How is AstraZeneca Using Heat to Decarbonise Supply Chains?

As the EU’s Carbon Border Adjustment Mechanism (CBAM) and the new SEC disclosure rules heighten scrutiny, suppliers that fail to align with buyers’ net zero strategies risk losing business. This shift places the decarbonisation of industrial heat firmly in the spotlight as a critical factor for maintaining competitiveness and mitigating regulatory and financial risk.

“Decarbonising heat is now business critical,” says Emily Prior, Chief Growth Officer at Secaro.

“It is an essential way to protect revenue, reduce exposure to energy price shocks, and stay ahead of regulation and investor and customer expectations.”

In response, global pharmaceutical leader AstraZeneca, supply chain intelligence platform Secaro, and sustainability consultancy ERM have launched the Clean Heat Program. The initiative is designed to close key gaps in heat decarbonisation across global supply chains – helping companies bolster energy security, manage price volatility and accelerate emissions reductions in one of industry’s most carbon-intensive areas.

Data-driven decarbonisation

Secaro’s extensive environmental supply chain database – now equipped with heat-specific insights – provides the digital foundation for the programme.

Its integrated data collection, analytics and recommendation tools and network of over 8,000 buyers, suppliers and solution providers will be used to pinpoint high-impact decarbonisation opportunities. ERM will deliver the in-depth technical assessments required to turn these data insights into investable projects and measurable outcomes.

“By combining Secaro’s data with ERM’s technical expertise, we can accelerate the delivery of heat decarbonisation projects that have historically struggled to move beyond preliminary assessment,” says Jon Hughes, Partner at ERM.

“The Clean Heat Program will provide clients with the practical implementation support required to decarbonise industrial heat while strengthening resilience, reducing risk and unlocking value across the supply chain.”

As a founding partner, AstraZeneca will gain early access to the programme’s tools and expertise, enabling it to drive collaborative action among suppliers and peers. The company will also benefit from a structured roadmap to help suppliers advance emissions reductions where progress has previously stalled.

Tackling an overlooked emissions hotspot

Industrial process heat represents around 18% of global greenhouse gas emissions, yet progress in reducing it has been slow. Preliminary data from Secaro’s pharmaceutical programme shows that approximately 80% of a facility’s emissions fall under Scope 1, with 60% generated by natural gas use.

Fewer than 10% of sites currently use biofuels or other renewable sources – and industry projections suggest renewable heat will only reach 15% by 2028 without urgent action.

“Many organisations are looking at heat in isolation, comparing the current gas bill to a full switch to biomethane, for example,” Emily explains.

“To succeed in decarbonising supply chain heat, businesses need to take a more holistic approach that begins with efficiency before moving to decarbonised fuels so that the economics work.

“As part of this programme, businesses will have access to a range of financing solutions, including the EU-based heat decarbonisation fund and off-balance-sheet financing partners.”

One major barrier is financial. Heat projects often fail to secure investment due to their longer-term payback periods. Even when on-site teams identify ageing boilers or potential upgrades, fragmented project scopes frequently lack the scale to attract capital.

The Clean Heat Program tackles these systemic challenges by combining strong data intelligence, deep technical knowledge, and collaborative investment pathways.

"It's clear that a programme like this is the fastest and most effective way to decarbonise heat in our supply chain," says Rob Williams, Senior Director of Sustainable Procurement at AstraZeneca.

“We are long-term partners with Secaro and ERM, and now we're expanding relationships with peers, buyers from other industries and suppliers to plan, fund and launch the projects that will make heat decarbonisation a reality.
“This level of collaboration is essential."