Environmental Footprint Beyond Carbon:  A Descriptive and Inferential Statistical Analysis of Energy, Water, and Waste Metrics (Resource Efficiency) in the Pharmaceutical Industry (2019–2025) – Part II

Surinder Deswal¹, Phalguni Deswal²

¹ Professor, Civil Engineering Department, National Institute of Technology Kurukshetra, India.

² Independent Researcher, India. 

Abstract

The pharmaceutical industry’s environmental footprint extends beyond greenhouse gas emissions to encompass substantial resource consumption of energy and water, as well as waste streams. This study presents a comprehensive descriptive and inferential statistical analysis of resource efficiency metrics for 14 major pharmaceutical companies over 2019–2025, examining energy consumption, renewable energy transitions, freshwater withdrawal, waste generation, and circular economy indicators.

Analysis reveals that total energy consumption across the sector declined from a mean of 10,2153 TJ in 2019 to 8,503 TJ in 2025 (‑16.8%), while renewable energy share increased substantially from 11.8% to 44.9% – a 280% relative increase. However, the magnitude of energy reduction (-16.8%) is substantially smaller than the Scope 2 emissions reduction (-77.3%), reflecting that Scope 2 reductions are driven primarily by renewable electricity procurement rather than absolute energy consumption reduction. Energy intensity improved by 31.8% in mean terms. However, the marked difference between energy reduction (-16.8%) and Scope 2 emissions reduction (-77.3%), coupled with convergence of energy intensity (mirroring the pattern observed for Scope 2 emissions intensity), suggests that the pharmaceutical industry is experiencing a “one-way” transition in manufacturing energy efficiency driven by Scope 2 reductions rather than absolute energy reduction. Further, the decoupling of energy consumption from revenue growth remains partial, with a mean energy decoupling ratio of 0.70 – only three companies achieved strong decoupling (>3.0). Many companies exhibit weak decoupling despite achieving substantial energy intensity reduction owing to their extraordinary revenue growth compared to reduction in energy consumption, demonstrating that even substantial efficiency improvements can be insufficient to achieve absolute energy reduction. Thus, to truly reduce climate impact, businesses must focus on cutting their total energy footprint – not just energy efficiency.

Fresh water withdrawal declined by 28.7% in mean terms, with water intensity improving by 40.6%. Total waste generation decreased by 18.1% in mean terms, while waste intensity improved by 31.8%. However, waste recycling rates showed a decline (mean: -10.2%), and landfill diversion exhibited an increase (mean: _16.5%), with a few companies maintaining landfill rates less than 1%. Correlation analysis revealed moderate positive relationships between energy intensity and emissions intensity (Scope 1: r = 0.58, p < 0.01; Scope 2: r = 0.51, p < 0.01), confirming that energy consumption remains the primary driver of operational carbon footprint. The findings suggest that while the pharmaceutical industry is making measurable progress in resource efficiency – particularly in renewable energy adoption and water conservation – circular economy performance lags, with waste recycling and landfill diversion representing the next frontier for sustainability improvement. The results carry implications for target setting, process innovation, and the integration of resource efficiency into broader decarbonisation strategies.      

Keywords: Pharmaceutical industry, Energy consumption, Energy intensity, Renewable energy, Water withdrawal intensity, Waste generation intensity, Resource efficiency, Circular economy, Decoupling ratio.

