When the U.S. President Donald Trump addressed the UN General Assembly in September 2025, his remarks on climate change were strikingly dismissive. While global leaders urged urgent action, Trump doubled down, calling climate concerns “a con job” and questioning the need for sweeping reforms [1][2][3].

Whether one agrees or disagrees, his speech underscored a broader tension: some leaders still underestimate how deeply climate change is intertwined with economic competitiveness, public health, and industrial sustainability.

For India’s pharmaceutical sector – often called the “Pharmacy of the World”- this linkage is far from abstract.

The Pharma Industry’s Climate Footprint:

Few realize that pharma’s greenhouse gas emissions are more carbon-intensive than even the automotive sector on a revenue-adjusted basis [4][5]. Supply chains reliant on energy-heavy chemistry, water-intensive processes, and high transport needs make it a hidden but potent contributor.

“Pharma’s reputation risk is no longer only about drug safety—it’s about whether patients and partners can trust it to act on climate.”

And this is no longer a matter of optics. Investors, regulators, and procurement agencies are pressing pharma companies worldwide to disclose emissions and adopt ESG standards [5].

India’s Pharma: Resilient or Exposed?

India supplies over 20% of the world’s generics, but most of its production clusters (like Hyderabad, Vizag, Baddi) are located in regions facing acute water stress [6]. Rising temperatures and erratic monsoons could soon threaten the very backbone of global medicine supply.

At the same time, the EU’s Carbon Border Adjustment Mechanism (CBAM) is set to penalize exporters from carbon-intensive industries—including pharma—if they fail to decarbonize [7]. For India, which counts the U.S. and EU as top buyers, this is not an environmental issue alone, but a strategic trade risk.

“India’s industry can either stay stuck in a low-cost, low-trust cycle – or pivot to being the world’s trusted and sustainable pharmacy.”

Litigation, Policy and Global Pressures:

Litigation is another looming force. The UNFCCC’s 2023 Climate Litigation Report shows an exponential rise in lawsuits filed against corporations for failing to mitigate emissions—not just fossil fuel firms, but food, chemicals, and healthcare companies too [8].

Meanwhile, India’s Extended Producer Responsibility (EPR) Rules now mandate pharma players to take greater responsibility for packaging waste [9]. These shifts suggest that climate accountability is steadily entering the pharma compliance framework.

The Strategic Imperative: Beyond Compliance:

Sustainability is no longer a “good-to-have.” It’s fast becoming central to global competitiveness, patient trust, and regulatory survival.

• Adopt green manufacturing — cutting energy use, recycling solvents, and improving water efficiency.
• Integrate climate into R&D — pipeline planning should anticipate diseases shifting due to warming climates.
• Transparency and reporting — companies that proactively disclose climate data earn stronger investor and regulator trust.

“The pharma sector’s future market share may hinge as much on carbon scores as on clinical outcomes.” 

Indian Pharma CEO’s Checklist:

If you’re leading in pharma, here are three questions worth asking every Monday morning:

1. Would our biggest buyer still choose us if carbon were priced into every tender?
2. What’s our plan if water scarcity shuts down a manufacturing hub for six months?
3. Do we treat climate reporting as PR—or as core risk management?

Conclusion:

Pharma’s mission is to save lives. But unless it addresses its own environmental footprint, the credibility of that mission is at risk.

Trump’s UNGA speech may have trivialized the climate crisis, but India’s pharma leaders cannot afford to. The question is no longer if climate will reshape pharma’s future – it is when.

By: Tapan J. Ray

Disclaimer: The views/opinions expressed in this article are entirely my own, written in my individual and personal capacity. I do not represent any other person or organization for this opinion.

Sources:

1. AP News — In front of drowning nations, Trump calls climate change a “con job” (Sept 25, 2025).
2. Reuters — Sustainable Switch: Unpacking Trump’s UN speech (Sept 26, 2025).
3. Le Monde — World leaders respond to Trump and reaffirm climate commitments (Sept 25, 2025).
4. Journal of Cleaner Production (Elsevier), 2019 — Pharma’s higher carbon intensity than auto industry.
5. McKinsey & Company — The future of ESG in pharma (2022).
6. Observer Research Foundation — Water stress and India’s pharmaceutical hubs (2022).
7. Economic Times — India pharma must prepare for EU carbon border tax (2023).
8. UNFCCC — Global Climate Litigation Report (2023).
9. Indian Ministry of Environment — Extended Producer Responsibility Rules (2022).
10. World Economic Forum — Pharma’s role in climate action: Beyond compliance (2022).