Panel discussion on...

ESG & Strategic Partnerships in Pharma Supply Chain

Stanislav Kazanov

Head of GRC, Cybersecurity & Sustainability, Innowise

INNOWISE

With global supply chains under pressure from regulation, climate risk and stakeholder scrutiny, what digital tools or AI/ML-driven platforms are you using (or planning) to ensure real-time transparency, traceability and ESG performance across multiple tiers of your pharma supply network?

At Innowise, we're pragmatic about this: real-time transparency across multi-tier pharma supply chains cannot be achieved by deploying a single, siloed platform. Instead, it requires a deeply integrated, layered data architecture.

For our pharma clients, we develop and implement custom knowledge graph architectures that go beyond tier-one visibility. The moment you're trying to trace an API (active pharmaceutical ingredient) back to a raw material source in a region with climate or geopolitical exposure, you need relationship data, not just transaction data. We're working with knowledge graph architectures that allow dynamic supplier network visualization with ESG attribute overlays (emission intensities, water stress indices, social compliance scores) pulled via API from third-party data providers like EcoVadis, Sedex, and sustainability-focused supply chain intelligence platforms.

Concurrently, we deploy AI/ML-driven anomaly detection models for continuous ESG signal monitoring. By cross-referencing a supplier's reported sustainability metrics deviate from satellite data, news signals, or sector benchmarks. This predictive capability allows pharmaceutical companies to identify and mitigate greenwashing risks before they escalate into regulatory or reputational liabilities.

Advances in manufacturing (automation, digitalization, predictive analytics) are often seen through a cost-and-efficiency lens — how do you leverage these capabilities specifically to reduce carbon footprint, water and energy consumption, waste generation, and drive circularity in the pharma supply chain?

The traditional narrative surrounding automation and digitalization is heavily skewed toward cost and throughput, which represents a critical oversight. What we push with pharma manufacturing clients is shifting the KPI conversation: automation ROI should include avoided waste, energy intensity per unit produced, and water recycling rates — not just throughput and labor costs.

Predictive analytics is where I see the biggest underutilized potential. We've helped clients deploy predictive maintenance models that reduce unplanned downtime — but the sustainability angle is that unplanned shutdowns create enormous waste: off-spec batches, energy spikes, chemical disposal. Preventing them isn't just efficiency; it's material waste avoidance at scale.

Digital twins are particularly powerful here. When you model an entire manufacturing environment digitally, you can simulate energy load scenarios, optimize HVAC and cleanroom conditions without physical trials, and design for circularity — testing closed-loop water or solvent recovery scenarios before any capital investment. We've seen clients reduce utilities consumption meaningfully just through twin-enabled scheduling optimization.


With ESG disclosures, due-diligence requirements and multi-tier supplier accountability rising, how are you aligning and governing your supply-chain relationships (raw materials, manufacture, logistics) so you can deliver the data, audit trails and assurance demanded by pharma-clients, investors and regulators?

The regulatory pressure — Corporate Sustainability Reporting Directive (CSRD), the German Supply Chain Due Diligence Act (LkSG), emerging FDA supply chain transparency guidance — is forcing a governance rethink that most pharma companies aren't fully prepared for. The core problem is that ESG data collection has historically been survey-based and annual. The legacy model is effectively obsolete for anything requiring audit-grade assurance.

What we're building with clients is a continuous data collection architecture: suppliers onboarded to structured data-sharing agreements with defined data schemas (aligned to GHG Protocol, CDP, or client-specific taxonomies), automated ingestion pipelines, and version-controlled audit trails. Every data point has a lineage — who reported it, when, against what boundary, with what verification status.

Contractually, we're advising clients to move beyond supplier codes of conduct (which are largely performative) toward ESG SLAs — measurable, auditable, and tied to commercial consequences. Not every relationship warrants this level of rigor, but strategic and high-risk suppliers absolutely do.

Supply-chain resilience and ESG are no longer separate agendas: climate events, social disruptions, governance lapses all inject risk. How are you integrating ESG factors into your supply-chain risk-management frameworks — including supplier mapping, scenario-modelling, redundancy, reshoring/diversification strategy?


The separation between ESG and operational risk was always artificial. Climate physical risk is a supply disruption risk. Governance failure at a contract manufacturer is a product integrity risk. Social instability in a sourcing region is a continuity risk. We treat them as one framework.

Practically, we've built supplier risk scoring models that incorporate ESG dimensions alongside traditional financial and operational metrics. Water stress scores for manufacturing locations, carbon regulation exposure by jurisdiction, and social risk indices are all feeding into the same risk heatmaps that procurement and supply chain teams use for sourcing decisions.

