Schneider Electric Leads Decarbonization with Energize Program: Renewable Energy for Healthcare Supply Chain
Schneider Electric, a leader in the digital transformation of energy management and automation, has announced significant advancements in the Energize supply chain decarbonization initiative. The program’s inaugural buyers’ cohort comprises eight companies that will procure renewable energy from seven new solar projects in Spain, developed by two different firms.
Healthcare systems contribute to nearly 5% of global emissions, with a significant portion classified as Scope 3 emissions. The Energize program seeks to tackle both current and future climate challenges and their effects on public health by promoting decarbonization across the global supply chain.
Three sponsors of the Energize initiative—Takeda Pharmaceuticals International AG, Teva Pharmaceutical Industries, and UCB—have teamed up with suppliers Avantor, Organon LLC, Perrigo, and West Pharmaceutical Services Inc. to facilitate an aggregated purchase of 305 GWh of renewable energy from Zelestra. Furthermore, Takeda, Teva Pharmaceuticals, Labcorp, and West Pharmaceutical Services secured an additional 258.7 GWh from Bruc.
Overall, the eight participating companies have signed 27 power purchase agreements (PPAs) for a total of 563.7 GWh of renewable energy per year over a decade. This initiative is projected to prevent approximately 393,795 metric tons of CO2 emissions annually, which is equivalent to the yearly energy consumption of about 51,355 households. The combined investment will help fund three new solar projects by Zelestra and four by Bruc in Spain, with a total capacity exceeding 280 MW.
This multi-buyer PPA illustrates the Energize program's goal of enhancing access to renewable energy for the pharmaceutical and healthcare sectors while reducing the industry's overall environmental footprint. Since its establishment in 2021, the program has educated and supported over 750 suppliers in renewable energy procurement. Additionally, five new sponsors—Almirall, Bayer, Kenvue, Sandoz, and Schott—joined the initiative this year, bringing the total number of sponsoring companies to 24, who have committed to the program until 2028.
Amalia Adler Waxman, Head of Sustainability at Teva Pharmaceuticals, remarked, “Through our participation in this virtual Power Purchase Agreement, we are demonstrating our leadership and commitment to renewable energy, not just within our industry but as an active participant in initiatives like Energize. By meeting most of our electricity demands in Europe and nearly half worldwide, we aim to set a benchmark for responsible energy usage and strive towards our long-term net-zero emissions goal.”
Rachel Kaufman, Vice President of Sustainability for Avantor, stated, “The Energize Program plays a vital role in Avantor’s climate action strategy, allowing us to significantly increase our renewable electricity portfolio. As a key partner to the pharmaceutical sector, we are proud to support their efforts in decarbonizing supply chain emissions.”
Thomas Wozniewski, global manufacturing and supply officer at Takeda, emphasized the importance of planetary health for patient health: “We must do everything possible to minimize the environmental impact of our operations and supply chain. This program will be crucial in helping us achieve net-zero greenhouse gas emissions in our value chain by 2040.”
UCB’s Chief Procurement Officer, Katiana Iavarone, noted the need for collective action in addressing the climate crisis: “At UCB, we are dedicated to fostering the ecological transition through renewable energy. By forming essential partnerships like the Energize program, we aim to achieve substantial decarbonization and extend our impact beyond what we can accomplish individually. Together, we are creating a more sustainable future.”
Lisa Martin, Chief Procurement Officer at GSK, expressed enthusiasm for the announcement of the first Energize deal: “This marks a significant milestone in our collaboration’s journey. As co-founders of Energize in 2021, this program is key to our goal of reducing value chain emissions by 80% from 2020 to 2030. This new solar energy agreement, involving four of GSK’s European suppliers, underscores our collective commitment to decarbonization and supporting the industry’s shift to renewable energy.”
