Economic growth and environmental protection are not contradictory – they go hand in hand, as innovations in chemistry, pharmaceuticals and life sciences show.
Climate change, population growth and demographic change present our global system with major challenges. Companies in the chemical and pharmaceutical industry, through their consumption of resources and energy, have on the one hand an impact on the environment, and on the other hand, thanks to the diversity of their innovations, they make possible a lasting change. As a strategy for the future, sustainability must combine three dimensions – economic success, social responsibility and ecological balance – as we highlighted recently in our declaration.
Commitment to net zero
In Switzerland, scienceindustries member companies have been implementing the international Responsible Care® initiative since the 1990s with the aim of continuously improving environmental protection, health and safety. They also support the objective of net zero greenhouse gas emissions in 2050 set by the Confederation as well as the objectives of the Science Based Targets Initiative aimed at strengthening realistic and evidence-based objectives for reducing greenhouse gases. greenhouse effect.
With our economic association, we are also committed to creating good framework conditions for climate-friendly products and innovations that reduce or promote greenhouse gases. The use of renewable energy, increased energy efficiency and the continued electrification of production processes are also important concerns, as evidenced by the support for the recently adopted electricity law by Swiss voters .
In Switzerland, industry has reduced its CO₂ emissions by around 35% since 1990. At the same time, Swiss industry, the economy and households consume less and less energy.
Economic growth and environmental protection?
The ecological Kuznets curve shows that economic growth and environmental protection are not necessarily contradictory. This model links different indicators of pollution and per capita income. Although it demonstrates an increase in polluting emissions and a deterioration in environmental quality in the first phases of economic growth, this trend reverses from a certain level of per capita income and leads to an improvement in long-term environmental quality.
In Switzerland, industry has reduced its CO₂ emissions by around 35% since 1990. At the same time, Swiss industry, the economy and households consume less and less energy: energy consumption per capita ( final energy, excluding international air travel) has fallen by 25 percent in Switzerland since 2000 – even though real GDP per capita increased by 19 percent over the same period. This illustrates the positive correlation between economic development and strengthening environmental protection.
Regulation, a challenge and an opportunity
So that the chemical and pharmaceutical industry can continue to commit to sustainable development, it needs appropriate framework conditions. First, society must be open to and encourage new technologies (for example, new biotechnological processes or carbon capture and use/storage). This assumes that scientific knowledge is at the heart of political decision-making.
When it comes to energy, medicines and food, the focus is on framework conditions to ensure security of supply. Other elements include removing regulatory barriers to implementing the circular economy, a standalone but broadly compatible risk-based chemicals strategy, as well as promoting education, research and innovation. Finally, we must succeed in exploiting the advantages of digitalization, particularly in the field of health. In this area, Switzerland risks falling further and further behind.
Good rating for the Swiss economy
In the meantime, restrictive regulations and costly reporting requirements are unlikely to help achieve sustainability goals. On the contrary, they result in a huge bureaucratic burden for the companies concerned, as the implementation of the EU Sustainability Reporting Directive (CSRD) has shown. In addition, the even more restrictive Supply Chain Directive (CS3D) is expected to follow, which will also have an impact on Swiss companies.
In view of future Swiss regulations on sustainable development, it is appropriate to keep an eye on these developments, especially since our export-oriented Swiss economy must assert itself in the face of global competition. On a more positive note, on June 7, 2024, the Federal Council approved the report on the implementation of the action plan for responsible corporate governance (CSR) 2020-2023. In this document, he gives a good rating to the Swiss economy and for the moment refrains from introducing new measures.
