Using Technology to Drive Sustainability and Visibility

January 13, 2025

Using Technology to Drive Sustainability and Visibility

Sustainability and visibility are two of the most pressing challenges for the modern pharma supply chain. Rising regulations and carbon costs make sustainability essential, but it relies on accurate data. Without reliable tracking, sustainability efforts can become guesswork, missing chances to cut emissions.

Traditionally, the total cost of ownership (TCO) for shipments focused on balancing cost and risk. Now, pharma companies must also consider emissions in this delicate equation. Factoring in emissions alongside cost and risk makes accurate tracking crucial for financial planning, operational efficiency, and long-term sustainability. Without the right tools to monitor carbon footprints and supply chain operations, companies risk missing critical opportunities to cut emissions and optimize processes.

How Accurate Is Your Carbon Reporting?

Tracking CO2e emissions has become standard practice across the pharmaceutical supply chain, yet accuracy is often overlooked. Current reporting frameworks such as ISO standards and GLEC, have notable limitations. For instance, they primarily account for weight and neglect volumetric factors—meaning a plane filled with feathers could report almost zero emissions.

Furthermore, most calculation methods fail to consider non-CO₂e impacts, which account for two-thirds of air freight’s environmental footprint. They also often exclude the weight of third-party packaging, such as containers and insulation.

This lack of precision can lead to underestimating carbon emissions and costs, making it harder to comply with regulations and budget effectively, especially as carbon pricing rises. Accurate tracking is essential—not just for compliance, but also for identifying opportunities to optimize routes, reduce waste, and cut costs through better energy use.

The Visibility Gap: Connecting Data to Sustainability

Visibility is not just about keeping track of your shipments—it’s the key to making informed decisions that drive sustainability. A lack of transparency and fragmented data creates blind spots, leading to inefficiencies, delays, and product loss. Without a comprehensive view of the supply chain, it’s nearly impossible to accurately track and reduce CO2e emissions.

The issue is clear: disconnected systems, manual processes, and poor data collection make it difficult to gain the insights needed to ensure both operational efficiency and sustainability. Without proper visibility, carbon reporting becomes unreliable, and sustainability efforts are compromised.

Harness AI and Automation for Supply Chain Control

SkyMind’s platform integrates AI, automation, and data analytics to bridge the visibility gap in the pharma supply chain. By using digital twins, track-and-trace systems, geo-fencing, and smart loggers, companies gain real-time insights for risk management, route optimization, and CO2e reduction.

With continuous visibility and accurate tracking, pharma companies can make informed decisions that align with sustainability goals. SkyMind’s unified approach automates processes, lowers costs, mitigates risks, and helps reduce emissions across the entire supply chain—giving businesses a competitive edge.

Lead with Data and Technology

To stay ahead, pharma companies must adopt advanced technologies to accurately measure, report, and control CO2e emissions. Recognizing the importance of precise tracking and reporting for both sustainability and operational success is key to driving meaningful change.

That’s why we’ve launched DECARBONIZE, a free CO2e reporting tool based on research from MIT’s Center for Transportation and Logistics (MIT CTL). DECARBONIZE uses the latest methodology to pinpoint CO2e in the supply chain, offering precise suggestions to optimize routes, reduce emissions, and enhance overall sustainability.

The tool is now available to be used for free.

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