In today's global context, the environmental, social, and governance (ESG) performance of enterprises has become an important indicator for measuring their sustainability and market competitiveness.
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According to the latest "2023 ESG Rating Analysis Report for the Pharmaceutical Industry" released by United Credit Ratings, there are a total of 332 listed companies in the A-share pharmaceutical industry, of which 121 companies disclosed ESG related reports in 2023, with a disclosure rate of 36.45%. Although there is still room for improvement compared to other industries, this data shows that the pharmaceutical industry is increasingly valuing ESG information disclosure. The report points out that the ESG risks of listed companies in the pharmaceutical industry are relatively high, with most companies having medium to low ratings, and there is still significant room for improvement in overall indicator disclosure levels.
02 Environmental (E) Dimension
The production process of the pharmaceutical industry involves a large amount of energy consumption and pollutant emissions, which have a significant impact on the environment. The report shows that the overall environmental score of pharmaceutical companies is relatively low, mainly due to the lack of specific quantitative data on pollution emissions and energy consumption in most enterprises, and the incomplete construction of environmental related systems. Environmental management and actions have become key considerations in the environmental dimension, but overall performance is not satisfactory.
03 Social (S) Dimension
In terms of social responsibility, pharmaceutical companies have relatively good information disclosure, and companies with high scores generally perform well in product quality, supply chain management, and other aspects. However, there are still some companies whose overall ratings are affected by incomplete or poor quality information disclosure. Public benefits, user responsibility, employee responsibility, and special responsibility are the main considerations in the social dimension, reflecting the comprehensive performance of pharmaceutical companies at the social level.
04 Governance (G) Dimension
Most listed companies in the pharmaceutical industry are private enterprises, which have deficiencies in governance structure, risk control, compliance management, and other aspects. Although the disclosure rate of governance indicators is relatively high, the overall score is above average, indicating the differentiation of governance efficiency among enterprises in the industry. ESG governance, governance system, and governance performance are the core elements of governance dimension, and companies need to further improve relevant systems and processes.
01 Environmental Pressure Intensifies
With the increasingly strict environmental regulations, pharmaceutical companies are facing greater environmental pressure. How to effectively handle the waste generated during the production process and reduce pollutant emissions has become an urgent problem for enterprises to solve.
02 Social Responsibility and Brand Image
The product quality of pharmaceutical companies is directly related to the safety of patients and the trust of the public. Once there is a problem with product quality, it will seriously damage the brand image and market reputation of the enterprise. Therefore, strengthening product quality management and fulfilling social responsibility have become the top priorities for pharmaceutical companies.
03 Governance Structure and Information Disclosure
Some private enterprises have weak links in governance structure and information disclosure, such as lack of effective internal controls, inadequate risk management, and insufficient information disclosure. These issues may affect the sustainable development and market competitiveness of enterprises.
01 Strengthen Environmental Management
Pharmaceutical companies should increase investment in environmental technology research and development, establish a sound waste disposal system, and ensure compliant emissions of pollutants. At the same time, actively responding to the national dual carbon strategy, promoting green and low-carbon transformation, and reducing energy consumption and emissions in the production process.
02 Improving Product Quality and Social Responsibility
Strengthen product quality management and drug surveillance management to ensure the safety and effectiveness of drugs. Actively fulfill social responsibilities, pay attention to public health needs, improve patient satisfaction and social recognition. Through technological innovation and product development, continuously enhance the core competitiveness and market share of the enterprise.
03 Improve Governance Structure and Information Disclosure
Establish a sound governance structure and internal control mechanism, strengthen risk management and compliance management, and ensure the stable operation and sustainable development of the enterprise. Improve the quality and transparency of information disclosure, enhance investor confidence and market recognition. By integrating and practicing ESG concepts, we aim to promote corporate social responsibility and sustainable development.
04 Promote the Integration of ESG Concepts Into Corporate Culture
Integrating ESG concepts into corporate strategic planning and daily operations, forming an ESG management system that involves all employees and provides comprehensive coverage. By providing training and education, we aim to enhance employees' ESG awareness and competence, and jointly promote the sustainable development and social responsibility of the company.
ESG rating is not only an assessment of a company's sustainable development capability, but also an important driving force for achieving high-quality development. For the pharmaceutical industry, facing increasingly severe environmental pressure and social responsibility requirements, strengthening ESG management has become an unavoidable choice. In the future, with the deepening of ESG concepts and the continuous promotion of policies, the pharmaceutical industry will usher in broader development space and more intense market competition. Only companies that continuously improve their ESG performance can stand out and become industry leaders in fierce market competition.
Lindmik Pharmaceutical(Suzhou)Co.,Ltd is a high-tech pharmaceutical enterprise focusing on the research and development, production and sales of innovative pharmaceutical preparations.Equipped with a number of its own innovative R&D platform of dosage forms, including the transdermal drug delivery system, and at the same time, actively introducing the world’s leading nano-based drug delivery, microspheres drug delivery and other cutting-edge pharmaceutical technologies by means of “license in”, the company is a new rapidly developing company pharmaceutical companies that catches people’s eyes.
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