Climate Change & Energy Use

Scientific data support that climate change is occurring, and we are taking action to reduce the economic and public health risks associated with a changing climate.

Highlights
  • Our new South San Francisco, California office was certified LEED Gold in 2020 and is pursuing WELL Building Standard (WELL) certification
  • Our lab in Carlow, Ireland received both LEED Gold and Excellence in Energy Efficiency Design (EXEED) certification in 2019
  • In January 2018, our company signed a VPPA with Invenergy Wind Development LLC that adds 60 megawatts (MW) of renewable energy to the Electric Reliability Council of Texas (ERCOT) market and provides us with the associated renewable energy credits; the wind farm came on-line in July 2019
  • Our company awarded an “Energy Project of the Quarter” and showcased each project throughout our company in our quarterly “Eco Smart” newsletter
  • CDP (formerly Carbon Disclosure Project) graded our disclosure as a “B” or a rating of “management,” indicating that we are “taking coordinated action on climate issues”
  • From 2018 to 2019, we reduced our year-over-year Scope 1 and Scope 2 market-based greenhouse gas (GHG) emissions by 10 percent due to our continued focus on energy efficiency and an increased utilization of renewable energy
  • In March 2020, the U.S. EPA again recognized our company with our 13th consecutive Sustained Excellence Award. This is also the 15th consecutive year in which we have been recognized by ENERGY STAR for excellence in energy management.

As a global biopharmaceutical company, we recognize the important role we play in identifying, adapting and responding to the public health risks associated with climate change, such as threats to clean air and water, insufficient food supplies and the spread of disease. We believe our long-standing support of stronger health systems in underserved areas is even more important given the evidence that certain disease patterns are associated with changing climate conditions.

Our Energy Management Standard requires responsible and efficient energy management and associated GHG emission reductions.

Energy demand reduction and efficiency will always be part of our energy management strategy and will positively impact our efforts to reduce our global footprint.

Utilization of renewable energy is a growing expectation of industry. The advance in renewables technology, incentives through legislation and comparison with conventional technology and fuel prices have grown the industry and created a robust renewable energy market.

SCOPE 1 755,340 MT CO SCOPE 2 316,630 MT CO SCOPE 3 6,965,600 MT CO GHG emissions e 2 2 2 e e

Our approach

We have adopted a set of environmental sustainability goals to help position our company to succeed in an increasingly resource-constrained world.

These were developed to address the rising expectations of our customers, investors, external stakeholders and employees regarding the environmental impact of our operations and supply chain.

We have made progress toward our environmental sustainability goals and remain on track to achieve them. We continue to find ways to decrease energy demand and have increased the amount of renewable energy we purchase. Our procurement team has started to engage our strategic suppliers in our efforts to reduce the environmental footprint outside of our operations.

GoalsProgressIndicator
GHG emissions
By 2025, we will reduce global Scope 1 and market-based Scope 2 GHG emissions by at least 40 percent from 2015 levels.
26.5% reduction
On Track
Renewable energy
By 2025, at least 50 percent of our purchased electricity will come from renewable sources. By 2040, 100 percent of our purchased electricity will come from renewable sources.1
25.4% of our purchased electricity comes from renewables
On Track
1 We have defined “purchased electricity” as electricity sourced from external suppliers as well as renewable electricity that was generated and utilized onsite where we retained the renewable attributes or where we have obtained renewable attributes through contract.

We realize that in order to make a truly meaningful reduction in our overall environmental impact, we must engage with our suppliers to drive positive change.

We have set a goal that includes a three-phase process:

GoalsProgressIndicator
Since 2018, we have been collecting GHG emissions and water use data from at least 90 percent of our strategic suppliers with the highest environmental impact.GHG and water data collected from 96% of high-impact strategic suppliers
Achieved
By 2020, we will engage with those suppliers and request them to identify GHG emission and water use reduction opportunities.On track
On Track
By 2025, at least 90 percent of our strategic suppliers with the highest environmental impacts will set their own GHG emission and water use reduction targets.In progress
On Track
Note: Scope 2 is the market-based value in accordance with the WRI Greenhouse Gas Protocol.

Governance

Our climate strategy is overseen globally by our Environmental Sustainability Center of Excellence (CoE) in partnership with our Energy CoE and Energy Procurement CoE. The CoEs review and report data, monitor progress, and provide assistance as needed, to support sites’ work towards these goals and review possible above-site renewable energy projects.

