Month: May 2025

At the recent Functional Fabric Fair Day 0 Sustainability Workshop in Portland, Joleen Ong, senior director of brand and retailer membership at Cascale, led a session and joined a panel of industry experts to discuss various models of how suppliers and brands can work together to achieve shared sustainability goals. The event brought together sustainability practitioners who presented a pragmatic approach to foundational topics, while providing updated guidance on recent trade developments.

Ong opened the session, “Finding (or not finding) Business Value in Sustainability”. The session continued with a panel discussion moderated by Jill Dumain, founding partner, Fractal CSOs, and included panelists Gerhard Leitner, head of business unit shirting and technics, Getzner Textil AG; Jennifer Ryan, owner, Ryan Imports; and Matthew Guenther, vice president corporate sustainability, TAL Apparel Ltd.

Ong began her presentation by giving an overview of Cascale’s origins and its vision to pre-competitively convene stakeholders across the industry to develop a common approach to measuring sustainability. She highlighted Cascale’s growth in membership and ongoing evolution, and noted its strategic pillars — Combat Climate Change and Support Decent Work for All — as critical to the organization’s vision of a global consumer goods industry that gives back more than it takes to the planet and its people.

After an overview of Cascale’s Higg Index suite of tools, Ong shared how they were developed, in collaboration with members, to help measure and understand sustainability performance and identify areas for improvement. She noted Cascale’s ongoing commitment to evolve the tools, as science improves and industry challenges deepen, to support its members and the wider consumer goods industry.

Ong delved into challenges facing the industry, including audit and assessment fatigue facing organizations as a result of overlapping and redundant audits and data requests, inconsistent audit standards, and difficulties in prioritizing remediation, among others. She shared solutions that could help address these challenges, including consolidating audits, where brands and organizations can collaborate to harmonize audit standards, and reducing the frequency and overlap of audits.

Ong emphasized the need to shift from a traditional audit-driven approach to a due diligence-based strategy for managing supply chain risks. She encouraged brands to adopt smart auditing practices, including the use of predictive analytics during the pre-screening of new manufacturing partners to identify higher-risk areas or known issues. Rather than applying a one-size-fits-all audit model, she advocated for a more targeted deployment of audits. Joleen also outlined the benefits of audit convergence, such as clearer corrective action guidance for suppliers, increased wages for workers, and cost savings that can be reinvested into workplace improvements.

In parallel, Ong highlighted how adopting responsible purchasing practices can drive meaningful impact, emphasizing the pivotal role of the Better Buying Institute (BBI) in scaling effective solutions to support these efforts. Cascale recently acquired key assets of Better Buying Institute (BBI) to support its objective of advancing responsible purchasing practices across the consumer goods industry. Ong concluded by sharing insights from BBI’s surveys and the Better Buying Partnership Index (BBPI), emphasizing their importance in advancing responsible purchasing practices and promoting fair, accountable, and socially just supply chains.

At the recent Functional Fabric Fair Day 0 Sustainability Workshop in Portland, Joleen Ong, senior director of brand and retailer membership at Cascale, led a session and joined a panel of industry experts to discuss various models of how suppliers and brands can work together to achieve shared sustainability goals. The event brought together sustainability practitioners who presented a pragmatic approach to foundational topics, while providing updated guidance on recent trade developments.

Ong opened the session, “Finding (or not finding) Business Value in Sustainability”. The session continued with a panel discussion moderated by Jill Dumain, founding partner, Fractal CSOs, and included panelists Gerhard Leitner, head of business unit shirting and technics, Getzner Textil AG; Jennifer Ryan, owner, Ryan Imports; and Matthew Guenther, vice president corporate sustainability, TAL Apparel Ltd.

Ong began her presentation by giving an overview of Cascale’s origins and its vision to pre-competitively convene stakeholders across the industry to develop a common approach to measuring sustainability. She highlighted Cascale’s growth in membership and ongoing evolution, and noted its strategic pillars — Combat Climate Change and Support Decent Work for All — as critical to the organization’s vision of a global consumer goods industry that gives back more than it takes to the planet and its people.

After an overview of Cascale’s Higg Index suite of tools, Ong shared how they were developed, in collaboration with members, to help measure and understand sustainability performance and identify areas for improvement. She noted Cascale’s ongoing commitment to evolve the tools, as science improves and industry challenges deepen, to support its members and the wider consumer goods industry.

Ong delved into challenges facing the industry, including audit and assessment fatigue facing organizations as a result of overlapping and redundant audits and data requests, inconsistent audit standards, and difficulties in prioritizing remediation, among others. She shared solutions that could help address these challenges, including consolidating audits, where brands and organizations can collaborate to harmonize audit standards, and reducing the frequency and overlap of audits.

