Sustainability

Determine eligibility: Identify whether your company falls under CSRD requirements (e.g., >250 employees, >€40M turnover, >€20M assets, or listed SMEs from 2026).

Know the timelines: Reporting becomes mandatory in stages (2024–2028) depending on company size and listing status.

Know the framework: CSRD mandates the use of ESRS (European Sustainability Reporting Standards).

Impact materiality: Evaluate how your operations impact people, society, and the environment.

Financial materiality: Assess how sustainability-related risks and opportunities affect financial performance.

Use pharma-specific lenses, such as: Access to medicines, Supply chain ethics, Environmental impact of R&D and manufacturing & Public trust and regulatory scrutiny

General standards: ESRS 1 (Principles) and ESRS 2 (General disclosures) – mandatory for all.

Topical standards: Select relevant ones based on materiality:
ESRS E1–E5 (Environment): Emissions, pollution, biodiversity, etc.

ESRS S1–S4 (Social): Workforce, consumers, affected communities.

ESRS G1 (Governance): Business conduct, anti-bribery, risk management.

Pharma companies often find ESRS E1, S1, and G1 especially relevant.

Establish ESG KPIs: Emissions, water use, clinical trial diversity, supply chain risks, etc.

Align with existing frameworks: Leverage data from GRI, SASB, TCFD, and previous ESG reports.

Integrate finance & ESG teams: Ensure consistency between financial and sustainability reporting.

Define roles for sustainability reporting: compliance, legal, HR, procurement, R&D, etc.

Ensure board-level oversight on ESG strategy and risk.

Implement audit trails and internal controls for data integrity.

To be structured around:

• Strategy and business model impact
• Sustainability targets and performance
• Risk management approach
• Policies and due diligence
• Metrics and KPIs (quantitative + qualitative)

CSRD requires limited assurance initially, moving to reasonable assurance in the future.

Prepare for audit-readiness with third-party assurance providers (e.g., ESG auditors or statutory auditors).

Include the CSRD section in the management report filed with annual financials.

Use digital filing systems compliant with European Single Electronic Format (ESEF).

Communicate transparently with stakeholders (investors, regulators, patients, partners).

Link the report to the SDGs to show global alignment.