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Roche’s towers in Basel, western Switzerland.
Keystone / Georgios Kefalas
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Switzerland’s pharmaceutical industry wants to go green. But new figures reveal that where production happens, the environment often pays the price. An analysis by SRF Data.
This content was published on
April 4, 2025 – 09:00
Roche, one of the world’s largest pharmaceutical companies, has lofty ambitions. Its Building 2 office tower in Basel is not only the tallest skyscraper in Switzerland, but also one of the most sustainable. It is heated using waste heat and cooled with groundwater. Roche has set itself a bold target: to become completely emissions-free by 2050.
The Roche towers stand as a striking example of the careful balancing act Swiss companies are currently facing: the challenge of combining economic success with sustainability.
At first glance, the figures paint a positive picture. According to sustainability reports, Roche has managed to reduce its emissions by 70% over the last twenty years.
But there is one element that complicates things: global supply chains. They cast a long shadow over the efforts of companies such as Roche and its Basel-based rival Novartis – and over the climate footprint of a model industry.
Few industries are as emblematic of Switzerland as the pharmaceutical industry. The sector’s value chain currently accounts for roughly a tenth of Switzerland’s economic output. In 2023, Swiss pharmaceuticals exported products worth approximately $145 billion (CHF128 billion). The Interpharma association describes it as the “engine of the Swiss economy” – and a model of sustainability.
Now an analysis by the British consultancy Small World Consulting, commissioned by Swiss public television (SRF) and the online magazine Republik, shows that while this “engine” brings growth and profit to Switzerland, most of the emissions are shifted abroad. Although the industry’s footprint is shrinking at home, its true global impact is five times larger.
About the consulting firm, data and method
Small World Consulting, headed by professor Mike Berners-Lee and based at Lancaster University, specialises in analysing the climate impact of global supply chains.
This analysis uses the firm’s own multiregional input-output (MRIO) model, which draws on economic data from 75 countries and 103 sectors. The figures are modelled estimates and cover only the upstream emissions for the year 2023.
All values are given in CO2 equivalents, meaning that other greenhouse gas emissions have been converted to an amount of CO2 that would have the same impact.
According to estimates, the Swiss pharmaceutical industry produced approximately 27 million tonnes of CO2 and comparable greenhouse gas emissions worldwide in 2023. It is equivalent to roughly two-thirds of the emissions produced by the entire Swiss population and all companies in Switzerland in a single a year.
Emissions from suppliers
The emissions fall mainly into what is known as “Scope 3.” It is a category that includes greenhouse gases generated along the supply chain – not by the company itself, but by its suppliers. When Roche talks about cutting its emissions to zero, as outlined in its sustainability report, it is mainly referring to Scope 1 and Scope 2 emissions. These cover everything that is directly linked to Roche: office buildings such as the Roche Towers, company vehicles, research facilities and their direct energy use. Most of these emissions occur in Switzerland.
What Roche largely leaves out of its “zero emissions by 2050” goal are the many external production sites and supply routes – most of which are located abroad. These include the sourcing of raw materials and chemicals, transport and logistics, and companies that use energy and resources to produce components for medicines. In other words, the very processes which place the greatest burden on the environment.
According to Roche’s own annual report, Scope 3 emissions make up 95% of the company’s total emissions – and almost none of them are generated in Switzerland.
This pattern holds true across the entire industry. And another trend becomes apparent: the more complex the supply chain, in other words, the more suppliers are involved…
…the greater the share of emissions that shifts towards Asia.
It is no surprise that that Swiss pharma is a globalised industry, working with companies and suppliers in dozens of countries. After all, it is a highly interconnected sector with many specialised partners. Its environmental footprint is just as international – so much so that even the world’s largest pharmaceutical companies often lack a clear overview of where exactly emissions are being generated.
Bublu Thakur-Weigold, who researches supply chains at ETH Zurich, observes: “The sheer number of locations and processes that go into the final products is downright overwhelming.” The pharmaceutical sector, she says, illustrates just how complex supply chains have become. “There are no national industries anymore. Everything is made in the world.“
Modelling projects like the one from Small World Consulting help make complex supply chains and their environmental footprint more comprehensible. This creates a picture which shows where emissions occur – and how they might be reduced.
Swiss pharma’s supply chain emissions are spread across nearly every region of the globe. The thicker the line, the greater the volume of emissions generated in that country.
External Content
Transport accounts for the largest share of emissions linked to Swiss pharma. Around 25% (6.7 million tonnes) are produced in the transport of goods and personnel by land, sea, and air –including the transport of components and finished products, as well as business travel. That is roughly equivalent to the annual emissions of Switzerland’s entire domestic agricultural sector.
The second-largest source of emissions is electricity used in the production of medicines, packaging and other goods, followed by emissions from chemical manufacturing.
