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  • Writer's pictureSophia Lee

Reducing the carbon footprint of pharma supply chain starts with measuring it

Carbon emissions in the supply chain can be tracked by measuring the greenhouse gas emissions associated with the production, transportation, and distribution of goods and services. This is known as a carbon footprint. Measuring the carbon footprint of a supply chain can help organizations identify the sources of their emissions and develop strategies to reduce them.

Tracking carbon emissions in the pharma supply chain is important for several reasons:

  1. Regulatory Compliance: Pharmaceutical companies may be required to report on their carbon emissions and take steps to reduce them to comply with regulations.

  2. Environmental Responsibility: Measuring and reducing carbon emissions is essential to combat climate change and protect the environment.

  3. Reputation: Investors, customers, and other stakeholders increasingly expect pharmaceutical companies to be transparent about their environmental impact and take steps to reduce it. This can have a positive impact on a company's reputation.

  4. Cost Savings: Reducing carbon emissions in the pharma supply chain can lead to cost savings by improving energy efficiency, reducing waste, and increasing operational efficiency.

Tracking carbon emissions in the pharmaceutical supply chain can be challenging, but it is becoming increasingly important as the pharmaceutical industry is a significant contributor to greenhouse gas emissions. Here are some ways how and why carbon emissions can be tracked in the pharma supply chain:

  1. Identify the Sources of Emissions: The pharmaceutical supply chain involves several stages, including raw materials, manufacturing, transportation, and distribution. Each of these stages can contribute to carbon emissions. Therefore, identifying the sources of emissions is the first step in tracking carbon emissions in the pharma supply chain.

  2. Collect Data: Collect data on the energy consumption, fuel use, and transportation methods at each stage of the supply chain.

  3. Calculate the Carbon Footprint: Calculate the carbon footprint of the pharmaceutical supply chain using a standardized methodology, such as the Greenhouse Gas Protocol.

  4. Analyze Results: Analyze the results to identify the most significant sources of emissions and opportunities to reduce them. This analysis can help pharmaceutical companies set reduction targets and prioritize initiatives.

s.lab's AI Command Center collects transportation data of inbound and outbound logistics and analyzes it. So it can help pharmaceutical companies track and measure the carbon footprint of pharmaceutical logistics processes, enabling them to comply with Scope 3 emissions reporting requirements and contribute to sustainable SCM.

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