How The Pharmaceutical Sector Is Embracing Sustainability

Nav Rattan Munjal, Chairman & Managing Director, Ind-Swift Group

Nav Rattan is a visionary leader driving business growth for Ind-Swift Group both in India and Internationally. He is also a Philanthropist and has held key industry positions, including Ex-Chairman of the Pharmaceutical Export Promotion Council of India and Ex-President of the Indian Drugs Manufacturers' Association, IDMA. Also, he works on boards including the Ministries of Commerce & Industry and National Institute of Pharmaceutical Education and Research (NIPER).

India’s pharmaceutical landscape has evolved rapidly, transforming into a global manufacturing hub with significant exports, especially in generics and vaccines. Indian pharmaceutical companies are increasingly prioritizing sustainable practices due to growing regulatory pressures, global demands, and environmental awareness. A sustainable stance across the sector involves reducing carbon footprints, minimizing water and energy usage, improving waste management, and adopting green chemistry. Emphasizing sustainability ensures compliance with global standards, reduces costs over the long term, and strengthens the sector’s international reputation.

Strategies for Sustainability in Drug Development & Disposal

Leading pharmaceutical companies employ several strategies to embed sustainability throughout the drug lifecycle:

Green Chemistry: Implementing environmentally friendly chemical processes to minimize waste and use safer solvents.

Sustainable Supply Chain Management: Using suppliers that comply with environmental standards and reducing transportation emissions.

Eco-Friendly Packaging: Reducing single-use plastics and opting for biodegradable, recyclable materials.

Safe Disposal and Take-Back Programs: Establishing systems for the safe disposal of expired medications to prevent environmental contamination.

In such competition to achieve sustainability, the challenges have been heavy including high costs, complex logistics, and limited access to sustainable materials. The transition to greener practices is often expensive, with supply chains needing restructuring to accommodate eco-friendly materials, which can be costly and hard to procure. Additionally, regulatory hurdles and resistance to change create further obstacles; current policies may not fully support sustainable efforts, and some stakeholders may be skeptical of their long-term value. To overcome these challenges, companies are investing in R&D for alternative materials and eco-friendly production methods. Then comes, collaborating with governments to create favorable regulations. Moreover, educating stakeholders on the long-term benefits of sustainable practices also plays a key role here.

Driving Eco-Friendly Manufacturing

Companies measure their progress in reducing single-use plastics by closely monitoring plastic usage in packaging, using data provided by suppliers to ensure accuracy. Regular audits of packaging materials help quantify reductions, while tracking environmental outcomes, such as the decrease in plastic waste within waste streams, provides insight into tangible impacts. Advanced tracking tools and reporting frameworks, like the Global Reporting Initiative (GRI), further enhance transparency and allow companies to refine their strategies based on measurable results. This comprehensive approach enables businesses to make informed adjustments and effectively progress toward sustainability goals.

Collaborative efforts, such as industry alliances and partnerships with environmental organizations, have significantly contributed to advancing sustainability standards. These initiatives have led to the development of voluntary sustainability guidelines and benchmarks, promoting greater alignment with global policies like the United Nations Sustainable Development Goals (SDGs). Additionally, they have fostered policies that incentivize green manufacturing, emission reductions, and responsible waste management practices. Key policies impacting Indian pharmaceuticals include the Environment Protection Act, Waste Management Rules, and incentives for adopting cleaner technologies under the ‘Green India’ initiative.

Sustainability: The New Edge in Pharma

Pharmaceutical manufacturing-related waste-to-energy initiatives involve converting by-products of waste into usable energy, thereby reducing and offering alternative sources of energy from landfill waste. These initiatives have impacted the industry significantly by minimizing the costs of disposal and lessening hazardous conditions associated with waste. Moreover, they further reduce dependency on traditional sources of energy, hence helping pharmaceutical manufacturers reduce their carbon footprint. Through the utilization of WTE, the companies will find it easy to limit the hazardous wastes negative influence and produce pharmaceutical products in an even more effective way that is also cheaper.

Looking ahead, pharmaceutical companies that hold leadership positions in sustainability will gain significant competitive advantage, along with reinforcing brand affinity as consumers increasingly focus on eco-sensitive brands. Notably, Indian Pharmaceutical Industry is up for it.