Ong emphasized the need to shift from a traditional audit-driven approach to a due diligence-based strategy for managing supply chain risks. She encouraged brands to adopt smart auditing practices, including the use of predictive analytics during the pre-screening of new manufacturing partners to identify higher-risk areas or known issues. Rather than applying a one-size-fits-all audit model, she advocated for a more targeted deployment of audits. Joleen also outlined the benefits of audit convergence, such as clearer corrective action guidance for suppliers, increased wages for workers, and cost savings that can be reinvested into workplace improvements.

In parallel, Ong highlighted how adopting responsible purchasing practices can drive meaningful impact, emphasizing the pivotal role of the Better Buying Institute (BBI) in scaling effective solutions to support these efforts. Cascale recently acquired key assets of Better Buying Institute (BBI) to support its objective of advancing responsible purchasing practices across the consumer goods industry. Ong concluded by sharing insights from BBI’s surveys and the Better Buying Partnership Index (BBPI), emphasizing their importance in advancing responsible purchasing practices and promoting fair, accountable, and socially just supply chains.

Originally published by TriplePundit

Soil may look like lifeless dirt, but it’s very much alive. A handful of healthy soil can contain billions of microorganisms that break down organic matter and leave behind nutrients for plants in a symbiotic system called the soil food web. Indigo Ag and Groundwork BioAg aim to harness these natural processes to improve soil health and yields for farmers.

The agriculture sector is transforming as growers look to manage changing weather patterns and feed a rising population while maintaining the health of soils and ecosystems. Two industry leaders — Indigo Ag and Groundwork BioAg — joined forces to accelerate the adoption of sustainable biological solutions for commercial farms. Their collaboration is centered on delivering a comprehensive biological solution designed to enhance soil health, improve crop resilience, and contribute to carbon sequestration in the fight to future-proof agriculture.

We spoke with A.J. Kumar, Vice President of Sustainability Sciences at Indigo Ag, and Yossi Kofman, CEO of Groundwork BioAg, to learn more about their pioneering initiative and the potential impact on the future of agriculture.

Harnessing the power of microbes and mycorrhizae

Soil may look like lifeless dirt, but it’s very much alive. A single handful of healthy soil can contain billions of microorganisms. These bacteria and fungi break down organic matter and leave behind nutrients for plants in a symbiotic system called the soil food web. Healthy soil absorbs more water and atmospheric carbon, building resistance against droughts and reducing global emissions. Healthier soils also grow more resilient crops with better yields, increasing profit for farmers.

Indigo Ag and Groundwork BioAg aim to harness these natural processes to improve soil health and yields for farmers. In particular, their efforts combine Indigo’s expertise in the use of microbes to improve soil and plant resiliency and Groundwork’s innovations in mycorrhizae, or the mutually beneficial relationship between fungi and plant roots beneath the soil.

“The objective of our partnership is to bring the best biological product to market by combining the power of mycorrhizae with Indigo’s microbial endophytes,” Kofman said. “By integrating our unique expertise, we can offer a complete biological solution that increases resistance to environmental stressors, enhances nitrogen fixation, and reduces the need for synthetic fertilizers.”

This breakthrough approach offers more than just improved soil fertility. It also has other significant environmental benefits — including increasing carbon sequestration and reducing emissions from nitrogen and phosphorus fertilizers, key contributors to agricultural pollution.

“Microbes exist in communities in nature,” Kumar said of the relationship between bacteria and fungi within healthy soils. “Indigo has a strong background in microbial endophyte collection, while Groundwork brings deep expertise in mycorrhizae. By working together, we are creating a holistic solution that provides farmers with more than just a single product. We’re offering them an entire system to improve soil health and crop performance.”

This collaboration supported by the BIRD Foundation aims to benefit both agronomic outcomes and global climate efforts. “The mycorrhizae and bacteria combination enhances carbon sequestration,” Kofman said. “Through the reduction of nitrogen and phosphorus inputs, we also lower emissions. This dual approach of capturing carbon while reducing emissions has the potential to open up tens of millions of acres in the U.S., Canada, Brazil, and beyond for carbon credit markets.”

Farmers often face economic barriers to implementing sustainable or regenerative solutions, as certain practices can require new, expensive equipment. However, adopting Indigo’s biological solution requires minimal changes to their operations.

“The beauty of this product is that it doesn’t require farmers to change their workflows,” Kofman continued. “They purchase the combined product, apply it as they normally would, and immediately start seeing benefits. In addition to agronomic improvements, they can also generate a new income stream through carbon credits.” Because carbon credit revenue is not tied to commodity prices, it provides farmers with a more stable income source while increasing the long-term value of their land.

Breaking barriers in carbon markets

Scaling this solution comes with challenges, particularly in navigating the complexities of carbon markets. “One of the main issues is additionality. Buyers are looking for new solutions that can demonstrate a clear, measurable impact,” Kumar said. “Our product is inherently new, making it an attractive option for those looking to make a meaningful difference.”

