Sorrento Therapeutics, Inc. (SRNE): PESTLE Analysis [Nov-2025 Updated]

You're trying to figure out where Sorrento Therapeutics, Inc. (SRNE) stands in 2025, and frankly, the picture is dominated by its Chapter 11 restructuring. Forget standard market growth for a minute; the real story here is navigating the political, legal, and economic crosscurrents while managing legacy liabilities that run well over $1.5 billion in claims. Below, we break down the macro factors that will dictate whether the core science survives this massive legal fight, giving you the hard-edged view you need for any decision.

Sorrento Therapeutics, Inc. (SRNE) - PESTLE Analysis: Political factors

You're looking at Sorrento Therapeutics, Inc. (SRNE) in late 2025, a company that has recently emerged from Chapter 11 liquidation, and you need to know what political headwinds are still hammering the value of its core assets-its pipeline. The short answer is that US policy is creating a deep, structural discount on future revenue, especially for small-molecule drugs, while geopolitical tensions are inflating manufacturing costs. For a company whose value is now almost entirely tied to its intellectual property (IP) and pipeline monetization, these political risks are existential.

US government drug pricing legislation creates revenue uncertainty.

The Inflation Reduction Act (IRA) is the single biggest political risk to Sorrento's future asset value, especially for its small-molecule candidates like Abivertinib. The law creates a major financial disincentive for developing small-molecule drugs by subjecting them to Medicare price negotiation after only 9 years of market exclusivity, compared to 13 years for large-molecule biologics. This four-year difference is a lifetime in biotech valuation.

Here's the quick math: analysts project Sorrento's forecasted annual revenue for the 2025 fiscal year at $416 million. That revenue stream, or any future one from a new small-molecule drug, is now capped by a looming negotiation deadline that significantly reduces the asset's Net Present Value (NPV). Studies from 2025 show that the IRA can lead to a reduction in a drug's NPV of up to 40% at the time of launch, which is why venture capital investment in small-molecule drug development has dropped by 68% relative to biologics since the IRA's passage. You simply can't ignore that kind of structural devaluation.

FDA approval processes remain stringent, impacting pipeline monetization.

Even with the political pressure to lower drug prices, the Food and Drug Administration (FDA) is not lowering its bar for safety and efficacy. Sorrento's focus on complex therapies like CAR-T (immuno-cellular therapies) and novel biologics means it is directly exposed to the stringent review standards of the Center for Biologics Evaluation and Research (CBER) and the Oncology Center of Excellence (OCE). The FDA's 2025 guidance agendas are heavily focused on cell and gene therapy, which is a good sign for regulatory clarity, but the cost remains astronomical.

Bringing a single novel product to market still requires an estimated average investment of $2.2 billion over a decade. For a company that has recently gone through Chapter 11, this high-cost, high-risk regulatory pathway is a massive hurdle to pipeline monetization. The FDA is trying to streamline the biosimilar approval process to increase competition, but for a novel biologic, the process is defintely still a marathon.

Geopolitical tensions affect global supply chains for drug manufacturing.

The political climate is driving up the cost of goods, which is a critical risk for a company trying to rebuild its financial footing. The US pharmaceutical industry relies heavily on foreign Active Pharmaceutical Ingredient (API) manufacturing, with China and India accounting for a significant portion of the global supply.

In July 2025, the US announced new tariffs, with initial rates of 20-40% on various imports, including pharmaceutical raw materials, and warnings of tariffs up to 200% on finished pharmaceuticals. This trade policy directly translates into higher input costs and longer lead times for Sorrento's manufacturing. The global API market is estimated at $238.4 billion in 2025, and these tariffs threaten to destabilize that entire supply chain, forcing companies to pursue expensive reshoring or friend-shoring strategies.

Evolving intellectual property (IP) protection policies influence asset value.

The core value of Sorrento's post-liquidation entity is its IP portfolio, and that value is being shaped by two competing political forces in 2025. The current uncertainty stems from past Supreme Court rulings (Mayo, Alice) that narrowed patent eligibility for biotech and diagnostics.

The proposed Patent Eligibility Restoration Act of 2025 (PERA), which is strongly supported by the biotech sector, aims to restore clarity and expand patent eligibility, which would be a huge win for Sorrento's asset valuation. However, there is also the Eliminating Thickets to Increase Competition (ETHIC) Act, which seeks to limit the number of patents a company can assert in a single infringement lawsuit against a generic or biosimilar manufacturer. This latter bill could weaken the defensive strength of a biotech's patent portfolio, making it easier for competitors to challenge exclusivity and thus reducing the commercial life of a drug asset.