References

1. Beck, A., Wiedergut, M. and Neubauer, N. (2025) ‘Towards fossil-free energy supply: Cost-effective decarbonization measures in pharmaceutical energy systems’, Applied Thermal Engineering, 280 (2), 128213. https://doi.org/10.1016/j.applthermaleng.2025.128213
2. Capgemini (2025) Energy efficiency in the pharmaceutical industry. https://www.capgemini.com
3. Deswal, P. (2025a) ‘Article 6 of the Paris Agreement: A comprehensive review of mechanisms, progress, and persistent challenges’, International Journal of Technology, Health and Sustainability, 1(2), pp. 111-125. https://ijths.com/wp-content/uploads/IJTHS-010235.pdf
4. Deswal, P. (2025b) Tracking Environmental Sustainability and GHG Targets in Pharma. Drug and Device World. https://druganddeviceworld.com/2025/04/21/tracking-environmental-sustainability-and-ghg-targets-in-pharmaceutical-sector/
5. Deswal, P. (2025c) What are GHG emissions. Drug and Device World. https://druganddeviceworld.com/2025/04/06/what-are-ghg-emissions/
6. Deswal, P. (2025d) CVS Health makes headway in becoming environmentally sustainable. Drug and Device World. https://druganddeviceworld.com/2025/07/03/cvs-health-makes-headway-in-becoming-environmentally-sustainable/
7. Deswal, P. (2025e) ten23 health’s progress towards environmental sustainability. Drug and Device World. https://druganddeviceworld.com/2025/06/23/ten23-healths-progress-towards-environmental-sustainability/
8. Deswal, P. (2025f) Bayer’s efforts in environmental sustainability. Drug and Device World. https://druganddeviceworld.com/2025/05/26/bayer-efforts-in-environmental-sustainability/
9. Deswal, P. (2025g) Sanofi’s progress towards environmental sustainability. Drug and Device World. https://druganddeviceworld.com/2025/05/19/sanofis-progress-towards-environmental-sustainability/
10. Deswal, P. (2025h) Novartis’ march towards achieving Net-zero by 2040. Drug and Device World. https://druganddeviceworld.com/2025/05/12/novartis-march-towards-achieving-net-zero-by-2040/
11. Deswal, P. (2025i) Roche’s progress towards environmental sustainability. Drug and Device World. https://druganddeviceworld.com/2025/05/05/roches-progress-towards-environmental-sustainability/
12. Deswal, P. (2025j) ‘AstraZeneca’s path to net-zero’, Drug and Device World. https://druganddeviceworld.com/2025/04/28/sustainability-astrazeneca-efforts-in-achieving-net-zero/
13. Deswal, S. and Deswal, P. (2025a) ‘Sustainability: Greenhouse Gas Protocol and global GHG emissions’ status and trends’, International Journal of Multidisciplinary Research and Growth Evaluation, 6(1), pp. 2051-2063. https://doi.org/10.54660/.IJMRGE.2025.6.1.2051-2063
14. Deswal, S. and Deswal, P. (2025b) ‘The Sustainable Development Goals (SDGs): A comprehensive review of progress, implementation, and the path forward’, International Journal of Technology, Health and Sustainability, 1(2), pp. 133-141. https://ijths.com/wp-content/uploads/IJTHS-010237.pdf
15. Deswal, S. and Deswal, P. (2026a) ‘Greenhouse gas emissions in the pharmaceutical industry (2019–2025): A descriptive and inferential statistical analysis of decoupling, intensity metrics, and supply chain challenges – Part I’, International Journal of Technology, Health and Sustainability, 2(3), pp. 1120-1135. https://ijths.com/wp-content/uploads/IJTHS-0203023.pdf  
16. Deswal, S. and Deswal, P. (2026b) ‘Navigating the complexities of cross-company sustainability comparisons in the pharmaceutical sector: A methodological framework for responsible interpretation – Part III’, International Journal of Technology, Health and Sustainability, 2(3), pp. 1148-1157. https://ijths.com/wp-content/uploads/IJTHS-0203025.pdf
17. Galitsky, C, Chang, S., Worrell, E, et al. (2006) ‘Improving energy efficiency in pharmaceutical manufacturing operations — Part I: Motors, drives and compressed air systems’, UNT Digital Library. https://digital.library.unt.edu/ark:/67531/metadc902775/
18. ICRA ESG Ratings (2026) Over 80% pharma firms adopt zero liquid discharge systems amid ESG push. Economic Times Manufacturing, 27 May. https://manufacturing.economictimes.indiatimes.com/news/life-sciences/over-80-pharma-firms-adopt-zero-liquid-discharge-systems-amid-esg-push-icra/131345797
19. Marsh, J. (2025) From labs to landfills: Pharma’s role in climate and environmental crisis. Illumine. https://illuminem.com/illuminemvoices/from-labs-to-landfills-pharmas-role-in-climate-and-environmental-crisis  
20. PharmOut (2025) Sustainability in pharmaceutical manufacturing: Reducing carbon footprints without compromising GMP. https://www.pharmout.net
21. Powtech-Technopharm (2025) Energy efficiency in the pharmaceutical industry: searching for the low-hanging fruit. Powtech-Technopharm, 8 January. https://www.powtech-technopharm.com
22. Sungkono, S., Bungin, B. and Basauli Tambunan, D. (2025) ‘Statistical analysis of pharmaceutical industry energy saving potential by benchmarking’, Jurnal Manajemen Industri Dan Logistik, 9(2), pp. 246–259. https://doi.org/10.30988/jmil.v9i2.1720
23. Trane Technologies (2025) How energy-efficient HVAC Solutions are balancing carbon and compliance in pharma. Trane Technologies Blog, 9 December. https://www.tranetechnologies.com