Companies seeking to reduce their supply chain emissions tied to agriculture (Scope 3) prioritize solutions that provide a high return on investment, and Kumar believes this initiative fits that demand perfectly. “This is a product that can be deployed at scale, at low cost, and with immediate impact. If companies are looking for high-quality carbon credits, this is a viable pathway to achieving their goals,” he said

Another key consideration for carbon markets is permanence, or how long sequestered carbon remains in the soil. Indigo and Groundwork’s collaboration includes ongoing investigations into the permanence of soil organic matter. “We believe that our product can significantly enhance the long-term storage of carbon in soil, creating a more durable and credible carbon offset solution,” Kofman said.

Kumar agreed, explaining: “Not all soil carbon is the same. Some pools of carbon are more stable and long-lasting than others. If our products can help increase the durability of soil carbon storage, it would be a game-changer for the carbon credit market.”

The road ahead

The initiative is now in its testing phase. “We are at the beginning stages,” Kumar said. “We have identified individual microbial candidates that provide parts of the solution, and we are now conducting compatibility tests to ensure they work well together. Our first field trials are set for this spring, and we are optimistic that we will see strong synergistic effects.”

Kofman is also confident. “We believe the combination of mycorrhizae and bacteria will yield significant benefits. This is all based on science. Mycorrhizae and bacteria have well-documented advantages, and our approach is grounded in rigorous research.”

As the agricultural industry faces growing pressure to adopt more sustainable and resilient farming practices, the partnership between Indigo Ag and Groundwork BioAg presents a compelling vision. By harnessing the power of biological solutions, farmers can enhance crop yields, reduce reliance on synthetic fertilizers, and create new revenue opportunities for farmers, while contributing to global climate goals. “This is just the beginning,” Kumar said. “With continued innovation, investment, and collaboration, we can unlock a more sustainable future for agriculture and the planet.”

Learn more about Indigo’s Sustainability Solutions.

Learn more about Groundwork’s mycorrhiza solution and carbon project.

This article series is sponsored by Indigo Ag and produced by the TriplePundit editorial team.

Originally published by TriplePundit

Soil may look like lifeless dirt, but it’s very much alive. A handful of healthy soil can contain billions of microorganisms that break down organic matter and leave behind nutrients for plants in a symbiotic system called the soil food web. Indigo Ag and Groundwork BioAg aim to harness these natural processes to improve soil health and yields for farmers.

The agriculture sector is transforming as growers look to manage changing weather patterns and feed a rising population while maintaining the health of soils and ecosystems. Two industry leaders — Indigo Ag and Groundwork BioAg — joined forces to accelerate the adoption of sustainable biological solutions for commercial farms. Their collaboration is centered on delivering a comprehensive biological solution designed to enhance soil health, improve crop resilience, and contribute to carbon sequestration in the fight to future-proof agriculture.

We spoke with A.J. Kumar, Vice President of Sustainability Sciences at Indigo Ag, and Yossi Kofman, CEO of Groundwork BioAg, to learn more about their pioneering initiative and the potential impact on the future of agriculture.

Harnessing the power of microbes and mycorrhizae

Soil may look like lifeless dirt, but it’s very much alive. A single handful of healthy soil can contain billions of microorganisms. These bacteria and fungi break down organic matter and leave behind nutrients for plants in a symbiotic system called the soil food web. Healthy soil absorbs more water and atmospheric carbon, building resistance against droughts and reducing global emissions. Healthier soils also grow more resilient crops with better yields, increasing profit for farmers.

Indigo Ag and Groundwork BioAg aim to harness these natural processes to improve soil health and yields for farmers. In particular, their efforts combine Indigo’s expertise in the use of microbes to improve soil and plant resiliency and Groundwork’s innovations in mycorrhizae, or the mutually beneficial relationship between fungi and plant roots beneath the soil.

“The objective of our partnership is to bring the best biological product to market by combining the power of mycorrhizae with Indigo’s microbial endophytes,” Kofman said. “By integrating our unique expertise, we can offer a complete biological solution that increases resistance to environmental stressors, enhances nitrogen fixation, and reduces the need for synthetic fertilizers.”

This breakthrough approach offers more than just improved soil fertility. It also has other significant environmental benefits — including increasing carbon sequestration and reducing emissions from nitrogen and phosphorus fertilizers, key contributors to agricultural pollution.

“Microbes exist in communities in nature,” Kumar said of the relationship between bacteria and fungi within healthy soils. “Indigo has a strong background in microbial endophyte collection, while Groundwork brings deep expertise in mycorrhizae. By working together, we are creating a holistic solution that provides farmers with more than just a single product. We’re offering them an entire system to improve soil health and crop performance.”

