In 2015, at the United Nations Climate Change Conference (COP21), 196 countries adopted the Paris Agreement to limit global warming to no more than 1.5 °C. This requires countries to cut emissions by at least 45% compared with 2010 levels, and reach net zero by 2050. However, the current commitments from this coalition of countries fall far short; based on current plans, rather than falling, emissions will increase by almost 30% by 2030. It's vital that companies, as well as governments, get behind the goal of net zero as soon as possible. [1]
The impact of the biopharma industry
In a 2019 assessment and analysis of greenhouse gas emissions of the top 15 global pharmaceutical companies, the pharmaceutical industry emission intensity was around 55% higher than that of the automotive industry. The emissions varied by around five-fold between companies bringing in comparable revenues; the emissions intensity of Eli Lilly (77.3 tonnes of CO2e/$M) was 5.5-fold greater than Roche (14 tonnes CO2e/$M) in 2015, and Procter & Gamble's emissions intensity was 5-fold greater than Johnson & Johnson, even though the two companies had similar levels of revenues and similar product lines. The highest emissions intensity was 189 tonnes CO2e/$M, produced by Bayer in Germany. [2]
People in the industry are starting to show their concern, but the responses are mixed. In a 2021 Global Data survey, 43% of respondents saw environmental issues as the most important ESG (environmental, social and governance) issue. Within environmental issues, 52% saw climate change as the most important issue, followed by pollution (32%). [3]
In June 2021, eight pharma and biotech supply companies founded the Alliance to Zero, a non-profit that aims to support transition of biopharma to net zero. The goal is to connect and coordinate companies throughout the supply chain, from suppliers and pharmaceutical companies to manufacturers and service providers, as well as engaging with academia and non-profit organisations. The founders include Sharp, Harro Höfliger, Schreiner MediPharm, Körber, Schott Pharma, Health Beacon, Daywyler and Ypsomed. [4]
According to a study published in December 2023, however, only 4% of the world's largest publicly-traded biotech and pharmaceutical companies have climate commitments that align with the 1.5 °C limit. [5]
Making a change
The move towards carbon neutral needs to start by analysing the current carbon footprint of the company, and seeing what can be changed. [6] This includes monitoring the individual steps of the drug supply chain, from drug development to manufacturing and distribution.
Energy use
Energy is a major part of a company's carbon footprint, and there are a number of ways that biopharma companies can tackle the issue in its existing buildings. The first step is to reduce scope 1 emissions (those associated with on-site combustion to generate heat and power using fossil fuels) by reducing overall energy consumption. Studies have shown that most biopharma plants have scope to reduce their energy use by between 20% and 50% using existing technologies. This includes switching to LED lighting, ensuring that all equipment is energy efficient, including steam generation where required, reducing refrigerant gas and solvent vapour emissions, and optimising heating, ventilation and air conditioning (HVAC) systems. [7, 8] Installing a combined heat and power system can capture waste heat from one process and use it in another, as well as reducing costs by using more efficient fuel sources. [9]
Pharmaxo, a UK-based pharmaceutical specials manufacturer, is aiming for net zero by 2045. Its approaches to reducing energy consumption include changing to air source heat pumps, and putting in place detailed energy monitoring to track the efficiency of the equipment. [6]
When companies need to move to a new location or expand an existing location, sustainability can be built in by design. Amgen has built a visitor centre in Breda, The Netherlands, that has an A++++ energy efficiency label and a consumption minus energy index. The building includes a 26-kilowatt solar photovoltaic system, adaptive lighting that changes the light intensity based on solar position and building occupancy, heat-resistant glazing that keeps the interior cool in warmer weather, and a ventilation system that optimises heating...
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