Our experience

Setting the scene

Like most sectors of the economy, the pharmaceutical sector is undertaking intensified activities in the area of ​​sustainable development. Our research shows that 52% of the sector’s leaders expect to expand reporting in the ESG area going forward, with 77% recognising social aspects to be of key importance. Including ​​environmental, social and corporate governance (ESG) factors in the risk management process can be the first step that pharmaceutical leaders can take. Key among them? Reduction of emissions, water consumption and generated waste, assurance of universal access to drugs and clinical trials, and overall management of ESG issues.

To do so, however, companies first need to understand their current status in the area of ESG and identify gaps not yet addressed in a structured or effective manner. That was the aim of Polpharma, a leading company in the Polish pharmaceutical sector. Having already implemented some measures towards addressing ESG, they were missing a comprehensive picture of where they are and how to move forward.

How we helped

The PwC team was engaged to undertake ESG maturity assessment and gap analysis of the client’s ESG preparedness, including benchmarking it against key sector players. The project, taking place over several months, focused on identification of areas of sustainable development significant from the perspective of ESG criteria. 

Through an overview of ESG data available, analysis, workshops, meetings, and interviews with representatives of the company, we conducted an assessment of the company’s ESG maturity based on specific areas: environmental factors, factors related to social and human capital, factors related to the business model and innovations, and leadership and management factors. 

Ultimately, we developed a catalog of identified ESG risks, including indication of the area to which the identified risk relates, risk description, assessment of the risk level, and proposals of measures to mitigate it.

Impact and potential

ESG needs to be approached comprehensively to address and promote a company's sustainable development. Our assessment helped to clarify Polpharma’s position in the overall pharmaceutical sector in terms of ESG. While the company had taken some important steps already, our analysis uncovered important existing gaps, the bridging of which could contribute to both more sustainable performance, more resilient operations and Polpharma’s better responsiveness to upcoming shocks.

The project resulted in deeper understanding of the ESG risks the company faces in its day-to-day operations and advantages that can be gained in addressing them. It showed that pharmaceutical companies can take advantage of ESG, among others by incorporating the ESG strategy into the company's overall strategy, increasing transparency and assigning responsibility for ESG issues in the organization, and developing detailed ESG action plans. 

PwC’s analysis and findings can also serve as a starting point for developing a comprehensive ESG strategy and crucial policies, such as diversity and inclusion or biodiversity policy.