Developing a Water Risk Analysis Framework for Suppliers and Applying it to a Pharmaceutical Supply Chain

Climate change, population growth and increasing living standards are contributing to the rising pressure on scarce water resources. While many companies are prepared to manage water-related risk in their direct operations, few have tried to understand and quantify their indirect water risk exposure in the supply chain. In response to the growing importance to water management to business, Eli Lilly and Company and Kaiser Permanente partnered with the Bren School of Environmental Science and Management at the University of California, Santa Barbara to develop a water risk analysis framework for suppliers and apply it to Lilly’s supply chain for two insulin products, Humalog and Humulin.