5 big pharma companies agree to decarbonise operations in China

Following extensive talks, leading pharmaceutical companies sign an agreement to work with renewable energy companies to decarbonise their manufacturing supply chains in China and switch to renewables. 

Making a statement move in this direction are five of the biggest global pharmaceutical and healthcare companies: AstraZeneca, Lonza, Novartis, Novo Nordisk, and Roche, who have all signed a renewable power agreement in China. The agreement is an industry first, with such big players setting the bar by agreeing to decarbonise their operations in China.

The companies, four of whom are already members of the Sustainable Markets Initiative Health Systems Task Force, announced their agreement, which is to last at least 3 years, at the World Economic Forum in Davos, Switzerland. The plan sets out to support China on its path to becoming carbon neutral, and aims to unlock 200 GWh of renewable electricity annually from 2024 across Jiangsu, Guangdong, Shanghai, and Beijing. The resulting reduction in emissions will amount to 120,000 tonnes of carbon dioxide equivalent (CO2e). 

The agreement comes after talks between the companies preceding COP28, where healthcare and pharma were broadly considered within sustainability initiatives and plans, more so than ever before. This latest agreement also lays the groundwork for other companies, with the option to join the initiative to work together to decarbonise their supply chains in China. Manufacturing supply chains are responsible for more than half of the emissions produced from the pharmaceutical sector, so changing to renewable energy will cut these considerably across the industry. 

To facilitate the switch to renewable energy Envision Energy, one of the biggest renewable energy firms in China, will be providing the electricity. The majority of the participating companies are involved in several other sustainability initiatives, and from this have developed further connections to a working group in China involving 16 Chinese companies spanning health, energy, and digital, to reduce the global impact China’s energy consumption has. 

The Sustainable Markets Initiative’s Health Systems Task Force continues to work with and encourage further partnerships to deliver more sustainable frameworks and tackle climate change throughout the sector.