Scenario modelling is still underused. We run climate-scenario analyses for clients — asking what a 2°C versus 4°C trajectory means for key supplier geographies: Which API sourcing regions face acute water scarcity? Where does extreme heat threaten cold-chain logistics reliability? This directly informs reshoring decisions and dual-sourcing strategies in a way that goes beyond gut feel.

In the emerging era of pharma manufacturing (smart plants, digital twins, modular units), what defines a strategic partner in your eyes? What key governance mechanisms, contract-incentives or metrics differentiate the partners you view as truly aligned with ESG-and-resilience goals?

For us, a strategic partner is one who brings verifiable ESG data, not just commitments. In smart manufacturing and digital twin contexts, this means partners whose systems are integration-ready — where sustainability metrics are native outputs of their operational data, not a reporting afterthought.

Governance-wise, we look for joint ESG roadmaps with milestone accountability, not just contractual compliance clauses. The best partnerships we've seen include shared sustainability targets, joint investment in capability development, and regular ESG performance reviews at the executive level — not buried in procurement reporting.

Commercially, we're increasingly advising clients to implement incentive structures: preferential volume allocation or pricing adjustments linked to demonstrated ESG improvement trajectories. It aligns interests and creates genuine commercial motivation beyond regulatory compliance.

Looking ahead to 2030 and beyond, what will define leadership in pharma supply-chain ESG? What capabilities will best-in-class organizations have — and where are most firms falling behind today?

By 2030, the differentiator won't be who has the most sophisticated ESG report. To my mind, it'll be who has real-time, machine-readable, audit-grade ESG data embedded into every material supply chain decision. Leadership will mean full Scope 3 visibility with supplier-level granularity, dynamic risk integration across ESG and operational parameters, and the ability to demonstrate resilience through evidence, not plans.

As for where most firms are falling behind today. They're investing in disclosure infrastructure without fixing the underlying data infrastructure. Constructing a compliant CSRD report on top of fractured spreadsheets and unverified surveys creates immense reputational and regulatory risk. But that's not leadership, it's reputational risk waiting to materialize. The organizations that will lead in 2030 are the ones making the unglamorous investments now: supplier data onboarding, API-connected ESG monitoring, and cross-functional governance that puts supply chain sustainability on par with quality and compliance.


Panelists

Blake Unterreiner

Vice President and Business Unit Leader, Agilent Advanced Therapeutics

Michael Rainey

Director of Supply Chain, Almac Sciences

Françoise Durand-Rivoire

Global Head of ESG, Axplora

Hans van Hees

COO of Bachem AG

Matthias Müllner

CEO and co-founder of bespark*bio

Kerstin Stangier

Head of Corporate Development, Governance & Sustainability, BioSpring

Yann Dherve

Chief Executive Officer - CDMO, Cohance Lifesciences

Roger La Force

Managing Director, Dorra Pharma Group

Joanne Flinn

Chair, The ESG Institute

Xavier Touche1, Alain Goasguen2

1. Global Head of Supply Chain at Euroapi
2. Head of Environment & Energy at Euroapi

Anne Lise Kopp

Corporate ESG & Transformation Leader, Flamma Group

Robert Dream

Managing Director, HDR COMPANY LLC

Nathalie Huther

Chief Commercial Officer, HFR

Justin Mason-Home, FRSC

Owner/Director, HPAPI Project Services Limited

Patrizia Fazio

Head of applied research coordination, Imprima

Laura Monti

Responsible Sourcing - Purchasing department, Indena

Stanislav Kazanov

Head of GRC, Cybersecurity & Sustainability, Innowise

Sonja Merkas

Founder and CEO, Livinovea

Verena Buback

Head of Sustainability Strategy, Merck Procurement

Dirk Kirschneck

Strategic Director,

Microinnova Engineering GmbH

Saharsh Davuluri

CEO & Managing Director, Neuland Laboratories

Tammy Cooper

President, Nitto Avecia and

Nitto Avecia Pharma Services

Shaojun Zhu1, Dongxin Zhang2, David Ennis3

1. Director of Sustainability Development, PharmaBlock
2. Executive Director and Head of Business for New Modalities, PharmaBlock
3. Executive Advisor, PharmaBlock

Peter DeYoung

CEO, Piramal Global Pharma

Sonia Rasi1, Michele Tappa2

1. Financial Director & Chief Sustainability Officer, Procos
2. ESG Manager, Procos

Pascal Villemagne

CEO, Seqens

Darryl Ratty

Executive Director, Global ESG, SK pharmteco

Natalia Agüeros1, Ralf Karch2

1. Sr. Director, ESG & Sustainability, Umicore
2. Director BU Research & Development at PMC, Umicore

Dani Reguant

Supply Chain Director, Uquifa Group