Sustainability (ESG)

Hand arranging wooden blocks labeled ESG, environment, social, and governance, against a blurred green background symbolizing sustainability.

Pharmaron’s Sustainable Strategy Overview

Pharmaron is committed to fostering sustainability as a cornerstone for lasting competitive advantage. Our approach involves a comprehensive review of our Environmental, Social, and Governance (ESG) performance across all major areas, including Governance and Compliance, Employee and Supply Chain Engagement, Environmental Protection and Green Operations, Diversity, Equality, and Inclusion. We prioritize the most crucial aspects for our stakeholders, recognizing their significant contribution to long-term business success. This strategic focus helps us avoid creating isolated initiatives with limited impact.

Core Strategies

  • Establish robust corporate and ESG governance structures, adhering to stability, integrity, and compliance principles.
  • Continuously improve the Company’s compliance management system and procedures to comprehensively reduce the Company’s operational risks.
  • Prioritize employee well-being and career growth, stimulating team passion and competitiveness.
  • Center all work and business activities around customer needs, delivering efficient and high-quality R&D services for innovative drug research, development, and commercialization.
  • Sharing the same values with value chain business partners, cooperating for a win-win situation, and promoting the development of the industry.
  • Consistent with the Paris Agreement’s 1.5-degree target, adherence to the Science-Based Target initiative (SBTi) methodology, setting greenhouse gas (GHG) emission targets and reduction strategies.
  • Actively use renewable energy to reduce GHG at source. Monitor changes in the energy market and explore new technologies.
  • Setting up supplier engagement, working with suppliers to reduce GHG emissions upstream and downstream across the value chain.
  • Recognizing the importance of Diversity and Inclusion (D&I) as part of the workplace and supply chain sustainability agenda.
  • Provide a workplace where everyone feels valued, respected, and included regardless of race, ethnicity, gender, sexual orientation, age, religion, or other characteristics.
  • Refine the Code of Conduct for Business Partners with D&I included, and prioritize diverse suppliers.

Pharmaron remains dedicated to refining our sustainable strategies and policies, ensuring continuous progress towards our sustainability goals.

Capital Market Performance and Certifications

CDP Climate Change

Pharmaron is concerned about climate change and has a B rating from CDP in 2023.

Bronze EcoVadis sustainability rating badge for October 2024, highlighting top 35% achievement in sustainability performance.

EcoVadis

EcoVadis was awarded the Pharmaron Bronze Medal for creating sustainable value and impact.

MSCI ESG Rating

Pharmaron received an MSCI AA rating on MSCI’s letter scale from AAA (Leaders) to CCC (Laggards).

S&P Global CSA
S&P Global ESG rating

S&P Global ESG Score:63 Higher than the industry average

Pharmaron received an overall ‘Low Risk’ rating from Sustainalytics and has been recognized as an Industry Top-Rated Company.

Sustainalytics

Pharmaron received an overall ‘Low Risk’ rating from Sustainalytics and has been recognized as an Industry Top-Rated Company.

ISO Certifications

ISO 13485
  • Medical Device Quality Management System Certification
  • Pharmaron Clinical’s Contract Research Organization (CRO)
ISO 14001
  • Environmental Management Certification
  • Pharmaron Beijing, Pharmaron Cramlington, Pharmaron Liverpool
ISO 20000
  • Information Technology Service Management System Certification
  • Pharmaron Beijing
  • Pharmaron (Ningbo) Biologics
  • Pharmaron (Ningbo) Bioscience Service
  • Pharmaron (Ningbo) Technology Development
ISO 27001
  • Information Security Management Certification
  • Pharmaron Beijing
  • Pharmaron (Ningbo) Biologics
  • Pharmaron (Ningbo) Bioscience Service
  • Pharmaron (Ningbo) Technology Development
ISO 45001
  • Occupational Health and Safety Certification
  • Pharmaron Liverpool
  • Pharmaron Beijing

Sustainability Targets:

GHG targets (align with SBTi):

  • SBTi approval Target:
    • Overall Net-Zero Target: Committed to reach net-zero greenhouse gas emissions across the value chain by 2050.
    • Near-Term Targets: Committed to reduce absolute scope 1 and 2 GHG emissions 54.60% by 2033 from 2023 base year. Pharmaron Beijing Co., Ltd. also commits to reduce scope 3 GHG emissions 61.07% per million CNY value added within the same timeframe.
    • Long-Term Targets: Committed to reduce absolute scope 1 and 2 GHG emissions 90% by 2050 from a 2021 base year. Pharmaron Beijing Co., Ltd. also commits to reduce scope 3 GHG emissions 97% per million CNY value added within the same timeframe.

icon for renewable energy

Renewable energy consumption target

With 2023 as the base year, gradually increase the use of renewable energy.

icon for water resource consumption

Water resource consumption target

With 2023 as the base year, gradually reduce the intensity of water consumption from 1.55 t/RMB 10,000.

icon for green waste management

Compliance rate of waste disposal (%)

Maintain a 100% compliance rate of waste disposal.

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Energy-Saving and Emission-Reducing Technology

Pharmaron is steadfastly committed to exploring energy-saving and emission-reducing technologies, focusing on optimizing energy structure. We actively promote the adoption of renewable energy sources, including purchasing renewable electricity, sourcing renewable energy from biomass facilities, and other measures to mitigate carbon emissions at the source.

A view of Pharmaron's Liverpool site, featuring a modern facility surrounded by greenery and trees, reflecting the commitment to sustainability in manufacturing. The clear blue sky highlights the environmentally conscious landscape design, embodying the company's sustainability efforts

Renewable Energy Implementation

A power purchase agreement (PPA) is recognized as the primary measure of green operations since it brings green benefits. Additionally, we collaborate with renewable energy facilities to source electricity and steam directly. We are simultaneously looking at the potential and opportunities to implement a variety of renewable energy sources in our business. For example, in the future, we are considering integrating solar photovoltaic (PV) power generation at the design stage of our low-carbon factories. Our relentless pursuit of innovative technologies underscores our dedication to advancing further renewable energy applications.

To learn more:

A vibrant forest canopy under a clear sky, symbolizing the impact of a green, low-carbon supply chain. The image reflects the power of nature, highlighting the importance of green power initiatives in reducing carbon footprints and promoting sustainability and effective ESG practices.

Sustainable Markets Initiative

Pharmaron has joined the Health Systems Working Group of the China Council of the Sustainable Markets Initiative (SMI), in response to the “Green Energy Transformation of the Pharmaceutical and Healthcare Chain” initiative.

Since joining SMI, Pharmaron has been working with the working group members to exchange information about green power, green sites, green procurement, green low-carbon supply chains, and other aspects.