Pharma unites to secure renewable energy in key manufacturing markets

For the first time, companies across the global healthcare sector, including AstraZeneca, GSK, Novo Nordisk and Roche, have united to discuss with energy providers in China and India, about scaling renewable power across their supply chains. This step is important as these countries are key markets for pharmaceuticals manufacturing.

Based on data on sales/value-based shares from various companies for APIs and Chemicals, India and China are estimated to account for up to half of materials for medicines, the Sustainable Markets Initiative (SMI) noted.

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Renewable energy in the pharma supply chain

The SMI Health Systems Task Force is a public-private partnership launched at COP26. 

According to the Sustainable Markets Initiative, the agreements are set to bring around 70 megawatts (MW) of renewable power annually to the grid for global supply chains starting from 2024.

SMI stated that the Task Force has worked with the Pharmaceutical Environment Group (PEG) through a newly created consortium and NHS England to support the development of a sector-wide standard for medicines Life Cycle Assessment (LCA). Establishment of this LCA standard will be done in partnership with the British Standards Institute (BSI). Earlier this month, BSI authorised two of the first companies with their Minimized Risk of Antimicrobial Resistance (AMR) certification.

Alongside other companies, Johnson & Johnson, Pfizer and Takeda are contributing to the LCA initiative. As part of the Task Force, Novartis and Lonza are working to secure renewable power in China.

A more sustainable manufacturing future

Ultimately, the standard aims to improve transparency and supporting the assessment and reduction of the environmental impact of medicines across their manufacture, supply, use and end of product life. Furthermore, the Task Force is assessing how to quantify the carbon emissions of clinical trials, SMI added.

“This progress to accelerate the transition to renewable energy in pharmaceutical manufacturing in China and India is welcome news,” shared Dr Tedros Adhanom Ghebreyesus, Director-General, World Health Organization. He explained: “Globally, the health sector is responsible for approximately five percent of emissions, making it a significant contributor to climate change.”

Over half of the healthcare sector’s emissions are created in manufacturing supply chains. Energy consumed in these supply chains accounts for around 25 percent of total healthcare emissions, according to data from the SMI’s report Accelerating the delivery of net zero health systems, the organisation highlighted.

Earlier in 2023, Task Force members launched joint, minimum environmental targets for suppliers. This requested that organisations set science-based targets beyond carbon emissions reductions, SMI continued. These targets could address 3.5 million tonnes of CO₂ per year across over 100 of the members’ largest pharmaceutical suppliers alone. 

Another sustainable initiative for the private sector is the Terra Carta. Launched by His Majesty King Charles III, as Prince of Wales, it provides the Sustainable Markets Initiative with a “practical roadmap for a sustainable future.”

In conclusion, addressing carbon emissions in pharma manufacturing, as announced by this select group of pharma’s key companies “sends a positive demand signal for green power, providing a blueprint for others to follow,” stated Pascal Soriot, CEO, AstraZeneca, and Chair of the Sustainable Markets Initiative Health Systems Task Force.