Chiesi is an international group with a strong vocation for research and a strong determination to develop solutions for rare patients. In this context, the commitment towards the environment could not be missing, experienced not only as an obligation dictated by legislation, but as part of the social role that the company has always exercised, in its city (Parma) and in all Countries in which it operates. With Cecilia Plicco, Head of Shared Value and Sustainability of the Group, I discussed the recently presented sustainability report and explored (numbers in hand) the different aspects of the issue, from those now deciphered in their interpretation to the more complex and still in progress of definition.
Chiesi’s recently presented sustainability report indicates that the company has invested 23.8% of its turnover in research and development: what are the areas you are focusing on?
Chiesi’s investments are concentrated in our three business areas. The main one, also in terms of revenue, is represented by Respiratory (Air), an area in which the commitment is to continue investing. In particular, there are two respiratory pathologies that see the greatest concentration of corporate products: asthma and chronic obstructive pulmonary disease (COPD), diseases that affect millions of people in the world and whose incidence is constantly increasing. Estimates say that, due to the combined effect of climate change and the worsening of air quality, the incidence of asthma and COPD is destined to increase further. Our second business area, in which we have historically been present, is represented by Care. I mention Neonatology, in which we have developed one of our historic products, a life-saving drug: the commitment is to continue investing in this direction. Our third area of investment is dedicated to rare diseases (Rare): in 2020 we established the global rare diseases business unit, which provides innovative therapies and solutions for people affected by rare diseases, which have been growing ever since. We are committed to continuing to invest in innovative solutions that relate to these three areas to meet patient care needs.
Last year you achieved the platinum medal in the sustainability assessment (according to EcoVadis): how is the path towards the Net Zero goal progressing and what are its most critical aspects?
This is an interesting question, which concerns one of the milestones that we communicated at the same time as the launch of the sustainability report: the publication of the Climate transition plan, our climate transition plan, which defines the roadmap that will allow us to reach the Net Zero goal. Chiesi has set Net Zero objectives in alignment with the Science based target initiative (SBTi) framework, indicating 2019 as the baseline. Net Zero is a very challenging framework, because it forces companies to reduce emissions by at least 90% compared to the baseline: the focus is therefore on reducing emissions, there are no other shortcuts. We have two different timescales: for scope 1 and 2, which – to simplify – concern direct and indirect emissions linked to energy, the commitment is to reach Net Zero by 2030, while for scope 3 (indirect) emissions, to 2035. The latter depend on the entire value chain and, therefore, not being under the strict control of the company, are more critical. We have already achieved a reduction of 39% for scope 1 and 2, for example by acting on our production processes and implementing systems that allow us to reduce emissions. Such interventions are already in place in countries such as Italy and France, where we have two of our production sites.
We are acting on the fleet and we are also proceeding on the energy front, increasing the consumption of electricity obtained from renewable sources: these are actions already in place, which have allowed us to achieve important results. However, scope 3 is the most complex, not only for Chiesi, but for many other companies. To date, emissions are increasing in absolute terms, because the company is growing. For Chiesi, the main sources of scope 3 emissions concern the use of inhalers, used for the treatment of respiratory diseases, by patients: on this front in 2019 we prepared a plan, financed with an investment of 350 million euros, aimed at replacing the propellant present in inhalers with an alternative with low global warming potential. The intervention allows the patient to continue using the inhaler, but reducing emissions by 90% compared to the device in use today: this is an important lever, which will allow us to take a decisive step towards our Net Zero target of 2035.
And on the value chain front?
On this front, the other relevant action unfolds, regarding which we have started a process, also partly connected to EcoVadis and therefore to the rating you mentioned before. EcoVadis allows us to have primary data regarding our value chain available: it is, therefore, a tool that we are using effectively and on which we are engaging our suppliers, with the aim of obtaining more reliable data and working synergistically with a view to reduction of emissions.
Joint initiatives with suppliers represent one of the areas in which we plan to invest greater efforts, also to identify all the possible levers on which to act to achieve sustainability targets together. Interdependence is an essential concept for us, which we have been working on since 2018, even before announcing what at the time was the objective of carbon neutrality, which later evolved into Net Zero. In general, I believe that the path to sustainability, even more so when there are environmental objectives at stake, requires a systemic approach. For this reason, we immediately started working side by side with our suppliers and commercial partners, so much so that in 2019 we defined a code of conduct with them, which we called the “Interdependence Code”, which is evolving together to the company. More recently, in 2021, we adopted the EcoVadis platform, which allows us, in addition to obtaining primary data, to verify certain sustainability parameters, such as ethics, environmental approach, respect for human rights. The last point, which currently offers a limited contribution to reducing emissions compared to other categories but towards which we have decided to allocate greater efforts in the future, is the topic of business travel. This is an aspect that is more ours, internal to the company and aimed at raising employee awareness.
