The global healthcare sector is increasingly embracing environmentally conscious practices, particularly in the pharmaceutical industry, which is prioritizing initiatives aligned with environmental, social, and governance (ESG) criteria. With consumers placing more importance on a brand’s ethical and environmental reputation, pharmaceutical companies must integrate ESG standards into various aspects of their operations, including research and development, production, consumption, and supply chains. This approach not only addresses issues such as lawsuit risks and product safety but also improves affordable healthcare access.
Within European procurement policies, the inclusion of sustainability criteria is gaining prominence and significantly influencing the evaluation of ESG practices in the pharmaceutical industry. The Nordic countries, renowned for their balanced approach to market economics and social issues, serve as global models for socially conscious investments. In the 2022 Sustainable Development Report, Finland, Denmark, and Sweden emerged as frontrunners. The implementation of environmental premiums and procurement standards in Norway and Sweden is set to stimulate green innovation within the pharmaceutical industry in the coming years.
The Nordic Pharmaceutical Forum (NPF), representing Finland, Iceland, Norway, Sweden, and Denmark, has implemented a joint tender agreement that not only ensures lower prices and supply security but also promotes the integration of environmental requirements into the procurement of older, off-patent pharmaceuticals.
Sweden’s Swedish Association of the Pharmaceutical Industry (LIF) is paving the way for the introduction of environmental price premiums within the reimbursement system for specific vital medications. The Medical Products Agency (LV) has proposed environmental criteria, such as green manufacturing sites, efficient waste management, and restrictions on active ingredient discharge, to determine eligibility for price premiums. The LV has also established a voluntary project to study price premiums and minimize the risk of active substance emissions during production. In Norway, the Public Procurement Appeals Board (KOFA) recently made a landmark decision supporting green standards in the public procurement of hospital drugs. The decision emphasized the agency’s focus on environmental elements, resulting in a reduced carbon footprint and the selection of a supplier valued higher than the outgoing provider. Norway has also set targets to reduce CO2 emissions from healthcare services by 40% by 2030.
In Finland, there is widespread support among consumers for incentivizing greener pharmaceutical production. A survey conducted by the School of Pharmacy at the University of Eastern Finland revealed that the Finnish population is willing to pay higher prices to address the environmental impact of medical waste. An environmental classification system for pharmaceuticals has been implemented in both Sweden and Finland. The Finnish Government, aiming to achieve carbon neutrality by 2035, is actively developing a circular economy and efficient waste management in the healthcare sector through initiatives like the government-funded EKO-SOTE research project.
Denmark has also implemented green strategies, including environmental criteria in the Joint Nordic Tendering Procedure and an action plan for a circular economy. The country aims to significantly reduce the amount of incinerated plastic waste by 2030 and has collaborated with other Nordic countries to establish criteria for more sustainable packaging in the healthcare sector.
Embracing ESG practices in the pharmaceutical industry offers both economic and social advantages. The ongoing implementation of green legislation and projects in the Nordic countries reflects the industry’s gradual momentum in this direction. The Nordic countries are committed to building a more sustainable future, backed by their extensive experience, high levels of responsibility and transparency, and continuous innovation.
Abacus Medicine Pharma Services (AMPS) is a Copenhagen-based strategic partner of the Abacus Medicine Group, assisting pharmaceutical companies in launching and distributing medicines across Europe. With a robust distribution network in the Nordics and Benelux, AMPS provides expertise in market entry, commercial strategy, medical affairs, supply chain management, and compliance.
The Abacus Medicine Group acknowledges its impact on society and takes a conscious and strategic approach to sustainability. Through its Focus Programs, the company measures its environmental and social impact, identifies areas for improvement, and manages the risks and opportunities associated with ESG topics. The Focus Programs cover ESG Reporting, Diversity & Inclusion, Waste & Sourcing, Transportation, Community Engagement, and Supplier Code of Conduct. More information about the Abacus Medicine Group’s sustainability efforts can be found in its annual Sustainability Reports.
