How Can Pharmaceutical Manufacturing Be Sustainable?

 Sustainability in the pharmaceutical industry has become a key focus for addressing climate change. A 2018 study by The Lancet found the pharmaceutical industry was responsible for 19% of the Australian healthcare sector's greenhouse gas emissions.

Large-scale pharmaceutical manufacturers have extensive supply chains and networks to source ingredients and package finished products. These supply chains and the manufacturing process itself generates emissions and waste that contribute to environmental harm. As manufacturers, we also need to consider the ethics of supply chains and internal organisational processes.

So, as a pharmaceutical manufacturer, how can we engage a 'sustainable' approach?

1. Focus on Sustainability

As pharmaceutical manufacturers, we have an Environmental Management Team responsible for developing, tracking, and monitoring the environmental performance of the organisation. Metrics such as wastewater quality, energy use, waste management and greenhouse gas emissions are tracked and reported on.

At Lipa Pharmaceuticals, we have put sustainability strategies in place to address underperforming metrics, aligned to regulatory guidelines and corporate social responsibility standards.

2. Working with Sustainable Suppliers

Supply chains are a large part of pharmaceutical manufacturing operations - manufacturers maintain a large network of suppliers to source supplement ingredients. Manufacturers are responsible for choosing to work with suppliers that source these ingredients through sustainable processes.

For example, pharmaceutical manufacturers are measured for scope 3 emissions, which are greenhouse gas emissions generated by the suppliers in the value chain. These emissions indirectly contribute to the manufacturer's sustainability performance.

Social sustainability also requires manufacturers to adhere to ethical policies such as the Modern Slavery Policy and verification of Australian Working Rights to comply with national legislation.

Pharmaceutical manufacturers can consistently evaluate the sustainability of suppliers and choose to work with those that have ethical and eco-friendly practices. Non-profit organisations such as the Supplier Ethical Data Exchange (SEDEX) provide a platform for companies to manage and share information about their ethical and responsible practices in their supply chains. 

3. Energy Efficient Infrastructure

 The energy efficiency of production facilities contributes to the sustainability performance of manufacturers. Sustainable pharmaceutical manufacturers will invest in upgrades to high-energy consumption areas of the facility to reduce energy costs and lower overall greenhouse gas emissions.

At Lipa Pharmaceuticals, we continually invest in energy-efficient infrastructure across our facility. Some of our recent initiatives include:

• Installing a 100kW solar power system to generate clean energy and reduce the facility's reliance on external power

• Applying heat-reflective paint on the roof to keep the facility cooler and reduce energy usage from air conditioning

• Upgrading to more efficient HVAC systems and pumps, which led to a 15% absolute energy reduction across our chillers and pumps

• Converting 99% of onsite lighting into LED lighting equipped with motion sensors

4. Optimised Manufacturing Processes

Manufacturing processes, such as boiling, fermentation, granulation, drying, and compression, account for a significant portion of energy consumption. Manufacturers review each stage of the process to identify areas for improvement, ensuring efficiency without compromising product quality.

For example, we upgraded our hot water boiler controls to regulate water supply temperature based on seasonal variations, reducing unnecessary energy waste. We also programmed frequently operated equipment such as dehumidifiers to switch off automatically during non-production hours. Upgrading our equipment with variable speed drive motors has enabled faster and more efficient production processes. 

5. Sustainable Packaging

The use of plastics is currently a significant issue in pharmaceutical product packaging, as PET bottles and blister packaging utilise plastic to protect products from contamination. This leads to a large amount of packaging waste that goes unrecycled.

In Australia, the Australian Packaging Covenant Organisation (APCO) works with pharmaceutical manufacturers to develop environmentally friendly alternatives for packaging and conducts audits of packaging processes to improve sustainability performance.

In 2024, Lipa Pharmaceuticals achieved a score of 60% under the APCO framework, which is considered a "Leading" performance level in terms of packaging sustainability. To achieve this, Lipa rolled out an electronic batch card system to reduce paper use and switched to reusable drums for bulk shipments to contract packers, establishing a closed-loop system that significantly reduces the need for single-use cardboard boxes. 

6. Waste Generation Management

Waste products from pharmaceutical manufacturing can be treated in various ways to achieve greater sustainability. For example, Lipa Pharmaceuticals separates clear and coloured gelatin waste for recycling - the gelatin is converted into glues, paints, and adhesives instead of ending up in a landfill.

Depending on the type of waste generated, manufacturers also work with specialised waste management companies to handle specific waste streams more efficiently, recycling where possible to prevent environmental harm. 

7. Organisational Practices

Sustainability in pharmaceutical manufacturing is also reflected in day-to-day work and organisational structure. Employees undergo consistent training in sustainability awareness to reduce water wastage, conserve electricity, and optimise the operation of production equipment.

At Lipa Pharmaceuticals, our employees are kept informed about our sustainability initiatives, strategy, and goals to ensure that new systems and processes are implemented properly. 

Sustainable Pharmaceutical Manufacturing in Australia 

Complementary Medicines Australia (CMA) is the industry body for pharmaceutical manufacturers of supplements, vitamins, and minerals. The CMA has a strong focus on ensuring that pharmaceutical manufacturers in Australia are continually working towards sustainable supply chains and practices.

Lipa Pharmaceuticals is a proud recipient of the CMA's Sustainability Award in 2021 and 2024, reflecting our commitment to sustainability and environmental responsibility. As Australia's leading pharmaceutical manufacturer, we offer our customers high-quality supplement products that are ethically and environmentally responsible.