Australia's Leading Pharmaceutical Companies Urged to Reduce Carbon Emissions

The pharmaceutical industry plays a crucial role in safeguarding human health, yet it also significantly impacts the environment through its greenhouse gas (GHG) emissions. In Australia, this sector accounts for up to 19% of the country's healthcare-related emissions, roughly 1.5% of national emissions, highlighting an urgent need for sustainable practices.

A recent study conducted by researchers from the University of Melbourne examined the environmental commitments of the top 10 pharmaceutical companies operating in Australia. The analysis focused on their public actions and strategies toward achieving net-zero emissions, guided by international sustainability frameworks. The findings revealed a mixed landscape: while some companies show promising commitments, others lag behind.

The study scored companies based on three key criteria: Accountability (emission measurement and disclosure), Ambition (setting science-based reduction targets), and Action (implementing tangible measures to reduce emissions). Companies were then classified into leaders, moderate performers, and laggards. AstraZeneca, Novartis, Johnson & Johnson, Bayer, and Merck & Co emerged as leaders, demonstrating comprehensive strategies and transparent reporting. In contrast, companies like Arrotex, an Australian-owned private firm, scored zero due to lack of publicly available data, partly attributable to fewer regulatory obligations as a private entity.

Efforts reported by companies include transitioning to renewable energy sources, enhancing manufacturing efficiency, electrifying vehicle fleets, imposing emission targets on suppliers, and cutting down business travel. Most have reduced their direct (Scope 1) and indirect (Scope 2) emissions, but challenges remain, especially regarding Scope 3 emissions from supply chains, which many companies neglect to report or see increasing.

The broader impact of these emissions is significant, with ongoing climate change concerns necessitating more aggressive actions. Current voluntary commitments appear insufficient, with calls for stronger policies such as independent verification, comprehensive environmental reporting, and government-led procurement standards.

In Australia, new regulations under the Corporations Act 2001 now require large companies, including pharmaceutical firms, to disclose climate-related risks, strategies, and targets. These laws aim to enhance transparency and accountability, pushing the industry toward more substantial decarbonization.

To truly combat climate change, pharmaceutical companies must aim for complete and rapid emissions reductions, engage deeply with supply chains, pursue third-party verification of claims, and adopt procurement policies aligned with climate goals. The sector stands at a crossroads: those who embrace genuine sustainability practices will not only lessen their environmental footprint but also ensure their long-term resilience in a world increasingly attentive to climate issues.

Source: https://medicalxpress.com/news/2025-06-australia-largest-pharmaceutical-companies-carbon.html