Net Zero Strategies in the Pharmaceutical Sector – Thematic Intelligence
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Net Zero Strategies in the Pharmaceutical Sector Thematic Overview
Net zero means cutting greenhouse gas emissions (GHG) to as close to zero as possible. Firms that achieve net zero emissions are called “carbon neutral”. Companies are under pressure to cut emissions as countries aim to achieve their climate commitments. Emissions are offset by supporting projects that reduce emissions or remove greenhouse gases from the atmosphere. The CHG protocol classifies direct and indirect emissions into Scope 1, 2 & 3. Scope 1 and 2 emissions are generated by business operations. Scope 3 encompasses emissions up and down the value chain.
Most pharmaceutical companies have started reducing Scope 1 and 2 emissions. This has typically been achieved by using electricity from renewable sources, including increased amounts of on-site power generation such as solar panels. Most companies have targets for 100% renewable energy use and all-electric vehicle fleets. On average, 90% of a pharmaceutical company’s emissions are Scope 3 emissions. Companies can only change their Scope 3 emissions by changing or influencing suppliers or by creating products that generate less emissions when used.
Major pharmaceutical companies including Gilead, Pfizer, Novartis, AstraZeneca, and GSK have set short-term targets for minimizing emissions. Leading pharmaceutical companies are also joining industry groups such as Energize and Activate that aim to help suppliers reduce their emissions.
The “Net Zero Strategies in The Pharmaceutical Sector” thematic intelligence report gives you an in-depth insight into the net zero targets and performance of 18 leading pharmaceutical companies. The report elucidates the importance of a net zero strategy in the pharmaceutical sector along with the progress made by the leading companies to achieve the emission target. These detailed analyses are critical in developing effective business plans to gain a competitive edge.
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| Leading Companies | · AstraZeneca
· Pfizer · Amgen · Takeda |
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Pharmaceutical Sector - Scope 1, 2, and 3 Emissions Strategies
Pharmaceutical companies are focused on reducing emissions in stores, distribution centers, warehouses, and offices. Some of the key strategies used for curbing Scope 1 and 2 emissions by pharma industry players are LED retrofitting and electrifying vehicle fleets. Furthermore, the use of efficient HVAC systems as well as refrigeration and cooling systems by pharmaceutical companies has further propelled the minimization of Scope 1 and 2 emissions. To tackle scope 3 emissions, pharma companies are pressurizing suppliers to set emission reduction targets. For instance, 95% of suppliers to AstraZeneca will have science-based targets by 2025. Pharma companies are also using cross-industry initiatives such as Activate and Energize for decarbonizing supply chains.
Activate: AstraZeneca, Bristol Myers Squibb, GSK, Johnson & Johnson, Pfizer, and Sanofi launched Activate, at the COP27 climate conference in 2022. The initiative aims to help suppliers by supporting green chemistry solutions and making financing available for decarbonization projects.
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Pharmaceutical Sector - Net Zero Strategies of Leading Companies
A few pharmaceutical companies evaluated in this report are AbbVie, Amgen, Astellas, AstraZeneca, Bayer, Bristol Myers Squibb, Gilead Sciences, and GSK among others. Of these, AstraZeneca, Pfizer, Amgen, and Takeda have made notable progress with the most ambitious net-zero strategies.
Pfizer: The company is conducting life cycle assessments (LCAs) for drugs, vaccines, and devices for reducing Scope 3 emissions over the long term. It is part of industry groups like Energize and Activate, which aim to help suppliers decarbonize while adopting some of the most ambitious targets for reducing value chain emissions.
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Scope
- This thematic report provides an overview of the greenhouse gas emissions reduction targets, data, and strategies of 18 leading pharmaceutical companies.
Key Highlights
All major pharmaceutical companies have committed to reducing their greenhouse gas emissions. To achieve these goals they are adapting their operations and products and are increasingly engaging with suppliers to reduce emissions across their supply chain.
Reasons to Buy
The thematic research report will help you:
- Understand the environmental footprint of pharmaceutical operations.
- Enhance the company’s reputation by demonstrating a commitment to environmental responsibility.
- Gain insights into current environmental regulations.
Table of Contents
Frequently asked questions
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What is net zero emission?
Net zero means cutting greenhouse gas emissions (GHG) to as close to zero as possible.
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Which are the key strategies followed by pharmaceutical companies to reduce Scope 1 and 2 emissions?
A few of the key strategies used for curbing Scope 1 and 2 emissions by pharma industry players are LED retrofitting and electrifying vehicle fleets.
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Which are the key strategies followed by pharmaceutical companies to reduce Scope 3 emissions?
Pharmaceutical companies are using cross-industry initiatives such as Activate and Energize to decarbonize supply chains and reduce Scope 3 emissions.
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Which are the leading companies working on net zero emission in the pharmaceutical sector?
AbbVie, Amgen, Astellas, AstraZeneca, Bayer, Bristol Myers Squibb, Gilead Sciences, and GSK among others are the major companies working on net zero emissions in the pharmaceutical sector.
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