The Regulatory Shift: How Sustainability is Reshaping Pharmaceutical Logistics

08/31/2023

In this blog we will dive into a snapshot with out interview with Mark Edwards Global Trade Compliance and Freight Manager for Kindeva Drug Delivery. Access the full interview here! 

In this exclusive interview, Mark shares his insights on the challenges and opportunities presented by the increasing focus on sustainability within the pharma industry and the ways in which regulatory and compliance practitioners and quality assurance teams are developing strategies to meet these demands. 


Pharma IQ: We appreciate you taking the time to share your insights, Mark. As someone with extensive experience in the pharmaceutical sector, can you sha re your perspective on what sustainability means in the context of logistics and supply chain operations?

Mark Edwards (ME): Sustainability in logistics and supply chain operations is critical in the pharmaceutical sector, especially in light of the limited resources available on our planet and the need to mitigate the adverse effects of climate change. With transportation being one of the largest contributors to CO2 emissions, it is essential to adopt green projects that minimise the environmental impact of logistics and supply chain activities.

One approach to achieving sustainability is to consider the type of transport being used. For example, moving away from air freight to sea freight can significantly reduce emissions, or if we are already using sea freight, are we considering the type of fuel that is being utilised by the shipping lines that we use? Sea freight may only contribute to 2% of overall global emissions, but the emissions from shipping fuel can still cause significant damage, so selecting shipping lines that are using more sustainable fuels can have a significant impact.

Moreover, it is not just about making big changes but finding ways to do things better, greener, and more sustainably. For instance, one of the biggest challenges is the amount of fresh air that we in the pharmaceutical industry have typically shipped around the world because of our preferences and stipulations on how products need to be loaded and stacked. Additionally, sustainable packaging materials, selecting the right mix of temperature-control solutions, and waste management practices can significantly reduce waste generation and minimise the environmental impact of logistics and supply chain operations.

Overall, sustainability in logistics and supply chain operations in the pharmaceutical sector requires a concerted effort from all stakeholders, including transport providers, manufacturers, and consumers.


Pharma IQ: How has the growing focus on sustainability in the pharma industry influenced regulatory and compliance requirements and have there been any specific regulatory changes?

ME: The pharmaceutical industry has been facing increasing pressure to reduce its carbon footprint and implement sustainable practices. In response, several regulatory changes have been implemented to ensure that the industry is meeting sustainability targets. One of the most significant changes was the European Union's Good Distribution Practice Guidelines (GDP) for pharmaceutical products. Whilst the guidelines don’t specifically require all stakeholders in the pharma supply chain to take measures to reduce their carbon footprint, it is evident from recent EU work that the next steps should include the use of environmentally friendly packaging materials, reduced transportation emissions and energy consumption, and implementing sustainable practices in the storage and distribution of medicines.

Another significant regulatory change impacting pharma logistics and supply chain is the Paris Agreement. This legally binding international treaty on climate change, signed in 2016, expects the pharmaceutical industry to contribute to meeting the global target of limiting global warming to less than 2 degrees Celsius. To meet these targets, pharmaceutical companies are investing in renewable energy, using more sustainable packaging materials, and reducing their carbon emissions. Additionally, some countries have implemented a carbon tax, which is a fee imposed on companies that emit greenhouse gases. The carbon tax provides an incentive for companies to reduce their carbon footprint, which impacts the pharma logistics and supply chain industry, as transporting pharmaceutical products over long distances contributes to greenhouse gas emissions.

Beyond these regulations and international treaties, if we look outside the pharmaceutical industry, we can see that there have been specific changes in regulations and compliance practices aimed at promoting sustainability in other industries, such as the automotive industry. For example, in Europe, new car emissions standards have been introduced to reduce the carbon emissions of vehicles, and there are increasing regulations and incentives to promote the use of electric vehicles.

It would be logical to expect that changes in consumer preferences for more sustainable companies and in government regulation are likely to have a ripple effect on the pharma industry, with a growing emphasis on sustainable practices throughout the supply chain, from manufacturing to distribution.

As regulatory and compliance practitioners in the pharma industry, it is important to stay abreast of these evolving regulations and company guidelines to ensure that sustainable practices are implemented throughout the supply chain, as this will help to ensure the long-term sustainability of the pharma industry as a whole in terms of reducing its impact on the environment and on maintaining supply of vital medications to patients around the world.


To find out Mark's insights on the following questions: 

  • Pharma IQ: In your opinion, what are the main challenges faced by regulatory and compliance practitioners when incorporating sustainability goals into their daily operations?
  • Pharma IQ: Can you provide any examples of how Kindeva Drug has integrated sustainability practices into its distribution and logistics practices?
  • Pharma IQ: Lastly, in your opinion, do you feel that the industry is adopting more sustainable practices quickly enough?

Access the full interview here!