Novartis

Novartis is a Swiss multinational pharmaceutical corporation that develops innovative medicines to improve and extend people's lives. It operates through two main divisions: Innovative Medicines and, until recently, Sandoz (generics), which was spun off in October 2023.

Positive signals

Novartis has received an AA ESG rating from MSCI as of 2024, reflecting strong performance in environmental, social, and governance criteria compared to industry peers.

Source →

Novartis was recognized in 2023 by Sustainalytics as a top performer in the pharmaceutical industry, with a low ESG risk rating of 20.1, indicating strong management of material ESG issues.

Source →

Novartis’ dry powder inhalers (DPIs) have an average carbon footprint less than half that of other published DPI life cycle assessments, and up to 50 times lower than traditional pressurized metered-dose inhalers using HFC-134a propellant.

Source →

Novartis has implemented environmental life cycle assessments (LCAs) into its product development processes to embed sustainability by design, supporting its climate targets and reducing product-related environmental impacts.

Source →

Novartis has committed to achieving net zero carbon emissions across its operations and supply chain by 2040, with interim targets to reduce greenhouse gas emissions by 50% by 2030 compared to a 2016 baseline.

Source →

Concerns

Novartis has been criticized by NGOs for insufficient transparency in its supply chain, particularly regarding labor rights monitoring and third-party audits in lower-income countries.

MEDIUM

Source →

Novartis has faced criticism for its drug pricing practices, with U.S. lawmakers in 2023 highlighting the high cost of several Novartis medications as a barrier to patient access and affordability.

HIGH

Source →

In 2022, Novartis agreed to pay $729 million to settle a U.S. lawsuit alleging that it paid kickbacks to doctors to boost sales of its drugs, raising significant governance concerns related to business ethics and compliance.

CRITICAL

Source →

In 2023, Novartis was named in a European Medicines Agency (EMA) investigation into potential workplace safety lapses at a manufacturing site, specifically regarding employee exposure to hazardous substances.

MEDIUM

Source →

Novartis received a fine of €25 million from the French Competition Authority in 2022 for anti-competitive practices related to the marketing of Lucentis, raising governance and compliance concerns.

HIGH

Source →

Novartis

Positive signals

Novartis has received an AA ESG rating from MSCI as of 2024, reflecting strong performance in environmental, social, and governance criteria compared to industry peers.

Novartis was recognized in 2023 by Sustainalytics as a top performer in the pharmaceutical industry, with a low ESG risk rating of 20.1, indicating strong management of material ESG issues.

Novartis’ dry powder inhalers (DPIs) have an average carbon footprint less than half that of other published DPI life cycle assessments, and up to 50 times lower than traditional pressurized metered-dose inhalers using HFC-134a propellant.

Novartis has implemented environmental life cycle assessments (LCAs) into its product development processes to embed sustainability by design, supporting its climate targets and reducing product-related environmental impacts.

Novartis has committed to achieving net zero carbon emissions across its operations and supply chain by 2040, with interim targets to reduce greenhouse gas emissions by 50% by 2030 compared to a 2016 baseline.

Concerns

Novartis has been criticized by NGOs for insufficient transparency in its supply chain, particularly regarding labor rights monitoring and third-party audits in lower-income countries.

Novartis has faced criticism for its drug pricing practices, with U.S. lawmakers in 2023 highlighting the high cost of several Novartis medications as a barrier to patient access and affordability.

In 2022, Novartis agreed to pay $729 million to settle a U.S. lawsuit alleging that it paid kickbacks to doctors to boost sales of its drugs, raising significant governance concerns related to business ethics and compliance.

In 2023, Novartis was named in a European Medicines Agency (EMA) investigation into potential workplace safety lapses at a manufacturing site, specifically regarding employee exposure to hazardous substances.

Novartis received a fine of €25 million from the French Competition Authority in 2022 for anti-competitive practices related to the marketing of Lucentis, raising governance and compliance concerns.

Alternatives