions and activities. Leaders need to understand how climate and nature can impact business operations and make sustainability a core component of corporate DNA, fostering a strong culture of sustainability 

If you’re financing sustainability separately from the rest of your business activities, you aren’t allocating enough resources to implement holistic, sustainable business transformation. Instead of having a siloed sustainability budget, look at what each department needs to achieve and build sustainability into each team’s budget for the year. 

5) Talking the talk but not walking the walk with sustainability  

Some companies fail to see progress because their efforts go in contradictory directions, such as lobbying for policies that undermine their sustainability agenda or failing to give sustainability teams any real power within the organization. Not only does this run the risk of creating  distrust with consumers, it exposes them to greenwashing accusations. With mounting regulations and reporting requirements, it’s going to become all the more challenging for companies to continue in this vein without facing consequences. 

What to do instead: It’s important to have the right narrative around your corporate sustainability initiatives, and your actions must tell the same story. Maintaining credibility will require executives and functional leaders to examine whether the status quo aligns with or undermines the organization’s sustainability vision. Ultimately business decisions and operations should be consistent with your goals. Any discrepancies signal areas for improvement. 

Rather than focusing on how you can push your sustainability narrative externally, keep the promotion of your activities at the same level as your actual achievements. Regularly monitor and report that progress, showcasing your commitment to sustainability both internally and externally. This promotes brand authenticity and transparency, which will please both shareholders and consumers. You don’t need to be perfect on your sustainability journey, but you do need to be genuine.  

Effective corporate sustainability programs should be dynamic and transformative. Sustainability goals can and should be used to guide business activities toward a future where business success aligns harmoniously with regenerative ecosystems and the respect for planetary boundaries. 

As your business navigates this terrain, remember that sustainability isn’t just about mitigating risk or meeting regulatory demands: it’s about redefining success in a way that’s aligned with the well-being of our environment and society. The boundaries of our planet are also the boundaries within which businesses must operate to thrive in the long run. 

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Why biodiversity is so important for the pharmaceutical industry

Die Pharmabranche ist auf eine intakte Natur als Lieferant von Wirk- und Rohstoffen angewiesen.

For financial institutions, nature is the next frontier

financial institutions nature

Financial institutions understand the need to accelerate progress toward net zero—and many are actively advancing efforts to do so. But climate is just one part of a larger nature-based ecosystem on which people, industries, and entire economies depend. Today, many elements that make up that ecosystem, from water and critical minerals to farmland and pollinators, are under threat. Some are being depleted, others contaminated, and still others destabilized by habitat declines.

In their role as capital providers and advisors to entities and individuals around the world, financial institutions are at the epicenter of many of these changes, and their portfolios fundamentally depend on and impact nature. This two-way relationship gives institutions a unique vantage point to identify key risks, fund smart interventions and open new avenues of growth. By leading on nature, financial institutions can also facilitate a just transition that addresses environmental challenges in ways that support human rights, social inclusion, and the eradication of poverty.

Achieving these goals can’t be left to chance. For the sake of the planet and their own long-term growth, financial institutions need to develop a comprehensive nature strategy.

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Nature is the crisis we’re ignoring

nature crisis