Each site is responsible for the management of their energy use. In many cases, our company partners with our third-party IFM providers to manage energy use and work toward the corporate goals.

For information regarding our environmental management and governance, please see our EHS Management & Compliance page.

Programs and initiatives

We have made it a priority to reduce our demand for energy and have established internal policies and practices focused on reducing energy use at all our sites, and minimizing GHG generation throughout the company. By taking these steps, we are not only minimizing GHG emissions, but also reducing our operating costs and mitigating the business impacts expected to be associated with future climate change requirements.

Energy-efficiency and demand-reduction projects will continue to contribute to lowering our energy consumption and reducing our direct GHG emissions. In addition, we will continue to optimize systems, consolidate excess facility space when possible, shift power supplies to combined heat and power systems and utilize renewable energy sources.

Our company has launched initiatives around the world to improve energy use, reduce GHG emissions from our operations and understand our supply chain-related impacts.

Our Energy CoE identifies, shares and standardizes best practices, and prioritizes the funding of energy projects to reduce energy use across the company. Our manufacturing facilities, warehouses, laboratories, major offices and vehicle fleet are the primary targets of our energy-demand-reduction programs, as they represent the majority of our energy consumption.

We have an established Energy Capital Fund of up to $12 million per year in order to transition to more energy-efficient technology and to better position the company to respond to energy demands in the future. The Energy Capital Fund supports the implementation of projects with a simple four-year payback averaged over the entire portfolio.

  • Since 2015, our sites have completed more than 70 projects through the Capital Fund. This has saved over $6 million per year, averaging a payback of only three years and avoiding the production of 23,000 metric tons of carbon per year.
  • In 2019, we allocated approximately $6.4 million to energy projects. The completed projects will result in $2 million in annual savings and a reduction of more than 12,000 metric tons of carbon dioxide from our facilities.
  • For 2020, we have over 60 projects in progress, that when completed will reduce carbon dioxide emissions from our facilities by over 36,000 metric tons

Facilities

We continuously strive to make our facilities energy-efficient. Our Energy CoE has created an “energy road map” to help our facilities reduce energy demand and associated GHG emissions. The energy road map’s foundation includes large-scale metering and monitoring to assess and identify opportunities for continuous improvement. As facility energy management programs mature, energy savings are sought by improving the reliability of the equipment, by the efficient operation of utility systems and by building efficiencies into systems design.

All our new facilities are required to comply with our Energy Design Guide and Energy Conservation Planner. If we purchase a facility, it is evaluated for energy efficiency and assessed against our energy scorecard as part of its integration into our company.

All new laboratories, offices and major renovations are built following cost-effective and energy-efficient practices and are designed to meet Leadership in Energy and Environmental Design (LEED) Silver certification at a minimum or the comparable country standard.

  • Our China Head Office is certified as LEED Gold
  • Our new South San Francisco, CA office was certified LEED Gold in 2020 and is pursuing WELL Building Standard (WELL) certification
  • An operations support facility at our facility in Durham, North Carolina is certified as LEED Silver
  • Our lab in Carlow, Ireland received both LEED Gold and Excellence in Energy Efficiency Design (EXEED) certification in 2019
  • Development Labs in both New Jersey and Pennsylvania are pursuing LEED Silver certification

We require our facilities to have a plan to manage their energy use.

  • Four sites in Ireland, three sites in Germany, one site in Spain and one site in the UK maintained their certification of ISO50001:2018 for energy management to comply with the EU Energy Efficiency Directive audit requirements; and a fourth German site transitioned successfully to the ISO certification
  • The EU Energy Efficiency Directive (EED) Phase Two compliance assessment was completed for all entities in the EU Region and all qualifying sites are undertaking energy audits to ensure compliance
  • Our Energy CoE has provided tools for facility managers to identify opportunities to reduce energy use and eliminate waste. These tools include facility-wide, three-day Energy Treasure Hunts, half-day utility-system assessments (Energy Kaizens), and online Energy Treasure Hunts, which allow for best-practice sharing.
  • All our employees have access to a training curriculum that allows them to learn more about energy management and energy systems. Through this program, employees can earn an Energy Manager Certification. Site energy managers from more than 70 of our facilities are expected to complete the basic energy efficiency training curriculum.

