Nature

Why nature matters to Novartis

The World Health Organization (WHO) highlights clear links between well-functioning ecosystems and healthy communities. Clean air, fresh water, natural medicines, and food security are just some of the factors underpinning human health. Natural systems also regulate diseases and are linked to economic development – it is estimated that the global economic impact of biodiversity loss amounts to USD 10 trillion annually, including healthcare costs from increased disease transmission and agricultural losses from the decline of pollinating insects and other animals¹.

For the pharmaceutical industry, natural systems are important to drug development, and we depend on energy and water to develop and manufacture medicines.

With a purpose to improve and extend people’s lives, Novartis recognizes the importance of understanding how changes in nature may influence health outcomes, while also managing our own impacts and dependencies on natural systems. Our nature strategy helps us to protect the natural systems that support human health and forms part of Novartis broader environmental sustainability ambition to be a catalyst for positive change.

What is Novartis nature ambition?

Novartis has committed to contribute to Nature Positive, a global societal goal to halt and reverse nature loss by 2030 and achieve full recovery by 2050. To support this ambition, our nature strategy sets out five strategic priorities: water use, water quality, waste, biodiversity, and raw materials. These priorities were identified through risk assessments across the Novartis value chain, both upstream and downstream, using the LEAP methodology and guidance from the Taskforce on Nature-related Financial Disclosures (TNFD).

In taking action across these priorities, Novartis seeks to play a part in reducing pressure on natural systems while strengthening resilience in our own operations and value chain.
Having achieved our 2025 targets, Novartis has established three 2030 goals²:

1. Implement water use reduction for own and supplier sites based in water-stressed basins,
2. No water quality impacts from manufacturing effluents by 2030 from own manufacturing sites, labs and all active pharmaceutical ingredient (API) suppliers.
3. Reduce the amount of waste sent for disposal by 30% from a 2022 base year by 2030

Water use

Our business depends on water for developing and manufacturing medicines, whether as a solvent, for cooling and cleaning purposes, or in the cultivation or extraction of raw materials in upstream supply chains.

As an early signatory of the United Nations Global Compact and the CEO Water Mandate, Novartis is committed to advancing water stewardship, using water efficiently and safely throughout the life cycle of our products, including in our supply chain. We actively manage our water use by monitoring and reporting water withdrawal, consumption, and discharge volumes across our operations³, including in R&D, manufacturing, and major administrative facilities.

In 2025 we met our target, reducing water consumption in our own operations by 59% from a 2016 base year, and committed to implementing further reduction projects by 2030.

Learn more about the progress we have made against our water use targets so far (PDF 1.0 MB)

Key commitment: Implement water use reduction plans by 2030 for own and supplier sites based in water-stressed basins. To support implementation, Novartis will establish site-specific water-reduction targets and action plans for operations located in water-stressed basins, aligned with local water challenges and basin conditions.

In line with this commitment, we are increasing the use of recycled water (where local regulations allow) and reducing water-intensive production techniques.

Water quality

Responsible water management at Novartis also eans mitigating potential impacts associated with pharmaceuticals entering the natural environment. The majority of Pharmaceuticals in the Environment (PiE) come from patient excretion, followed by the improper disposal of unused or expired medicines. Smaller amounts may originate from manufacturing effluents and R&D facilities.

Novartis is committed to managing the environmental impact of Pharmaceuticals in the Environment (PiE). We meet applicable regulatory obligations by setting limits aligned with defined thresholds, regularly monitoring water quality, and applying engineering controls in our own operations and among suppliers. Manufacturing sites also perform annual self-assessments supported by an independent governance team, with legal compliance audits at least every five years.

We follow best practice standards published by the Pharmaceutical Supply Chain Initiative (PSCI) and the European Federation of Pharmaceutical Industries and Associations (EFPIA) and use a water quality maturity ladder⁴ informed by these standards to efficiently manage the risks of manufacturing effluents and API in wastewater.

Key commitment: No water quality impacts from manufacturing effluents by 2030 from own manufacturing sites, labs and all active pharmaceutical ingredient (API) suppliers⁵.

See our latest progress and more information about Novartis water quality maturity ladder assessment (PDF 1.0 MB)

Waste

Reducing waste helps lower pressure on natural systems and supports a more circular approach to manufacturing.

Stringent regulations manage solid waste in the pharmaceutical sector, and Novartis is focused on reducing operational waste. In 2025, we achieved our 50% reduction goal by delivering a 69% reduction in waste sent for disposal compared with a 2016 baseline. In addition, 100% of our sites eliminated polyvinyl chloride (PVC) from secondary and tertiary packaging in 2025. We have now expanded our waste reduction target⁶.

