As the global pharmaceutical industry grapples with its substantial environmental impact, a critical question emerges: can verified, high-quality data be the key to unlocking a sustainable future for Indian pharma? The answer is a resounding yes. Verified data meeting the criteria of 5 ‘A’ Accuracy, Accessibility, Attributability, Actionability, and Assurance is proving to be an essential “prescription” to enable Indian pharma companies to achieve ambitious decarbonisation aligned with Net Zero by 2050.

The Scale of the Challenge

The pharmaceutical sector’s contribution to climate change is more significant than many realise. As a major contributor to the healthcare industry’s climate footprint, which accounts for approximately 4.4% of global net greenhouse gas emissions, the production and distribution of pharmaceuticals alone contribute around 25% of the healthcare sector’s emissions. The total global greenhouse gas footprint from pharmaceuticals increased by 77% between 1995 and 2019.

Yet there’s hope. According to McKinsey (2024), approximately 60% of emissions for pharmaceutical companies can be reduced at near-zero cost by 2040. However, this will require complete value chain verified data availability to monitor carbon reductions in a systematic, auditable, and reportable manner.

India’s Pharma Sector at a Crossroads

The Indian pharmaceutical sector stands as a vital economic engine and major global medicines supplier, but it faces mounting pressure to decarbonise. With 81% of the carbon footprint embedded in supply chains and emissions originating in activities in India and abroad, there is a pressing need for coordinated, data-driven decarbonisation throughout manufacturing and logistics. This includes incorporating all 15 categories of GHG Protocol Scope 3 emissions along with Scope 1 and 2 emissions.

Why Verified Data is Non-Negotiable

Accurate, real-time data has emerged as indispensable for multiple critical functions. It enables mapping of emissions hotspots, especially Scope 3 (value chain) sources, and tracking of reduction progress. Verified data is essential for building trustworthy ESG disclosures that meet stakeholder expectations and regulatory demands. It powers digital twins and advanced analytics, which simulate and optimise plant operations, energy use, sourcing decisions, and supply chain flows. It also supports SBTi (Science Based Targets initiative) validation and similar verifications for emissions reduction commitments.

Leading companies like Granules India have received SBTi approval for their net-zero goals, with transparent, third-party validated data supporting both near-term and long-term targets. Collaborative platforms such as the UK-India Net Zero Innovation Virtual Centre, supported by the UK Government and driven by a unique coalition of UK and Indian innovation policymakers, R&D companies, start-ups, investors, research groups, and Catapults, demonstrate the benefits of cross-border alliances grounded in verified data.

A Case in Point: The Paracetamol Value Chain

To understand the complexity and opportunity for decarbonisation, consider the paracetamol value chain. With global production at 300,000 mt per year, the paracetamol value chain in India is multi-layered, starting from basic chemicals and culminating in patients and disposal. The value chain GHG emissions result in 6 kg of CO2e emissions per kg of product.

The journey begins with para-aminophenol (PAP), mainly imported from China, followed by chemical synthesis to make the API. Companies, including Granules India, Farmson, Malladi, and Sri Krishna, transform PAP through energy and water-intensive processes. The API is then turned into tablets and syrups, packaged, and moved through wholesalers, distributors, pharmacies, and hospitals, with refrigeration and transportation adding to the carbon footprint.

Decarbonisation Opportunities

Each stage presents opportunities for emissions reduction. In raw materials, sourcing chemicals from suppliers using clean energy or green chemistry can cut emissions. API synthesis offers multiple levers: transition to continuous manufacturing and solvent-free processes (such as the Living Lab at CSIR-NCL Pune), use of renewable energy, and water and waste minimisation. Formulation can benefit from energy-efficient equipment and greener packaging using recycled, lightweight materials. Logistics improvements include route optimisation, shifting to electric vehicles and renewable energy-powered warehouses, and digital tracking to monitor emissions.

The Critical Role of Comprehensive GHG Data

Understanding emissions across all three scopes is fundamental. Scope 1 covers direct emissions such as fuel combustion on-site. Scope 2 addresses purchased energy, mainly electricity, where the transition to renewables has high leverage. Scope 3 encompasses all other value chain emissions, upstream and downstream, often representing approximately 81% in pharma.

Accurate, granular data on Scopes 1, 2, and 3 is essential for identifying carbon hotspots, targeting emissions reductions where most impactful, engaging stakeholders with transparency, enabling supply chain collaboration, and supporting regulatory compliance and ESG benchmarking.

Digital transformation tools, including IoT sensors, blockchain tracking, and AI-driven process analytics, are dramatically improving the capture, verification, and utility of carbon data across operations. Verified data enables effective risk management and builds the business case for investments in decarbonisation technologies and low-carbon supply chains.

Also read: Driving the Future of Angioplasty with Safety and Smarter Practices

The Path Forward

India’s pharmaceutical sector holds the potential to become both a global sustainability benchmark and a model for transformational decarbonisation. Verified data is not just a compliance requirement but is the linchpin for tracking, validating, and accelerating every step toward Net Zero by 2050, enabling leadership, innovation, and collaboration at scale.

Views expressed by: Rajesh Patel, CEO & Co-Founder, Snowkap 

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Disclaimer: The views and opinions expressed in this article are solely those of the author and do not necessarily reflect the official policy or views of any organisation. The content is intended for informational and educational purposes only and should not be construed as medical advice.

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