Throughout the PPA procurement and negotiation process, Schneider Electric’s Sustainability Business acted as an advisor to the eight participating companies. The Sustainability Business will continue to manage the Energize program, collaborating with sponsors and the Pharmaceutical Supply Chain Initiative (PSCI) to enhance access to innovative renewable electricity procurement solutions.
Healthcare systems contribute to nearly 5% of global emissions, with a significant portion classified as Scope 3 emissions. The Energize program seeks to tackle both current and future climate challenges and their effects on public health by promoting decarbonization across the global supply chain.
Three sponsors of the Energize initiative—Takeda Pharmaceuticals International AG, Teva Pharmaceutical Industries, and UCB—have teamed up with suppliers Avantor, Organon LLC, Perrigo, and West Pharmaceutical Services Inc. to facilitate an aggregated purchase of 305 GWh of renewable energy from Zelestra. Furthermore, Takeda, Teva Pharmaceuticals, Labcorp, and West Pharmaceutical Services secured an additional 258.7 GWh from Bruc.
Overall, the eight participating companies have signed 27 power purchase agreements (PPAs) for a total of 563.7 GWh of renewable energy per year over a decade. This initiative is projected to prevent approximately 393,795 metric tons of CO2 emissions annually, which is equivalent to the yearly energy consumption of about 51,355 households. The combined investment will help fund three new solar projects by Zelestra and four by Bruc in Spain, with a total capacity exceeding 280 MW.
This multi-buyer PPA illustrates the Energize program's goal of enhancing access to renewable energy for the pharmaceutical and healthcare sectors while reducing the industry's overall environmental footprint. Since its establishment in 2021, the program has educated and supported over 750 suppliers in renewable energy procurement. Additionally, five new sponsors—Almirall, Bayer, Kenvue, Sandoz, and Schott—joined the initiative this year, bringing the total number of sponsoring companies to 24, who have committed to the program until 2028.
Amalia Adler Waxman, Head of Sustainability at Teva Pharmaceuticals, remarked, “Through our participation in this virtual Power Purchase Agreement, we are demonstrating our leadership and commitment to renewable energy, not just within our industry but as an active participant in initiatives like Energize. By meeting most of our electricity demands in Europe and nearly half worldwide, we aim to set a benchmark for responsible energy usage and strive towards our long-term net-zero emissions goal.”
Rachel Kaufman, Vice President of Sustainability for Avantor, stated, “The Energize Program plays a vital role in Avantor’s climate action strategy, allowing us to significantly increase our renewable electricity portfolio. As a key partner to the pharmaceutical sector, we are proud to support their efforts in decarbonizing supply chain emissions.”
Thomas Wozniewski, global manufacturing and supply officer at Takeda, emphasized the importance of planetary health for patient health: “We must do everything possible to minimize the environmental impact of our operations and supply chain. This program will be crucial in helping us achieve net-zero greenhouse gas emissions in our value chain by 2040.”
UCB’s Chief Procurement Officer, Katiana Iavarone, noted the need for collective action in addressing the climate crisis: “At UCB, we are dedicated to fostering the ecological transition through renewable energy. By forming essential partnerships like the Energize program, we aim to achieve substantial decarbonization and extend our impact beyond what we can accomplish individually. Together, we are creating a more sustainable future.”
Lisa Martin, Chief Procurement Officer at GSK, expressed enthusiasm for the announcement of the first Energize deal: “This marks a significant milestone in our collaboration’s journey. As co-founders of Energize in 2021, this program is key to our goal of reducing value chain emissions by 80% from 2020 to 2030. This new solar energy agreement, involving four of GSK’s European suppliers, underscores our collective commitment to decarbonization and supporting the industry’s shift to renewable energy.”
Throughout the PPA procurement and negotiation process, Schneider Electric’s Sustainability Business acted as an advisor to the eight participating companies. The Sustainability Business will continue to manage the Energize program, collaborating with sponsors and the Pharmaceutical Supply Chain Initiative (PSCI) to enhance access to innovative renewable electricity procurement solutions.
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