Learn more about our Environmental Sustainability Strategy (PDF 2.1 MB)

Key commitment: Reduce the amount of waste sent for disposal by 30% from a 2022 base year by 2030

To meet this target, Novartis adopts a strategy of waste prevention, reduction, recycling, and resource recovery, with safe disposal as a last resort, and waste prevention and reduction preferred to treatment, incineration or disposal.

Environmental lifecycle assessments help us to evaluate the waste impacts associated with our products – from design to use and end-of-life. We supported the development of PAS 2090, the industry standard for life cycle assessments of pharmaceutical products thanks to the collective work of our industry under the Pharmaceutical Environment Group and the Sustainable Markets Initiative (SMI).

Read more about Novartis ambition to embed sustainability considerations into the development of our products in the climate section

Biodiversity

For Novartis, two key factors drive land use impacts, which contribute to biodiversity loss: In our own operations, land use relates to manufacturing sites, R&D labs, and commercial offices. In our upstream supply chains, land use impacts primarily stem from the sourcing of specific raw materials required for product manufacturing.

Applying the Integrated Biodiversity Assessment Tool (a resource recommended by TNFD that integrates data from global biodiversity databases⁷), we know that more than half of Novartis operating sites are located near nature-sensitive areas. Of these, we have identified priority sites based on water use, the WWF biodiversity risk score, and water risk scores. We also plan to extend this assessment to supplier sites.

Key commitment: Implement biodiversity management plans (BMPs) for priority sites that are located in or near nature-sensitive areas by 2030.

We are developing BMPs for these priority sites using a TNFD and LEAP framework-informed approach. The plans will help Novartis to identify nature-related risks and opportunities by locating site-level interfaces with nature, evaluating dependencies and impacts, assessing nature-related risks and opportunities, and defining targeted mitigation, management, and monitoring measures.

Together, this work supports our contribution to the Nature Positive ambition by identifying where site-level interventions can help avoid, reduce, and address potential impacts on ecosystems.

Raw materials 
At Novartis, we aim to implement a sustainable sourcing program for select high-impact commodities. We have identified three key areas of raw material use:

• Packaging: Primarily derived from agricultural or forestry-based feedstocks (e.g., timber, cellulose) or mineral-based materials (e.g., aluminum).
• Excipients: Derived from agricultural or forestry-based feedstocks (e.g., maize/corn, sugarcane, palm oil, soy, lactose).
• Solvents: Typically derived from petrochemical feedstocks (e.g., crude oil).

Across these supply chains, Novartis is collaborating on transparency and responsible sourcing approaches and increasing the use of certified materials in areas such as paper-based packaging.

Key commitment: Implement a sustainable sourcing program for key commodities used in manufacturing processes, starting with a pilot on paper used in the packaging of our products.

Novartis uses natural sources for potential drugs or lead substances, in accordance with the Convention on Biological Diversity, the Nagoya Protocol, and local regulations. Working with peers through the PSCI, we have developed a standardized sourcing maturity framework to drive continuous progress for sourcing palm oil and lactose from sustainable sources.

We are exploring opportunities to reduce dependence on scarce natural resources where appropriate.

See our latest progress report in our Update on Public Commitments (PDF 0.3 MB)

Collective action for systemic change

Given the scale of the challenges facing natural systems, Novartis works with suppliers, industry peers, and external organizations to advance more sustainable approaches across healthcare and pharmaceutical value chains. For example, we work closely with the SMI, the PSCI, and the World Business Council for Sustainable Development, through which we have contributed to the sectors Roadmap to Nature Positive.

By combining a better understanding of nature-related impacts and dependencies with practical action across water, waste, biodiversity, and sourcing, we aim to contribute to Nature Positive while ensuring resilient operations and long-term value for patients, partners, and society at large.

Environmental sustainability governance

Oversight of our environmental sustainability strategy lies with the Novartis Board of Directors and its committees – notably the Governance, Sustainability and Nomination Committee.

The Chief Executive Officer (CEO) is responsible for implementing our environmental sustainability strategy. The CEO chairs the Environmental, Social, and Governance (ESG) Committee, which meets six times per year. The CEO’s compensation is partially linked to ESG-related targets, which include climate and nature-related targets.

Our Enterprise Risk Management framework takes into consideration our social impact and sustainability risks, including those related to climate and nature. It includes monitoring the actions taken to mitigate the risks in these areas, as well as the effectiveness of these actions.

Finally, where environmental impact may harm the livelihoods of people and communities, the Novartis Human Rights Commitment Statement (PDF 2.4 MB) covers our own operations and is echoed in our Third Party Code (PDF 0.5 MB).