Work practices and recognition

Our company takes advantage of technological advances to save energy, time and money while also reducing emissions. The strategies we employ include:

  • Site energy use is tracked monthly by our Energy CoE through a centralized system. A global energy scorecard is issued monthly, and sites receive a letter grade based on an internal assessment of their energy intensity and performance. Our companywide average score has consistently been a top-level grade of “A-.”
  • A rollout of Energy Utility Analytics Technology for multiple sites that will enable continuous commissioning, energy efficiency improvements and reliability of assets
  • We developed an energy management strategy that seeks to achieve energy savings through continuous improvement, reliability, operations and design
  • A rail-travel option is included in our online business-travel booking tool to make it easier to travel by train when appropriate. Train travel has a smaller carbon footprint than traveling by either airplane or personal vehicle.

We worked with our three largest long-range freight carriers and even though the amount of material shipped by weight increased in 2019 vs. 2018, our transportation-related GHG emissions decreased by shifting away from air freight to ocean and overland ground freight whenever practical.

In 2019, our company awarded an “Energy Project of the Quarter” and showcased each project throughout our company in our quarterly “Eco Smart” newsletter. These projects were also featured in our internal sustainability communication sites. The winning projects included:

  • Overdelivered on energy reduction commitments at a site in the Netherlands, through a series of initiatives such as addressing lighting, better management and utilization of more efficient air handlers and insulation upgrades
  • Acknowledgement of the start-up of our first large scale Virtual Power Purchase Agreement (VPPA) facility in Texas
  • The startup of a new quality lab and certification as LEED Gold and EXEED at a site in Ireland
  • Started the “Green by Choice” program at a site in the Netherlands to create a hands-on culture in areas of energy, water and waste reductions

Renewable energy

Our company has set bold renewable energy targets. We have committed to sourcing 100 percent of our purchased electricity from renewable energy sources by 2040, with an interim goal of 50 percent by 2025.1 Photovoltaic arrays, wind turbines and other renewable-energy installations avoid emissions, help reduce energy-demand peaks and postpone or preclude adding new power plants.

We continually analyze our sites to look for opportunities for new onsite installations, power-purchase contracts, vendor-supplied renewable energy through the electrical grid and VPPA projects.

Several sites have incorporated renewable energy installations over the past several years. In 2019, sites in Italy, Germany and South Africa installed new solar arrays or expanded their on-site solar capacity. In September 2019, one of our manufacturing sites in Virginia signed an agreement to utilize renewables for 100 percent of their purchased electricity.

In January 2018, our company signed a VPPA with Invenergy Wind Development LLC that adds 60 megawatts (MW) of renewable energy to the Electric Reliability Council of Texas (ERCOT) market and provides us with the associated renewable energy credits. This new wind asset, Santa Rita East, will reduce our company’s greenhouse gas emissions by more than 100,000 metric tons per year over the life of the 12-year agreement. This agreement will help us reach approximately 50 percent of our 2025 goal and 25 percent of our 2040 goal. The Santa Rita East wind farm came on-line in July 2019.

Vehicle fleet

Approximately nine percent of our total Scope 1 and 2 GHG emissions are associated with our vehicle fleet. We calculate our fleet’s GHG emissions based on estimated fuel economy and actual total miles driven.

  • In an ongoing effort to improve fuel efficiency, we have converted our U.S. sales fleet from cars with six-cylinder engines to cars with four-cylinder engines, replaced eight-cylinder-engine trucks with six-cylinder-engine trucks, and introduced an all-wheel-drive (AWD) sedan option to replace AWD sport utility vehicles. This has resulted in fuel efficiency improvements from an average of 22 miles per gallon (mpg) in 2008 to an average of 27 mpg in 2019.
  • 40 percent of the U.S. fleet are now partial zero emission vehicles (PZEV)
  • Our European fleet continued to convert to the use of more fuel-efficient vehicles and we conducted a plug-in hybrid pilot in the UK
  • Over 50 percent of the vehicles being utilized in Japan are hybrids and we are looking to expand their use in other Asia/Pacific markets where the infrastructure is supported to “charge” the vehicles
  • In 2019 in Mexico, we have implemented three-cylinder vehicles until hybrids become more available. Our fleet in Mexico consists of 17 percent three-cylinder vehicles and five percent hybrids.

Communication

In 2019, we stepped up our efforts to communicate both internally and externally about the success of our energy and GHG reduction programs including important lessons learned from our journey.

