33 CHEMICALS KNOWLEDGE HUB Issue 2 / October 2025 SUSTAINABILITY reporting that reusable packaging could cut plastic emissions by up to 69%.7 For pharma, that contrast highlights how regulatory caution and infrastructure gaps impede progress. The industry has made headway in recent years with OTC manufacturers testing pharmacy-based collection of used blisters alongside plans to centralise recycling. But prescription medicines, the majority of sales, remain outside of these initiatives. Until regulators provide frameworks for safe recovery and reuse, pharma’s circular economy will remain largely aspirational, remaining more of a communications exercise for ESG reports than a systemic shift. Margins squeezed by cost and compliance The economics of sustainability poses a significant outlay for the sector. Alongside the installation of water-recycling systems, retooling lines for recyclable materials, there is the transition to renewable energy. These investments represent significant costs and for global giants, they can be justified as investments in risk mitigation. But for mid-sized and generic producers with thin margins, they represent difficult trade-offs. The issue is exacerbated by regulatory divergence. For example the EU’s Packaging and Packaging Waste Regulation sets binding targets for recyclability and recycled content. The US regime is more fragmented, and enforcement is inconsistent in many emerging markets. A design approved in Europe may require requalification elsewhere, multiplying expense and delaying rollouts. Despite these obstacles, market forces are moving in one direction with forecasts for the sustainable pharmaceutical packaging market reaching $372bn (€350bn) by 2034.8 Procurement standards are already tightening, with NHS England making alignment to net-zero a condition for future tenders. Such requirements create a clear commercial risk for suppliers that fail to keep pace. Investors are also requesting specific insights. Investment company BlackRock said that ESG reporting had to be, “decision-useful, comparable and verifiable.” The expectation now is that companies publish audited data on energy use, water intensity and waste treatment, rather than aspirational goals. Some asset managers are linking executive pay to ESG delivery, signalling that environmental performance is now a business critical theme. Manufacturing’s hidden footprint If packaging represents the visible side of the issue, manufacturing could be considered the hidden core. Drug production is water- and energy-intensive and generates hazardous effluents that require expensive processing. Energy consumption is high; the Journal of Cleaner Production estimated that pharma’s emissions intensity is 55% higher than the automotive industry, measured in tonnes of CO2 per million dollars of revenue. Cleanrooms, HVAC systems, and continuous production equipment all contribute to this. 4,5 Water remains a significant limiting factor with industry accounting for 22% of global consumption, of which pharmaceuticals representing about a fifth of that. 6 This fact is most apparent in water-scarce areas such as India and southern Europe, where health systems are already limiting precious resources. Effluent also adds to the challenge with solvent residues and rinse streams requiring neutralisation or incineration, all while regulators continually raise the bar. The EU Water Framework Directive is widening restrictions, and India’s zero-liquid-discharge laws are driving drugmakers to invest in advanced treatment systems. In the face of these hurdles, progress is being made. AbbVie has pledged that all of its packaging will be widely recyclable by 2035, a commitment confirmed in its latest ESG Action Report. While it reports progress on water use, the company shows a reduction of about 17% in withdrawals since 2015 alongside a longerterm target of halving usage by 2035. Circular economy stuck in regulation The scope of circular economy models has made great progress, particularly in consumer goods, where retailers run take-back schemes and the automotive industry refurbish electronic parts. Pharma lags far behind, not due to a lack of effort but of the barriers faced. Packaging that once protected regulated medicines cannot be simply reused without contamination and traceability considerations. Supply chains have to contend with different regulators across markets, making standardisation elusive. The Sustainable Medicines Partnership has observed that the majority of blisters are still incinerated or landfilled, despite design improvements. Other industries demonstrate what is possible with Reuters
RkJQdWJsaXNoZXIy MjY2OTA4MA==