Tackling Pharma Supply Chain Emissions: EcoVadis & Schneider

EcoVadis's Responsible Health Initiative (RHI) has confirmed a new collaboration with the Energize programme, a scheme designed and delivered by SE Advisory Services, the global consulting practice of Schneider Electric.

The tie-up is intended to support the decarbonisation of pharmaceutical supply chains worldwide, giving suppliers access to training and guidance on climate action.

Scale of Scope 3 emissions

According to EcoVadis, Scope 3 emissions are 21 times larger than Scope 1 and Scope 2 combined for the average company.

The firm states that ignoring these emissions could cost companies more than US$500bn in annual liabilities by 2030.

Within the healthcare sector, only 6% of companies have a plan to shift towards low-carbon operations and supply chains, according to EcoVadis.

This gap could point to an opportunity for healthcare companies to develop emissions reduction plans and engage more directly in climate action.

Steve Wilhite, Executive Vice President at SE Advisory Services, writes on LinkedIn: "Supply chain decarbonisation is too complex for any one organisation to tackle alone. So we're celebrating a new milestone in our collaboration with EcoVadis.

"Suppliers participating in their Responsible Health Initiative can now join our Energize programme.

"Led by SE Advisory Services, the programme provides training for decarbonisation efforts across global pharmaceutical value chains.

"Bringing together healthcare leaders, suppliers and sustainability experts creates a powerful opportunity to address some of the most significant Scope 3 emissions challenges facing the industry.

"Collaboration remains one of the most effective ways to scale climate action."

How RHI supports suppliers

The Responsible Health Initiative was founded in 2018 by a group of healthcare, biotech and pharmaceutical companies aiming to advance sustainability across their value chains.

It gives industry leaders a channel to share best practices and processes, which could help build common understanding between companies on sustainability performance.

Members of the initiative work to strengthen supplier outreach and expand visibility of the wider health sector's supply chain sustainability performance.

The structure allows companies to engage directly with industry peers and with external stakeholders on shared sustainability goals.

Through the new collaboration, suppliers can build plans to transition towards renewable energy, according to EcoVadis.

The initiative also offers training and guidance intended to help suppliers build confidence with carbon management and sustainability reporting.

Fernanda Campos Helmeister, Supply Chain Decarbonisation Programme Manager at SE Advisory Services, says: "The Responsible Health Initiative's new collaboration with SE Advisory Services' Energize programme makes renewable energy adoption much more accessible across geographies, supporting decarbonisation efforts across the pharma and healthcare value chain as a whole."

Inside the Energize programme

The Energize programme brings together 27 global pharmaceutical companies working to engage hundreds of suppliers in climate action.

Its stated aim is to work towards decarbonisation of the pharmaceutical value chain over time.

Through the collaboration with RHI, suppliers can join the programme and gain access to education, digital tools and advisory services delivered by Schneider Electric's teams.

Sponsor companies within Energize include AstraZeneca, GSK, Haleon, Sanofi, Novo Nordisk, Johnson & Johnson and Novartis, among others.

Katiana Iavarone, Chief Procurement Officer at UCB, one of the companies involved in the programme, says: "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 programme, we strive to achieve significant decarbonisation outcomes and extend our impact beyond what we can achieve alone.

"Together, we're building a more sustainable future."