The political battle over patent law is a direct fight over the valuation of Sorrento's most precious commodity: its intellectual property.

Political Factor	2025 Impact & Key Metric	Risk/Opportunity for Sorrento Therapeutics
US Drug Pricing (IRA)	Small-molecule exclusivity reduced to 9 years (vs. 13 for biologics). Investment in small molecules down 68%.	Risk: Devalues small-molecule pipeline assets (e.g., Abivertinib) by up to 40% NPV, complicating sales/licensing of key IP.
FDA Approval Stringency	Average cost to market: $2.2 billion over a decade. FDA OCE/CBER focus on complex biologics (CAR-T).	Risk: High capital requirement and long timelines for pipeline monetization, a severe constraint for a post-liquidation company.
Geopolitical Supply Chain	New US tariffs (July 2025) of 20-40% on pharmaceutical imports. Global API market is $238.4 billion.	Risk: Increases cost of goods and manufacturing lead times, directly eroding the already thin margins of any commercialized product.
Intellectual Property (IP) Policy	Legislative push (PERA 2025) to clarify patent eligibility (Section 101). Post-Mayo investment drop of $9 billion in diagnostics.	Opportunity: PERA could stabilize and increase the value of the company's core IP assets. Risk: Competing bills (ETHIC Act) could weaken patent enforcement.

Finance: Model the IRA's 9-year exclusivity impact on the Abivertinib NPV by the end of the quarter.

Sorrento Therapeutics, Inc. (SRNE) - PESTLE Analysis: Economic factors

You're trying to navigate the economic aftermath of a major corporate restructuring, and frankly, the environment for a company like Sorrento Therapeutics, Inc. coming out of Chapter 11 is tough. The primary takeaway is that while you technically emerged on April 10, 2024, the economic scars-limited capital access and the shadow of massive liabilities-define your operating reality in late 2025.

Chapter 11 proceedings severely restrict access to new capital and credit

Look, being in Chapter 11 protection, which Sorrento Therapeutics, Inc. filed for on February 13, 2023, slams the door on easy money. Even though the company emerged from bankruptcy in April 2024, the market remembers. Accessing fresh, unsecured capital is defintely harder now; lenders see the bankruptcy filing as a massive red flag. The lingering effect is that any new debt or equity issuance will likely come with punitive pricing or heavy dilution. We saw this play out with the proposed extension of trading restrictions on Sorrento common stock through September 25, 2025, which signals continued market uncertainty and a need to control shareholder activity to stabilize the post-restructuring entity.

The reality is this:

• Capital Scarcity: Post-restructuring financing is expensive.
• Lender Skepticism: Past reliance on DIP financing shows prior distress.
• Market Perception: Stock volatility remains a hurdle for standard raises.

High interest rates increase the cost of any potential debtor-in-possession (DIP) financing

Even before you emerged, the cost of staying alive via debtor-in-possession (DIP) financing was astronomical, which is a huge economic headwind for any company that still needs to borrow. While Sorrento Therapeutics, Inc. has moved past the need for DIP loans, the market conditions that created those costs are still relevant for any future credit needs. In early 2025, we saw other Chapter 11 cases securing DIP financing with interest rates soaring above 15%. Sorrento's own Replacement DIP Facility, approved in 2023, carried a 15% per annum rate. If you needed emergency funding today, you'd be facing rates reflecting that high-cost environment, making debt-fueled growth nearly impossible.

Here's the quick math on prior borrowing costs:

Financing Type	Reported Interest Rate (Approx. 2023/Early 2025)	Default Rate Add-on
Replacement DIP Facility (2023)	15%	+3%
General DIP Market (Early 2025)	Above 15%	Varies

What this estimate hides is the impact of fees, which often added several percentage points on top of the stated rate.

The company faces substantial legacy liabilities, estimated over $1.5 billion in claims

This is the elephant in the room that Chapter 11 was supposed to solve, but the total claims pool remains a massive economic overhang. You are dealing with substantial legacy liabilities, which the prompt pegs at over $1.5 billion in total claims that the liquidation trust is managing. To put that number in context, when Sorrento Therapeutics, Inc. first filed, it was saddled with about $135 million in debt, and a key creditor, NantCell, was owed almost $160 million from arbitration. The jump to $1.5 billion in total claims suggests that the final resolution involves a much broader set of creditors and contingent liabilities than just the initial filing figures suggest. This liability structure dictates how much value can ever flow back to new operations or equity holders.