You mentioned the environmental impact of the propellants contained in inhalers: what is the situation regarding the disposal of packaging?
This also represents a point of great interest on which Chiesi is working. Our Italian commercial branch has started a pilot project in Friuli Venezia-Giulia, which responds to the need for a systemic approach and which, in this perspective, also involves the patient and the pharmacist and, more generally, the entire system. In recent years we have also launched pilot initiatives in the UK and France, in different ways, in line with different waste disposal disciplines. With this in mind, we are defining case studies that we transfer internally to other countries, in order to identify the ideal specific approach. We are promoting a dialogue between all interested parties, aimed at improving awareness on these issues which, as is known, are characterized by precise peculiarities in the pharmaceutical sector.
More than 7,000 employees, revenues of over three billion and 6,200 active patents: how do you manage a company in which there is certainly no shortage of complexities from a sustainability point of view?
Thank you for your question, which allows me to retrace my journey at Chiesi up until today. I joined the company in 2015 after an experience at the Chiesi Foundation and therefore had the privilege of witnessing the company’s path towards sustainability. Despite the international dimension and the complexity inherent in our organization, it was a natural evolution.
The company has strong value bases, also linked to its governance as a family-owned business, which are central to Chiesi’s way of doing business. I invite you to read Chiesi’s mission on our website, which was written over 20 years ago, when sensitivity on these issues was not as mature as today, and which represents a clear reference to how much the company wanted to combine results in terms of success and profit with adherence to criteria of integrity, ethics and responsibility from a social and environmental point of view. Another interesting element linked to our path, which in my opinion also helped in managing the dimension of engagement, is the fact of wanting to impose standards, frameworks, anchoring apparently abstract choices to concrete actions. I’ll give you an example. In 2018, the shareholders decided to adopt the corporate form of Benefit Company in Italy and Benefit Corporation in the United States: at the time, the fact that Chiesi exists not only to generate value for shareholders, but also to improve people’s quality of life. This approach was then extended to the Group’s subsidiaries, regardless of whether specific local legislation existed or not. Another important choice was to adopt, since 2018, a measurement standard with the aim of evaluating and monitoring our social and environmental performance with objective criteria (the B Corp standard which then led us to certification in 2019) and to speak a common language within the entire Group.
Today we are experiencing an evolution in sustainability and common reference standards, but when we started everything was very different. The last point I mention is that of internal communication, which has supported our evolution by keeping us aligned towards our objectives. Our We ACT (Actively care for tomorrow) plan made it possible to tell all employees the reasons for certain company choices and their consequences and to explain what each of us could do to be part of the change.
We are talking about rare and ultra-rare diseases, topics closely linked to social sustainability: what are your results in terms of improving access to care?
This aspect is linked to the meaning that we attribute to the concept of sustainability and which goes beyond the commitment to protecting the environment and is closely linked to the social dimension of a pharmaceutical company, which has an impact on people’s health: in this sense, we have embraced the concept of shared value, which implies that the company is committed to solving a social need, combining its success with the progress of society. Rare diseases by definition represent an unmet social need. There are at least 10,000 rare diseases, affecting 400 million people worldwide, but only 5% of these actually have an approved or experimental therapy. This makes us understand the dimension of the social need as well as the diagnostic and pharmacological one. Patients need support throughout the diagnosis and treatment journey. Our global rare diseases business unit was born in 2020 and in these four years we have managed, also through the establishment of collaborations and partnerships at an international level, to serve patients with 10 therapeutic options available in 70 countries for the treatment of 12 rare diseases . We have obtained 30 approvals globally, of which 4 in 2023 alone: numbers that well describe the speed of Chiesi’s evolution in this area.
In your role as Head of shared value and sustainability, how do you see the relationship between the pharmaceutical industry and environmental protection, in general: simple compliance with regulations or is something changing?
The definition you cited concerns precisely one of the requirements of Italian law, which requires companies to identify a figure responsible for the social and environmental impact. Certainly, this is an extremely interesting position, which allows you to have an overall idea of the impact produced by all areas of the company. Chiesi has established an “Impact Committee”, coordinated by my team, within which all company functions sit: each for their own skills monitors and defines the evolution of what the impact is, for example, on people and suppliers. Regarding the role of pharmaceuticals on environmental issues in general, interesting reflections can be made.
From the point of view of Chiesi, for which respiratory health is of primary importance, I confirm the maximum commitment to combat climate change and minimize environmental impacts and the use of resources. In this regard, the connection between the health of our planet and the health of people emerges clearly, on which we are committed to creating awareness, for example by listening to the voices of patients or opening ourselves to collaborations with experts. There is a whole line of work on these aspects inherent to the One health concept that goes well beyond compliance and which will become increasingly central throughout the sector. For us, for our business areas, it is even more strategic, so much so that compared to the 2050 objectives imposed by the legislation we are raising the bar.
