Reducing animal testing through strategic investment
Animal testing has long been a common practice in the pharmaceutical, healthcare and wellness industries. Despite regulatory frameworks like the 3Rs — replacement, reduction and refinement — progress towards non-animal research alternatives remains slow. A recent report commissioned by Stewart Investors, in collaboration with the University of Technology Sydney (UTS) Institute for Sustainable Futures (ISF), highlights how strategic investment can accelerate the shift to ethical, non-animal testing methods. This article explores the key findings of the report and how responsible investors, industry leaders and sustainability professionals can drive change.
The ongoing challenges of animal testing
Despite widespread acknowledgment of the 3Rs in both corporate policies and legislation, several major challenges continue to limit progress:
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Regulatory constraints: Legal frameworks still require animal testing for drug registration, slowing the adoption of alternative methodologies.
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Skills and knowledge gaps: Many organisations lack the in-house capability to implement non-animal testing practices.
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Institutional resistance: There’s a heavy reliance on traditional animal models, leading to a slower rate of innovation.
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Accountability in outsourcing: Companies outsourcing testing to Contract Research Organisations (CROs) face added complexity due to inconsistent global standards.
Alison Atherton from UTS ISF explains, "Our research provides insights on sustainability issues for responsible investors and tools they can use to support decision-making. This research highlights the need for much greater transparency on animal testing and provides a guide for investors on how to talk to companies about it."
How investors can drive ethical innovation
The report outlines three core strategies that investors can use to promote sustainable and ethical change in animal testing practices:
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Demand greater transparency: Most companies disclose very little about their animal testing practices. Investors should push for comprehensive reporting on both animal and non-animal methods.
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Encourage clear transition goals: Companies need measurable targets for reducing animal testing. Investors can influence businesses to define these goals and monitor progress publicly.
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Promote collaboration with regulators: True progress requires alignment with industry regulators. Investors should advocate for active engagement between companies, policymakers and research institutions to support the adoption of alternatives.
According to Lorna Logan from Stewart Investors, “We encourage companies to increase their transparency and reporting on their use of animal and non-animal testing. The Investor Guide gives us and other investors a practical framework to do that.”
Key insights from the research
The research assessed 21 companies selected by Stewart Investors, employing a structured questionnaire developed with expert input. The survey, refined through pilot testing with three companies, was distributed to investor relations teams and supplemented with publicly available company data. The findings revealed:
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Many companies disclose minimal information, creating a transparency gap crucial for investors to bridge.
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No company in the survey had specific targets for reducing animal testing or transitioning to alternatives.
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Businesses rarely engage with regulators or competitors to champion non-animal methods.
Professor Rachel Ankeny from the University of Adelaide notes, “This project provides a baseline of evidence for how companies are currently taking steps to replace animal testing with alternatives and how they are disclosing this information. It can be used to track and monitor progress over time.”
Strategic leadership in ethical sustainability
The findings of this report extend beyond the immediate stakeholder groups driving corporate change. For sustainability professionals and future leaders, it reinforces the broader need for ethical decision-making and responsible innovation. Programs such as the Master of Sustainable Leadership offered by UTS Online equip students with the tools needed to address strategic challenges like this one. By integrating leadership studies with sustainability principles, these programs empower graduates to align organisational goals with global sustainability priorities.
Similarly, the Graduate Certificate in Sustainable Practice offers a deeper understanding of policies, practices and frameworks required to lead meaningful change in various industries.
Why strategic investment and sustainability education matter now
As sustainability and ethics continue to shape business priorities, professionals with expertise in ethical investment, sustainable leadership and systems thinking will be critical in shaping responsible industries. This report reinforces how investment strategies, collaboration and sustainability education intersect to solve complex challenges like animal testing. Whether you're influencing corporate responsibility or leading sustainable innovation, now is the time to act.
Ready to make a difference? Explore UTS Online’s Master of Sustainable Leadership or Graduate Certificate in Sustainable Practice and gain the tools to lead ethical, strategic change in your industry.
This article is republished from UTS under a Creative Commons license. Read the original article.
