The Role of ESG Criteria in the Pharmaceutical Industry

The world is becoming increasingly aware of the importance of corporate social responsibility, which is leading organizations and their leaders to look for new ways to generate a positive impact beyond business. In this context, the introduction of ESG (environmental, social and governance) criteria has become the compass that guides the effort toward a more sustainable, responsible, and successful future for all.

The term ESG has gained widespread recognition since it was coined in 2000 by the Global Compact in its report, “Who Cares Wins: Connecting Financial Markets to a Changing World.” But what do they really mean, and why should the pharmaceutical industry care about them? This acronym refers to the factors that drive corporate sustainability through commitments to social responsibility, environmental impact, and good governance. They are important because they are reshaping how stakeholders identify and value companies and their brands with responsible business practices, ethical conduct, and financial viability. 

For me, meeting ESG criteria is not just about enhancing reputation, it can attract investors, create new opportunities, and mitigate risks. By adopting ESG principles, we gain a clear framework for self-assessment, understanding where we stand and defining where we want to go, with a roadmap to get there.

However, some companies still perceive ESG efforts as costly and time-consuming, overlooking how they can optimize resources and create value. It is no longer simply a moral or compliance choice, it is a strategic necessity for long-term success and resilience. For example, if a company actively reduces its carbon emissions, it becomes more energy-efficient, saves money, and gains appeal among partners seeking net-zero allies.

How do we know if our actions are the most appropriate? The answer is simple: Aligning with  the Sustainable Development Goals (SDGs) of the 2030 agenda, as they address  issues such as climate, equality, worthy work and health, among other indicators, which are significantly more valued by investors, consumers, patients, employees, and society in general (UN Global Compact, 2023). They are a necessary commitment to a new form of economy that is greener, more egalitarian, and prosperous.

Innovation, Responsibility, and Growth

As a global citizen, I firmly believe that organizations are obliged to go beyond our competitive vocations; We must continue to work to create real impact in the communities where we operate, live, and serve. Fortunately, most of the innovative pharmaceutical companies worldwide and those established in Mexico have a strong commitment to ESG criteria, placing patients and people at the heart of their actions.

For decades, we have been paving the way for this, strengthening our initiatives and seeking to become a benchmark for good practices. The most reliable proof of our contribution to social development is, undoubtedly, the research and development of new treatments. Thanks to them, life expectancy has increased by 20 years. In the first decade of this century alone, developed countries gained an average of 1.74 years in life expectancy, with 73% of this improvement directly attributed to treatments for cancer, diabetes, HIV, hepatitis C and even the COVID-19 pandemic (Farma Industria, 2024). In addition to controlling diseases, increasing survival, or improving the quality of life, they also generate significant savings for health systems by increasing people's productivity and, therefore, generating wealth for countries.

However, innovation is useless if it does not reach patients. For this reason, our industry works every day with the purpose of promoting health equity and expanding access to life-saving medicines, providing creativity and talent to find disruptive solutions to the determinants that cause inequalities. 

We leverage our capabilities and scientific expertise to accelerate the discovery, development, and delivery of innovative therapies in areas where there are unmet health needs; we promote continuing medical education; we support STEM training; we carry out campaigns to promote awareness and timely detection of diseases; and we invest in the diversity of clinical trials so that people benefit from therapeutic innovations regardless of ethnicity, race, age, or gender.

We are a sector that leaves its mark. In Mexico, we contribute in a sustained way to the gross domestic product; we have manufacturing plants distributed throughout the country; we generate well-paid jobs; we favor equity, diversity, and inclusion policies; we develop the specialized talent needed to lead, grow and take advantage of opportunities such as nearshoring; and we carry out donations and volunteering in which employees help in cases of health emergencies or natural disasters, bringing food to hospitals or raising funds for patient organizations.

On the environmental side, it has been gratifying to see real progress. We have several projects aimed at reducing greenhouse gas emissions in all our operations. This includes gradually replacing the vehicle fleet from gasoline to hybrid or electric engines, using renewable energies, making water consumption more efficient in offices and production plants, and adopting circular economy models that reduce pressure on natural resources or the way waste is handled. 

As we improve people's health and quality of life, we fight climate change, biodiversity loss, and pollution. As an example, 80% of the large pharmaceutical companies in the world have signed zero or neutral emissions commitments by 2040 (Farma Industria, 2024).

In terms of governance, we continuously adapt our corporate structure to address the changing needs of the business. In my experience, innovation-driven companies and leaders are more likely to take seriously their obligation to build and maintain stakeholder trust. For them, ESG criteria represent a pact with society — one they are committed to upholding with excellence.

For the company I lead, our ESG commitments are rooted in a legacy of ethical business conduct and a culture of integrity that drives us to always do the right thing for patients, employees, communities, and our stakeholders. For us, operating with integrity means much more than complying with regulatory obligations, it is trusting what we do, how we do it, why we do it, and for whom we do it: patients.

Advancing ESG involves constant adaptation, investment, and genuine commitment from corporate leadership. While ESG initiatives bring multiple benefits, the regulatory landscape is evolving rapidly, becoming increasingly complex and demanding. Therefore, it is essential that companies have well-defined and consistent objectives, ensure the quality of data, make indicators transparent, and report results to communicate progress and be accountable.

The future of business is being written now, and success will depend on how well companies adapt to an ever-changing global environment. 

I invite you to take a moment to reflect on the initiatives you are implementing to lead sustainability commitments within your organization.