Ypsomed: making the pharmaceutical industry more sustainable | Knowledge Hub | Circle Economy Foundation
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Business case
Ypsomed: making the pharmaceutical industry more sustainable
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Ypsomed is active in the medical technology industry. As a supplier they develop and produce injection and infusion systems for selfmedication (e.g. insulin pumps) for the pharmaceutical industry. The starting point for Ypsomed's entry into the circular economy was the anchoring of sustainability in the corporate strategy, which was implemented a few years ago. Ypsomed is currently employing more than 650 people in Switzerland and it received the Swiss Employer Award in 2021.

Problem

The healthcare sector has a significant environmental footprint. Self-medication products such as pens and autoinjectors, which are used in the treatment of a wide range of chronic diseases, are also contributors. Most products in the pharmeutical industry are designed for one-time use. Multiple use of the products would mean that the end consumers would have to reassemble the devices themselves, which would reduce the safety of the products in use.

Solution

Ypsomed strives for optimisation across the entire life cycle of the products as well as across the entire value chain of the company. This begins with development, continues with procurement and production, and extends to packaging as well as use by the users, and finally to disposal and recycling. The company takes on product responsibility by minimising the undesirable effects of its products and services on health, safety and the environment throughout the entire product life cycle. They put the closed-loop economy into practice by developing products which minimise waste and emissions, which use fully or partially recyclable and renewable raw materials, and which protect the climate. Furthermore, they make efficient use of the energy necessary.

Furthermore, in 2019, Ypsomed calculated its corporate carbon footprint for the first time: This has shown that its own greenhouse gas emissions from heat and electricity consumption (Scope 1 and 2) amount to just 3% of total emissions. 97% of the CO2 emissions however, come from the upstream and downstream value chain (Scope 3). The largest share is accounted for by purchased materials (in particular, plastic granulate and transport containers). Therefore, it is crucial for the company to work with its partners to tackle emissions where they occur.

The activities implemented so far focus primarily on increasing efficiency. However, the activities do not only relate to internal company activities. With the founding of the “Alliance to Zero”, Ypsomed, together with other companies, is attempting to set up a cross-industry network in order to make the entire value chain in the pharmaceutical industry more sustainable and to increasingly close the material cycles.

Outcome

Based on the activities implemented in the observation period from 2017 to 2019, Ypsomed is already one of the leading companies in the field of circular economy in Switzerland. They report on their environmental impact on their annual report, in which they also present their ambitions for 2025. One of them is to promote product responsibility and the closed-loop economy within the company and in cooperation with their partners.

Additional information

Photo from the University of Wisconsin Oshkosh on Flickr

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