Could you start by giving us an overview of SK Pharmteco, especially considering recent changes and acquisitions?
SK Pharmteco is a global contract development and manufacturing organization (CDMO) that specializes in manufacturing pharmaceuticals and therapies for biopharmaceutical companies. We offer these companies the ability to outsource their development and manufacturing needs. Our operations span across various regions, and we are deeply committed to providing high-quality development and manufacturing services for a diverse range of pharmaceutical products.
Our focus areas include producing both active pharmaceutical ingredients (APIs) as well as cell and gene therapies. Over the years, through strategic acquisitions and expansions, we have positioned ourselves as a leader in the CDMO sector. Our commitment to sustainability and innovation has allowed us to grow and adapt to the ever-evolving pharmaceutical landscape, ensuring we meet the high standards and demands of our clients.
How does sustainability fit into SK Pharmteco's strategic initiatives?
Sustainability is a top priority for SK Pharmteco, and we are heavily invested in environmental, social, and governance (ESG) initiatives.
We have made significant strides in reducing our greenhouse gas emissions by 35% in recent years and are committed to achieving net zero carbon emissions by 2040 across all Scope 1, 2, and 3 emissions. This goal involves a comprehensive approach focusing on three main areas: increasing energy efficiency while continuing to invest in green technologies, sourcing our electricity through renewable energy sources, like solar and wind, and supporting carbon compensation programs.
SK pharmteco is committed to Science Based Targets which is the main point to provides a "glidepath" to our Greenhouse Gas (GHG) goals.
We are also pursuing certifications to further our sustainability efforts, such as the My Green Labs certification, which focuses on optimizing energy use and sustainability within laboratory environments. This certification involves a thorough assessment of our infrastructure, energy usage, equipment, and resource management practices. Our aim is to achieve initial certification by 2025 and the top certification by 2030. These efforts are complemented by our active participation in sustainability initiatives and organizations, such as the ACS Green Chemistry Institute.
What are your main initiatives in the social and governance categories of ESG?
We are highly active in our communities, partnering with various patient organizations and supporting numerous nonprofits. This engagement includes both community enhancement activities and specific support for organizations related to our industry, such as the Orphan Disease Center and the Emily Whitehead Foundation. Our community involvement reflects our dedication to fostering positive relationships and making a tangible impact beyond our business operations.
In the governance category, we uphold high ethical standards across all business practices and emphasize transparency and communication with our employees and stakeholders. We have established a strong governance framework to ensure sustainable decision-making and compliance with corporate governance requirements. This robust structure supports our commitment to ethical conduct and effective management.
How do you manage sustainability in manufacturing, especially concerning waste management?
Managing sustainability in manufacturing involves using sustainable materials, treating waste before disposal, and minimizing waste production. One key approach we use is continuous processing, which significantly reduces waste compared to traditional batch processing. This method optimizes our manufacturing processes, ensuring we meet the highest environmental standards.
We operate in two main business areas: API manufacturing (small molecules) and cell and gene therapy. While cell and gene therapy typically consumes more energy, it generates less waste since it involves growing cells rather than chemical processes. We continually monitor our sustainability efforts at both the site and business unit levels, ensuring we maximize our environmental stewardship and that our targets and KPI’s are in line with or Science-Based Targets.
How do you balance the costs of sustainability with business profitability?
While sustainability initiatives can be costly, they are also strategically beneficial. Many of our clients prioritize sustainability, and by aligning with their values, we can act as true partners. Although implementing sustainable practices may increase costs, this investment often results in higher revenue and long-term success. We view sustainability as an integral part of our business strategy and a commitment to ethical responsibility.
The growing emphasis on sustainable procurement practices across industries means we must stay competitive by meeting these standards. This approach not only enhances our market position but also aligns with our core values of sustainability and ethical conduct.
Looking towards the future, what are SK Pharmteco's main objectives and challenges in sustainability?
Our main objectives include further reducing greenhouse gas emissions, achieving net zero carbon emissions by 2040, and obtaining Green Lab certification by 2030. These goals will be pursued through increased energy efficiency, renewable energy integration, and robust carbon offset programs.
The challenges we face include navigating economic uncertainties, monitoring geopolitical risks, and ensuring that our ESG initiatives remain a priority alongside our financial goals. Balancing these factors is crucial to maintaining our commitment to sustainability and achieving our long-term objectives.
What is your vision for SK Pharmteco's sustainability efforts in the next five to ten years?
In the next five to ten years, we aim to continue reducing our GHG emissions, further our progress towards net zero carbon emissions by 2040 and achieve top-level Green Lab certification by 2030. Our focus will be on optimizing infrastructure, energy usage, and resource management to meet these goals to create an organization that has sustainability at the core of how it operates.
We will also continue to prioritize employee engagement and wellbeing, ensuring a supportive and productive work environment. By regularly surveying our employees and vendors, we will maintain high standards of sustainability and ethical practices. Our community engagement efforts will remain strong, reflecting our commitment to being an active and responsible corporate citizen.
Overall, our vision is to integrate sustainability into every aspect of our operations, driving positive change within the industry and contributing to a more sustainable future.
