Muhammad Asim NiaziJune 13, 2025
Environmental, Social, and Governance (ESG) is a social impact framework used to assess a manufacturer's commitments in the areas of environmental and social responsibility. It focuses on development in the fields of non-financial areas, such as human development, sustainability and ethical norms. Its aim is to reduce negative impacts in its focus areas, often neglected when planning business strategies during establishment or developmental stage
In pharmaceuticals, as in every manufacturing industry, it is used to ensure accountability and management of an organisation's impact on natural resources ( such as reducing its carbon footprint), treatment of humans (such as employees), and responsible corporate management. The ESG principles serve as a reference for mitigating environmental risks, addressing sustainability challenges, and ensuring social responsibility and regulatory compliance.
ESG stands for Environmental, Social and Governance. The term is used to describe the organization's efforts towards sustainability and how its products contribute to sustainable environments. It measures an organisation's ability to fulfill social responsibility and mitigate negative impacts due to their business practices, products and manufacturing process.
ESG applies to all interested parties related to an organization, including employees, customers, and suppliers.
The heart of this framework are three critical variables that have the most impact, and are Environmental, Social, and Governance.
· Environmental - it determines whether an organization's business operations protect the environment and use natural resources responsibly.
· Social - The impact of an organization's business functions on people and culture
· Governance - the organization's behaviour towards governance, such as shareholder rights, and determines organization's commitment & efforts towards fulfilling regulatory requirements.
As mentioned above, ESG is applied to all areas of an organization. However, the focus of this article is only equipment, so we will discuss how ESG is applied to pharma equipment
ESG-related pharma equipment is integrating ESG principles into pharma equipment design, operations and outcome. The ESG framework is implemented at an earlier stage when the buyer plans to buy an equipment. The equipment manufacturer integrates the framework by appropriate system, components and parts.
Lets briefly describe the purpose of these individual components can be integrated into a pharma equipment
The pharmaceutical equipment must be able to conserve energy, prevent damage to the environment, and reduce dependence on harmful procedures. Through efficient engineering design, utilising the latest components and applying technological innovation, the equipment can be made environmentally friendly, contributing to a healthier environment.
The equipment must have a positive impact on human health and capabilities. Through appropriate investment, research, and innovation, the workplace can promote the health, safety, emotional well-being, and social well-being of employees.
It is the compliance side of pharma equipment in achieving sustainability. By following relevant standards, industrial regulations, and security practices, the equipment’s operation can be made regulatory compliant and regularized. The governance factor can also be helpful in achieving relevant regulatory approvals.
Let's discuss some ways these principles can be integrated into the pharmaceutical equipment
The environmental aspect of ESG can be addressed through various means, some of which are described below.
The negative impact on the environment can be reduced & prevented by increasing the efficiency of pharma equipment. The efficient equipment uses less fuel, produces less greenhouse gases, which in turn protects environmental resources.
Energy efficiency in pharmaceutical machines refers to the ability to produce the required output and productivity levels, while also reducing energy consumption. Efficiency cannot always be achieved by reducing the amount of energy it takes. Alternatively it can also be achieved by upgrading machine design & components.
Some areas can include the following
HVAC is an integral part of a pharma facility and is responsible for managing environmental conditions according to the industry requirements. Since environmental control is required for most products and processes, it accounts for a significant amount of energy expenses and its subsequent impact on the environment, such as greenhouse gases and heat exhaust.
To reduce energy consumption, the HVAC operation is optimised by utilising various technologies. Optimization is reflected in lower greenhouse gas emissions, a smaller heat footprint, and lower energy consumption.
Variable frequency Drives are a critical part of the machine system for controlling motors and pumps according to process requirements. By effectively utilizing different VFD functionalities, it can be used to have a positive impact on the environment.
Variable Frequency Drives (VFDs) can adjust the motor’s output according to the real time requirements and enhance the energy consumption of the attached system. They can reduce the motor's speed in times of less requirement, saving energy. The ability of a VFD to precisely control physical variables, such as fluid flow and pressure, increases the overall operational excellence and performance.
In the social aspect, the equipment contributes to the well-being of its employees and related personnel. The equipment is safe to operate, requires human efforts within acceptable human levels and prevents ergonomic effects.
Some ways it can be integrated into pharma equipment are mentioned below.
The pharmaceutical industry involves working with hazardous chemicals, biological agents, and chemically active raw materials. Specifically, the powdered form can be inhaled by the personnel working in the area.
OHS helps to ensure a safe working environment by mitigating risks and training. It implements various preventive measures to ensure the safety of personnel and the processes being carried out.
Some measures can include the following.
Cleanroom garments and air showers - Cleanroom garments and air showers are used to prevent humans.
Garments are made of synthetic material that personnel wear to prevent contamination when entering a critical area, such as a manufacturing or chemical dispensing facility. It covers the entire body, with sufficient arrangements for breathing and effectively preventing the ingress of foreign particles, including hazardous chemicals.
Air showers, on the other hand, use high-velocity air to remove accumulated particles from the personnel body. Although they are commonly used on personnel before entering a clean area, they can also be used to remove particles when exiting the clean area, after the production process is over.
Fume hoods and biosafety cabinets - Other equipment that can positively impact the social aspect of ESG are fume hoods and biosafety cabinets. They are used for testing applications of pharma chemicals and raw materials.
They both serve an essential role in protecting personnel. Fume hoods protect with exhausting air through the hoods into the outside area. Biosafety cabinets protect personnel from recirculating filtered air, thereby removing hazardous biological agents from the user and the environment.
Leak detectors and Alarm System - The pharmaceutical industry has a broad application of various fluids, including steam, gases, and liquid chemicals. For safety purposes, they are contained in closed vessels and transferred through sealed piping to prevent contact with personnel. However, these fluids can leak into the environment and pose a threat to humans and the area.
To prevent leaks in the area, leak detectors and alarm systems are used. The gas detectors detect fluid leaks, and alarm systems deployed at appropriate locations alert concerned personnel for problem rectification. The entire configuration helps prevent human life and has a positive social impact.
In the governance aspect, the pharmaceutical equipment complies with all relevant requirements by following approved processes and integrating appropriate components and technologies. The organization also works to resolve any compliance issues that could impact the business.
Some ways governance can be implemented are as follows.
Batch Records are critical documentation related to product manufacturing in the pharmaceutical industry to record every detail of the manufacturing process, such as equipment parameters and raw materials. Traditional practice involves using manual, paper-based systems that often fail to fulfil various compliance requirements.
The Electronic Batch Record (EBR) automates batch recording using software systems. It automatically records each stage of the batch as it proceeds through different stages. It helps improve data integrity and traceability, which is a major compliance requirement.
Laboratory operations in the pharmaceutical industry are a critical area of organisation. Laboratories are used to test raw materials, finished products and other forms to ensure quality & safety. In addition, laboratories are a mandatory regulatory requirement, that must function according to different guidelines.
A Laboratory Management System (LMS) is a software solution that automates routine laboratory functions. It helps manage laboratory processes, track operations, perform sample management, and provide a centralized location for data flow, view, and management. The LMS helps fulfil the compliance aspect of ESG by ensuring traceability, electronic signatures, records management, and many more features.
HVAC in the pharma industry is used to control and process the environment according to the product and area requirements. It manages various environmental parameters, such as temperature and humidity, in their acceptable range, suitable for the pharmaceutical process and product.
BMS is a software solution to automatically and precisely control HVAC equipment. It also enables electronic, accurate, and regular record-keeping—a critical regulatory requirement. Additionally, it also enables data security by utilizing different features, such as login/password and authentication levels. It can also help alert systems in case of problems.
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