options for new product development, testing, and production, with work from home becoming the norm. Additionally, several FMCG companies now offer packaging alternatives in line with hygiene, health, and safety protocols. Therefore, while sustainability initiatives continue, the focus has changed. Road ahead With the pandemic subsiding, FMCG companies are planning to resume their sustainability efforts, entailing launching and using new biodegradable products, increasing the use of recyclable plastics, and reducing waste. Diageo and PepsiCo, for instance, partnered to make bottles from sustainably sourced wood pulp (100% plastic-free bottle). Mars Wrigley too is developing a fully biodegradable wrapper sourced from canola and soy seeds, while Bacardi and Danimer have partnered to manufacture bottles made from plant-based oils (100% biodegradable plastic bottle). These products will decompose quickly in soil, compost, or water. Raw material companies such as Berkeley Lab are coming up with new infinite recyclable products (forever reusable without ever degrading in quality) such as polydiketoenamine (PDK), which is used in a wide range of applications, from packaging to car parts. CPG giants such as Unilever recognize the role of the food industry in adding to GHG worldwide (contributing over 20% to emissions); accordingly, they are focusing efforts on reducing factory-to-shelf food waste to 50% within the next five years. Healthcare and Pharmaceutical Industry Impact of COVID-19: Increase in emissions and plastic waste During COVID-19, approximately seven billion vaccine doses were produced and distributed; this led to a significant increase in carbon dioxide emissions. Currently, carbon dioxide emissions from healthcare and pharmaceuticals account for five percent of the carbon footprint in large economies globally; within this, approximately 71% of emissions can be attributed to supply
chain issues, including production, transportation, and disposal of medicines/medical devices and chemical agents. The situation has worsened with the increase in consumption of single-use (plastic) components and PPEs amid the pandemic; for instance, the generation of plastic waste in hospitals is staggeringly high. Road ahead Digital transformation is expected to bode well for sustainability in the post-pandemic era. Developments/ advancements in remote healthcare technologies and emergence of telehealth firms would not just improve care but also reduce the need for patients to travel. Furthermore, adapting multiuse products wherever possible and conscious disposal of waste (one example being conversion of one-time use blue face masks into raw material for road construction) will help in achieving sustainability goals. Many companies are planning to increase adoption of digital tools such as FLASC (Fast Life Cycle Assessment of Synthetic Chemistry) by GlaxoSmithKline to assess the sustainability of manufacturing processes and products & services as well as ideas in the R&D process. These tools help in synthesis route selection in early stages of pharmaceutical research as well as helps in increasing material efficiency and environmental health and safety. Post-pandemic, companies are focusing on accelerating their sustainability programs by adopting sustainable packaging, digitalization, alternative fuels, and autonomous vehicles. This would not just help them create (or protect) brand value but is also in line with their commitment to address climate change.
Vipul Kumar is Senior Manager at Aranca. With a global footprint and a team of 550+ conducting research in 20+ languages, Aranca provides insights across their business research & advisory, technology research, valuations & financial advisory, procurement research, and investment research teams.
Shipping Industry Disruptions COVID-19 has disrupted the supply chain and made it highly vulnerable. This has created the need to revive or reinvent it; one of the strategies in this regard is China Plus One, which entails increasing focus on diversification, reshoring, and regionalization. However, making adjustments may create the need for more flexible shipping services, including more vessels, routes, and shipping time, thereby leading to an increase in carbon emissions and usage of fossil fuels. This would derail sustainability efforts. Furthermore, changes in consumer spending patterns across the e-commerce industry have translated into higher demand for digitally enabled warehousing and distribution facilities and lead to more shipping and emissions. The shifts in supply chain design and globalization, resilience focus, and changes in consumption and spending have increased the need for sustainability and a low-carbon agenda. With the growth in business opportunities, the shipping industry must work toward addressing climate change, prioritize use of alternative fuels, and reduce emissions by adopting initiatives like de-carbonization. Besides exploring green fuels and applying innovative technologies, shippers must focus on delivering a sustainable future. Prioritizing electrification of public transport as well as heavy-duty trucks, LCVs, and last-mile delivery, with a long-term aim for aviation, and expansion of charging stations for electric vehicles will further help the shipping industry build a sustainable future. Overall, key technological advances such as alternative fuels, autonomous vehicles, and digitalization will create a new and sustainable transport and mobility sector.