SWI swissinfo.ch
The Swiss pharmaceutical industry generates the most supply chain emissions in Germany, China, the US and India.
SWI swissinfo.ch
These countries have specialised industries that manufacture components for pharmaceutical products – and some are known for particularly carbon-intensive production methods. In the US, 57% of electricity is generated from fossil fuels, while in India (70%) and China (61%), coal-fired power dominates the electricity mix.
China is one of the countries in which the highest volume of “shadow emissions” are generated. Around 7.6% (2 million tonnes) of the Swiss pharmaceutical industry’s environmental footprint stems from Chinese suppliers. This is equivalent to about a quarter of all transport-related emissions in Switzerland in 2023.
SWI swissinfo.ch
One third (31%) of the Swiss pharmaceutical industry’s emissions in China come from energy use. Most electricity in China is still generated by coal-fired power plants – and the country is continuing to build new ones.
Another fifth of the emissions are generated from chemical manufacturing. This includes various chemical plants that use substances such as ammonia, and emit climate-damaging gases during the production process.
The role that countries like China and India play in the pharmaceutical sector – and for the climate – is well illustrated by the case of ibuprofen, one of the world’s most widely used painkillers. Swiss companies such as Sandoz or Mepha sell it as a generic drug, but the active ingredient is primarily manufactured in three countries: China, India, and the US.
A 2022 analysis by the consulting firm EcovaMed found that the emissions per kilo of ibuprofen vary significantly depending on the production site and manufacturing method. Facilities examined in China and India generated more than twice the emissions per kilo compared to those in the US – in part because their processes are more energy-intensive, and because electricity in India and China is largely produced from coal.
In 2000, around two-thirds of generic active ingredients were produced in Europe and one-third in Asia. By 2020, that ratio had reversed, according to a study commissioned by the industry association Pro Generika. Two-thirds of active ingredients now come from countries such as China and India. One of the key reasons is cost. A group of experts from the European Commission estimates that active ingredients from China are up to 40% cheaper, thanks to lower production and energy costs. Companies that outsource production to China or India can save a lot of money – usually at the expense of the climate.
“A large share of global emissions can be traced back to just a few large multinational corporations,” says Matt Bond, sustainability consultant at Small World Consulting. Responsibility, he argues, lies particularly with these companies. While environmental initiatives often focus on individual actions and consumer choices, much is beyond consumers’ control. “A significant portion of the emissions attributed to individuals actually stems from the companies they buy from. Consumers often have little choice,” Bond says. “This is why the big multinationals must act urgently – and take responsibility for their entire supply chain.”
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Why Switzerland’s carbon footprint is bigger than you think
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Per capita CO2 emissions in Switzerland are lower than the world average. But the picture changes radically when you consider the emissions related to products imported from abroad.
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Swiss pharma ready to sharpen focus on Scope 3 emissions
The Swiss pharmaceutical industry says it is ready to shoulder this responsibility.
Anna Bozzi, head of environment and responsible care at the industry association ScienceIndustries, says a lot is being invested to raise awareness among all stakeholders and in developing innovative processes to reduce emissions.
“A globally coordinated approach is important,” she says. Large pharmaceutical companies are using their international reach to actively promote sustainable practices in their supply chains. At the same time, the industry is limited in its options, as expectations around the quality and safety of pharmaceutical products are very high.
By the end of this year, Roche aims to have cut its Scope 3 emissions by around 18% – for example, by shifting more transport from air to sea, recycling more material, and using more renewable energy.
In response to questions about this part of its emissions profile, Roche wrote: “Scope 3 will continue to represent the largest share of our footprint.”
The company says it is currently in the process of revising its sustainability targets and now also aims to achieve “very significant reductions” in Scope 3 by 2045. To this end, Roche is actively working with its suppliers, conducting its own analyses and seeking new ways to make its supply chains more sustainable. However, the company notes that it sells goods worldwide – and these have to be transported. In some cases, air transport is unavoidable, as certain medicines must be kept refrigerated.
“There is no point in reducing emissions if medicines fail to reach patients,” argues supply chain expert Bublu Thakur-Weigold.
Even in Switzerland, there are recurring shortages of medications. “For certain routes, it makes sense to use air transport to ensure the availability of some medicines,” she says.
The path to sustainability is proving to be a complex one for the Swiss pharmaceutical industry. And as long as the industry’s shadow stretches across global supply chains, the risk remains. What keeps people healthy may make the planet sick – a side effect that does not appear in any package leaflet.
The original version of this article was published on March 21, 2025 on SRF NewsExternal link. Interactive graphics adapted by Pauline Turuban; infographics reproduced by Kai Reusser; text adapted from German by David Kelso Kaufher/ds
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