Renewables: AstraZeneca & GSK to Cut Healthcare Emissions
According to the International Renewable Energy Agency (IRENA), 90% of the world's electricity can – and should – be renewable by 2050.
In pursuit of this target, collaborations are not just beneficial; they are essential.
Joining forces across the health sector, particularly in China, might save emissions equivalent to removing 50,000 cars from the roads every year.
This represents a reduction of about 250,000 tonnes of emissions annually.
Climate tackling collaborations
AstraZeneca and GSK, members of the Sustainable Markets Initiative (SMI), have joined with Takeda and various suppliers to procure renewable energy collectively in China.
Among these suppliers are Lianhe Aigen, ICON, Porton Pharma Solutions, Aurisco, Charioteer and Asymchem.
This consortium encompasses 12 companies planning to unlock 225GWh of renewable electricity each year for the healthcare domain.
The energy includes solar and wind power, which will support research, development and medicine production processes.
“The transition to net zero health systems requires collaboration at scale across the entire value chain,” says Tony Pusic, SVP Regional Supply, Asia Pacific at AstraZeneca.
“AstraZeneca is delighted to see the platform we jointly established for the collective purchase of renewable power in China expand – now suppliers and industry partners can contribute to decarbonisation in this major market for medicines R&D and manufacturing.”
The initial project involved significant players such as AstraZeneca, Lonza, Novartis, Novo Nordisk and Roche.
Combining this original programme with the new agreement effectively doubles the impact by transitioning to renewable electricity sources.
This project is expected to save approximately 250,000 tonnes of CO₂e every year.
Decarbonising China
This programme is first time that global healthcare companies, including local suppliers, have come together in China to support decarbonisation in healthcare manufacturing.
The enhanced renewable energy supply will support manufacturing sites across four additional provinces in China: Jiangxi, Liaoning, Tianjin and Zhejiang.
These provinces add to the targets set in Beijing, Guangdong, Jiangsu and Shanghai outlined in the 2024 agreement.
As the production and delivery of medicines are highly energy-intensive, the healthcare sector accounts for roughly 5% of the global greenhouse gas (GHG) emissions.
More than half of these emissions originate from manufacturing supply chains located in Asia, where China and India host a large concentration of pharmaceutical manufacturing facilities.
“We are thrilled to be co-leading this collaboration with the Sustainable Markets Initiative which aims to enable our suppliers to access renewable energy,” says Lisa Martin, Chief Procurement Officer at GSK.
“This deal demonstrates the power of partnerships in driving meaningful change, supporting business resilience, ensuring energy security and improving cost predictability in the long term.”
All about the SMI
The SMI, a global private-sector-led organisation, was established in 2020 by His Majesty King Charles III (then the Prince of Wales) during the World Economic Forum’s annual meeting in Davos.
Its objective is to hasten the move towards sustainable markets and a net zero economy.
The organisation serves as a primary platform for aligning private sector initiatives with climate, biodiversity and Sustainable Development Goals (SDGs) by advocating collaborative actions across different industries, financial systems and governments.
In 2021, King Charles III introduced the Terra Carta, a corporate-led sustainability charter under the SMI.
This charter encourages companies to commit to climate action and sustainable investments, aimed at driving a decarbonisation, circular economy and nature-positive business practices, with an ambitious target of mobilising US$10tn by 2030.
Furthermore, the Terra Carta Seal recognises leading companies in sustainability.
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