The “Materiality 2024” report by Omnicom PR Group Italy offers an in-depth look at the pharmaceutical sector’s sustainability priorities in Italy. This first-of-its-kind study evaluates how pharmaceutical companies address environmental, social, and governance (ESG) issues and their broader impact on society and the economy.
Critical dimensions according to SASB
The Sustainability Accounting Standards Board (SASB) identifies five key dimensions: environment, social capital, human capital, business models, and governance. Among these, social capital ranks as the top priority, acknowledged by 100% of the companies analyzed. It is followed by business models and innovation (87.5%), human capital and leadership and governance (both at 75%), and environmental concerns (62.5%).
The pharmaceutical sector addresses 84% of SASB-identified risks on average, ranking fourth among eight industries analyzed. The food, fashion, and oil & gas sectors lead this ranking.
Key ESG priorities
Social capital: quality and accessibility
Drug quality and safety and their accessibility rank high (62.5%). The main challenge is ensuring that costly new therapies remain sustainable through innovative financing models.
Business models: research and innovation
Research and innovation, prioritized by 87.5% of companies, serve as a cornerstone for development. Investments in this area are vital for addressing stakeholder needs and driving progress.
Human capital: diversity and inclusion
Diversity, equity, and inclusion (DE&I) are pivotal for 50% of companies, followed by talent management and development (37.5%). This highlights the industry’s focus on valuing human resources in a field dedicated to improving lives.
Leadership and governance: business ethics
Business ethics are a top priority for 75% of the companies. Operating transparently and ethically is non-negotiable in a sector tasked with safeguarding health, a crucial private and public good.
Environment: climate change
While not classified as a critical SASB issue, over 60% of companies actively address climate change, demonstrating growing environmental awareness.
Conclusion
Teodoro Lattanzio, Vice President of Omnicom PR Group Italy, remarked:
“This research highlights the pharmaceutical sector’s awareness of its systemic impact. Companies show responsibility and sustainability, addressing key social, governance, and environmental challenges.”
The future of pharmaceutical sustainability lies in balancing innovation, inclusion, and accountability, focusing on improving lives and protecting the planet.
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