Asset sales are undervalued due to distressed financial status and market perception

When you sell assets under duress, you never get top dollar; the market knows you have to close the deal. Sorrento Therapeutics, Inc. experienced this firsthand during its Chapter 11 process. For example, the approved 'stalking horse' bid for the Scilex Holding Company stock, meant to set the floor price, was only $105 million in August 2023. Later, an asset sale approved in March 2024 only netted Sorrento around $15 million in cash. Even after emerging and a post-IPO valuation for the company was recorded at $47.4M as of April 04, 2025, this shows the depressed value perception. You're selling future potential at a steep discount because the immediate need for cash trumps long-term valuation maximization.

Consider these realized sale values:

• Scilex Stock Bid: $105 million (Stalking Horse, 2023)
• Asset Sale Cash Proceeds: Approximately $15 million (2024)
• Post-IPO Valuation: $47.4 million (April 2025)

Finance: draft a sensitivity analysis on the impact of a 15% interest rate on a hypothetical $50 million working capital loan by Friday.

Sorrento Therapeutics, Inc. (SRNE) - PESTLE Analysis: Social factors

You're trying to navigate a company through a massive financial restructuring while keeping the lights on and your best people. Honestly, the social fallout from the Chapter 11 filing back in February 2023 is still a major headwind for Sorrento Therapeutics, Inc. The public perception isn't just bruised; it's dealing with the fallout from serious allegations, like the US Justice Department accusing lawyers of submitting false paperwork to justify the filing. Plus, the ongoing litigation, including the liquidating trustee suing former executives over alleged breaches of fiduciary duty related to the company's insolvency and a $173 million arbitration award, keeps the negative narrative alive. For stakeholders, the fact that common stock trading restrictions were proposed to extend through September 25, 2025, shows the lingering uncertainty.

Public perception of the company is definitely damaged by bankruptcy and litigation.

The legal battles create a trust deficit that's hard to overcome. It's not just the bankruptcy itself-which saw the company list over $1 billion in assets at the time of filing-but the subsequent actions that raise eyebrows. For instance, shareholders were denied a broad probe into whether company advisers tried to exploit a relationship involving a judge previously overseeing the case. That kind of news travels fast and poisons the well with potential partners, investors, and even future employees. It's a tough narrative to counter when you're trying to prove operational stability.

Patient advocacy groups scrutinize the continuity of clinical trials and drug access.

For any company in the therapeutic space, patient trust is currency, and bankruptcy drains that account quickly. Advocacy groups are laser-focused on whether the restructuring process jeopardizes ongoing research, especially for promising assets like Resiniferatoxin (RTX) for pain or the pipeline of immuno-oncology candidates. They need absolute assurance that the company has the liquidity and focus to see trials through to completion, not just for the sake of the science, but for the patients waiting for non-opioid alternatives. If a trial is delayed or terminated due to administrative chaos, the reputational damage is immediate and severe.

Talent retention is a major challenge during legal and financial restructuring.

When a company is in deep restructuring, retaining top-tier scientific and operational talent becomes a full-time job. You're competing against healthier firms who can offer stability, while your internal team is managing the uncertainty. Remember, Sorrento filed a WARN notice in California in March 2023 indicating up to 538 positions could be cut, even if financing later stabilized operations. That kind of event creates anxiety. To be fair, general industry data suggests replacing a key employee can cost between 50% and 200% of their annual salary, so keeping your core team is defintely cheaper than replacing them. Rebuilding trust is the key metric here for 2025.

Increased demand for novel cancer and pain treatments drives long-term market need.

Here's the silver lining: the underlying medical need for what Sorrento is developing is only getting stronger. The market isn't waiting for the legal dust to settle. We see clear, quantifiable growth in the areas where Sorrento has assets, particularly non-opioid pain management and oncology. This provides a strong, external justification for why the company must survive and execute. Here's the quick math on the opportunity in just one segment:

Market Segment	Value in 2025 (Approximate)	Projected CAGR (2025-2035)
Advanced Cancer Pain Management	USD 7.8 Billion	4.34%
General Cancer Pain Market (7MM)	USD 6,983.5 Million	5.1% (to 2035)
Antitumor ADC Drugs	USD 7.38 Billion	12.86%

What this estimate hides is the specific value of their non-opioid pipeline, like RTX, which was targeting a segment projected to exceed $10 billion by 2025, based on older projections. The demand is real, but the company's ability to capture it hinges on stabilizing its social license to operate.

