It is worth noting that 84% of pharma and healthcare companies go on to consider that the new EU Corporate Sustainability Due Diligence Directive- CDDDD happens to be nothing short of an opportunity so as to sync human rights as well as environmental protection with their business aims. These are the findings from a survey that was conducted by INVERTO, the supply chain specialist.
The fact is that EU operations must go on to comply with the new directives. Especially European companies with a turnover of more than €450mn and over 1000 workforce will have to share the details pertaining to sustainability across the supply chains and, at the same time, adopt policies that are effective so as to go ahead and also comply with the directive.
Interestingly, the UK-based pharmaceutical companies are going to be legally liable when it comes to the non-compliant nature of their subsidiaries and/or even their suppliers, said INVERTO.
As per the companies that responded to the survey, 74% of them said that compliance with the directive happens to be achievable.
The measures which are already executed by these firms go on to include-
- Creating the compliance procedures stands at 77%.
- Giving out a yearly financial report, standing at 69%.
- Partnering with other companies within the same sector, standing at 63%,
- Tracking the performance indicators, standing at 63%.
Moreover, the survey also found that 60% of the participants went on to think that in the long-term, the financial effect of the directive is going to be positive and also expect a return on investment.
Moreover, 55% anticipate that stringent regulations can also go on to have a positive effect on the image of the company.
One more major benefit underscored by the participants happened to be greater responsibility towards the environment, with 51% saying so.
Interestingly, 47% of the respondents who happened to be from the pharma as well as healthcare sectors went on to consider that financial performance happened to be a prominent task of procurement.
In spite of these potential advantages, the responding companies within the healthcare sector had a belief that practically two prominent challenges of executing the measures were a dearth of capacity at 25% and directive guidelines that were unclear at 20%.
Future Pharma Chain Sustainability
As per the principal at INVERTO, Sabrina Morton, companies now happen to be receiving uniform rules for the overall EU, which happens to be especially advantageous for the healthcare sector. The CSDDD helps companies in the healthcare industry in order to make their supply chains more transparent. UK businesses with international operations have to consider precisely how they need to align their functions with those of the EU.
She added that by way of creating more transparency, the companies can go on to identify opportunities in terms of cost savings as well as reallocate resources. This goes on to contribute to total efficiency and, hence, in a way, promotes competitiveness as well as innovation. The survey went on to gain insight from over 680 decision-makers from B2B as well as B2C companies with over 500 employees through November and December 2023, shared INVERTO.