This collaboration supported by the BIRD Foundation aims to benefit both agronomic outcomes and global climate efforts. “The mycorrhizae and bacteria combination enhances carbon sequestration,” Kofman said. “Through the reduction of nitrogen and phosphorus inputs, we also lower emissions. This dual approach of capturing carbon while reducing emissions has the potential to open up tens of millions of acres in the U.S., Canada, Brazil, and beyond for carbon credit markets.”

Farmers often face economic barriers to implementing sustainable or regenerative solutions, as certain practices can require new, expensive equipment. However, adopting Indigo’s biological solution requires minimal changes to their operations.

“The beauty of this product is that it doesn’t require farmers to change their workflows,” Kofman continued. “They purchase the combined product, apply it as they normally would, and immediately start seeing benefits. In addition to agronomic improvements, they can also generate a new income stream through carbon credits.” Because carbon credit revenue is not tied to commodity prices, it provides farmers with a more stable income source while increasing the long-term value of their land.

Breaking barriers in carbon markets

Scaling this solution comes with challenges, particularly in navigating the complexities of carbon markets. “One of the main issues is additionality. Buyers are looking for new solutions that can demonstrate a clear, measurable impact,” Kumar said. “Our product is inherently new, making it an attractive option for those looking to make a meaningful difference.”

Companies seeking to reduce their supply chain emissions tied to agriculture (Scope 3) prioritize solutions that provide a high return on investment, and Kumar believes this initiative fits that demand perfectly. “This is a product that can be deployed at scale, at low cost, and with immediate impact. If companies are looking for high-quality carbon credits, this is a viable pathway to achieving their goals,” he said

Another key consideration for carbon markets is permanence, or how long sequestered carbon remains in the soil. Indigo and Groundwork’s collaboration includes ongoing investigations into the permanence of soil organic matter. “We believe that our product can significantly enhance the long-term storage of carbon in soil, creating a more durable and credible carbon offset solution,” Kofman said.

Kumar agreed, explaining: “Not all soil carbon is the same. Some pools of carbon are more stable and long-lasting than others. If our products can help increase the durability of soil carbon storage, it would be a game-changer for the carbon credit market.”

The road ahead

The initiative is now in its testing phase. “We are at the beginning stages,” Kumar said. “We have identified individual microbial candidates that provide parts of the solution, and we are now conducting compatibility tests to ensure they work well together. Our first field trials are set for this spring, and we are optimistic that we will see strong synergistic effects.”

Kofman is also confident. “We believe the combination of mycorrhizae and bacteria will yield significant benefits. This is all based on science. Mycorrhizae and bacteria have well-documented advantages, and our approach is grounded in rigorous research.”

As the agricultural industry faces growing pressure to adopt more sustainable and resilient farming practices, the partnership between Indigo Ag and Groundwork BioAg presents a compelling vision. By harnessing the power of biological solutions, farmers can enhance crop yields, reduce reliance on synthetic fertilizers, and create new revenue opportunities for farmers, while contributing to global climate goals. “This is just the beginning,” Kumar said. “With continued innovation, investment, and collaboration, we can unlock a more sustainable future for agriculture and the planet.”

Learn more about Indigo’s Sustainability Solutions.

Learn more about Groundwork’s mycorrhiza solution and carbon project.

This article series is sponsored by Indigo Ag and produced by the TriplePundit editorial team.

Authored by Darren R. Jones, Morgan DiSanto-Ranney

The life sciences industry is entering a pivotal period of transformation as the U.S. government implements new pharmaceutical tariffs aimed at strengthening domestic manufacturing. While the tariffs that took effect on April 8 did not impact pharmaceutical products, forthcoming measures are expected to target a broad range of industry components — including active pharmaceutical ingredients (APIs), branded drugs, generics, biologics and medical devices.

These policy changes are part of a broader shift in trade strategy, which includes a 10% baseline tariff on all imports, as well as reciprocal measures designed to address global trade imbalances. While the long-term goal is to bolster national self-sufficiency, the immediate effects are reverberating throughout the industry.

Immediate industry impacts

For pharmaceutical manufacturers, the introduction of tariffs brings significant operational and economic challenges.

• Increased costs: Tariffs on imported APIs, raw materials, and medical devices will drive up production costs. These increases may be passed down the value chain, potentially raising prices for patients and payers. As highlighted by the New York Times, the proposed tariffs would target high-value European exports such as Ozempic, cancer therapies and flu vaccines—medicines that currently command premium prices in the U.S. market and generate substantial profits for manufacturers.
• Reduced patient access: Cost pressures could make generics and other low-margin therapies less viable, diminishing availability in already underserved markets. These pressures can also lead to FDA-declared drug shortages, where limited supply status allows compound pharmacies to step in. This can introduce new competitive and regulatory complexities across the market.
• Retaliatory measures: Global partners may impose their own tariffs or limit cooperation in areas like clinical research, complicating clinical trials and supply agreements. Compounding these challenges is a growing threat of export restrictions on scarce raw materials critical to manufacturing, placing additional strain on already fragile global supply chains.
• Market volatility: Uncertainty surrounding the new policy has already led to fluctuations in pharmaceutical stock prices.

