Takeda teams with GSK, other drugmakers to help cut supplier emissions

Farma Darya

TOKYO — Japan’s Takeda Pharmaceutical, America’s Pfizer, British-Swedish multinational AstraZeneca and seven other big drugmakers plan to jointly support reducing the greenhouse gas emissions of their suppliers in an attempt to join the global trend toward decarbonization, Nikkei has learned.

U.K.-based GSK, the U.S.’s Johnson & Johnson and Swiss giant Novartis will also participate.

The initiative will use a common system developed by French industrial group Schneider Electric.

More than 1,000 companies, including manufacturers of active pharmaceutical ingredients, have expressed interest in this initiative. The 10 pharmaceutical majors have started to explain their intentions to their suppliers and will gradually put the system into operation.

Pharmaceutical companies often share the same suppliers, so using a single system will keep suppliers from having to fill out different forms for each pharmaceutical major.

Schneider also works with companies across industries to offer a software solution that collects data through sensors installed in factories and transaction slips. The software can be used to monitor the amount of electricity being used, water consumption, and waste volume. It can also analyze the figures and convert the inputs into greenhouse gas emissions.

Institutional investors and other parties are demanding corporate disclosures so they can monitor decarbonization efforts. Global pharmaceutical majors are leading other industries in multilateral collaboration.

Although the pharmaceutical industry accounts for less than 1% of Japan’s total carbon dioxide emissions, it is significant for global competitors to collaborate with one another.

Parts of the auto industry are also moving toward a joint solution to assessing supply chain emissions. Here, German automakers BMW Group and Mercedes-Benz Group have taken the collaboration route.

The pharmaceutical companies’ case appears to be the first instance of multinational cooperation.

It is difficult for a big manufacturer or brand to measure the greenhouse gas emissions coming from all of its supply chains. But it is becoming imperative that companies gain an understanding of these scope 3 emissions, as they are known. Financial authorities of important economies are strong-arming companies to comply with the Task Force on Climate-related Financial Disclosures. This is in addition to the pressure coming from institutional investors.

The pharmaceutical industry could come under renewed pressure should their greenhouse gas emissions go on an upswing as emerging countries with expanding populations clamor for their products. Infectious diseases are also creating demand for pharmaceutical remedies.

The 10 majors intend to invite other parties to join them in finding ways to account for emissions.


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