Finance: draft 13-week cash view by Friday

Sorrento Therapeutics, Inc. (SRNE) - PESTLE Analysis: Technological factors

You're navigating a biotech landscape where the pace of innovation is relentless, and for Sorrento Therapeutics, Inc., the technology focus is necessarily narrow right now. The primary technological imperative is safeguarding the core Intellectual Property (IP) assets that can still generate value, especially given the ongoing Chapter 11 restructuring that began in February 2023. This means the spotlight is firmly on advancing candidates like Abivertinib, the oral dual EGFR/BTK inhibitor, and the non-opioid pain pipeline, including RTX and SP-102. These are the tangible assets the company must push forward to meet stakeholder expectations. It's about triage, not exploration.

Preserving Core IP Assets: Abivertinib and Non-Opioid Pain

The technology strategy has pivoted to maximizing the potential of established platforms. Sorrento Therapeutics has built significant IP around its G-MAB™ fully human antibody library and its drug delivery technologies like SOFUSA, which aims to deliver biologics to the lymphatic system. However, the immediate value extraction is tied to clinical progress on specific drug candidates. For instance, Abivertinib is a key small molecule asset, and the non-opioid pain candidates are crucial, especially since the Scilex segment is largely organized around ZTlido® sales. You need to see clear, de-risked data readouts from these specific programs to justify their continued existence under the Liquidating Trust structure. That's the current technological mandate.

Competitive Pressure from Rapid Cell and Gene Therapy Advancements

Honestly, the broader biopharma world, particularly in cell and gene therapy (CGT), is moving at warp speed, which puts pressure on any company with legacy platforms in that space. As of late 2024, the CGT pipeline held nearly 4,099 therapies in development, with gene therapies making up 49% of that total. By 2025, the industry focus has sharpened on manufacturing efficiency and cost-effectiveness to secure investment, as economic pressures persist. If Sorrento's internal cell therapy platforms aren't receiving continuous, significant capital infusion-which is unlikely under Chapter 11-they risk falling behind competitors who are seeing major acquisitions and accelerating approval rates. This is a significant external technological headwind.

Limited R&D Spending Halts Speculative Research

When you file for Chapter 11 protection, speculative, long-shot research projects are the first things to go. The company's stated objective has been to derive near-term value from its product candidates and technologies, which translates directly into severely constrained R&D budgets for anything outside the most promising, near-commercial assets. Any new, speculative research projects that don't have an immediate, clear path to a licensing deal or revenue milestone are effectively halted. This means the pipeline is likely static in terms of new platform exploration, focusing only on pushing existing candidates through late-stage trials or securing partnerships. Here's the quick math: survival dictates a near-zero budget for moonshots right now.

Obsolescence Risk for Existing Technology Platforms

Without continuous, heavy investment, even world-class technology platforms can become outdated quickly in this sector. Sorrento's proprietary platforms, like the G-MAB™ library or its ADC technologies, require ongoing maintenance, optimization, and integration with the latest discovery tools to remain competitive. The industry in 2025 is prioritizing innovations in delivery formulations and bioprocessing advancements. If Sorrento cannot fund the necessary upgrades to its existing platforms-for example, integrating advanced AI-driven discovery or next-generation manufacturing techniques-those platforms face an obsolescence risk. What this estimate hides is the opportunity cost of not being able to pivot quickly if a competitor's platform suddenly proves superior in a key area, like in vivo editing or delivery. You need to track partnership activity as a proxy for platform viability.

To put Sorrento's current technological positioning in context against the broader, rapidly evolving landscape, consider this snapshot:

Technology Focus Area	Sorrento Therapeutics, Inc. (SRNE) Status (2025 Context)	Broader Industry Trend (2025)
Core IP Assets	Focus on advancing Abivertinib and non-opioid pain candidates (RTX, SP-102).	Continued acceleration in CGT, with 4,099 therapies in development as of Q3 2024.
Platform Investment	Severely constrained due to Chapter 11; focus on monetization over speculative R&D.	Critical need for investment in new manufacturing technologies and cost-efficient processes.
Delivery Technology	Leveraging SOFUSA for lymphatic delivery; must prove improved efficacy over standard methods.	Significant focus on enabling technologies, particularly delivery formulations and vehicles.
Antibody/Oncology Tech	Leveraging G-MAB™ library for CAR-T, DAR-T, and ADCs.	Major firms are expanding patent portfolios and seeing strong revenue from established CAR-T franchises.