  • We increased internal messaging and consolidated it with the larger sustainability community to increase our visibility
  • We presented the story of our journey and best practices in several university settings
  • We were the keynote speaker at the “Smart Energy Decisions 2019 Innovation Summit”

Partnership spotlight

We have a 25-year partnership with the U.S. Environmental Protection Agency’s (EPA’s) ENERGY STAR® program. This partnership provides a broad energy-management strategy that serves as a useful framework for measuring our current energy performance, setting goals, tracking savings, rewarding improvements and communicating our successes.

Our climate and energy strategy aligns with the United Nations Sustainable Development Goals (UN SDGs) by striving to increase our use of renewable electricity sources, making energy efficiency improvements and supporting science-based reductions of our greenhouse gas (GHG) emissions.

1We have defined “purchased electricity” as electricity sourced from external suppliers as well as renewable electricity that was generated and utilized onsite where we retained the renewable attributes or where we have obtained renewable attributes through contract.

Performance data

Energy use summary20152016201720182019
Total energy use (GJ)21,303,60020,936,40019,370,30019,258,50018,577,900
Scope 1 and location-based Scope 2 energy use (% of total)120152016201720182019
Natural gas (Scope 1)60%61%59%62%62%
Fleet fuel (Scope 1)11%12%12%10%9%
Fuel oil (Scope 1)2%2%2%2%2%
Spent solvents (Scope 1)0.1%0.1%0.0%0.0%0.0%
Coal (Scope 1)0.0%0.0%0.0%0.0%0.0%
Bio-fuel (Scope 1)0.3%0.4%0.6%0.6%0.6%
Purchased steam (Scope 2)3%2%3%3%3%
Purchased electricity (Scope 2)2, 324%23%23%23%24%
Renewable energy generated and used onsite40.01%0.04%0.04%0.05%0.05%
1 May not add to 100 percent due to rounding.
2 Reported using Scope 2 location-based value in accordance with the Greenhouse Gas Protocol.
3 Includes solar, wind and other renewables generated onsite where renewable energy credits (RECs) have been sold.
4 Includes solar, wind and other renewables generated onsite where renewable energy credits or guarantees of origin have been retained or retired.
Scope 1 and market-based Scope 2 energy use (% of total)120152016201720182019
Natural gas (Scope 1)60%61%59%62%62%
Fleet fuel (Scope 1)11%12%12%10%9%
Fuel oil (Scope 1)2%2%2%2%2%
Bio-fuel (Scope 1)0.3%0.4%0.6%0.6%0.6%
Spent solvents (Scope 1)0.1%0.1%0.0%0.0%0.0%
Coal (Scope 1)0.0%0.0%0.0%0.0%0.0%
Purchased steam (Scope 2)3%2%3%3%3%
Purchased electricity (Scope 2)2, 324%23%22%20%18%
Renewable energy generated and used onsite or purchased40.01%0.3%1.1%3.1%6.1%
1 May not add to 100 percent due to rounding.
2 Reported using Scope 2 location-based value in accordance with the Greenhouse Gas Protocol.
3 Includes solar, wind and other renewables generated onsite where renewable energy credits (RECs) have been sold.
4 Includes solar, wind and other renewables generated onsite where renewable energy credits or guarantees of origin have been retained or retired.
GHG summary1 (MT CO2e)20152016201720182019
Scope 1 and location-based Scope 2 greenhouse gas emissions1,416,9001,365,0001,258,9001,225,6001,168,900
Scope 1 and market-based Scope 2 greenhouse gas emissions1,459,0001,401,7001,274,5001,191,1001,072,000
Scope 3 greenhouse gas emissions5,586,3007,975,1006,586,1006,239,8006,965,600
1 In accordance with the Greenhouse Gas Protocol, prior-year data have been adjusted to add or remove facilities that have been acquired or sold. Adjustments also reflect changes in methodology to ensure consistency from year to year.
Scope 3 greenhouse gas (GHG) details (MT CO2e)20152016201720182019
Purchased goods and services13,864,9006,204,0004,997,6004,595,6005,155,100
Capital goods1112,700224,000192,900229,200339,900
GHG emissions from fuel and energy-related activities not included in Scopes 1 and 22, 3276,200304,500262,100243,400240,700
Upstream transportation and distribution1222,200255,500267,100274,100271,200
Waste generated in operations (excluding recycled and composted waste)4, 520,60016,80016,00018,20019,500
GHG emissions related to employee business travel6, 7283,300265,400218,200301,100340,400
Employee commuting 302,400301,500262,200264,400272,000
Downstream transportation and distribution8211,000118,000121,900120,800133,200
GHG emissions from use of sold products9255,000248,400205,800148,100142,100
End-of-life treatment of sold products1038,00037,00042,20044,90051,500
Total5,586,3007,975,1006,586,1006,239,8006,965,600
Note: Limited Data Assurance was granted for emissions calculated from primary travel vendor data and employee reimbursable travel mileage data. The total reported here includes non-primary travel vendor data emissions which were based on our 2019 third-party spend data and an Economic Input-Output Model performed by Climate Earth, Inc.
NA: Not Available.
1 Based on third-party spend data and an economic input-output model performed by Climate Earth, Inc.
2 Emission factors from Argonne National Laboratory's GREET Model (https://greet.es.anl.gov/) were used in conjunction with primary fuel and energy-use data.
3 Data as reported historically, not baseline adjusted.
4 Primary-waste data were used with the U.S. EPA’s WARM Model (https://www.epa.gov/warm).
5 Including recycled and composted waste in these calculations, would result in negative emissions in), 2015 (-40,200 MT CO2e), 2016 (-60,200 MT CO2e), 2017 (-41,200 MT CO2e), 2018 (-43,700 MT CO2e) and 2019 (-62,400).
6 Based on primary travel vendor data, employee-reimbursable mileage and UK Defra factors (https://www.gov.uk/government/collections/government-conversion-factors-for-company-reporting#conversion-factors-2015).
7 Emissions are based on primary vendor data where available and economic input-output modelling performed by Climate Earth, Inc., using spend data.
8 Emissions were calculated using our “Upstream transportation and distribution” spend data as a worst-case estimate entered into the WRI Quantis tool. We assumed that all “downstream” material would first have been stored, transported and handled “upstream.”
9 Assumes that all HFC-containing devices shipped for sale were consumed. The amount and identity of HFC in each product is calculated and multiplied by the appropriate global warming potential (GWP) to determine the CO2e released as a result of product use.
10 Calculated assuming that all primary, secondary and tertiary packaging purchased was disposed of by our customers. Packaging material data was used with the U.S. EPA’s WARM Model."

