Sustainability disclosure in the pharmaceutical and chemical industries: Results from bibliometric analysis and AI-based comparison of financial reports

Climate change is a pressing global challenge, and companies are under increasing pressure to adopt sustainable practices and transparently disclose their environmental performance. This study focuses on the Italian pharmaceutical industry to gain insights into the level of stakeholder and management attention to climate change and the growth of academic research in this critical area. We employ a bibliometric analysis of scientific literature and a content analysis of financial statements to examine sustainability practices and reporting in both pharmaceutical and chemical companies. Our findings reveal a significant difference in stakeholder expectations and commitment to addressing climate change between the two industries. The chemical industry has demonstrated a stronger focus on sustainability, as evidenced by higher academic research and environmental disclosure levels. In contrast, the pharmaceutical sector has shown a comparatively lower level of environmental reporting and sustainability practices. However, our analysis shows a positive trend in pharmaceutical companies' voluntary disclosure of environmental information in their financial reports. These results highlight the need for increased focus and effort in the pharmaceutical industry to address climate change and improve sustainability practices. Pharmaceutical companies can build stakeholder trust, improve environmental sustainability, increase transparency in reporting, align practices with global sustainability goals, enhance their reputation, and reduce their environmental impact. This research provides valuable guidance for policymakers, researchers and practitioners in promoting sustainable practices in the pharmaceutical industry and contributes to the broader understanding of ESG disclosure and climate change.