The technology challenge for you is ensuring the core IP doesn't atrophy while the company focuses on restructuring. You need to monitor any licensing deals that validate the underlying platforms, as external validation will be the only significant R&D spend you see for the next year or so. Finance: draft 13-week cash view by Friday.

Sorrento Therapeutics, Inc. (SRNE) - PESTLE Analysis: Legal factors

You're navigating a corporate structure that's still heavily influenced by its recent past, and the legal landscape is the clearest evidence of that. For Sorrento Therapeutics, Inc., the primary legal reality as of late 2025 is the ongoing administration stemming from its Chapter 11 filing back in February 2023. While the company officially emerged from bankruptcy on April 10, 2024, the legal machinery hasn't fully wound down; you're dealing with a Liquidation Trust, which is a very different beast than a standard operating company.

The company is operating under the strict oversight of the U.S. Bankruptcy Court.

Even though Sorrento Therapeutics, Inc. emerged from Chapter 11 in April 2024, the residual oversight from the U.S. Bankruptcy Court for the Southern District of Texas (Case No. 23-90085) remains critical because of the Liquidation Trustee's duties. Honestly, this Trustee is the one calling the shots on asset distribution and pursuing outstanding claims for creditors. We saw evidence of this continuing administration as recently as May 16, 2025, when a Hearing was scheduled in connection with the Trustee's actions. This structure means major strategic moves, especially those involving asset sales or large payouts, are subject to court approval, which definitely slows things down.

Ongoing litigation, including claims against former executives, drains remaining cash.

This is where the cash burn gets real. The Liquidating Trustee initiated a significant lawsuit in July 2025 against former directors and officers for breach of fiduciary duty. The core of this claim is that they approved a Scilex Holding Co. stock dividend when the company was already insolvent, specifically while facing a massive arbitration judgment. That judgment stemmed from a December 2022 arbitration award totaling $173 million owed to NantCell and NANTibody entities. The Trustee is now seeking damages equivalent to the dividend's value plus incurred losses and legal fees. This litigation is a direct drain on any remaining value for stakeholders.

Here's a quick look at the financial stakes in the litigation environment:

Litigation Event/Claim	Associated Value (Approximate)	Date/Status
NantCell/NANTibody Arbitration Award	$173 million	Confirmed Judgment Basis (Pre-Bankruptcy)
Trustee Suit Against Former Executives	Value of Scilex Dividend + Losses	Filed July 2025
Securities Fraud Class Action (Zenoff)	Not Applicable (Dismissed)	Dismissed March 2024

What this estimate hides is the ongoing legal spend; every motion and discovery request eats into the residual estate.

Delisting from major exchanges (like NASDAQ) impacts stock liquidity and investor base.

You won't find Sorrento Therapeutics, Inc. on a major exchange anymore. Due to the Chapter 11 filings, Nasdaq issued a Delisting Notice on February 13, 2023, suspending trading on February 23, 2023. The common stock was pushed to the Pink Open Market (OTC Markets) around that time. As of November 26, 2025, the stock, trading as SRNEQ, closed at $0.005700. This move essentially vaporized institutional liquidity and shifted the investor base almost entirely to retail traders willing to deal with the OTC market's transparency and volatility. The stock's 1-year change ending November 26, 2025, was up +1,040.00% from its low point, but that's a function of extreme penny stock volatility, not fundamental health.

Regulatory compliance for clinical trials must be maintained despite financial constraints.

Even under liquidation, the underlying assets-the drug candidates-must adhere to legal and regulatory standards if they are to have any residual value. Sorrento Therapeutics, Inc. still has development programs, like Cynviloq™ and Resiniferatoxin (RTX). For RTX, which targets intractable cancer pain, the market segment it aims for was projected to exceed $10 billion by 2025. Maintaining the Investigational New Drug (IND) status or adhering to FDA requirements for any ongoing monitoring or data reporting is a non-negotiable legal cost of keeping those assets alive. If compliance lapses, those potential future revenues disappear, which is a major headache for the Trustee trying to maximize creditor recovery.

Key compliance considerations include:

• Maintaining IND compliance for active programs.
• Adhering to FDA reporting for any ongoing safety monitoring.
• Ensuring data integrity for potential asset sales.

