Pharmacy Benefit Managers (PBMs) operate at the financial heart of the U.S. prescription drug system, yet their opaque practices introduce significant ESG risks—especially regarding access to medicine, pricing transparency, and ethical governance. As regulators and standards bodies press for more accountability, stakeholders must consider PBMs' impact when disclosing under IFRS S1/S2, SASB, and GRI frameworks.

PBMs were intended to be cost-saving intermediaries, but their current structure incentivizes profit-maximizing behavior that often comes at the expense of patients, employers, and pharmacies. A growing body of evidence shows that PBM practices contribute to rising drug costs, reduced access, and market distortions. While some reforms are underway, systemic changes—including pricing transparency, realignment of incentives, and enhanced regulation—are essential to protect the public from ongoing abuses.

Utilize advanced data analytics, real-time monitoring, and predictive intelligence to inform ESG strategy development, resource allocation, and performance optimization decisions.

Develop comprehensive communication strategies that foster transparent ESG dialogue, enable continuous stakeholder feedback, and drive ongoing improvement in sustainability performance.

Establish comprehensive data collection, validation, and management systems to ensure accurate, reliable, and timely ESG performance measurement and stakeholder reporting.

Align ESG materiality priorities with sustainable value creation strategies that drive competitive advantage, stakeholder returns, and business resilience over extended time horizons.

Systematically identify, assess, and prioritize ESG issues based on stakeholder importance and business impact to focus resources on the most material sustainability topics.

Implement comprehensive governance frameworks that ensure effective ESG oversight, decision-making authority, and accountability at all organizational levels.