Presenting on how companies can set up their own sustainability strategies, Kuda Muchandibaya, Lecturer for Supply Chain Management & Logistics, Rhine-Waal University of Applied Sciences, outlined how companies can develop a roadmap to position them in the top 5% of companies in terms of eco values.
ESG (Environmental, Social, Governance) is a framework that underpins sustainable practices. Since 2015, the Paris Agreement has been adopted by over 190 parties to limit their climate impact, with the aim of limiting temperature rise and achieving net neutrality by 2050. Legally, companies are required to disclose certain sustainability metrics, as governments and regulatory bodies clamp down on unsustainable activity.
Sustainability has moved beyond a buzzword; it is becoming a financially consequential issue for companies. Within the pharma industry, there is a need for energy efficiency and investing in greener technologies and solvents across drug development lifecycles. While sustainable processes require effort and commitment, in the long run, they can help companies save money.
On the other hand, Muchandibaya described the regulatory complexity as a minefield. Navigating what is legally binding and the different regulations across different countries is complicated. Even within the EU, certain member countries implement the regulations in various ways.
To make these processes easier, Muchandibaya strongly encouraged the audience to adopt a proactive approach to regulatory compliance, including setting up internal compliance programs and using tools like ChatGPT to stay informed. He also recommended establishing a small team to manage compliance. Next, he mentioned that companies should take advantage of bonds that are given from the government. For instance, the German government gives companies tax rebates if they can prove that the investment they made bore a sustainable gain.
Maintaining transparency with external stakeholders and ensuring everyone is aligned can also be arduous with intellectual property laws to consider. However, having frequent and transparent discussions with suppliers and stakeholders can facilitate this alignment. Furthermore, it is key to incorporate green practices at each stage of the supply chain, from early R&D to manufacturing and transportation.
Muchandibaya concluded by saying that it is vital to start small and slowly build when investing in sustainability. Moreover, he suggested that recognising the value of sustainability beyond the costs is a crucial mindset.