The Energize Program Celebrates Landmark Multi-Buyer PPA Deal To Decarbonize Healthcare Supply Chains
- This is the first buyers’ cohort through the Energize program, a pharmaceutical and healthcare sector initiative to decarbonize the shared supply chain and reduce Scope 3 emissions, to procure renewable energy
- Three Energize program sponsors Takeda, Teva Pharmaceutical, and UCB, along with five industry suppliers, have signed a multi-buyer PPA with developers Zelestra and Bruc adding more than 280 MW of new solar capacity to the European grid
- The Energize program has been extended until 2028 with Almirall, Bayer, Kenvue, Sandoz, and Schott joining as sponsors in 2024
NEW YORK, September 25, 2024 /3BL/ - Schneider Electric, the leader in the digital transformation of energy management and automation, today announced exciting progress for the Energize supply chain decarbonization program, on behalf of the program’s sponsors. The first buyers’ cohort from the Energize program brings eight companies together to procure renewable energy through seven new solar projects in Spain with two developers.
Healthcare systems account for nearly 5% of all global emissions with the majority falling under Scope 3 emissions. The Energize program aims to address the current and future challenges of climate change and its impact on human health by supporting decarbonization across the global industry supply chain.
Together, three sponsors of the Energize program, Takeda Pharmaceuticals International AG, Teva Pharmaceutical Industries, and UCB, and suppliers, Avantor, Organon LLC, Perrigo, and West Pharmaceutical Services Inc., have collaborated to execute an aggregated total purchase of 305 GWh of renewable energy from Zelestra. Additionally, Takeda, Teva Pharmaceuticals, Labcorp, and West Pharmaceutical Services have purchased 258.7 GWh of renewable energy from Bruc.
In total, the eight companies executed 27 PPAs for 563.7 GWh of renewable energy per year for a 10-year term. This represents an estimated 393,795 metric tons of CO2 avoided per year, or the equivalent of 51,355 households’ annual energy consumption[1]. The combined investment will support three new solar projects built by Zelestra and four new solar projects built by Bruc in Spain; the total capacity of these projects exceeds 280 MW.
This multi-buyer PPA exemplifies Energize’s mission of increasing access to renewable electricity for the pharmaceutical and healthcare supply chain, while mitigating the overall environmental impact of the industry. To date, the program (established in 2021) has provided education and support on renewable electricity procurement to over 750 suppliers. Five new sponsors – Almirall, Bayer, Kenvue, Sandoz, and Schott – have also joined Energize this year. The group of 24 sponsoring companies has extended their commitment to the program until 2028.
“As a collaborator of this virtual Power Purchase Agreement, we are demonstrating leadership and commitment to renewable energy not only within our industry but also as a key member of initiatives like Energize. By covering most of our electricity needs in Europe and nearly half globally, we are setting the standard for responsible energy use and driving toward our long-term goal of net zero emissions,” said Amalia Adler Waxman, Head of Sustainability at Teva Pharmaceuticals
“The Energize Program is an important component of Avantor’s climate action strategy, enabling us to add significant renewable electricity to our portfolio,” said Rachel Kaufman, Vice President of Sustainability for Avantor. “As a key partner to the pharmaceutical industry, we’re also pleased to support their efforts to decarbonize their supply chain emissions.”
“Planetary health is critical for patient health, and it is our responsibility to do everything we can to reduce the environmental impact of our business and our value chain,” said Thomas Wozniewski, global manufacturing and supply officer at Takeda. “This program will be an important lever in helping us achieve net-zero greenhouse gas emissions in our value chain by 2040.”
“As we confront the urgent reality of the climate crisis, we understand that collective action is essential. At UCB, we’re committed to driving the ecological transition also through renewable energy. By forging key partnerships, such as the Energize program, we strive to achieve significant decarbonization outcomes and extend our impact beyond what we can achieve alone. Together, we’re building a more sustainable future,” said Katiana Iavarone, Chief Procurement Officer at UCB.
“We are thrilled the first Energize deal has been announced which marks an important milestone in the collaboration’s history. We co-founded Energize in 2021 and the programme is an important part of our plan to reduce our value chain emissions by 80% from 2020 to 2030,” said Lisa Martin Chief Procurement Officer at GSK. “This new solar energy deal, including four of GSK’s suppliers in Europe, highlights our collective commitment to decarbonize and support the industry’s transition to renewable energy.”
Schneider Electric’s Sustainability Business served as the advisor to the eight cohort participants throughout the PPA procurement and negotiation process. The Sustainability Business will continue to serve as the Energize program manager supporting the collaboration with program sponsors and the Pharmaceutical Supply Chain Initiative (PSCI) to increase access to new and innovative renewable electricity procurement options.
Related resources:
- How The pharmaceutical supply chain addresses the renewable energy transition:
- Interview with Avantor
- Interview with Labcorp
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[1] This household energy reference uses a US households equivalency calculator. See more here: https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator
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About Energize
The Energize program is a supply chain renewables initiative designed and delivered by Schneider Electric Sustainability Business and endorsed by the Pharmaceutical Supply Chain Initiative (PSCI).
Current sponsor companies include: Almirall, Amgen, AstraZeneca, Bayer, Boehringer Ingelheim, Bristol Myers Squibb, Charles River Laboratories, Chiesi Group, GSK, Haleon, Johnson & Johnson, Kenvue, Merck (known as MSD outside the United States and Canada), Merck KGaA, Darmstadt, Germany, Novartis, Novo Nordisk, Pfizer, Roche, Sandoz, Sanofi, Schott, Takeda, Teva, and UCB
