Pharmaceutical, biotech, and medical device companies are committed to advancing global health all while being mindful of the environment. They do so by continuing to implement Environmental, Social, and Governance (ESG) practices to drive sustainable innovation.
These efforts focus on reducing carbon emissions, optimizing resource usage, and employing green laboratory practices. They also focus on executing social impact initiatives, which enhance community engagement, promote diversity and inclusion, and ensure equitable healthcare access. Furthermore, in order to protect patient safety and maintain data integrity, companies implement robust governance principles that prioritize establishing operational standards that are transparent.
By integrating these comprehensive ESG approaches, life sciences companies build trust, improve operational efficiency, and create long-term value for stakeholders while contributing to global scientific and social progress.
Environmental Impact
‘E’—the environmental pillar that highlights both the need to maintain the conservation of the natural world and to minimize contributions to climate change. Today, companies are adopting strategies such as developing renewable energy, reducing water consumption, and minimizing chemical waste during production.
A significant focus for pharmaceutical companies is to reduce the environmental impact of packaging materials, e.g. exploring biodegradable material for packaging. Growth and advancements in the life sciences industry expands the environmental footprint substantially. According to McKinsey, approximately 70% of emissions from pharmaceutical companies stem from purchased goods and services. This underscores the importance of sustainable packaging as part of the broader goal of achieving net-zero emissions and balancing energy consumption and production.¹
Top pharmaceutical companies have seen progress in drastically eliminating any unnecessary disposal of waste materials. For instance, organic materials like grains, root crops, and sugar can be transformed into biogas, a valuable energy source, and fertilizer.² In 2023, Boehringer Ingelheim partnered with Kalundborg Symbiosis, a non-profit coalition of companies that engineer environmentally sustainable circular production processes. Their goal was to investigate solutions where residual materials can be internally recycled. As a result of this partnership and the efforts of other collaborating companies, 62 tons of residual materials are now recycled per year.³
Similarly, AbbVie has committed to reducing emissions by 42% in 5 years from their 2021 baseline. They made significant progress already, exceeding their 2023 targets. In addition, they reduced waste by 29% from their 2015 baseline, surpassing their initial goal of a 20% reduction by 2025. These results were achieved by implementing environmentally conscious initiatives like replacing glass bottles with reusable metal tanks and strongly encouraging labs to use biodegradable gloves.⁴
Social responsibility
‘S’—the social pillar that addresses equity, diversity, and the ethical treatment of people in business practices. This includes safeguarding data privacy, protecting human rights, and promoting mental health and well-being in communities.
Johnson and Johnson (J&J) is known for its efforts surrounding community engagement and outreach. Their Community Interpreter Program serves community members of New Brunswick, New Jersey who are underinsured, uninsured, financially vulnerable, and prefer/need language assistance during clinical encounters. These efforts broke ground 25 years ago, ensuring decades of equitable treatment and care for patients of all backgrounds.⁵
Globally, J&J has bolstered the presence of Community Health Workers (CHWs) to empower surrounding communities⁵:
Kenya – J&J began an initiative in 2023 to reverse decades of the health systems relying on the unpaid labor of women by ensuring fair pay and formally integrating 100,000 CHWs into the system, increasing healthcare access and services.
China – J&J has been working to provide training for an additional 100,000 CHWs to promote general care for common diseases, elderly care, and mental health rehabilitation services.
Brazil – J&J directly funded the establishment of A CASA project, a dedicated space working in tandem with the Institute for Research and Support for Social Development and the National Confederation of Health Agents. This project allowed more than 10,000 CHW’s to connect, learn, and improve their working conditions and is projected to expand to all 26 states of Brazil.
Altogether, these initiatives demonstrate J&J’s commitment to empowering global communities and working towards global health equity.
Another company, Merck, has focused on the pervasive issue of maternal mortality in underserved communities. Merck founded the “Merck for Mothers” initiative, launched in partnership with the United Nations (UN), tasked in reducing maternal mortality. With a $650 million commitment, this program has reached over 160 million people, surpassing its 2025 goal by 10 million. The initiative promotes safe, high-quality, and equitable maternity care, making a lasting impact on global health.⁶
By aligning operations with the social pillar, businesses reduce operational risk and enhance their brand reputation, fostering trust among customers and stakeholders, but more importantly, creating a positive social impact.⁷
Governance and transparency
‘G’—the pillar of governance ensures transparency, compliance with regulations, and accountability at all levels of decision-making.
Effective governance is essential in ensuring that companies operate transparently and ethically, and it plays a particularly significant role in the life sciences industry. Companies that prioritize governance standards provide regular and accurate reports on their ESG performance, which allows stakeholders to assess their progress. Strong governance practices help mitigate risks associated with corruption, fraud, and unethical behavior and are crucial for maintaining long-term trust.
Governance is vital in the life sciences sector, particularly due to the ethical and regulatory challenges associated with clinical trials, drug approvals, and patient safety. Pharmaceutical companies must adhere to strict regulations set by authorities like the Federal Drug Administration (FDA) and European Medicines Agency (EMA) to guarantee the safety and efficacy of their products.
J&J exemplifies strong corporate governance through its pioneering 1943 Credo, which prioritizes stakeholder interests and ethical conduct. The company’s transparent approach, diverse leadership, and consistent commitment to principled business practices demonstrate a robust governance framework that goes beyond mere compliance and embodies corporate responsibility.
Similarly, Abbott demonstrates a commitment to ethical conduct through their comprehensive whistleblower protection program. The company’s “No Retaliation” policy, coupled with multiple confidential reporting channels, alongside the 24/7 “Speak Up” tool, encourages employees to report noncompliance without fear of reprisal. Abbott’s Office of Ethics and Compliance investigates all allegations thoroughly, reinforcing the company’s dedication to maintaining ethical standards.⁸
Biogen also stands out in its commitment to governance. The company adheres to strong bioethical standards, such as informed consent procedures and confidentiality protocols for clinical trials.⁹ Additionally, Biogen’s distinct transparent policy involves comprehensive public disclosure of both financial and non-financial reporting, underscoring its commitment to accountability and stakeholder trust.
By focusing on the three pillars of ESG—Environmental, Social, and Governance—life sciences companies can create meaningful, lasting change. These efforts not only benefit people and the planet but also strengthen the industry’s commitment to sustainability, equity, and ethical leadership.
References
Fernandez M, Pérez L. Accelerating the transition to net zero in life sciences. McKinsey & Company Life Sciences. 2023.
Randers L. The world's first industrial symbiosis: from waste stream to resource current. https://stateofgreen.com/en/solutions/the-worlds-first-industrial-symbiosis/#:~:text=Every%20year%2C%20the%20symbiosis%20saves%20partners%20and%20the,in%20the%20Symbiosis%20have%20been%20reduced%20since%202015. Updated 2023.
Symbiosis K. Efficient recycling of discarded fractions at Boehringer Ingelheim https://www.symbiosis.dk/en/2023/07/07/effektiv-genanvendelse-af-kasserede-fraktioner-hos-boehringer-ingelheim/. Updated 2025.
Abbvie. 2023 ESG Action Report. 2023.
J&J. Empowering the healthcare workforce. https://healthforhumanityreport.jnj.com/2023/global-health-equity/empowering-the-healthcare-workforce.html. Updated 2024.
Merck. Merck ESG Progress Report 2021/2022. 2022.
Condosta L. Don't ignore the S in ESG: A strong social strategy is essential. I by IMD. 2024.
Abbott. Comprehensive and Compliance Program. 2023.
Biogen. 2023 Corporate Responsibility Report. 2023.
