Accountability, ambition, and quantifiable action in the carbon emission reduction plans of the ten largest pharmaceutical companies in Australia: a cross-sectional analysis

Objectives

To assess the commitment of the ten largest pharmaceutical companies operating in Australia to achieving net zero emissions by evaluating their accountability metrics, ambitions, and quantifiable actions taken.

Study design

Cross-sectional study; analysis of publicly available company reports published during 12 December 2015 – 31 December 2023.

Setting, participants

Ten largest pharmaceutical companies operating in Australia, defined by total pharmaceutical costs (to patients and Pharmaceutical Benefits Scheme) for PBS-subsidised medications, as reported in PBS expenditure and prescriptions reports for 2020–21 and 2022–23.

Main outcome measures

Content analysis of publicly available documents for the ten companies using modified criteria from the PricewaterhouseCoopers Building blocks for net zero transformation framework, with three domains: accountability, ambition, and action; the Carbon Disclosure Project (CDP) grading; the Science Based Targets initiative (SBTi) approval system. We focused on measurement, target setting, and achievement of emission reductions, and ranked the environmental sustainability of companies using a points and colour coding system.

Results

Three groups could be defined by evidence of their commitment to emissions reductions. The first — companies leading emissions reduction efforts, with SBTi-approved near term targets, consistent emissions monitoring, well defined commitments, and quantified evidence of action — includes AstraZeneca, Novartis, Johnson & Johnson, Bayer, and Merck & Co. The second group — companies that had made commitments to SBTi-approved targets but their disclosure records are limited — includes AbbVie and Roche. The third group — without public commitments to achieving net zero emissions, minimal or no SBTi-approved targets, and minimal disclosure or monitoring of emissions — includes Viatris, Vertex, and Arrotex.

Conclusions

The ten largest pharmaceutical companies in Australia are moving towards net zero greenhouse gas emissions at different rates. Gaps in standardised reporting processes should be closed, and further qualitative research on industry-wide environmental sustainability policy and practice is needed.