The Pharmaceutical Supply Chain Initiative An Overview

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1 The Pharmaceutical Supply Chain Initiative An Overview Presented by: Steven I. Meszaros Pfizer Senior Director Business Resilience and Business Development, Global Environment, Health and Safety Past Chairman of the

2 Agenda 1 Joining forces for a sustainable supply chain 2 What is the? 3 The Principles 4 How can you get involved? Overview Presentation February,

3 Sustainability is expected of us Our stakeholders' expectations are changing: The global marketplace has created more complex supply chains, with increased social, economic and environmental risks The extent to which we manage our supply chains responsibly is becoming a key measure of our Corporate Social Responsibility competence Global companies are subject to increased scrutiny by NGOs, and the media in relation to their supply footprint Consumers increasingly expect to buy from companies who "purchase responsibly", respecting the rights of citizens in local communities Overview Presentation February,

4 Meeting the sustainability challenge To increase the sustainability of our supply chains, we must understand: What impact our supply chain has in the communities where we buy The social, health, safety and environmental risks associated with our products and companies What we can do, either independently or in conjunction with our supply chain partners, to reduce or manage these risks cost effectively How we can use our collective influence to improve labor, health & safety, and other rights of workers across the pharmaceutical supply chain Overview Presentation February,

5 Using our collective influence to drive change Our ethos? One company can't change the supply chain on its own The member companies of the joined forces to address the issue of responsible supply chain management across the pharmaceutical industry COLLECTIVE INFLUENCE We believe that by sharing knowledge and expertise, the industry-wide can drive complex, global change more effectively than one organization alone Overview Presentation February,

6 Working together for the greater good Since the 1990s, industry groups have formed in a variety of sectors to identify and address the common challenges they face in their supply chains AUTOMOTIVE ELECTRONICS FMCG JEWELRY CROSS-INDUSTRY CHEMICALS Overview Presentation February,

7 Agenda Responsible Procurement and the pharmaceutical industry The The Principles How can you get involved? Overview Presentation February,

8 What is the? The Pharmaceutical Supply Chain Initiative An industry body formed by the pharmaceutical sector whose members share a vision for responsible supply chain management, to deliver better social, health, safety and environmental outcomes in the communities where they buy Overview Presentation February,

9 The Principles As a first step, the created the Pharmaceutical Industry Principles for Responsible Supply Chain Management ("the Principles") These Principles address five areas of responsible business practices and the relevant standards any business operating within the pharmaceutical supply chain is expected to uphold ETHICS LABOR HEALTH & SAFETY ENVIRONMENT MANAGEMENT SYSTEMS Overview Presentation February,

10 The vision Our vision is that, through the application of the Principles for ethics, labor, health & safety, environment and management systems, better environmental, social and governance outcomes will result for all those involved in the pharmaceutical supply chain Overview Presentation February,

11 We've made great progress Principles Assessment & Audits Capability Building Developed the Pharmaceutical Industry Principles for Responsible Supply Chain Management, which outline our expectations for sustainable supply chains in our industry. Developed and deployed tools to assess supply chain against our principles. These tools including the Self-Assessment Questionnaire and Audit Protocol. We conduct supplier capability building events, including webinars, conferences and share best practice documents through a resource library on the website. Overview Presentation February,

12 Agenda Responsible Procurement and the pharmaceutical industry The The Principles How can you get involved? Overview Presentation February,

13 Implementing the Principles What The Principles Provides a descriptions of our expectations for pharmaceutical supply chain partners How Implementation Guidance Further clarifies the Principles in each of the five areas Provides a framework for improvement Gives examples of how to meet the expectations Overview Presentation February,

14 Principles: Ethics Business integrity and fair competition ETHICS Identification of concerns Animal welfare Privacy Overview Presentation February,

15 Principles: Labor Freely chosen employment LABOR No Child labor Legal treatment of young workers Non-discrimination Fair treatment Legal wages, benefits and working hours Freedom of association Overview Presentation February,

16 Principles: Health and Safety Worker protection HEALTH & SAFETY Safe work conditions Process safety Proper control of hazardous substances Emergency preparedness and response Communication of hazard information Overview Presentation February,

17 Principles: Environment Legal environmental authorizations ENVIRONMENT Management of waste and emissions Spills and releases prevention Water conservation Manage pharmaceutical waste water discharge Overview Presentation February,

18 Principles: Management Systems Commitment and accountability MANAGEMENT SYSTEMS Legal and customer requirements Risk management Documentation Training and competency Continual improvement Overview Presentation February,

19 The Principles and Guidance The Principles and the Guidance Document for implementation draw from the following reference materials and standards: Ethical Trading Initiative EU EMAS ILO Code of Practice in Safety and Health ILO International Labor Standards ISO OECD Guidelines for Multinational Enterprises OHSAS Responsible Care SA 8000 United Nations Convention Against Corruption United Nations Global Compact United Nations Sustainable Development Goals Universal Declaration of Human Rights Overview Presentation February,

20 Agenda Responsible Procurement and the pharmaceutical industry The The Principles How can you get involved? Overview Presentation February,

21 Benefits of following the Principles 1 Utilizing a common standards across the supply chain 2 Benchmarking and sharing of best practices with other pharma companies, and other sectors 3 Being recognized as a supporter and advocate of Responsible Supply Chain Management 4 Suppliers gain a more in-depth understanding of customers' expectations for responsible business practices and raise their profile as a high-performing and sustainable supplier for current customers and future prospects 5 Suppliers have the opportunity to collaborate with customers to build the sustainability capabilities of their facilities 6 Both the Self-Assessment Questionnaire and Audit allow suppliers to cut down on duplication of effort in supporting multiple assessment requests from customers Overview Presentation February,

22 Benefits for suppliers Resource library Our supplier resource library is available at Training / capacity building events We will be posting information about training/capacity building events on key issues for suppliers Webinar On current topics impacting our industry Supplier Conference To support technical capacity building Watch our website for details Overview Presentation February,

23 How can you get involved? Join and collaborate with us to further improve the pharmaceutical supply chain (for more information contact Go to the website and use the tools in the Resource Library to make improvements Participate in upcoming supplier capability building events Overview Presentation February,

24 Pharmaceutical Supply Chain Initiative An industry body formed by the pharmaceutical sector whose members share a vision for responsible supply chain management, to deliver better social, health, safety and environmental outcomes in the communities where they buy. What we do - Set standards for ethics, labour, health & safety, environment, management systems - Share expertise and tools to help suppliers meet our standards - Champion audit sharing to reduce double burden Our ask from you - Participate in capability building events - 8 th -11 th May Hyderabad, India - Publicly commit to the Principles - Demonstrated by 3 rd party sharing Self-audits - Demonstrate strong environmental performance member companies Overview Presentation February,

25 The Pharmaceutical Supply Chain Initiative Need more information? Visit: the Secretariat at Overview Presentation February,

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