We report our GHG emissions as required by regulations in certain countries and annually through CDP. In 2019, the CDP graded our disclosure as a “B” or a rating of “management”, indicating that we are “taking coordinated action on climate issues.” “This is higher than the North America regional average of C, and same as the Biotech & pharma sector average of B.”

We have committed to reducing our Scope 1 and market-based Scope 2 absolute GHG emissions by 40 percent between 2015 and 2025. This goal is designed to meet the science-based criteria to limit the global temperature increase to below 2°C.

The World Resource Institute’s Greenhouse Gas Protocol defines Scope 1 GHG emissions as emissions from owned or controlled sources such as onsite fuel combustion and fleet vehicles. Scope 2 emissions are those from indirect sources such as purchased electricity. Scope 3 includes indirect emissions in a company’s value chain.

From 2018 to 2019, we reduced our year-over-year Scope 1 and Scope 2 market-based GHG emissions by 10 percent due to our continued focus on energy efficiency and an increased utilization of renewable energy.

We have analyzed and reported our Scope 3 impacts using primary operating data, accepted emission factors, and an economic input-output model based on our third-party spend. In 2019, our Scope 3 GHG emissions remained roughly the same as in 2018.

Our analysis shows that our Scope 3 GHG emissions impacts are nearly three times greater than our combined Scope 1 and Scope 2 emissions. We are working to reduce those impacts through activities such as reducing waste in our operations, reducing fuel use and looking for opportunities to shift from air shipping to ocean transport when practical. We are also starting to engage with our strategic suppliers to identify ways to reduce GHG emissions in our supply chain. These actions not only reduce our environmental impact but benefit the business by reducing costs.

In March 2020, the U.S. EPA again recognized our company with our 13th consecutive Sustained Excellence Award. This is also the 15th consecutive year in which we have been recognized by ENERGY STAR for excellence in energy management.

In 2019, our company continued to successfully use ENERGY STAR benchmarking tools such as the ENERGY STAR Portfolio Manager to obtain the ENERGY STAR Certified Building label for four buildings including:

  • A data center in New Jersey that obtained a perfect score of 100
  • A research office in Pennsylvania for the 9th consecutive year
  • Two office buildings in Pennsylvania for the 2nd consecutive year

Our Puerto Rico facility was awarded the ENERGY STAR Pharma Energy Performance Indicator (EPI) for superior energy efficiency and environmental performance among U.S. pharmaceutical manufacturing plants for the 11th consecutive year.