In just five years, renewable electricity consumption across EFPIA member companies has tripled—a powerful signal of how rapidly climate action is becoming embedded across the pharmaceutical sector. 

Climate change is increasingly recognised as one of the most pressing threats to human health. From worsening air quality to the spread of infectious diseases, its effects are felt across Europe and globally. 

The pharmaceutical sector sits at a critical intersection of health and climate, tackling climate change on two fronts: developing medicines for climate-driven health risks while cutting its own footprint to protect both people and planet. 

Over recent years our members have made substantial progress to reduce their environmental footprint.  

This is reflected in EFPIA’s climate change white paper, which includes results of a recent climate survey, which highlights both the scale of industry engagement and the tangible achievements across member companies.  

Across Europe, companies are accelerating efforts to decarbonise operations and supply chains, while continuing to deliver innovative medicines.  

Between 2019 and 2024, the sector achieved significant emissions reductions, with Scope 1 emissions decreasing by around 18% on average and Scope 2 emissions by 64%, largely driven by a rapid shift to renewable electricity. As a result, emissions intensity has dropped substantially, and while Scope 3 emissions remain the most challenging; 60% of members have reduced these emissions, averaging 17% decrease, the difficulty is reflected in the fact that these companies have inherently different operational profiles compared to those focused solely on pharmaceutical production. 

This progress is underpinned by a broader transformation across the sector. Renewable electricity consumption has tripled in just five years, and a growing number of companies are setting both short- and long-term targets to sustain this transition. Today, around 75% of companies have comprehensive climate targets covering all emission scopes, reflecting a more mature and structured approach to decarbonisation.  

Beyond energy and emissions, companies are rethinking how medicines are designed, produced and delivered. Increasingly, this includes assessing the environmental impact of products across their full lifecycle.  

More than half of companies have reached mid-to-advanced maturity in product carbon footprinting and life-cycle assessment, while others are actively building these capabilities. At the same time, nearly all companies are now assessing climate-related risks, such as extreme weather events or regulatory changes, highlighting how climate considerations are becoming embedded in business decision-making.  

Importantly, the sector is also working collectively to scale up impact. Participation in industry climate initiatives continues to grow, reflecting a shared commitment to progress. Companies are increasingly aligning with internationally recognised ESG frameworks and EU reporting requirements, improving transparency and enabling better tracking of progress. 

However, the trend is unmistakable: the sector is aligning innovation, sustainability and patient care to support both human and planetary health. 

Driving sustainable pharma innovation into the future while protecting European competitiveness. 

EU climate policy has recently shifted from ambition to implementation. The Green Deal is now reinforced by initiatives such as the Clean Industrial Deal, the Net-Zero Industry Act and the Ecodesign Regulation, driving greater focus on industrial decarbonisation, lifecycle sustainability and resource efficiency. 

The 2025 Omnibus Package signals a move toward regulatory simplification, streamlining CSRD and CSDDD requirements while maintaining overall climate ambition and supporting EU competitiveness. 

What does this mean for industry? For the pharmaceutical sector, this creates both opportunity and pressure. Although not a major emitter, pharma is increasingly expected to deliver high-quality environmental data and reduce emissions across complex global value chains. At the same time, sustainability criteria in public procurement are rising, placing new demands on how medicines are developed, manufactured and supplied. 

For Europe to take a leading role in climate change mitigation, it will require the right balance of ambition and pragmatism, regulation can support innovation, accelerate decarbonisation and strengthen the region’s position as a global hub for life sciences, but this will require proportionate, innovation-friendly processes and legislation that don’t compromise patient access or Europe’s competitiveness. 

Examples of Collaborative pharmaceutical initiatives 

The Pharmaceutical LCA Consortium brings together leading pharmaceutical companies, healthcare stakeholders and technical experts to develop harmonised approaches for measuring the environmental footprint of medicines. Through the development of PAS 2090, the first internationally recognised standard for pharmaceutical lifecycle assessment, the consortium is helping create a common framework for assessing environmental impacts across the full lifecycle of medicines and improving transparency across the sector. 

Across the sector, collaborative initiatives such as the Sustainable Markets Initiative Health Systems Task Force, Energize, PSCI, PHARMECO and ENKORE are helping to address some of the most challenging areas of decarbonisation. These initiatives focus on renewable energy procurement, supplier engagement, lifecycle assessment, sustainable manufacturing, circularity and healthcare packaging. Together, they illustrate how cross-sector collaboration is becoming an essential driver of climate action across the pharmaceutical value chain. 

In 2024, five global healthcare companies secured the sector’s first multi-party renewable power agreement in China, a critical hub for pharmaceutical manufacturing and supply chains. The agreement unlocks around 200 GWh of renewable electricity annually and is expected to avoid approximately 120,000 tonnes of CO₂ emissions each year. The initiative demonstrates how collective action can accelerate decarbonisation in regions where supply chain emissions are concentrated and where no single company can drive change alone.