Sustainability (ESG)
Pharmaron’s Sustainable Strategy Overview
At Pharmaron, sustainability is not a side effort. It’s built into how we run our business and how we support our clients and stakeholders.
We focus on the ESG (Environmental, Social, and Governance) issues that matter most:
- Strong governance and compliance
- Fair and safe practices across our teams and supply chain
- Reducing environmental impact across operations
- Advancing diversity, equity, and inclusion
We prioritize what drives long-term results, both for our business and for those we serve. That means fewer one-off projects and more focused, meaningful progress.
Core Strategies
- Establish robust corporate and ESG governance structures, adhering to stability, integrity, and compliance principles.
- Continuously improve the Company’s compliance management system and procedures to comprehensively reduce the Company’s operational risks.
- Prioritize employee well-being and career growth, stimulating team passion and competitiveness.
- Center all work and business activities around customer needs, delivering efficient and high-quality R&D services for innovative drug research, development, and commercialization.
- Sharing the same values with value chain business partners, cooperating for a win-win situation, and promoting the development of the industry.
- Consistent with the Paris Agreement’s 1.5-degree target, adherence to the Science-Based Target initiative (SBTi) methodology, setting greenhouse gas (GHG) emission targets and reduction strategies.
- Actively use renewable energy to reduce GHG at source. Monitor changes in the energy market and explore new technologies.
- Setting up supplier engagement, working with suppliers to reduce GHG emissions upstream and downstream across the value chain.
- Recognizing the importance of Diversity and Inclusion (D&I) as part of the workplace and supply chain sustainability agenda.
- Provide a workplace where everyone feels valued, respected, and included regardless of race, ethnicity, gender, sexual orientation, age, religion, or other characteristics.
- Refine the Code of Conduct for Business Partners with D&I included, and prioritize diverse suppliers.
Pharmaron remains dedicated to refining our sustainable strategies and policies, ensuring continuous progress towards our sustainability goals.
Capital Market Performance and Certifications
CDP Climate Change
Pharmaron maintains a ‘B’ rating in 2024 of CDP’s Climate Change assessment.
EcoVadis
Pharmaron is awarded the Silver Medal in the 2025 EcoVadis Sustainability Rating.
MSCI ESG Rating
Pharmaron maintains an ‘AA’ MSCI ESG rating in 2024.
S&P Global CSA
S&P Global ESG rating
Pharmaron is included in the S&P Global Sustainability Yearbook 2025, with an overall ESG score of 63.
Sustainalytics
Pharmaron maintains an overall ‘Low Risk’ rating from Sustainalytics. Pharmaron is recognized as the Industry Top-Rated ESG Company and the Regional Top-Rated ESG Company.
Sustainability Targets:
GHG targets (align with SBTi):
- SBTi approval Target:
- Overall Net-Zero Target: Committed to reach net-zero greenhouse gas emissions across the value chain by 2050.
- Near-Term Targets: Committed to reduce absolute scope 1 and 2 GHG emissions 54.60% by 2033 from 2023 base year. Pharmaron Beijing Co., Ltd. also commits to reduce scope 3 GHG emissions 61.07% per million CNY value added within the same timeframe.
- Long-Term Targets: Committed to reduce absolute scope 1 and 2 GHG emissions 90% by 2050 from a 2021 base year. Pharmaron Beijing Co., Ltd. also commits to reduce scope 3 GHG emissions 97% per million CNY value added within the same timeframe.
Sustainability Targets Progress in 2024:
- GHG emissions (align with SBTi): GHG emissions (align with SBTi, Scope 1+ Scope 2) are 190,721.94 tCO?e, down 22% from 2023.
- The Scope 3 GHG emissions (intensity) is 198.40 tCO?e/RMB million, down 7% from 2023.
- Renewable energy consumption: In 2024, renewable energy consumption is 83,239.26 MWH, biomass steam usage is 661.56 MWH.
- Sites with renewable energy consumption: Pharmaron Beijing, Pharmaron Shaoxing, Pharmaron Tianjin, Pharmaron Xi ‘a(chǎn)n, Pharmaron Cramlington, and Pharmaron Liverpool.
- Water consumption: Water consumption was 1.818.289.19 t, and water usage (intensity) was 1.48 t/RMB 10,000, down 4% from 2023.
- Compliance rate of waste disposal: Maintain a 100% compliance rate of waste disposal.
Energy-Saving and Emission-Reducing Technology
Pharmaron is committed to exploring energy-saving and emission-reducing technologies, with a focus on optimizing energy structure. We actively promote the adoption of renewable energy sources, including purchasing renewable electricity, sourcing renewable energy from biomass facilities, and other measures to mitigate carbon emissions at the source.
Renewable Energy Implementation
A power purchase agreement (PPA) is recognized as the primary measure of green operations since it brings green benefits. Additionally, we collaborate with renewable energy facilities to source electricity and steam directly. We look at the potential and opportunities to implement a variety of renewable energy sources in our business. For example, in the future, we are considering integrating solar photovoltaic (PV) power generation at the design stage of our low-carbon factories. Our ongoing search for innovative technologies underscores our dedication to advancing further renewable energy applications.
Sites with renewable energy consumption: Pharmaron Beijing, Pharmaron Shaoxing, Pharmaron Tianjin, Pharmaron Xi ‘a(chǎn)n, Pharmaron Cramlington, and Pharmaron Liverpool.
To learn more:
Sustainable Markets Initiative
Pharmaron has joined the Health Systems Working Group of the China Council of the Sustainable Markets Initiative (SMI), in response to the “Green Energy Transformation of the Pharmaceutical and Healthcare Chain” initiative.
Since joining SMI, Pharmaron has been working with the working group members to exchange information about green power, green sites, green procurement, green low-carbon supply chains, and other aspects.