Introduction

Environmental, Social and Governance (ESG) issues have rapidly shot up the corporate agenda as investors and other key stakeholders look beyond mere financial performance. Increasingly, they are including a wider set of values and criteria in their evaluations and expectations of businesses.

Faced with pressing issues such as climate change, social equality and inclusion, and ethical integrity, organisations across sectors must address their core ESG metrics, sustainability performance and reporting, to the same degree as financial performance.

For the life sciences industry – including pharmaceuticals, biotech, healthcare and medical devices – it is imperative to embrace ESG and get ahead of the curve.

The regulatory landscape is changing, and in the immediate future regulators and payers will expect organisations to demonstrate a meaningful focus on ESG considerations throughout the asset development, launch and commercialisation lifecycle.

With their key role in the health and wellbeing of communities and nations, there is an opportunity for life science businesses to make a leading contribution to global and national ESG ambitions.

In this paper, we analyse progress to date and key challenges to come.

Adrian Griffiths, Partner, Head of Life Sciences, KPMG in the UK