These immediate consequences serve as a wake-up call — not only to manufacturers, but to healthcare stakeholders who must now navigate a rapidly evolving economic and regulatory landscape.

Section 232 investigation and policy review

In parallel, the U.S. Department of Commerce has launched a Section 232 investigation, effective April 1 to evaluate the national security implications of pharmaceutical imports. This review assesses critical vulnerabilities in the supply of medicines, APIs, and medical countermeasures needed in the event of biological, chemical or radiological threats as well as pandemics like COVID-19.

With a narrow window for public comments open until May 7 (public comments opened on April 16), industry stakeholders have a time-sensitive opportunity to shape future policy. Providing input during this review can help clarify the clinical, operational, and economic implications of the current supply landscape.

Adding urgency to the conversation, Reuters recently reported that a 25% tariff on pharmaceutical imports—an idea President Trump has floated—could increase U.S. drug costs by nearly $51 billion annually, raising prices by up to 12.9% if passed on to consumers. The Biotechnology Innovation Organization (BIO) has also raised concerns about potential industry-wide disruption. In a March survey of its member companies, 94% of biotech firms anticipated increased manufacturing costs as a result of tariffs. The EU emerged as the most critical concern, with over half of respondents warning that such tariffs would significantly hinder their ability to secure funding and carry out research initiatives.

Supply chain complexities and risks

The pharmaceutical industry relies on global supply chains that have been built over decades. APIs are primarily sourced from countries such as India and China, and high-precision manufacturing equipment often comes from Europe. Disruptions to these supply chains pose several risks:

• Shortage of materials: Tariffs may make it financially unviable to produce certain generics and other drug types due to shortages of materials, many of which are already scarce and difficult to source.
• Production delays: Sudden changes in sourcing or manufacturing partners can require extensive re-approval processes by the FDA, leading to extended delays.
• Limited alternatives: Shifting production domestically is constrained by limited Good Manufacturing Practice (GMP)-compliant facility capacity and the time-intensive nature of building new infrastructure.
• Stock piling concerns: There are growing concerns that pharmaceutical companies may begin stockpiling key ingredients and finished products to mitigate supply disruptions.

Strategic options for life sciences firms

Given the uncertain environment, flexibility is key. Companies are encouraged to:

• Plan for short-term tariffs: Update financial forecasts, pricing strategies and supplier contracts to account for near-term cost increases.
• Review supply chains: Identify nearshoring or U.S.-based manufacturing alternatives, with a focus on minimizing operational disruption.
• Engage policy makers: Participate in the Section 232 comment process to highlight key industry challenges and suggest balanced solutions.
• Monitor incentive programs: Evaluate long-term incentives designed to support domestic manufacturing and innovation.

These immediate steps help companies manage the near-term while positioning for potential long-term shifts in the global manufacturing landscape. One of the most significant strategic considerations now gaining traction is the opportunity presented by federal reshoring incentives.

Incentive-driven reshoring

Federal policy efforts have increasingly focused on strengthening U.S. based manufacturing through incentive programs. Under the Inflation Reduction Act (IRA), life sciences companies can benefit from a variety of tax credits and infrastructure investments aimed at supporting domestic production.

Key elements include:

• Tax credits for facility upgrades: The IRA expanded the Section 48C Advanced Energy Project Credit, providing up to 30% in tax credits for pharmaceutical manufacturers modernizing or expanding facilities with energy-efficient or low-emissions technologies. This initiative helps offset the cost of reshoring by encouraging sustainable infrastructure improvements.
• Support for biomanufacturing and life sciences hubs: While not exclusive to pharmaceuticals, the IRA aligns with broader federal efforts to invest in regional biotech and biomanufacturing ecosystems. Funding supports R&D and advanced manufacturing capabilities—critical components for building domestic production capacity.
• Workforce development for biomanufacturing talent: Federal investments tied to the IRA also support education, training and apprenticeship programs aimed at developing a skilled biotech and pharmaceutical workforce. This ensures companies have access to qualified talent as they scale up U.S.-based operations.

This creates a compelling case for reshoring. However, the transition will take time as developing domestic capacity depends on regulatory timelines, labor availability and infrastructure readiness.

