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  January 21st, 2024 | Written by

Trax Empowers Pharma Companies for California’s Climate Reporting Regulations

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Trax Technologies, a pioneer in Transportation Spend Management (TSM) solutions, is playing a pivotal role in equipping pharmaceutical companies with a strategic advantage in addressing the upcoming California climate reporting regulations. Leveraging its proficiency in European Sustainability Reporting Standards, Trax is aiding enterprises to navigate the complexities of emissions reduction, particularly in the context of Scope 3 emissions, which constitute a significant portion of the carbon footprint within the pharmaceutical industry.

A recent analysis by McKinsey underscored that approximately 75 percent of emissions across the value chain for pharmaceutical companies fall under Scope 3, with half of the total emissions originating from upstream activities, specifically in the purchased goods and services category. Trax’s proactive approach in preparing enterprise shippers and pharma manufacturers extends beyond the national realm, encompassing compliance with global reporting requirements such as the European Commission’s Corporate Sustainability Reporting Directive (CSRD), the International Sustainability Standard Board (ISSB) climate-related disclosures, and the Securities and Exchange Commission (SEC) climate-related disclosures.

Steve Beda, Executive Vice President of Customer Success at Trax, emphasized the company’s readiness for SEC Climate reporting regulations and highlighted the advantage this readiness provides to pharma companies facing the imminent challenges posed by the forthcoming California Climate Corporate Data Accountability Act. The act mandates companies with revenues of $500 million to report Scope 1 and 2 emissions in 2026 and Scope 3 emissions in 2027.

Uniquely positioned to address the diverse needs of global enterprises, Trax is aligning its efforts with the California climate reporting standards, notably EN 16258. This standard, adopted by the European Union for the CSRD, serves as the foundation for Trax’s reports and promotes consistency in calculating and reporting greenhouse gas emissions from transportation. Trax’s Carbon Emissions Manager emerges as a valuable tool for pharmaceutical companies, enabling them to meticulously assess their carbon footprint by gathering and analyzing data from every segment and vendor within their supply chain.

As the pharmaceutical industry grapples with the impending challenges of emissions reduction and reporting, Trax’s comprehensive solutions empower companies to implement sustainable practices that not only enhance operational efficiency but also contribute to environmental well-being. In essence, Trax is spearheading the charge to prepare pharmaceutical enterprises for a future where climate accountability is paramount.