The adoption of energy efficiency measures by the pharma sector has the potential to save energy consumption by 20-30%, according to a McKinsey report. Green chemistry has taken an active role in the sector, steadily redefining the entire segment.
Glenmark Pharmaceuticals claims it has achieved a 10% reduction in carbon emission intensity over the past three years. It plans to advance energy efficiency throughout its operational spectrum, while progressively integrating renewable energy sources into energy consumption.
“Our commitment to cleaner fuel adoption is evident through the implementation of LPG Yards at Baddi and Nalagarh, serving hot water generator and steam generation for boiler operations, respectively. Furthermore, the utilisation of biofuel in operations at Nashik and Aurangabad has notably contributed to a reduction in greenhouse gas emissions in FY23 compared to FY22,” says Brijlal Motwani, President and Global Head, Operations and Supply Chain, Glenmark Pharmaceuticals.
Gland Pharma is also taking similar measures. It is implementing steps to regularly monitor the air quality at its manufacturing sites and restricting emissions. “We also use electric cars to transport materials between our sites to reduce our carbon footprint,” says Srinivas Sadu, Managing Director and CEO, Gland Pharma.
Enhancing supply chain transparency
These pharma companies are advancing sustainability by incorporating renewables, with Glenmark Pharma claiming it now sources 6% of its energy from sustainable sources.
“Glenmark’s supply chain implements a supplier sustainability protocol, ensuring resilience, diversification and continuous monitoring for effective risk mitigation. The standing of our external manufacturing suppliers is consistently monitored to identify and manage supply base risks. Furthermore, the establishment of new manufacturing facilities and upgrades to existing ones ensure uninterrupted operations in case of facility-specific interruptions. We prioritise multi-site registrations while filing for product approvals with various regulatory authorities,” adds Motwani.
Similarly, Sadu of Gland Pharma says the company’s sustainable manufacturing prowess gives it backward integration capabilities and grants better control over the supply chain.
“We maintain strong relationships with our extensive network of business partners, vendors and suppliers to foster an environment of trust and transparency. With a focus on regular process improvement, we conduct vendor audits frequently and encourage the adoption of internationally recognised management practices to streamline our supply chain,” says Sadu.
Does green supply chain lead to drug-price escalation?
Both pharma companies are of the view that while implementing sustainable supply chains initially entail added costs, long-term efficiency gains and competition may prevent significant price escalation for drugs.
The industry’s competitiveness, potential government support, and changing consumer expectations toward sustainability could collectively contribute to a balanced approach, ensuring the accessibility and affordability of medications for the common man, say both pharma firms.
“Switching to sustainable supply can help reduce waste, improve efficiency, and minimise the environmental impact. These benefits could eventually lead to lower costs and improved access to medicines,” adds Sadu.
