In today’s world, environmental, social, and governance (ESG) is a core pillar of value creation for organizations of all sizes. In order to meet stakeholders’ evolving expectations and pending regulatory requirements, the life sciences sector needs to incorporate ESG into its business operations.
ESG issues specific to Life Sciences
Every industry has different driving forces behind the development of ESG programs. The following issues are material to the agriculture sector:
The life sciences sector needs to make medicines more sustainable, reduce greenhouse gas (GHG) emissions in the process, and support innovation.
With increased literature speaking to the importance of diversity in clinical trials, life sciences organizations need to enhance their measures for further inclusion and diversity.
Upcoming regulation on public companies to disclose and report on their scope 1, 2, and 3 GHG will put pressure on the entire supply chain and life science companies to map out their carbon footprint.
Life science companies are held to a higher standard when it comes to motive, regulation, and profit. The sector needs to ensure that a strong governance structure is in place to maintain regulatory compliance.
Investing in an ESG program is more important now than ever. Life Science organizations need to be aware of the increased pressure to measure and report on ESG metrics and demonstrate impact on issues that matter. Forming an effective, sustainable ESG strategy and leveraging technology to support your ESG journey will optimize growth and set your organization for long-term success.
National Sustainability & ESG Leader, BDO Canada
Benefits of investing in ESG programs for Life Sciences:
Early integration of an ESG program strategically positions your organization for long-term success