Focus on sustainability throughout the supply chain

Collaboration across the pharmaceutical sector is the key to change

As a global pharmaceutical developer and manufacturer, we have an extensive and interconnected supply chain. We procure materials, raw materials, products and services from our suppliers and partners to support our business operations. By leveraging the innovation and expertise of our suppliers and partners, we can provide our customers with the best possible products and services. An effective supply chain is also key to ensuring the reliable supply and quality of medicines.

The sustainability of our supply chain is closely linked to Orion’s own sustainability, as we provide employment for a large number of people around the world through our purchases. Most of the environmental impacts of our operations arise from the production of the raw materials, materials, products and services we procure. We promote sustainability in our supply chain through our own procurement practices and by supporting our partners in improving their ways of working.

We systematically develop our ways of working and provide our employees with training in sustainable procurement. However, Orion cannot make a difference on its own. Cooperation across the industry is needed. As a member of globally functioning Pharmaceutical Supply Chain Initiative (PSCI), we contribute to sustainability within supply chains globally. We use the supply chain management tools provided by the PSCI and participate actively in its working groups. We also share information among the organisations within the network and provide training opportunities for our suppliers through the PSCI.

Sustainable procurement is the result of a fine-tuned process

Sustainability is an integral part of Orion’s procurement process and is reflected at all levels of our cooperation with suppliers. Sustainable procurement begins with partners who share our values and operational goals. We expect our suppliers to commit to Orion’s Code of Conduct for third parties, which determines our minimum requirements for ethical and responsible operations. 

We assess the implementation of sustainability depending on the evaluated risk level of the supplier. Deeper assessments are focused on suppliers that we consider to involve a high risk because of their industry, geographical location or the significance of the product or service purchased. Suppliers are assessed through regular surveys and audit visits, and corrective measures are determined based on any shortcomings. 

We carry out risk-based audits for our Tier 1 suppliers and, depending on the risk category, for our Tier 2 suppliers. So far, self-assessments and audit visits have been carried out for our suppliers of raw materials, products, packaging materials and key indirect services and materials. 

In assessments, we use either the PSCI survey template customised for the pharmaceutical industry or the sustainability self-assessment provided by EcoVadis. The EcoVadis platform for sustainable supply chain management provides us with a consistent approach to assessing the sustainability risks associated with the supply chain. 

Our suggestions for corrective measures provide suppliers with a wealth of information to improve their ways of working. We monitor the implementation of the agreed corrective measures, and we are also prepared to terminate cooperation with the supplier if no progress is made.

We believe that the most positive impact arises through dialogue. We are building a more sustainable pharmaceutical supply chain together with our suppliers by discussing and identifying development needs, including employees’ rights and environmental impacts.