Essay --

Introduction We are experiencing unprecedented rates of biodiversity loss. 60% of the ecosystem services (such as freshwater, fisheries, pollination and climate regulation) which biodiversity underpins are either degraded or in decline. Predictions are that this trend will worsen. It is clear that it has severe economic implications, not only for society but also for business as most industries depend on ecosystem services to function. The pharmaceutical sector is both dependent on and impacts on biodiversity and ecosystem services or BES. Approximately 25% to 50% of the pharmaceutical market is derived from active ingredients from nature. The sector’s dependence on the BES stems from the use of active ingredients from nature in drug discovery and manufacture, the use of water and a reliance on inert raw materials such as fish oils, soya and palm oil in drug manufacturer. Impacts include water pollution from drug manufacturing and use, overexploitation of active ingredients from nature that can’t readily be synthesized and use of inert ingredients linked with environmental degradation. For the pharmaceutical sector, this may pose reputational, operational, regulatory and market risks as well as new opportunities linked to new drug discovery. Pharmaceutical industry investors may also face reputational and financial risks if the companies in which they invest do not adequately manage their own BES risks. All companies reviewed have started to consider the business implications of declining BES. However, none are managing the BES in a comprehensive manner. The focus of corporate activity has been on understanding site-level impacts on biodiversity such as risks associated with potential impacts on protected areas or water consump... ...e to determine company risk exposure in relation to BES. Lack of information on how companies are managing their risks and opportunities leads to decreased investor confidence. Companies should be encouraged to disclose more information on volume, nature and provenance of raw materials sourced, the outcomes of products and issue risk assessments and the activities underway to address them, if that assessment shows them to be material. References †¢ http://www.deadiversion.usdoj.gov/drug_disposal/index.html †¢ file:///C:/Users/De/Desktop/Media_release_-_pharmaceutical_companies_face_biodiversity_risk.pdf †¢ http://www.naturalvalueinitiative.org/content/010/102.php †¢ http://www.cefic.org/Documents/IndustrySupport/RC%20tools%20for%20SMEs/Document%20Tool%20Box/Biodiversity-and-Ecosystem-services_What-are-they-all-about.pdf †¢ Biodiversity and Human Health By Jensa Bell