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).
We have been acknowledged several times by the CDP, which rates the disclosure and management of organizations towards climate change risk. For more than a decade, we have consistently reported annual reductions in both energy consumption and CO2 emissions.
Today, we use 32% less energy and emit 70% less CO2 than in 2006.
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.
Our current CO2 target is a 70% reduction by 2035 compared to 2016. We have achieved excellent results within our direct emissions (Scope 1) and purchase of electricity and heat (Scope 2). However, more than 90% 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 target is to:
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. The carbon footprint we leave outside our fence is approximately nine times as high as inside the fence. With our new climate target, we take responsibility for by addressing carbon emissions across our entire value chain – from operations and products to raw material production, clinical trials, distribution and end-of-life.
In parallel, we are accelerating the transition to renewable energy in our manufacturing and headquarter facilities. In 2020 we signed a Power Purchase Agreement (PPA) with a solar plant developer. The agreement covers our entire electricity consumption for operations located in Denmark for the next seven years.
Knowing where to prioritize is critical and we are using our influence across the value chain to drive action. We are acting quickly to obtain the Science Based Target initiative approval of our reductions across all three scopes. Read more about the Science Based Target Initiative.
We are making it a priority to expand our scope of action to reduce CO2 emissions within our value chain. In parallel, we are accelerating the transition to renewable energy in our manufacturing and headquarter facilities. These flagship actions are supplemented by the continuous enhancements of our facilities and business processes our skilled engineers, technicians and planners conduct.
The financial sector and investors increasingly ask companies to disclose their climate-related risks and opportunities. We will continue to develop our communication and ongoing reporting to enhance our transparency in line with the recommendations from the Task Force on Climate-related Financial Disclosures (TCFD).
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.