20 Oct, 2023
The Impact of ESG on the Pharmaceutical Industry
There's been a huge shift in the corporate world in recent years, with businesses taking a long, hard look at their impact on the world. And this change isn't just the result of hippie-type think tanks or environmental activists hammering on corporate doors—it's also coming from within. That's where ESG (Environmental, Social, and Governance) factors come into play, and in this piece, we'll dive deep into their impact on the pharmaceutical industry.
Defining ESG (Environmental, Social, and Governance) Criteria
When we talk about ESG, what springs to your mind? Is it something about reducing carbon footprints, establishing fair workplaces, or ensuring transparency in operations? If yes, you've hit the nail right on the head!
To put it simply, ESG is a set of standards which businesses use to screen their operations and decision-making. This trio of vital imperatives tackles areas such as:
- Environmental considerations—how a company impacts the natural world
- Social factors—how a company deals with people and communities
- Governance aspects—how a company operates, ensuring transparency and ethical business practices.
The Rise of ESG Investments in Recent Years
Grab a hot cup of joe and buckle in, because the world of ESG investments has been on a wild roller-coaster ride recently. We've seen a sharp influx of green funds, with investors rushing to put their money behind businesses boasting impressive ESG scores. Why, you wonder? One word – sustainability. Investors are increasingly recognizing that businesses with strong ESG practices tend to be more resilient and reliable in the long run.
ESG Disclosures: A Brief Overview
A fair question at this point might be,