Exploring Pharma Supply Chains' Hidden Emissions Challenge

Every year, a staggering US$30bn worth of perishable medicines and vaccines go to waste, according to the Carbon Trust.
The culprit? Distributors’ inability to monitor environmental conditions during transit in real-time.
This loss not only impacts patients who rely on these treatments but also generates significant environmental consequences, particularly carbon emissions tied to re-manufacturing, redistribution and disposal.
Temperature-sensitive medicines, such as vaccines, demand stringent handling throughout the supply chain.
Yet, many shipments are compromised before they reach their destination. This inefficiency contributes heavily to Scope 3 emissions – indirect emissions from logistics, suppliers and other external activities – which are notoriously hard to measure and mitigate.
In response, Vodafone Business IoT and Controlant have teamed up to tackle these inefficiencies while improving sustainability. Their collaboration addresses waste reduction while directly tackling the carbon emissions associated with pharmaceutical distribution.
Reducing Scope 3 emissions with smarter monitoring
Controlant, a company established in 2007, has emerged as a key player in the transformation of pharmaceutical supply chains.
With its bold vision of creating zero-waste supply chains, the company uses real-time environmental monitoring technology to ensure perishable medicines are handled with precision.
Its system tracks temperature, location and even light exposure during transit, helping identify potential issues before medicines are spoiled. What’s more, these insights enable proactive interventions, reducing waste and emissions at their source.
According to the Carbon Trust, Controlant’s technology, paired with Vodafone’s IoT solutions, prevents 53kg of CO2 emissions (CO2e) per box of medicines delivered – a reduction of around 15% compared to industry averages. For context, in 2022 alone, this saved an estimated 16,700 tonnes of CO2e across Controlant’s operations.
These reductions fall under Scope 3 emissions, which encompass activities from suppliers and transportation partners that are outside a company’s direct control.
Addressing this category is crucial for industries looking to make meaningful climate progress. By embedding real-time monitoring into the pharmaceutical supply chain, Controlant and Vodafone Business IoT are helping companies reduce their environmental impact while improving efficiency.
IoT: The backbone of sustainable logistics
At the heart of this partnership is the Internet of Things (IoT).
Crucially, each of Controlant’s Saga devices is equipped with a Vodafone Business IoT SIM, which ensures seamless connectivity across 570 networks in more than 180 countries.
The connectivity aspect is pivotal. Regardless of whether goods are being transported by air, sea or road, the devices must remain online to send alerts if conditions deviate from the specified parameters. Such instant notifications allow distributors to take action and prevent product loss.
“Vodafone is at the forefront when it comes to IoT connectivity,” says Gísli Herjólfsson, Controlant’s Co-Founder and Co-CEO. “Without them, we wouldn’t be able to have our devices speak to us and let us know if something goes wrong.”
More than 200,000 Saga devices are currently active worldwide, all feeding data into a centralised platform. By maintaining real-time visibility, companies not only reduce losses but also avoid the emissions associated with remanufacturing and redistributing compromised goods.
This connectivity extends beyond pharmaceuticals. Vodafone Business IoT technology has supported other industries through solutions like fleet management, connected solar panels and smart metering.
Since 2020, these services have saved nearly 80 million tonnes of greenhouse gas emissions globally.
Transforming the pharmaceutical supply chain
The results of this partnership are striking. Controlant’s clients in the pharmaceutical sector now achieve successful delivery rates exceeding 99%, compared to pre-IoT averages that saw nearly 35% of shipments compromised.
The knock-on benefits are immense. Not only do these advancements improve patient outcomes by ensuring medicines arrive intact, but they also cut down on unnecessary emissions.
Reducing waste at this scale helps tackle the pharmaceutical sector’s Scope 3 emissions – a vital step toward building a greener future.
Vodafone’s impact isn’t limited to pharmaceuticals. Last year alone, its digital technology solutions helped customers prevent the equivalent of 32.8 million tonnes of greenhouse gas emissions.
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