It is important to mention that 84% of pharmaceutical and healthcare firms see the new EU Corporate Sustainability Due Diligence Directive (CDDDD) as a valuable opportunity to align human rights and environmental protection with their commercial objectives. The following are the results of a survey done by INVERTO, an expert in supply chain management.
EU activities must continue in order to adhere to the new directives. European enterprises, particularly those with a revenue above €450mn and a staff of over 1000, are required to provide sustainability information across their supply chains. Additionally, they must have effective processes to ensure compliance with the regulation.
According to INVERTO, it is noteworthy that UK pharmaceutical businesses would bear legal responsibility for any non-compliance shown by their subsidiaries or suppliers.
According to the firms that participated in the poll, 74% of them said that compliance with the guideline is attainable.
The steps implemented by these businesses include-
- The completion of the compliance processes is now at 77%.
- Issuing an annual financial report, with a current standing of 69%.
- Collaborating with other firms in the same industry, which accounts for 63%.
- Monitoring the performance metrics, now at a level of 63%.
Furthermore, the study revealed that 60% of the participants held the belief that the order would have a beneficial long-term financial impact and anticipated a return on investment.
In addition, 55% of respondents feel that strict restrictions might also have a beneficial impact on the company’s reputation.
An additional significant advantage highlighted by the participants was a heightened sense of duty towards the environment, with 51% expressing this sentiment.
Curiously, 47% of the respondents from the pharmaceutical and healthcare industries said that financial performance was a significant responsibility of procurement.
Despite the potential benefits, the healthcare organizations who responded to the survey identified two main problems in implementing the measures. 25% of the companies cited a lack of capacity, while 20% mentioned unclear directive rules.
Sustainability of the future pharmaceutical supply chain
According to Sabrina Morton, the principle at INVERTO, enterprises in the healthcare industry are now obtaining standardized regulations for the whole European Union, which is particularly beneficial. The CSDDD assists healthcare organizations in enhancing the transparency of their supply networks. UK enterprises with global operations must carefully determine the specific ways in which they must synchronize their activities with those of the European Union.
She said that increasing openness might enable organizations to uncover cost-saving possibilities and reallocate resources. This further enhances overall efficiency and, thus, fosters both competitiveness and creativity. According to INVERTO, the poll collected information from more than 680 decision-makers in both B2B and B2C organizations with over 500 workers between November and December 2023.
