COP26: Global pharma signs up to renewable energy initiative

Ten of the world’s largest pharmaceutical companies have joined a new programme to increase access to renewable energy and decarbonise the industry’s value chain.

The Energize programme has been launched by digital transformation and energy management company Schneider Electric, alongside management consultancy Carnstone. It is a collaborative programme featuring AstraZeneca, Biogen, GSK, Johnson & Johnson, MSD, Novartis, Novo Nordisk, Pfizer, Sanofi and Takeda. The companies will work together to engage hundreds of suppliers in what’s being described as bold climate action and the decarbonisation of the pharmaceutical value chain.

The programme will leverage the scale of the pharmaceutical industry’s global supply chain with the aim of driving systemic change throughout. Energize is being designed and delivered by Schneider Electric with the pharmaceutical companies helping promote the programme and invite their suppliers to participate.

In particular, the Energize programme will enable pharmaceutical suppliers to learn more about renewable energy adoption and contracting. In practice, this will mean giving suppliers – who may not otherwise have the internal resources or expertise available – the opportunity to participate in the market for power purchase agreements (PPAs).

The programme will also help pharmaceutical and healthcare suppliers to address their own operational Scope 2 greenhouse gas emissions through green power procurement, which in turn will hopefully reduce the participating companies’ Scope 3 emissions.

“Today marks ‘Energy Day’ of the 2021 United Nations Conference of Parties (COP26) on climate change, where representatives from around the globe come together to accelerate action towards the mitigation of climate change,” said Susan Uthayakumar, president, Sustainable Business at Schneider Electric. “In support of that mission, we’re honoured to launch the Energize programme and collaborate with the pharmaceutical industry to drive emissions reductions, ultimately benefitting both people and our planet.”

“We believe Energize will be a really effective collaboration of pharmaceutical companies looking to take bold climate action. Every business should be moving aggressively towards using 100% renewable electricity, and supporting their supply chains to do the same,” said Sam Kimmins, head of RE100, Climate Group.

Initially, Energize will focus on suppliers with energy usage in Europe and North America and will look to expand globally. A focus of the programme will be looking at how companies can overcome typical market barriers to renewable energy procurement. These include; load size, lack of credit, and the need for guidance throughout a complex and protracted contracting process. Participating suppliers will learn about the renewable energy market, receive guidance on PPAs, and have the opportunity to access and contract for renewable energy on their own or as part of a collaborative buyers’ cohort.

“Limiting global warming to safe levels will depend on moving the entire world to renewable energy. This is not something that companies can achieve on their own. We are strong believers in the power of collaboration, and are honoured to be bringing the pharmaceutical industry together to drive the adoption of renewable energy in its supply chains,” said Glynn Roberts, senior partner, Carnstone.