Decarbonising pharmaceuticals? The solution is circular

Resource Futures’ Ann Stevenson outlines how circularity can drive sustainable outcomes in the pharmaceutical industry

Pharmaceuticals play an outsized – and growing – role in global healthcare. The industry is expected to grow by 16% by 2030 and, with revenues around $1.6 trillion in 2023 its size is comparable to the GDPs of Spain, Mexico, or Australia[i]. 

Yet this gargantuan growth comes at a rapidly increasing planetary cost. In the UK, the manufacture, supply and use of pharmaceuticals represent a quarter of the NHS’s total carbon footprint[ii]; while the global pharmaceuticals sector currently generates 55% more greenhouse gas emissions than even the automotive industry[iii].

A significant proportion of this environmental impact comes from drug manufacturing; this alone accounts for between a quarter and a third of all healthcare-related emissions.

One of the main issues in terms of emissions and waste generation is large batch production; while this approach allows pharmaceutical companies to meet ongoing global needs, it often fails to account for short-term shifts in demand, leading to overproduction and mass expiration of pharmaceutical products.

Opportunities across the value chain

Circularity is becoming an increasingly familiar concept in pharmaceutical industry discussions, with many organisations considering how to (or even starting to) incorporate circular economy principles into their operations.

What do we mean by the ‘circular economy’?

As defined by the Ellen MacArthur Foundation, a circular economy as one that is ‘regenerative by design’, and that focuses on restoring natural systems, safe and renewable energy and materials, and eliminating waste through superior design. In other words, if sustainability is the goal, then the circular economy is the model through which it can be achieved.

Adopting circular approaches can take many forms: from rethinking formulations, production processes and the full lifecycle of pharmaceutical products to the adoption of business models that support a transition to a circular economy.

Some industry players are already actively exploring these opportunities: working to develop techniques that make raw material extraction more sustainable, seeking to use more local distribution networks,  and integrating innovative technologies (such as digitalisation, circular models and waste reduction practices) into manufacturing processes to make their processes greener and more efficient[iv].

This provides clear benefits above and beyond sustainability alone – the EFPIA (European Federation of Pharmaceutical Industries and Associations) has recognised the potential for circular economy approaches to enable access to sustainable supplies of raw materials and energy in a resource-constrained world – this would both provide protection against price volatility and provide adoptees with a more flexible, robust and competitive business model.

Packaging potential

Although changing how pharmaceuticals are produced brings a wide range of challenges, packaging is an area that businesses are looking to embed circular innovation. Building sustainability into packaging development from the outset means companies can reduce waste while continuing to meet evolving healthcare needs, while regulatory pressure and efforts to phase out single-use plastics have added further urgency to pharmaceutical manufacturers needing to find suitable sustainable packaging solutions.

This is not always a straightforward solution: for example, the growing demand for biotherapeutics, wearable medicines and self-administration solutions adds considerable complexity to packaging design, which can make it harder to source an appropriate sustainable solution.

While packaging is often the starting point of discussions on circularity, it represents just one component of a much broader picture. It must be considered as an integral part of a more holistic approach, rather than something to be solved in isolation.

Sustainability by design

Building on the principles of ‘quality by design’, ‘sustainability by design’ can be one of the most effective strategies for integrating circularity into pharmaceuticals. This approach uses lifecycle assessment data working in tandem with eco-design principles to uncover ways to reduce emissions, minimise hazardous material use and create greener processes.

Rethinking drug design, manufacturing, distribution and disposal from the earliest stages ensures sustainability is embedded at a fundamental level. This can be challenging for many pharmaceutical processes, which are still shaped by a status quo bias where conventional ingredients and solvents are retained due to familiarity rather than sustainability. Similarly, misguided assumptions that no viable alternatives exist can act as a dampener on innovation, reducing the potential for a greener solution to be found.

For sustainability by design to work, early-stage innovation is critical. Drug development timelines average around 10-15 years; making changes late in the process both costly and complex to implement.

If included early enough, then circularity principles enacted through the adoption of green chemistry or green engineering can make a huge difference to whether a project has sustainable outcomes or not. Implementing them in small-scale experiments at the start of a development cycle can identify environmentally harmful practices early, ensuring that alternatives are sought and that they do not persist into large-scale production.

A balancing act

Companies across the pharmaceutical industry are under several pressures. They will need to balance their legal and regulatory obligations to take sustainable action with the need to develop life-saving therapies, ensure patients have access to them, all while keeping shareholders happy.

To succeed, circularity must become a continuous measure of success: reviewed and embedded throughout the product lifecycle, rather than treated as an afterthought. By embracing and prioritising circular business models, businesses within the pharmaceutical industry can make sustainability the norm rather than the exception – and reap the commercial and competitive benefits of doing so.

Author

Dr Ann Stevenson | Principal Consultant

Ann has provided pragmatic, data-driven expertise to develop innovative strategies for businesses, public and third sector organisations for over 25 years.

[i] Statista

[ii] The Association of the British Pharmaceutical Industry (ABPI)

[iii] CPHI sustainability trends report

[iv] CPHI sustainability trends report