Biotechnology Industry ESG Thematic Report, 2023

Biotechnology Industry ESG Thematic Report, 2023

Compliance, ESG Challenges & Framework, ESG Trends

  • Published Date: Nov, 2022
  • Report ID: Astra-100234
  • Format: Electronic (PDF)
  • Number of Pages: 69

Environmental, Social and Governance (ESG) in the Biotechnology Industry

Biotechnology involves adapting and modifying biological organisms, products, processes, and systems found in nature in order to develop products that are both environmentally friendly and more profitable. The use of biotechnology can contribute to sustainable industrial development as a technology.

In an environmental context, biotechnology can contribute most to agriculture by increasing crop yields and by designing crops that are more efficient at producing food-energy than before. Therefore, biotechnology is capable of manipulating primary energy flows; it also helps in reducing fossil-fuel inputs in agricultural systems. Additionally, both food and fuel-energy resources are key components of sustainability. They could also help mitigate environmental problems like deforestation and soil erosion. Furthermore, biotechnology can also help extend the resource base through resource recovery and recycling, as well as hazardous-waste disposal, which are environmentally beneficial as well.

Globally, the COVID-19 pandemic has positively impacted the pharmaceutical industry by expanding opportunities and advancing drug development and vaccine manufacturing. Through biotechnology, healthcare infrastructure has improved to diagnose and treat COVID-19 infection and reduce its seroprevalence rate, contributing to better healthcare infrastructure.

ESG Trends

In addition to protecting biodiversity (plants, animals, and humans), environmental biotechnology hasled to the development of various innovations in order to increase efficiency and promote sustainability. Today, numerous government agencies and public and private institutions are investing heavily in environmental biotechnology.

Waste treatment and bioremediation have been improved by environmental biotechnology. At first, chemicals were used to treat pollutants and waste, but chemicals proved inefficient and costly. The advancement of technology has enabled scientists to develop effective waste treatment and pollutant removal methods.

Furthermore, the industrial biotechnology industry goes beyond producing biofuels. It is transforming many industrial processes that produce everything from detergents to blue jeans to vitamins to antibiotics. Besides conserving natural resources and reducing costs, it also speeds up the development of new "greener" products.

The Biotechnology sector is committed toward sustainable development solutions; it provides far-reaching benefits in attaining the United Nations - Sustainable Development Goals (UN – SDGs). Biotechnology is linked with several SDG Goals as mentioned below: -

SDG 1 NO POVERTY - The agricultural biotechnology sector offers solutions that can assist farmers in increasing their incomes and reducing their vulnerability to climate change at the same time.

SDG 2 ZERO HUNGER- For the goal of ZERO HUNGER, biotechnology is essential because it produces healthier and more productive crops, thereby reducing food waste and extending their shelf life.

SDG 3 GOOD HEALTH AND WELL-BEING - As a result of biotechnology, millions of lives are saved, and the quality of life is improved around the world. To achieve SDG 3, biotechnology companies develop medicines, produce vaccines and other tools to prevent and contain epidemics; and detect and diagnose critical conditions.

SDG 6: CLEAN WATER AND SANITATION - The use of biotechnology helps ensure the availability and sustainability of water and sanitation by purifying water using bacteria and plants and removing chemical contaminants

SDG 8: DECENT WORK AND ECONOMIC GROWTH - Innovations in biotechnology, such as medicines and agricultural products, provide economies with economic opportunities. As a result of biotechnology, farmers are able to grow crops with higher yields and with fewer inputs, resulting in healthier workforces.

SDG 9: INDUSTRY, INNOVATION, AND INFRASTRUCTURE - As a means of achieving this goal, companies invest in biotechnology parks, infrastructure to improve research and development capabilities, and partnerships with international organizations.

ESG Risk

As biotechnology has become commercially available, the search for new biological resources has intensified for a wide variety of applications, including increasing food productivity, treating disease, generating energy, and many more. Despite the many benefits of biotechnology, its applications have also been associated with undesirable outcomes, including diminished species biodiversity, diminished agrobiodiversity, contamination of the environment, and appropriation of the biodiversity of developing countries through intellectual property rights and patents.

As part of biotechnology, antibiotic marker genes are used by genetic engineers for the transfer of codes from one species to another. Biotechnology may contribute to the already serious problem of antibiotic-resistant bacteria. Genetic engineering has taken away the soul of natural farming by altering crops so much that the very essence of farming has been lost. As a result, the natural taste is very different from that of genetically modified crops. Food is much more than just a combination of minerals and vitamins; it is also an emotional aesthetic experience. food should be produced naturally, without relying exclusively on agrochemicals, and without exploiting the humans, animals, and natural flora and fauna.

Growth of the Biotechnology Market 

Global biotechnology market size is expected to reach USD 1,023.92 billion in 2021 and grow at a compound annual growth rate (CAGR) of 13.9% from 2022 to 2030. Government support for the market is based on initiatives to modernize regulatory frameworks, improve approval processes & reimbursement policies, and standardize clinical trials. Government bodies are collaborating with biotech companies, and the main focus is on research and development to develop a drug and vaccine, respectively, to treat and prevent these diseases. These initiatives are expected to help boost the industry's growth.

Key Companies in this theme

    • AstraZeneca

    • Gilead Sciences, Inc.

    • Bristol-Myers Squibb

    • Sanofi

    • Biogen

    • Abbott Laboratories

    • Pfizer, Inc.

    • Amgen, Inc.

    • Novo Nordisk A/S

    • Merck KGaA

    • Johnson & Johnson Services, Inc.

    • Novartis AG

    • F. Hoffmann-La Roche Ltd.

    • Lonza

Scope of the Biotechnology Industry ESG Thematic Report 

    • Macro-economic and ESG-variable analysis of the industry, including regulatory, policy, and innovation landscape

    • Key insights on infrastructure developments and ESG issues affecting the theme

    • Identify key initiatives and challenges within the industry

    • Identify ESG leaders within the industry

    • Understand key initiatives and the impact of companies within the sector to fuel an informed decision-making process.

    • Analysis of industry activities based on multi-media sources, including significant controversies and market sentiment

Key Benefits of the Biotechnology Industry ESG Thematic Report

    • Developing a comprehensive understanding of macro-economic, Policies & Regulations and innovations affecting the biotechnology industry, globally.

    • Key insights into Infrastructure developments and ESG issues affecting the theme.

    • Identifying ESG risks and opportunities to business among leading players in the industry.

    • Obtaining a clear and relevant understanding of company actions, progress, and impact and finding opportunities for investment.

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