BU-NOT-SET

Currently, the Earth is already about 1.2°C warmer than it was in the late 1800s, and emissions continue to rise1. To keep global warming to no more than 1.5°C, in 2015, some 192 countries and the European Union (EU) signed the Paris Agreement. In doing so, they committed to reducing their economies’ carbon emissions by 45% by 2030 and to reach net-zero by 20502. 

The pharmaceutical industry has a key part to play in supporting this effort. More and more, companies in the sector are setting sustainability goals, and as a part of that, climate goals to reduce their carbon footprint. While the increasing focus on climate issues is important for the pharmaceutical industry, there is more to sustainability target setting than drawing up a list of energy reduction aims. Goals for carbon emission reduction need to be strategic, coordinated with the wider industry and, above all, science-based. 


Why set targets in the first place?

There are multiple reasons why pharmaceutical companies need to set climate goals. Our big pharma customers are requesting that suppliers set science-based targets and reduce their carbon footprints to create a more sustainable pharma supply chain. We also anticipate that in the not too distant future, all organisations will be required to report on their C02 emissions.   This setting of targets also demonstrates to partners and customers, as well as investors, that they can rely on the company to help them achieve their own carbon-reduction targets. This, in turn, can help support their own business to align with both upcoming regulations and meeting call-to-action initiatives for the climate. Efforts to reduce an organisation’s carbon footprint can also help reduce operating costs. For example through reducing electricity consumption, an organisation contributes to emission reductions while at the same time reducing the cost for electricity. In the EU, companies can save up to €120 in carbon tax for every tonne of CO2 they cut from their overall emissions3.

Another reason, often overlooked, is to continue to draw and retain expert talent to a business. The pharmaceutical workforce is increasingly dominated by Millennial and Generation-Z professionals - many individuals in these cohorts are passionate about environmental and climate issues, and they want to see their values shared by their employer. In fact, some 40% of Millennials choose jobs based on sustainability4. If an employer fails to support these professionals in delivering a more sustainable future, they may leave to seek out a company that does. 


More than just commitments

It is not enough to simply commit to general reductions in emissions. Targets need to be ambitious, yet achievable. They need to be measurable, transparent, and the contribution of each site to the company’s group wide targets need to be defined. Ideally, they should also be strategically coordinated with other companies up and down the pharmaceutical value chain. 

Global organisations, the UN (United Nations) Global Compact, WWF (World Wildlife Fund (WWF), CDP (formerly known as Carbon Disclosure Project) and the WRI (World Resource Institute), have united in a partnership to support industry in setting emission-reduction targets in line with current science from the IPCC (Intergovernmental Panel on Climate Change). With this in mind, the initiative has been named the SBTi (Science Based Targets initiative). 

Setting science-based targets can help ensure climate goals are truly meaningful in reducing a company’s carbon footprint. Coordinating with partners and other businesses across the pharmaceutical industry can help amplify the impact of the sector’s climate-action efforts. 

Today, over 3,000 companies around the world are working with the SBTi, with clearly defined paths to meet the Paris Agreement. As of July 2022, Recipharm is one of the sustainable pharmaceutical companies that has committed to set science-based targets, undertaking our own ambitious efforts to support partners in reducing our impact on climate change. 


Our ambitious targets

As part of our commitment to set science-based targets, we at Recipharm have set stringent goals for our emissions split into three different “scopes” as per climate reporting standards:

  • Scope 1: Direct GHG (greenhouse gas) emissions from sources on site (eg. fuel combustion in boilers, leaks from refrigeration, process emissions).
  • Scope 2: From consumption on site but emitted elsewhere (eg. electricity or district cooling). 
  • Scope 3: From activities in value-chain, but outside the direct control of the company (eg. carbon footprint from material to products, emissions or waste from material manufacturers’ operations, and waste from used products).

Our goal is to reduce our Scope 1 and 2 emissions by 42% between 2021 and 2030. We intend to cut our Scope 3 emissions by 25%  over the same period. We are working now to understand where and how we can change our ways of working in partnership with our customers in order to deliver on these commitments by 2030. 
 

Committed to a climate-friendly future

These are ambitious targets, but at Recipharm we care passionately about our impact on the environment. With our SBTi targets, we are committed to doing our part to ensure the global temperature increase stays below 1.5℃, to secure a stable climate for our employees, future generations, and local communities, and for our customers and their end-patients. 

We will share our plans to make these reductions across our business, and how we intend to encourage our value chain partners to do the same in future insights. 

To find out more about the SBTi, visit: https://sciencebasedtargets.org/

 

References: 
1. https://www.un.org/en/climatechange/net-zero-coalition#:~:text=Currently%2C%20the%20Earth%20is%20already,reach%20net%20zero%20by%202050.
2. https://www.un.org/en/climatechange/paris-agreement
3. https://www.ecb.europa.eu/pub/economic-bulletin/articles/2022/html/ecb.ebart202206_01~8324008da7.en.html 
4. https://www.peoplemanagement.co.uk/article/1746235/why-millennials-driving-force-behind-corporate-policies#:~:text=Millennial%20generation&text=Of%20this%20demographic%2C%2040%20per,with%20a%20robust%20sustainability%20plan.