Global Pharma & Biotech Industry Steps Up Net Zero Transition

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Researched by Industrial Info Resources (Sugar Land, Texas)--The Pharmaceutical & Biotech Industry produces 55% more greenhouse gas (GHG) emissions than the automotive sector, traditionally considered one of the most polluting in the world. As a result, numerous players within the Pharmaceutical & Biotech Industry aim to align with the 1.5°C pathway, a decarbonization strategy to limit long-term global warming to 1.5°C above pre-industrial levels.

According to Industrial Info Resources data, the global Pharmaceutical & Biotech Industry has a capital-spending (capex) pipeline of about US$747 billion across more than 11,000 projects. Nearly 500 active capex projects, totaling more than US$47 billion of investment, include environmental, social, and governance (ESG) initiatives.

North America accounts for 83% of the US$747 billion total. Asia accounts for 10% and Europe for 6%.

By nation, the U.S. is attracting the highest investment, at more than US$37 billion. Singapore accounts for more than US$4 billion, while Canada and Denmark account for more than US$1 billion each. Countries like Germany, Japan, the U.K., Brazil and Ireland also are attracting investments.

AstraZeneca has pledged to reduce its scope 1 and 2 emissions by 98% by 2026 (vs 2015), and Scope 3 emissions by 50% by 2030 (vs 2019). Eli Lilly and Company is targeting carbon neutrality for its scope 1 and 2 operations by 2030, and it plans to reach net zero emissions by 2050 globally.

Across the industry, energy-intensive warehousing (particularly cold-chain storage) is emerging as a potential focus for ESG practices. Companies are also seeking to reduce plastic waste via green chemistry and eco-friendly design in product development.

On the logistical front, contract development and manufacturing organizations (CDMOs) are optimizing shipping routes, consolidating shipments, and focusing on localized packaging to help with supply-chain induced carbon footprint. This addresses the challenge related to supply-chain emissions in the Pharmaceutical & Biotech Industry, which otherwise accounts for 71% of the healthcare sector's emissions.

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Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news, and analysis on the industrial process, manufacturing, and energy-related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified, and verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).