The big picture

The life sciences sector is entering a period of significant transformation. New tariffs and evolving industrial policies are reshaping the strategic landscape for pharmaceutical companies. In the near term, rising costs and supply chain disruptions are likely. Over the long term, reshoring incentives may help strengthen domestic capabilities and navigating the transition will require adaptability, collaboration and careful planning.

Whether companies choose to reshore, nearshore, or diversify supply chains, one thing is clear: proactive strategy and operational agility will be essential in maintaining both business continuity and public health readiness in this shifting environment.

Learn more about how tariffs may affect the pharmaceutical industry in this podcast featuring Darren Jones, Baker Tilly’s life sciences industry leader.

For more information on this topic or to explore our life sciences industry solutions, connect with us today.

Authored by Darren R. Jones, Morgan DiSanto-Ranney

The life sciences industry is entering a pivotal period of transformation as the U.S. government implements new pharmaceutical tariffs aimed at strengthening domestic manufacturing. While the tariffs that took effect on April 8 did not impact pharmaceutical products, forthcoming measures are expected to target a broad range of industry components — including active pharmaceutical ingredients (APIs), branded drugs, generics, biologics and medical devices.

These policy changes are part of a broader shift in trade strategy, which includes a 10% baseline tariff on all imports, as well as reciprocal measures designed to address global trade imbalances. While the long-term goal is to bolster national self-sufficiency, the immediate effects are reverberating throughout the industry.

Immediate industry impacts

For pharmaceutical manufacturers, the introduction of tariffs brings significant operational and economic challenges.

• Increased costs: Tariffs on imported APIs, raw materials, and medical devices will drive up production costs. These increases may be passed down the value chain, potentially raising prices for patients and payers. As highlighted by the New York Times, the proposed tariffs would target high-value European exports such as Ozempic, cancer therapies and flu vaccines—medicines that currently command premium prices in the U.S. market and generate substantial profits for manufacturers.
• Reduced patient access: Cost pressures could make generics and other low-margin therapies less viable, diminishing availability in already underserved markets. These pressures can also lead to FDA-declared drug shortages, where limited supply status allows compound pharmacies to step in. This can introduce new competitive and regulatory complexities across the market.
• Retaliatory measures: Global partners may impose their own tariffs or limit cooperation in areas like clinical research, complicating clinical trials and supply agreements. Compounding these challenges is a growing threat of export restrictions on scarce raw materials critical to manufacturing, placing additional strain on already fragile global supply chains.
• Market volatility: Uncertainty surrounding the new policy has already led to fluctuations in pharmaceutical stock prices.

These immediate consequences serve as a wake-up call — not only to manufacturers, but to healthcare stakeholders who must now navigate a rapidly evolving economic and regulatory landscape.

Section 232 investigation and policy review

In parallel, the U.S. Department of Commerce has launched a Section 232 investigation, effective April 1 to evaluate the national security implications of pharmaceutical imports. This review assesses critical vulnerabilities in the supply of medicines, APIs, and medical countermeasures needed in the event of biological, chemical or radiological threats as well as pandemics like COVID-19.

With a narrow window for public comments open until May 7 (public comments opened on April 16), industry stakeholders have a time-sensitive opportunity to shape future policy. Providing input during this review can help clarify the clinical, operational, and economic implications of the current supply landscape.

Adding urgency to the conversation, Reuters recently reported that a 25% tariff on pharmaceutical imports—an idea President Trump has floated—could increase U.S. drug costs by nearly $51 billion annually, raising prices by up to 12.9% if passed on to consumers. The Biotechnology Innovation Organization (BIO) has also raised concerns about potential industry-wide disruption. In a March survey of its member companies, 94% of biotech firms anticipated increased manufacturing costs as a result of tariffs. The EU emerged as the most critical concern, with over half of respondents warning that such tariffs would significantly hinder their ability to secure funding and carry out research initiatives.

Supply chain complexities and risks

The pharmaceutical industry relies on global supply chains that have been built over decades. APIs are primarily sourced from countries such as India and China, and high-precision manufacturing equipment often comes from Europe. Disruptions to these supply chains pose several risks:

• Shortage of materials: Tariffs may make it financially unviable to produce certain generics and other drug types due to shortages of materials, many of which are already scarce and difficult to source.
• Production delays: Sudden changes in sourcing or manufacturing partners can require extensive re-approval processes by the FDA, leading to extended delays.
• Limited alternatives: Shifting production domestically is constrained by limited Good Manufacturing Practice (GMP)-compliant facility capacity and the time-intensive nature of building new infrastructure.
• Stock piling concerns: There are growing concerns that pharmaceutical companies may begin stockpiling key ingredients and finished products to mitigate supply disruptions.

