Featuring
In some corners of the world, politicians have launched attacks against perceived “woke” initiatives, including sustainability and green initiatives. In your view, why should sustainability be an important focus for pharma businesses?
Benjamin Walter: Sustainability is crucial for biopharma businesses to future-proof their companies for a constantly changing world. It is not simply a political trend, but a long-term responsibility to protect the planet, the people who live here, and future generations.
Corporate commitment to sustainability should be a comprehensive investment to address ecological, economic, and social issues. From inclusion and employee well-being to advanced technology and cost efficiency, pharma businesses need to consider all elements of sustainability. That should be in addition to ecological opportunities, such as reducing carbon emissions and using renewable energy.
Labeling social or environmental responsibility as “woke” misses the point and jeopardizes the trust of stakeholders, the motivation of employees, and the expectations of global partners. The values of sustainability should be seen as strategic assets, not ideological risks.
Hanns-Christian Mahler: Climate change is the single biggest health threat facing humanity, projected to cause 250,000 additional deaths per year, as well as major risks and (financial) liabilities for countries and companies alike. And climate change is already here – with the news often full of reports of extreme weather events such as floods, landslides and other natural disasters.
This is why “double materiality assessments” are key. They assess the impact of an enterprise on the planet and society, and the impact of environmental degradation, such as climate change and social disruptions, on the enterprise. Living and operating more sustainably isn’t a hippie thing – it’s a survival thing.
Healthcare is responsible for around 5% of global greenhouse gas emissions; more per $ of revenue than the automotive sector. Various reports also show that sustainability initiatives can support company growth and resilience, as well as increase employee engagement. It’s time to act.
Vinoth Kumar: Sustainability is not just a moral responsibility for businesses; it is a social license to operate, and a strategic imperative to drive innovation and gain competitive advantage, attract top talent, maintain operational efficiency, and ensure long-term viability and resilience.
The social impact of the pharmaceutical industry is multifaceted and far reaching. It has the potential to improve global health through equitable access to affordable medicines, addressing unmet needs, investing in public health, advancing innovative therapies, and actively contributing to local communities.
Being sustainable is difficult. How can companies balance sustainability with other business needs, including costs?
BW: The concept of being sustainable can be understandably daunting. Many initiatives can lead to cost savings over time and future company viability, but it’s important to balance sustainability initiatives with other business needs by gradually integrating them into an overall corporate strategy. Sustainability should be incorporated in alignment with business goals to support ongoing procedures and processes.
HCM: Thankfully, many businesses, CEOs, boards and investors alike are starting to recognize the many opportunities that a more sustainable business can bring. Cost savings can also be a benefit of operating more sustainably, but sustainability itself is not a “cost center.” It is a right to operate and an investment. In that sense, it is comparable to quality – and I believe that a key element in the sustainability journey is recognition of this.
KD: I believe that balancing growth, profitability, and cost efficiency with sustainability is now essential to the long-term success of a company. We have been working to do this by embedding sustainability into business strategy and emphasizing sustainable practices such as green chemistry, resource conservation, digitalization, and sustainable packaging.
What sustainability projects/initiatives has your company implemented?
BW: We have completed over 125 energy efficiency projects to significantly reduce energy use, packaging material waste, and carbon emissions.
In 2024, we reduced our emissions by 4.52% companywide, and we continue to invest in renewable energy sources and tools to expand our energy generation capabilities, such as biogas and photovoltaics (PV). We have been operating our facilities with 100% green electricity from hydropower since 2014 and recently invested in sustainability optimization projects that led to energy and cost savings of about 25 million kilowatt hours. More than half of our total energy consumption comes from renewable energy sources, and we continue to integrate sustainable packaging materials into our manufacturing processes.
Environmental responsibility should also go beyond corporate responsibility. We have active memberships with multiple organization initiatives, including the UN Global Compact and the Science Based Target initiative (SBTi). Vetter’s Near-Term Target goals, including reducing our Scope 1 and 2 emissions by a total of 58.8% by 2034, have been recently validated by SBTi following a long and meticulous process to externally confirm emission calculations. This third-party audit gives credibility to our sustainability objectives and reassures us that we are on the right track.
We also continue to expand the social sustainability pillar of our strategy as part of our duty as a responsible employer. With 160 apprentices and working students in dual programs including 20 occupational training and study courses, Vetter is one of the largest employers offering studies and apprenticeships in Ravensburg.
In addition to education, we also have employee mobility programs and benefits to support employee well-being. Our programs include free supplementary health insurance, mental health and fitness support, commuter benefits such as bike rental and public transportation tickets, and pension plans. We also signed the Charta der Vielfalt – Germany’s largest employer initiative to promote diversity in the workplace. In a global industry like the life science sector, having a diverse and inclusive workplace is the key to future innovation, resilience, and relevance.
HCM: ten23 health aims to leave a “heartprint” with regards to sustainability. That is, we want to be a positive planet. We aim to be a collaborator and an example of transformation for the greater good.
By implementing monitoring concepts, we have reduced our carbon footprint in terms of both emissions and waste. This has been helped by various projects: from building our new VIVA2 building with a photovoltaics façades, to collaborating with purpose-aligned partners such as Elio for sustainable sourcing and eco-design.
