Veterinary Medicine Industry ESG Thematic Report, 2023

Environmental, Social and Governance (ESG) in the Veterinary Medicine Industry

Integrating ESG into decision making and business strategies contributes to an effective due diligence and a better investment decision for the company as well as relevant stakeholders. Companies which are focused on the Veterinary Medicine industry have been disclosing ESG data and strategies.

This market has been very much in need of the hour due to increase in zoonotic and chronic diseases for animals. In fact, growing diary and meat product demand across the world had increased the cattle population. To have a positive health impact it is necessary to have veterinary pharmaceuticals and vaccines for animals. Along with dairy and meat consumption, demand for pets has also been rising in recent times. Animal health and Welfare policies play a vital role for companies in this specific market theme. Assurance of products and services which enables cleaner, healthier living environments and optimization of animal selection which can result in lower mortality, higher production, and reduced instances of disease. Responsible labeling and packaging have also been a major concern for this segment as pharmaceuticals have a significant impact on health. Plastic waste or waste arising out of medicine packages have been transitioning to sustainable or circular packaging.

Peak pandemic had a negative impact on the veterinary medicine industry for production and value chain operations due to strict lockdown measures.  The United Nations’ Sustainable Development Goals (UN SDGs) is a comprehensive framework that helps companies in this market obtain a perspective on the impact of their products and operations on ESG parameters.

ESG Trends

This segment ESG trends ongoing with various factors mentioned earlier, companies which fall under this category have considered responsible labeling (SDG 12 - Responsible production and consumption), for example one of the companies discloses estrogen content for hormone which is required to pacify bull for meat production. This medical procedure also encourages to balance hormone levels in cattle to allow them to convert their feed into lean muscle instead of excess fat. Companies have various animal health and welfare (SDG 15- Life on land) which ensures provision of cutting-edge vaccines administered in optimal, moreover treat diseases to enhance animal’s quality of life and prevent mortality. Another vital factor for this sector is to provide positive health impact (SDG 3 – Good Health and wellbeing) by mitigating or reducing contagious diseases from any means; the companies have focused on innovative procedures and medicines to reduce transfer of such diseases. Quality food and healthy products have been two sides of a coin which have been entrusted by most companies which are on focus.

ESG Challenges

Main challenges for this sector are dealing with waste from medicines packages, which is medicine packaging waste. Even though there are legal bodies like the American Veterinary Medical Association (AVMA) and various other bodies to monitor waste, there has been a delay in adopting sustainable packaging procedures. Many companies are focusing on circularity of packaging throughout value chain operations. Any medical waste can be considered as hazardous, as medicines or pharmaceuticals might contain microbial threat handling them has to be very much precautious. Handling such hazardous waste is critical both when these are recycled or disposed, there have been instances people have contracted rare diseases from unhygienic surroundings and few of them are contracted from animals. For example, Nipah viruses have spread due to direct contact with infected animals like bats or pigs from their body fluids and have a high mortality rate as per CDC. 

Growth of Veterinary Medicine Market

The Veterinary Medicine market has been growing due to a surge in zoonotic and chronic diseases. As cattle, pets or animals have been increasing in population to various demands, this market seems to have a stable market. Safe waste management and a circular business model can influence this market more significantly, in fact companies are closely working with these to ensure a stable future in the market. Global veterinary medicine market cap was estimated to be 29.4 billion USD and is expected to grow at a compound annual growth rate of 7.3% by 2030.

Key Companies in this theme

    • Merck Animal Health

    • Ceva Sante Animale

    • Vetoquinol S.A.

    • Zoetis

    • Boehringer Ingelheim GmbH

    • Elanco

    • Nutreco N.V.

    • Virbac

    • Kindred Biosciences, Inc.

    • Biogenesis Bago

    • Indian Immunologicals Ltd.

    • Neogen Corp.

    • Hester Biosciences

    • Phibro Animal Health

    • Dechra Pharmaceuticals PLC

Scope of Veterinary Medicine 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 Veterinary Medicine Industry ESG Thematic Report

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

    • Key insights into environmental developments and ESG issues affecting the theme

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

    • Obtaining a clear and relevant understanding of company actions, progress, and impact and find opportunities for investment into the sector