How Is Novo Nordisk Cutting Its Scope 3 Emissions?

Danish pharmaceutical firm Novo Nordisk has launched a new environmental sustainability programme aimed at its extensive network of suppliers, manufacturers and contractors. The initiative is a core component of its strategy to meet climate and nature objectives by 2045.

The programme, named 'Suppliers for Zero', is a direct response. Approximately 95% of Novo Nordisk's total environmental impact is generated from Scope 3 emissions, which are those that occur outside a company's immediate operational control.

Dorethe Nielsen, Vice President at Novo Nordisk, says: "With more than 95% of our environmental impact coming from our supply chain, working closely with our suppliers and CMOs is essential."

Tackling scope 3 emissions through collaboration

The 'Suppliers for Zero' programme is structured around three core environmental pillars: climate action that includes greenhouse gas emissions and energy consumption, nature protection covering land use and water management and plastic reduction with a focus on material circularity and packaging.

Instead of enforcing a rigid set of requirements across its entire supply base, Novo Nordisk is fostering a collaborative environment.

The programme is designed to engage with partners that are ready and willing to align with Novo Nordisk's environmental goals.

As a baseline, all suppliers and contract manufacturing organisations (CMOs) are required to adhere to the company's Responsible Sourcing Standard and utilise renewable electricity for the goods and services they provide to Novo Nordisk.

Further sustainability initiatives will be developed through direct engagement with individual suppliers.

Sustainable progress in the value chain

Novo Nordisk has already made measurable progress in certain areas of its supply chain.

Since 2021, the use of lower-carbon fuels within the Maersk shipping network has led to a reduction in CO₂ emissions of up to 84% on a well-to-wake basis for Novo Nordisk's distribution when compared to conventional fossil fuels.

Novo Nordisk is also exploring the use of fossil-free alternatives for its products. In partnership with the LEGO Group and European Energy, Novo Nordisk is investigating materials such as e-methanol produced via Power-to-X technology.

This innovation could potentially replace conventional plastic in medical devices, including insulin pens. In the agricultural sector, Novo Nordisk has started to source glucose derived from regenerative farming practices, which can help mitigate land degradation.

Novo Nordisk has secured initial contracts with suppliers that cover over 10% of its glucose supply to source all its glucose from regenerative agriculture by 2033. This move could reduce greenhouse gas emissions and water pollution while enhancing soil health and biodiversity.

A standardised framework for industry-wide change

The 'Suppliers for Zero' programme is positioned within a framework of wider industry collaborations that promote standardisation and provide supplier training.

"Years of collaboration with like-minded partners have gotten us far, but we want to take the collaboration across our entire value chain even further," says Dorethe.

She adds: "Let's face it: we get nowhere alone".

Novo Nordisk is an active member of three key supplier initiatives, including Energize, which aids pharmaceutical suppliers in accessing renewable energy, the Pharmaceutical Supply Chain Initiative and the Sustainable Markets Initiative.

Novo Nordisk acknowledges that its suppliers have varying levels of maturity in their environmental practices.

In a statement, Novo Nordisk says: "We acknowledge that fulfilling our expectations will be a journey – some suppliers and CMOs have made good progress, while others are just beginning".

Despite this, all suppliers and CMOs are expected to show progress on the outlined priorities to help Novo Nordisk meet its interim targets for 2033.

The details of the programme have been shared through an Environmental Guide for Suppliers and CMOs, with implementation managed by local procurement and category managers.

"Building on our Circular for Zero strategy, Suppliers for Zero aims to support the dialogue on our key environmental challenges with suppliers and CMOs and is a necessary tool in executing on our environmental roadmaps," says Dorethe.