Valuing Water - A Globally Sustainable Approach for the Pharmaceutical Industry

Abstract

Water resources around the globe are at risk from expanding demand and decreased availability. All sectors of society rely on water for operation – agriculture, industry, power generation, and domestic users all require a constant, clean supply. As a result of population growth and environmental stress, more than one billion people do not have access to clean water, putting a strain on both people and societies, and leading to high costs to ensure supply is not diminished in any sector. As both water availability and quality are projected to decrease in the future, every sector is at risk and might want to reconsider their current relationship with this important resource. Th is analysis focuses on the water-related risks to the industrial sector, specifi cally the pharmaceutical industry. Drug discovery and processing are water-intensive processes that require large amounts of high purity water, presenting a risk to the continuation of business operations. In a changing and uncertain future, the pharmaceutical industry’s relationship with water must also necessarily change in order to continue manufacturing high-quality drugs at a low cost. Six diff erent categories for water-related business risk are outlined and include: changing business demands, stakeholder issues, supply chain, source water quality, regulatory environment, and water availability and climate change. Th is document helps companies concerned about these water-related business risks address the following questions: • Why should pharmaceutical companies consider water in the business structure? • Who are the global and local players in the movement toward enhanced water management? • What types of quantitative and qualitative steps can be taken by the pharmaceutical industry to be proactive in water management? • Where are the locations that may be additionally stressed due to our changing environment? • When can pharmaceutical companies act and at what time-scale? • How can pharmaceutical companies manage water risk and adequately value water? By taking a hands-on approach to managing water-related business risk, pharmaceutical companies can avoid costs and instead create value. Th e pharmaceutical industry has a unique opportunity to enhance its mission of sustaining human health by leading other industries in proactive and innovative water management. Pharmaceutical companies have a number of options when it comes to adapting their relationship with water to a changing future. However, navigating these options can be costly and time-consuming. In addition, the cost of water for these companies, compared to other resources, is minimal, shielding its importance from business decisions that relate to it. Th is document presents a decision-making framework designed to help companies save time and resources required to inform options analysis. It is in the form of a comprehensive and easy-to-use Water Valuation Tool consisting of six key steps: Sponsorship, Learn, Plan, Act, Share, and Re-Evaluate. Each step is designed to help a company learn new and innovative ways to value water beyond the traditional cost. Global companies are currently benefi ting from considering water use not only in everyday facility operations, but future business planning as well. Included in this document are case studies, along with an example of how this Water Valuation Tool is applied. Th is decision-making framework will assist corporate users to to design strategies most fi tting to individual situations and internal business structure.