Strategic options for life sciences firms

Given the uncertain environment, flexibility is key. Companies are encouraged to:

• Plan for short-term tariffs: Update financial forecasts, pricing strategies and supplier contracts to account for near-term cost increases.
• Review supply chains: Identify nearshoring or U.S.-based manufacturing alternatives, with a focus on minimizing operational disruption.
• Engage policy makers: Participate in the Section 232 comment process to highlight key industry challenges and suggest balanced solutions.
• Monitor incentive programs: Evaluate long-term incentives designed to support domestic manufacturing and innovation.

These immediate steps help companies manage the near-term while positioning for potential long-term shifts in the global manufacturing landscape. One of the most significant strategic considerations now gaining traction is the opportunity presented by federal reshoring incentives.

Incentive-driven reshoring

Federal policy efforts have increasingly focused on strengthening U.S. based manufacturing through incentive programs. Under the Inflation Reduction Act (IRA), life sciences companies can benefit from a variety of tax credits and infrastructure investments aimed at supporting domestic production.

Key elements include:

• Tax credits for facility upgrades: The IRA expanded the Section 48C Advanced Energy Project Credit, providing up to 30% in tax credits for pharmaceutical manufacturers modernizing or expanding facilities with energy-efficient or low-emissions technologies. This initiative helps offset the cost of reshoring by encouraging sustainable infrastructure improvements.
• Support for biomanufacturing and life sciences hubs: While not exclusive to pharmaceuticals, the IRA aligns with broader federal efforts to invest in regional biotech and biomanufacturing ecosystems. Funding supports R&D and advanced manufacturing capabilities—critical components for building domestic production capacity.
• Workforce development for biomanufacturing talent: Federal investments tied to the IRA also support education, training and apprenticeship programs aimed at developing a skilled biotech and pharmaceutical workforce. This ensures companies have access to qualified talent as they scale up U.S.-based operations.

This creates a compelling case for reshoring. However, the transition will take time as developing domestic capacity depends on regulatory timelines, labor availability and infrastructure readiness.

The big picture

The life sciences sector is entering a period of significant transformation. New tariffs and evolving industrial policies are reshaping the strategic landscape for pharmaceutical companies. In the near term, rising costs and supply chain disruptions are likely. Over the long term, reshoring incentives may help strengthen domestic capabilities and navigating the transition will require adaptability, collaboration and careful planning.

Whether companies choose to reshore, nearshore, or diversify supply chains, one thing is clear: proactive strategy and operational agility will be essential in maintaining both business continuity and public health readiness in this shifting environment.

Learn more about how tariffs may affect the pharmaceutical industry in this podcast featuring Darren Jones, Baker Tilly’s life sciences industry leader.

For more information on this topic or to explore our life sciences industry solutions, connect with us today.

Originally published on PSEG ENERGIZE!

The American chaffseed (Schwalbea americana), once found abundantly throughout the eastern United States, has seen dramatic population declines due to habitat loss and changes in land management. However, thanks to a collaborative effort led with local conservation partners at Raritan Valley Community College, the American chaffseed is getting a second chance to thrive in the Garden State.

Why is the American chaffseed so rare?

The American chaffseed is a hemiparasitic plant, meaning it relies on other plants (particularly grasses and low shrubs) for nutrients while still performing photosynthesis. It thrives in open, sandy and nutrient-poor soils, often in fire-maintained ecosystems where natural wildfires play a crucial role in maintaining its health and biodiversity.

Much of the American chaffseed’s historic habitat has been lost due to development, fire suppression and changes in land use. Without periodic disturbances like fire or mowing, competing vegetation overtakes the chaffseed, preventing it from getting the sunlight and nutrients it needs to grow.

As a result, the plant has disappeared from much of its former range and is now federally listed as endangered. In New Jersey, it is found only in a handful of locations, making its preservation a top priority for conservationists.

The perfect habitat: Transmission line rights-of-way

The American chaffseed thrives in open, sunlit areas, making our transmission line rights-of-way an ideal habitat for the plant to flourish. These utility corridors, maintained through selective vegetation management, mimic the natural disturbances that historically allowed chaffseed populations to thrive.

As part of our partnership, Dr. Jay Kelly, professor of biology and environmental science for Raritan Valley Community College, has planted American chaffseed beneath our transmission lines. Following planting, we’ve conducted targeted vegetation management at the planting locations with the specific goal of creating the perfect conditions for this plant to establish and spread, all without inferring with our ability to maintain a reliable transmission system.

Our biodiversity efforts

Our work with the American chaffseed is just one of many of our ongoing environmental stewardship efforts. We have been actively involved in additional habitat restoration projects across New Jersey, including pollinator-friendly plantings, wetland restoration and the protection of endangered species.

Our Rights-of-Way as Habitat initiative aims to utility corridors into safe havens for native plants and wildlife, helping to maintain biodiversity while ensuring reliable energy service.