Operating on 100% renewable electricity, we have reduced our Scope 1 and 2 greenhouse gas emissions by revenue by 57% compared to our 2021 baseline – exceeding our 2025 target one year in advance. We also have sustainable benefits for employees, including supporting them to reduce personal footprints.
We operate a “green” development lab, already operate “carbon neutral”, and are the first pharma sterile fill and finish CDMO being certified as a B Corporation, which is amongst the highest standards for socially and environmentally responsible businesses.
KD: In FY 2025, 68% of our power was generated through renewable sources and six of our global facilities were fully powered by renewable electricity. We were 60% carbon neutral in our operations, and are switching to biomass fuels for boilers, while reducing energy demand through efficiency initiatives and green technologies.
We have also been a water-positive company since 2023, with over 50% of our water being recycled in operations. We continue to practice water stewardship by optimizing our water usage, as well as through our community-focused projects. We have helped save 780 million kilolitres of water through agricultural techniques for water conservation.
What do your customers have to say about sustainability?
BW: Customers understand the value of sustainability. They are becoming increasingly conscious of environmental impact and expect us, as their partner, to demonstrate measurable sustainable performance through our processes across the value chain. European companies in the pharma and biotech industry are required to meet certain climate objectives and emission reductions under the Corporate Social Responsibility Reporting Directive (CSRD), but we strive to go further.
HCM: It depends on the customer, and their size and location. With large pharma companies that we are supporting, sustainability often becomes a “right to operate” for them. Smaller biotech companies may, however, consider sustainability as an afterthought. Whilst some companies applaud us for our B Corp status, some others have never heard of B Corp, or even sustainable development goals.
KD: I find that customers are increasingly becoming more interested in sustainability efforts and being vocal about environmental, social, and governance (ESG) issues. They expect us to step up with the constantly evolving external landscape and risks by communicating a clear and consistent strategy on climate resilience, and providing greater transparency on our progress to solve social and environmental problems.
Some critics argue that sustainability efforts in pharma are merely “greenwashing.” How do you ensure your initiatives are genuinely impactful rather than superficial?
BW: Authenticity, transparency, and proactive implementation of sustainable practices are key to avoiding the label of greenwashing. Sustainability strategies are great, but they lack actual impact if biopharma businesses are not actively investing in short-term goals and sharing accomplishments publicly.
Our sustainability program integrates initiatives into business operations as opposed to conducting isolated campaigns to improve long-term relevance and self-accountability. This mindset allows us to make strategic investments that prioritize viability and longevity. The program goes above and beyond basic ESG standards and helps us to make informed decisions while always acting sustainably and responsibly. It also increases competitiveness to attract more customers and foster long-term partnerships.
We maintain an authentic, transparent and proactive sustainability strategy by avoiding vague claims and focusing on measurable outcomes and continuous improvement of our program.
HCM: With increasing transparency and reporting requirements (especially in the EU – although recently quite diluted by the Omnibus regulations), I would in general agree that greenwashing is a widespread concern.
Sustainability action must be integrated and meaningful. Hence, we ask ourselves for example “how to avoid or reduce” rather than “offset”. Also, having validated SBTi targets per se is not enough; companies need to set ambitious targets for themselves, both as goals and with a timeline. With a little insight, one can easily look behind the promises in ESG reports.
KD: Ensuring our actions are genuine, impactful, and meet high ethical standards is a matter of integrity and trust, and extremely important to us. We have made impactful commitments on access, affordability, and innovation for our patients, diversity for our employees, reduction in our carbon footprint, and the highest ethics, compliance, and governance for our company. It is important to communicate progress, challenges, course-corrections, and initiatives on multiple platforms and forums – and have data that is externally and independently verified. Emissions-focused goals should be measurable and in line with global frameworks.
Looking ahead, what’s one big change the pharma industry must make in the next five years to truly advance sustainability?
BW: Implementing sustainable practices will be important for preserving company vitality in the future. The biggest change the biopharma industry must embrace to advance sustainability is to promote corporate compliance and encourage participation and investment in proactive sustainability initiatives.
Sustainability is more than a side project. It’s an important element of protecting the quality standard in the pharma industry. Companies need to prioritize embedding sustainability into their core business strategies. Strategic investment over time into programs and practices such as green energy technology and enhanced infrastructure can improve business practices throughout the organization.
HCM: We need transparency and reporting across companies of different sizes. Consider sustainability beyond greenhouse gas measurement and offset activities. Collaborate along the value chain. Reinvent some traditional solutions and approach and think differently, including reduce, reuse, recycle and material innovations. Pharma, be bold!
KD: The industry will need to step up on their action towards sustainability, ensuring it is embedded in their decision making, corporate governance practices, and company culture – ensuring board-level oversight on ESG, bringing in ESG-linked incentives into executive compensation, and fully integrating sustainability risks into enterprise risk management systems.
From an operations perspective, companies must focus on integrating sustainability into the entire value chain. This includes active steps to decarbonize the entire supply chain – from drug discovery to raw material sourcing, from drug development, manufacturing, and packaging to distribution and patient use, and eventually post-use disposal. Companies must ensure sustainability at each stage, and collaborate with suppliers to draw commitments on their emissions and resource use.
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