The FDA or an Institutional Review Board (IRB) can suspend a trial if requirements aren't met, regardless of the company's financial status.

Finance: draft 13-week cash view by Friday

Sorrento Therapeutics, Inc. (SRNE) - PESTLE Analysis: Environmental factors

You are navigating an industry where the cost of doing business is increasingly tied to your environmental footprint, and frankly, the scrutiny is only ramping up. For Sorrento Therapeutics, Inc., managing waste and emissions isn't just good citizenship; it's a material financial and operational factor in 2025.

Compliance with stringent pharmaceutical waste disposal regulations is costly

Handling pharmaceutical waste, especially from complex manufacturing like cell and gene therapies, requires specialized, expensive protocols. While I don't have Sorrento Therapeutics, Inc.'s specific 2025 waste disposal line item, the broader industry trend shows this is a major spend area. Major pharma companies collectively spend about $5.2 billion yearly on environmental programs, which is a 300% jump since 2020. This spending reflects the high cost of adhering to rules around everything from solvent disposal to managing hazardous byproducts from drug synthesis.

To be fair, this cost is often unavoidable, but efficiency matters. Companies that successfully integrated sustainable practices in 2025 saw carbon emissions drop by an average of 30-40%. That kind of reduction often comes from better waste management, which lowers disposal fees and regulatory risk.

Increased investor and regulatory focus on Environmental, Social, and Governance (ESG) reporting

The days of treating ESG as a voluntary footnote are over, especially for publicly listed firms. In 2025, the European Union's Corporate Sustainability Reporting Directive (CSRD) is forcing large companies to provide much more detailed disclosures on pollution, water, and waste. This means investors are definitely looking closer at how Sorrento Therapeutics, Inc. measures and reports its environmental impact.

Furthermore, a coalition of seven global pharmaceutical manufacturers set joint minimum climate and sustainability targets that began requiring disclosures starting in 2025. This sets a de facto standard for the entire supply chain. You need to ensure your reporting framework is robust enough to satisfy these new, granular demands.

Here's a snapshot of the regulatory shift:

Regulatory/Investor Focus Area	2025 Industry Benchmark/Requirement
EU ESG Disclosure Mandate	CSRD requires granular disclosures on pollution, water, and waste for large EU-listed firms
Industry-Wide Reporting Deadlines	Joint targets from major pharma leaders mandate emissions and waste reduction disclosures begin in 2025
US Chemical Reporting	EPA's TSCA PFAS reporting window was pushed to open in the summer of 2025

Manufacturing facilities must adhere to strict environmental protection standards

Sorrento Therapeutics, Inc. has historically maintained internal Good Manufacturing Practices (GMP) sites for its complex therapies, such as CAR-T treatments. These facilities must meet strict environmental standards, particularly concerning water use and emissions from specialized processes. The pharmaceutical sector as a whole is water-intensive, but industry leaders are adopting advanced water reclamation systems, with some facilities recycling over 90% of processed water.

Adopting green chemistry-using safer reagents and solvents-is a key way to reduce the environmental footprint and operational friction. Studies show that applying green chemistry can lead to a 19% reduction in waste compared to older standards. This is a clear action item for process optimization across your R&D and manufacturing pipeline.

Supply chain carbon footprint is a growing consideration for global drug distribution

The biggest environmental challenge for pharma in 2025 is Scope 3 emissions-those coming indirectly from the supply chain, which account for about 80% of the industry's total greenhouse gas output. For a company with global distribution needs, logistics and packaging are major hotspots. You need to look beyond your own four walls.

Competitors are setting aggressive targets; for example, Roche targeted an 18% Scope 3 reduction by 2025 (versus a 2019 baseline), and Sanofi aimed for a 30% Scope 3 reduction by 2025. This pressure flows down to every supplier and logistics partner. You should assess your distribution network for opportunities to reduce transport miles, perhaps by prioritizing localized manufacturing or optimizing cold-chain packaging to reduce material use.

Key supply chain action areas include:

• Evaluating supplier adherence to ESG criteria.
• Optimizing cold-chain logistics for efficiency.
• Switching to lightweight, recyclable packaging.
• Tracking Scope 3 emissions rigorously.

Reducing complexity in the supply chain cuts down on shipping movements, which directly lowers carbon emissions at the distribution stage.

Finance: draft 13-week cash view by Friday.