Q&A: Vetter SVP says sustainability is essential for long-term success

Bioprocess Insider spoke with Henryk Badack, senior vice president, technical service and internal project management at Vetter Pharma, an aseptic filling and packaging contract development and manufacturing organization (CDMO). He discussed strides that Vetter has made toward environmental sustainability, how the company has achieved its goals, and how sustainability is an important consideration for all companies within the life-science sector. This conversation has been edited for clarity and brevity.

BioProcess Insider (BPI): Can you describe the sustainability achievements you have met and why doing so has been important?

Henry Badack (HB): Through our sustainability program, we have completed more than 125 efficiency projects in the past ten years. Those initiatives have saved energy equal to that needed to power 6,000 family homes per year. By sourcing 100% renewable energy from hydropower, Vetter saved 44,500 tons of carbon dioxide in nine years, despite the company quadrupling its number of employees.

As the global populations increases, the need for life-saving medications continues to grow, placing an emphasis on pharma and biotech companies and their CDMO partners to act sustainably. As an independent outsource partner, our commitment to sustainability directly reflects on our customers.

Sustainability means knowing how our actions impact society, the economy, and ecology. Given that the biopharmaceutical industry has a considerable environmental impact and consumes many resources, our achievements in sustainability can make a significant and meaningful difference in global sustainability efforts.

Vetter also joined the Science Based Targets initiative (SBTi), a coalition of companies dedicated to decarbonization. We have achieved gold status, placing Vetter in the top two percent of participants in the globally renowned EcoVadis sustainability ranking.

We also strive to be a good corporate citizen and employer by prioritizing social sustainability through offerings that directly impact employees. This ranges from free supplementary health insurance to no-cost access to social counselors and preventive services. This supports employee wellness and establishes us as a reliable employer.

BPI: How has Vetter come to meet its sustainability goals?

HB: We conduct a thorough analysis to identify areas where further investments could have the greatest impact on sustainability. Such insights are instrumental to shaping our ongoing sustainability program and were quickly anchored into our corporate strategy to support a fully integrated approach.

Our sustainability program is organized into four pillars, and we track our progress through an annual sustainability report as a measure of accountability. We prioritize a unique approach that balances ecology, economy, and social aspects with programs aligned to the 17 sustainable development goals of the United Nations, our internal and external stakeholder dialogues, DIN International Organization for Standardization (ISO) 26000 guidelines, and other guidelines, including the European Union’s Corporate Sustainability Reporting Directive and Taxonomy.

For other companies looking to integrate sustainable programs, it can be helpful to rely on the informed insights of other organizations. To take meaningful steps toward sustainability, they can monitor the impacts of company actions, understand their own goals and priorities, and maintaining a willingness to learn from others who have more experience.

BPI: What is next for Vetter?

HB: All sites have been CO₂-neutral since 2021 due to our long-term and detailed CO₂ reduction path. In the short-term, we strive to achieve 4.2% CO₂ reduction per year by 2030 in scopes 1 & 2 of our sustainability plan, which include direct greenhouse gas emissions. Over the long-term, our target is Net Zero by 2050 in all three scopes, aligning our goals with the Paris Agreement.

The plans to achieve these goals include the study and feasibility of a technological transformation, the addition of biomethane to natural gas supplies, the procurement of CO₂-neutral nitrogen and the implementation of new technological standards in project developments. In 2023, we converted a natural gas combined heat and power (CHP) unit into a biogas CHP unit. This conversion alone displaces approximately 2.8 million kWH of natural gas and replaces it with biogas.

We have also invested €1 million ($1.08 million) in constructing a large photovoltaic (PV) system on the roof of our materials warehouse in Ravensburg, Germany. That system generates about 700,000 kWh of electricity per year, equating to about 10% of the site's overall consumption, reducing CO₂ emissions by about 330 tons per year. We are looking to expand our PV systems to more than double outputs.

We are also committed to increasing our recycling rate by separating waste by type. We seek to recycle 45% of our total waste by 2030, understanding that it is not possible to recycle pharmaceutical waste due to strict authority regulations.          

Future strategies will focus on integrating sustainability into all business aspects. By finding a balanced approach that considers both the achievement and continuity of goals, it is more likely to develop a feasible and meaningful sustainability approach.

BPI: As a CDMO, how do your sustainability measures position you as a good partner?

To keep up in a highly competitive industry in which customers expect their partners to act sustainably, CDMOs must achieve ambitious sustainable goals to show their commitment. That could be the difference between an outsourcing partner securing a new customer partnership or falling to the bottom of the list of potential service providers. The actions we take as a CDMO impact our partners directly, so our dedication to sustainability allows them to feel confident that our work is a positive reflection on their own internal commitments to sustainability.

Employees want to work for companies that share their personal values. More than 70% of Gen Z say it’s “very” or “moderately” important that their employer makes a positive impact on environmental, social, and governance issues, according to a recent Handshake survey. Therefore, sustainability goes beyond a commitment to bettering the world; it is a strategic investment in attracting top talent and appealing to potential customers.

BPI: What would you say is the biggest challenge associated with sustainability that companies in the life-science space face today?

HB: The primary challenge is finding a balance between sustainability, regulatory compliance, and cost-effectiveness. Implementing sustainable practices demands substantial investment and innovation, which can be difficult in an industry that is highly regulated and sensitive to costs. Companies must navigate complex regulations while maintaining sustainability initiatives that do not compromise their financial performance or product quality. Such a balancing act requires careful planning, strategic investment, and a commitment to innovation to achieve sustainable growth without sacrificing regulatory compliance or economic viability.

BPI: In five years, what position do you think Vetter and the wider community will be in with regards to sustainability?

HB: In five years, Vetter and the broader life-sciences community will likely see sustainability even more as an essential component of their strategies and operations. It will be embedded in every aspect and become a standard quality feature rather than an optional attribute. This shift will be driven by regulatory pressures, market demands, and the value of sustainable practices for long-term success.

The climate requires our attention immediately. We share a responsibility to evaluate our operations and identify opportunities for environmentally conscious practices which can make a meaningful impact in the pharma and biotech industry’s global carbon footprint.