Over recent years, many pharmaceutical companies have taken up environmental, social and governance (ESG) targets in order to prioritize sustainability whilst boosting their external public relations. On October 6, in a GlobalData webinar, experts tried to answer the question 鈥�, revealing a multitude of diverse strategies for pharmaceutical companies to remain conscious of their global impact.
GlobalData is the parent company of Pharmaceutical Technology.
While there is significant interest among pharma companies to improve their environmental record and reduce their carbon footprint, and rightfully so, the 鈥渟ocial鈥� and 鈥済overnance鈥� aspects are often neglected. Experts at the recent webinar presented health equity data, showing the opportunities to achieve significant financial gain whilst reducing health inequity.
A survey in GlobalData鈥檚 Healthcare Industry Business Confidence Report 2020 placed sustainability initiatives at the bottom of a list of the pharmaceutical sector鈥檚 main priorities. At the time, pharmaceutical professionals placed 鈥渃ustomer retention鈥�, 鈥渋mproving operational market share鈥� and 鈥渋mproving social responsibility initiatives鈥� as the most important priorities for their businesses. However, in GlobalData鈥檚 2021 Global Management Insight Survey, 58.4% of respondents said 鈥淵es鈥� to the question 鈥淒o you think the Covid-19 pandemic has acted as a catalyst for increased focus and action on ESG issues?鈥�, showing a potential shift in pharmaceutical perspectives towards sustainability.
Companies such as and have led the way with goals to by reducing greenhouse gas emissions, water consumption, and more. These actions, amongst others, aim to meet the goals of the United Nations Climate Change Conference COP21 Paris agreement.
Reaching social and governance goals
In a discussion of the possible social and governance goals, GlobalData鈥檚 executive director of Life Sciences Consulting, Tim Dall, highlighted the importance of overcoming healthcare disparities. Dall talked about with the trade organisation Pharmaceutical Research and Manufacturers of America (PhRMA), which has allowed for a focused effort to analyse and tackle health equity issues within the United States (US).
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataIn recent years, there has been an increasing awareness of how racial disparities affect several sectors including the pharmaceutical industry. Major inequities are seen in drug development, hospital treatment, and insurance coverage. In 2020, PhRMA announced its industry-wide Racial Justice Principles on clinical trial diversity to help Black and brown communities by reducing barriers to clinical trial access, incorporating real-world data, and enhancing information about diversity and inclusion in clinical trial populations. These principles also aim to allow an acknowledgement of Black and brown mistrust of clinical trials.
Such work and initiatives are meant to meet the Centers for Disease Control and Prevention鈥檚 (CDC) national goals to 鈥渁chieve health equity by eliminating health disparities and achieving optimal health for all Americans.鈥� Data presented at the ESG webinar suggested that Americans could benefit from significant financial gain if health equity were prioritized. Discussing the possible ease of a pivot towards health equity Dall said, 鈥淭here are existing policy changes that could be made easily without major legislations to improve access to medication and adherence鈥�.
Health disparities today
US health disparities have been analysed annually by the US Agency for Healthcare Research and Quality for the last 19 years. In the most , data showed that 43% of Black people and 36% of Hispanic people received worse quality of care compared to white people in the US. Research presented at GlobalData鈥檚 webinar supported this data.
An area of focus in the webinar was medication adherence which remained significantly below 100% across all ethnic groups. However, Dall highlighted disparities between the groups saying, 鈥淭he white and Asian population tended to do much better in terms of medication adherence, compared to the Black and Hispanic populations.鈥� This trend continued in data presented surrounding the control of chronic diseases. For example, 37% of Black patients鈥� high blood pressure was 鈥渘ot well managed鈥� with the Hispanic population following closely behind at 34%, compared to 30% of white patients falling under this category.
An analysis from GlobalData showed that achieving health outcomes for chronic diseases for all ethnic backgrounds would be massively beneficial, potentially saving Americans over $3.8 trillion in savings over the next decade. This is due to the $1 trillion in savings from reduced absenteeism and $2.7 trillion saved in medical spending on different treatments and therapies. 鈥淭here鈥檚 an important role for the pharma industry and pharmaceuticals in closing health gaps, but it鈥檚 not just in helping minority populations have outcomes that are more similar to the non-Hispanic white population, but rather raising the outcomes for all populations because all populations are performing at less-than-optimal conditions,鈥� said Dall.
PhrMA鈥檚 health equity initiative
As of April 2021, PhrMA鈥檚 Racial Justice principles were put into effect to reduce health disparities. Courtney Christian, senior director of Policy and Research at PhRMA, explains that in 2020, the murder of George Floyd acted as a turning point for the trade organisation to take further action about reducing healthcare disparities and supporting Black and brown communities. 鈥淎ll of our over 30 companies have committed to doing something over health equity for some time,鈥� said Christian.
鈥淲e鈥檝e been learning from communities and having our ear to the ground to really be messengers around the different policies we can promote around health equity, but also support the community-based organisations that are already doing this work,鈥� said Dr. Jackie McRae, director of Policy, Research and Membership at PhRMA.
