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Why is Recipharm signing up to the Science Based Targets initiative?
In our recent insight on the need for science-based targets, we explored why it was time for pharmaceutical companies, with the support of supply chain partners, to commit to more verifiable objectives to reduce their carbon footprint.
This time, we want to talk about how we at Recipharm are committing to more impactful goals so we can play our part in meeting the Paris Agreement’s targets and support the wider pharmaceutical industry in doing the same. By working with the Science Based Targets initiative (SBTi), we are setting ourselves objectives that are more ambitious than ever before, so we can play a real part in creating a sustainable future.
Our SBTi journey
The team at Recipharm has long been committed to taking steps to address our business’s carbon footprint, not just for ourselves, but to support the wider pharmaceutical industry in their own climate efforts.
Following our acquisition by EQT, a company that believes in future-proofing its companies through improving their sustainability, we were introduced to the SBTi as a means of building on our previous achievements. SBTi is a partnership between organisations including the UN (United Nations), WWF (World Wildlife Fund), CDP (Carbon Disclosure Project) and WRI (World Resource Institute). The aim is to support industry in setting emission-reduction targets in line with current science from the IPCC (Intergovernmental Panel on Climate Change).
Both Recipharm and EQT are serious about sustainability. Working with the SBTi is a crucial means for us to coordinate with customers, stakeholders and other businesses across the pharmaceutical industry to amplify the impact of our climate-action efforts, and to support our customers in meeting their own ambitious goals. As such, in July 2022, we officially committed to setting science-based targets.
How SBTi supports organisations like Recipharm
The SBTi provides independent third-party verification for a company’s climate related targets. It requires a company to calculate not just its direct emissions - those produced by its own operations - but its indirect emissions too. These are the emissions produced by their energy and other utility suppliers, as well as their suppliers in the value chain. Calculations must be made according to the requirements of the Greenhouse Gas Protocol, an organisation that provides stringent standards for measuring emissions.
Once a company has made its calculations, it must submit them to the SBTi which will then verify the calculations as well as the targets. The SBTi looks globally at the amount of CO2 currently in the atmosphere and uses this to determine how much each signatory company needs to reduce their emissions by in order to meet the Paris Agreement’s 1.5℃ global temperature rise target. The later companies sign up to the SBTi, the less time they will have to reduce their emissions.
As Recipharm has committed to set near-term company-wide emission reductions in line with climate science with the SBTi, our commitment can be viewed on the SBTi website. We are now working with an expert partner that is experienced in identifying all direct and indirect emissions sources, according to the initiative’s requirements. Once a pledge has been made, a company must submit calculations to SBTi within 24 months, however, we will be able to submit within six months.
As a result, we will be able to begin this ambitious new phase of our emissions reduction journey as quickly as possible. This will not only help us to maximise our positive impact, it will enable us to further enhance the sustainability support we offer customers across the pharmaceutical industry.
Once our emissions are calculated and targets are set, we will transparently report our progress annually through the CDP, in accordance with the SBTi requirements. We will have our carbon emissions reporting externally audited and verified to ensure they are accurate and reliable.
Advice for companies aspiring to improve their footprint
The need for action on climate change is fast moving up the international political agenda, as countries across the globe experience increasingly extreme weather events. Governments around the world are implementing new, more stringent regulations requiring companies to address their impact on the environment. Companies not just in the pharmaceutical industry but across the economy can no longer ignore the issue and must seek ways to play a more meaningful role in limiting humanity’s environmental impact.
SBTi offers a fantastic way for pharmaceutical companies to amplify the effects of their sustainability efforts by enabling them to collaborate, share data and synchronise with other companies within the industry and in other sectors.
It can also help identify potential supply chain partners, such as contract development and manufacturing organisations (CDMOs) with the same commitment and passion for the environment. As a result, it can help companies take further meaningful steps towards limiting their footprint, by enabling them to reach out to and work with other companies leading the way in creating a more sustainable economy and future.
With the strategic direction offered by SBTi, every company can work together towards meeting the Paris Agreement, and creating a brighter future for the planet.