We were one of the first Danish companies to have its CO2 reduction target approved by the Science Based Target initiative, a collaboration between the Carbon Disclosure Project (CDP), UN Global Compact (UNGC), World Resources Institute (WRI) and World Wide Fund for Nature (WWF). Read more about the Science Based Target Initiative.
2022 is the 8th consecutive year of achieving a Climate Disclosure Project (CDP) Leadership where Lundbeck scored “A” score and is placed amongst the 288 best-scored companies globally out of almost 15,000 responding companies. The CDP rates the disclosure and management or organizations towards climate change risk. Thus, for more than a decade, we have consistently reported annual reduction in both energy consumption and CO2 emissions.
Up to date, we have reduced emissions from our sites by 23% compared to our target baseline in 2019.
Despite our achievements, we still have a long way to go and the next decade is critical. In 2019, we joined the global movement “Business for 1.5°C” of leading companies aligning their business actions with the most ambitious aim of the Paris Agreement.
We have achieved excellent results within our direct emissions (Scope 1) and purchase of electricity and heat (Scope 2). However, around 80% of our total CO₂ emissions are derived from our value chain (Scope 3). This includes where the goods and services we need are produced, the distribution of our products to patients, when our employees travel, and how our waste is treated.
Our current CO₂ targets for the period 2019 – 2034 are to:
Additionally we have an overarching ambition of achieving net zero emissions no later than 2050. In 2022, we developed a transition plan that shows us the emission reduction action plan and milestones. Any residual GHG emissions that cannot be eliminated by reducing emissions must be neutralized by carbon removals.
Historically, we have demonstrated our commitment to cut carbon emissions. A main part of the reduction comes from optimization of existing buildings, plants and installations, as well as investments in new low-energy machines and plants. Lundbeck has also made a shift from conventional fuel to bio-fuel.
In parallel, we are accelerating the transition to renewable energy in our manufacturing and headquarter facilities. The main elements are changing our energy sources to renewable electricity or other renewable fuels, primarily using Power Purchasing Agreements (PPA). A new solar park built following an agreement between Lundbeck and the energy provider Better Energy provide our two Danish sites with renewable electricity. We are exploring similar solutions for our electricity consumption in Europe.
Source: 2019 baseline carbon footprint calculation by Lundbeck with assistance from Carbon Trust.
Site power & heat and Fleet roughly corresponds to our Scope 1 & 2, illustrated with the gray orbs.
The carbon footprint we leave outside our fence is approximately nine times as high as inside the fence. We take responsibility for this by addressing carbon emissions across our entire value chain – from operations and products to raw material production, clinical trials, distribution and end-of-life.
Knowing where to prioritize is critical and we are using our influence to drive action e.g. by motivating and requesting suppliers to take climate action.
In 2022, the implementation process of our new Global travel policy began, covering an area that had previously been managed locally. The new policy sets out the key principles for business travel in Lundbeck’s global organization considering our climate commitment. The policy will be implemented by promoting climate awareness among employees, setting targets for all Executive Vice Presidents, monitoring emissions and putting effective controls in place.
The financial sector and investors increasingly ask companies to disclose their climate-related risks and opportunities. Lundbeck supports the TCFD recommendations and believes they provide a useful framework to increase transparency on climate-related risks and opportunities within financial markets. As part of our support for the TCFD recommendations, Lundbeck comprehensively reports on governance, strategy, business opportunities, and risks related to climate change through the Climate Disclosure Project (CDP).
With our own manufacturing processes, we obtain several sustainable opportunities
How we engage suppliers and third parties when providing treatments to patients
We offer our employees a sound physical and mental work environment.