A brighter future for the American chaffseed

Through collaboration efforts with our partners, the American chaffseed has a renewed chance to regain its foothold in New Jersey. By using transmission line rights-of-way as a refuge for this rare plant, conservationists hope to establish stable populations that will persist for generations to come.

This effort underscores the importance of collaboration and innovative conservation strategies that work in harmony with modern infrastructure. Thanks to our biodiversity efforts, New Jersey is taking a significant step toward preserving its natural heritage – one plant at a time.

View original content here.

Originally published on PSEG ENERGIZE!

The American chaffseed (Schwalbea americana), once found abundantly throughout the eastern United States, has seen dramatic population declines due to habitat loss and changes in land management. However, thanks to a collaborative effort led with local conservation partners at Raritan Valley Community College, the American chaffseed is getting a second chance to thrive in the Garden State.

Why is the American chaffseed so rare?

The American chaffseed is a hemiparasitic plant, meaning it relies on other plants (particularly grasses and low shrubs) for nutrients while still performing photosynthesis. It thrives in open, sandy and nutrient-poor soils, often in fire-maintained ecosystems where natural wildfires play a crucial role in maintaining its health and biodiversity.

Much of the American chaffseed’s historic habitat has been lost due to development, fire suppression and changes in land use. Without periodic disturbances like fire or mowing, competing vegetation overtakes the chaffseed, preventing it from getting the sunlight and nutrients it needs to grow.

As a result, the plant has disappeared from much of its former range and is now federally listed as endangered. In New Jersey, it is found only in a handful of locations, making its preservation a top priority for conservationists.

The perfect habitat: Transmission line rights-of-way

The American chaffseed thrives in open, sunlit areas, making our transmission line rights-of-way an ideal habitat for the plant to flourish. These utility corridors, maintained through selective vegetation management, mimic the natural disturbances that historically allowed chaffseed populations to thrive.

As part of our partnership, Dr. Jay Kelly, professor of biology and environmental science for Raritan Valley Community College, has planted American chaffseed beneath our transmission lines. Following planting, we’ve conducted targeted vegetation management at the planting locations with the specific goal of creating the perfect conditions for this plant to establish and spread, all without inferring with our ability to maintain a reliable transmission system.

Our biodiversity efforts

Our work with the American chaffseed is just one of many of our ongoing environmental stewardship efforts. We have been actively involved in additional habitat restoration projects across New Jersey, including pollinator-friendly plantings, wetland restoration and the protection of endangered species.

Our Rights-of-Way as Habitat initiative aims to utility corridors into safe havens for native plants and wildlife, helping to maintain biodiversity while ensuring reliable energy service.

A brighter future for the American chaffseed

Through collaboration efforts with our partners, the American chaffseed has a renewed chance to regain its foothold in New Jersey. By using transmission line rights-of-way as a refuge for this rare plant, conservationists hope to establish stable populations that will persist for generations to come.

This effort underscores the importance of collaboration and innovative conservation strategies that work in harmony with modern infrastructure. Thanks to our biodiversity efforts, New Jersey is taking a significant step toward preserving its natural heritage – one plant at a time.

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EMERYVILLE, Calif., May 7, 2025 /3BL/ – SCS Global Services, a global leader in third-party environmental and sustainability certification, today announced the launch of its Water Positive™ Verification Services. This new offering enables companies to measure, verify, and report water stewardship projects that offset their water consumption, helping businesses achieve and validate their water sustainability goals.

Water scarcity affects more than 40% of the global population, making responsible water management a critical priority for businesses worldwide. SCS’ Water Positive™ Verification assesses projects according to the Volumetric Water Benefit Accounting (VWBA) 2.0 methodology, providing independent verification for initiatives that improve water quality and availability in watersheds where companies operate.

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To learn more about Water Positive™ Verification or to begin the verification process, visit www.scsglobalservices.com/services/water-positive-verification-for-water-stewardship-actions.

About SCS Global Services

SCS Global Services is a global leader in third-party environmental and sustainability verification, certification, auditing, testing, and standards development, currently celebrating its 40th year of services. Its programs span a cross-section of industries, recognizing achievements in climate mitigation, green building, product manufacturing, food and agriculture, forestry, consumer products, and more. Headquartered in Emeryville, California, SCS has representatives and affiliate offices throughout the Americas, Asia/Pacific, Europe, and Africa. Its broad network of auditors are experts in their fields, and the company is a trusted partner to companies, agencies, and advocacy organizations due to its dedication to quality and professionalism. SCS is a California-chartered Benefit Corporation, reflecting its commitment to socially and environmentally responsible business practices.  SCS is also a Participant of the United Nations Global Compact and adheres to its principles-based approach to responsible business. For more information, visit www.SCSGlobalServices.com

Media Contact:
Shyama Devarajan
Senior Marketing Manager, SCS Global Services
sdevarajan@scsglobalservices.com